2008 Arizona State Legislature

The Arizona State Legislature convened on Monday, January 14, 2008 for the Second Regular Session of the Forty-Eighth Legislature.  State Lawmakers and the Governor will need to come together and focus if they are to achieve the difficult and daunting task of balancing the budget from a mounting state deficit.  Additionally, the much anticipated election year is upon us and with several state lawmakers running for statewide offices, there seems to already be a little extra buzz around the Capitol this session.  It is shaping up to be a very political and contested session.  It is going to be interesting.

For the Arizona Credit Union League, we have positioned ourselves to build upon our strong relationships with lawmakers and promote new programs.  Our main agenda this year shows us in a less aggressive and more defensive role.

Our 2008 goals include:

• Protect credit unions from legislation that could negatively impact credit unions.
• Educate lawmakers on the credit union difference.
• Support bills that would remove any unnecessary burden on credit unions.
• Promote the "REAL Solutions" credit unions are taking to help serve members.
• Keep credit unions visible at the Capitol.

Realizing Your Power at the State GAC

It's that exciting time of year again.  The 2008 State GAC is quickly approaching and we have an exciting agenda that you certainly don't want to miss.  This year's speakers will be touching on topics that are important to credit unions on both the local and national level.  We will hear from award-winning legislator, Representative Paul LaVota about what it takes to get politicians to hear your message.  It's going to be interesting and beneficial for everyone involved in advancing the credit union movement.  For more information on the agenda and this year's speakers click: Look Out for the Little Guy!

 

In November, two field coaches from the National Credit Union Foundation presented information on REAL Solutions (REAL: Relevant, Effective, Asset-building, Loyalty-producing Services) at a meeting in Phoenix.  Those coaches were Nancy Pierce, the former CEO of Mazuma Credit Union in Kansas City, MO and past chairman of CUNA and Bill Myers, past CEO of Alternatives FCU in Ithaca, NY. 

They clearly laid out the business reasons for reaching out to underserved, untapped or unbanked markets.  REAL Solutions is a national project designed to work with state Leagues and credit unions on the implementation of products, services and business models to effectively meet the financial needs of low-wealth households including families with low to moderate incomes, immigrants, unbanked and underserved consumers. 

As a result of the successful presentation, fourteen credit unions in Arizona have signed Memorandums of Understanding to participate in Arizona's REAL Solutions program.  Those credit unions are: AEA FCU, Altier Credit Union, American Southwest CU, Arizona Central CU, Arizona Federal CU, Bashas' Associates FCU, CPLC FCU, Credit Union West, First Credit Union, Pima FCU, Pyramid CU, Tempe Schools CU, Tucson Federal CU and Tucson Telco FCU.

Sandy Watts, ACUS director of community outreach and Bill Myers, REAL Solutions field coach will be on the road for two weeks in January, meeting with credit unions to complete a diagnostic profile, review existing products and see what new REAL Solutions programs they are interested in implementing.

A new and improved InfoSight will be provided by your Arizona Credit Union League to assist all of you in obtaining the latest compliance information and tools.  InfoSight is an online compliance manual complete with both federal and Arizona specific content to aid Arizona credit unions.  Look for further information in the upcoming months about the re-launch of this free, exciting, and easy to use database. 

Expansion of Family Medical Leave Act (FMLA) Stalls

Legal Arizona Workers Act Takes Effect

The controversial Legal Arizona Workers Act or Employer Sanctions Law as it is also known, became effective on January 1, 2007.  You should now be using the  E-Verify database in order to screen new employees.  Employers who knowingly hire unauthorized workers will be subject to various sanctions, including termination of the right to do business in the state of Arizona.  For additional details on this law, to report violations, or to sign up for the E-Verify system, please visit the Maricopa County Attorney's website.

Final FACT Act Rules issued by the NCUA and the FTC

The Fair and Accurate Credit Transactions Act, or FACT ACT was enacted in 2003.  Its primary goal is to assist consumers in fighting identify theft and controlling the marketing solicitations they receive. The National Credit Union Administration as well as the Federal Trade Commission issued two new rules affecting this Act, effective on January 1, 2008. 

The first rule, which does not become mandatory until October 1, 2008, governs information sharing among affiliated entities.  Under the final rule, three conditions must be satisfied before an entity may use consumer information for its marketing solicitations that it receives from an affiliate.  (1) There must be clear and conspicuous  notice that certain information obtained from affiliates may be used for marketing solicitations; (2) The consumer must be able to opt-out of receiving these solicitations; and (3) The consumer opts out. If you are interested in additional details about this rule, please click here.

The second rule, which becomes mandatory on November 1, 2008, takes the form of guidelines issued to assist financial institutions in identifying potential "red flag" practices or activities, which could signal risk for identity theft.  The guidelines are intended to help credit unions in developing a written identity theft program and also list various red flags to further assist credit unions. Additional details regarding these "red flags" as well as the Interagency Guidelines can be found at:

CUNA Analysis- Final Rule

Federal Register

2007 CULAC Fundraising  Goal Achieved!

What better time than the beginning of the Legislative session to start introducing the credit union community to your credit union friendly lawmakers?  Many of you have heard the name or at least recognize the name Representative Chad Campbell (D-14).  Representative Campbell serves on the Higher Education Committee as well as the Human Services Committee.  He will be one of three speakers at the upcoming State GAC.  You may have also seen his name multiple times in Scott Earl's weekly President's report for our attendance at his campaign fundraisers and for his involvement in the initiative to provide alternatives to payday lenders and the partnerships that we have formed as a result. 

Since promoting the REAL Solutions program is an important component to our legislative agenda this year, Representative Campbell just might be our most important ally at the Capitol.  Last year in 2007, he organized a working group comprised of community leaders, organizations, and elected officials to begin a dialogue in terms of the problems with traditional payday loans and potential alternatives.  According to Representative Campbell, "Our efforts made it obvious that Credit Unions offer these viable alternatives."   In 2008 he plans to build on his previous work and build up and expand partnerships where they are needed.  And in his own words, "It is my personal goal that by 2010, when payday loan laws sunset, every potential small dollar loan customer in Arizona knows about the Credit Union alternatives and how to access them."