Protecting and preserving the credit union tax status will be the New York Credit Union Association’s top advocacy priority in 2020.
The Association’s advocacy agenda was put forth by the Association’s Governmental Affairs Committee based on responses to a membership-wide survey conducted earlier this year. The Association’s board of directors approved the agenda during their board meeting last week.
Although there has not been a direct threat to the credit union tax status in New York in recent years, several other states, most notably Iowa and Kansas, have had significant legislative battles over the credit union tax status. These efforts indicate the bank lobby is focusing on a state-by-state approach to taxing credit unions after decades of unsuccessful attempts at the federal level. The Association supports all efforts to ensure the credit union tax status is protected at both the federal and state level.
Other top priorities in 2020 include authorizing credit unions to accept public deposits and legislation that would require all entities handling consumer information to comply with comprehensive data security standards.
New York is currently in the minority of states that have not authorized credit unions to accept public deposits. Authorizing governments to deposit funds in credit unions will ensure taxpayer money is getting its best return.
Data breaches expose credit union members to fraud and identity theft and result in significant monetary costs and reputational damage to credit unions. Financial institutions are subject to strict data security standards under the Gramm-Leach-Bliley Act and New York’s recently-implemented cybersecurity regulations, but retailers face no such requirements. The Association advocates for legislation that would require all entities handling consumer information to comply with comprehensive data security standards and hold retailers accountable for the costs of data breaches if they fail to meet state cybersecurity standards.
The Association will also pursue and continue to work with the Legislature on:
- increasing the credit union role in economic development;
- establishing a State Financial Literacy Commission;
- securing the ability to participate in the Excelsior Linked Deposit Program;
- education on credit unions and the taxi medallion industry;
- supporting legislation to enact remote notarization; and
- ensuring credit unions can serve cannabis businesses in compliance with state laws.