Key credit union bill passes in final hours
by. Henry Meier
Greetings from Saratoga Springs! The frenzy that characterizes the final hours of New York’s Legislative Session lived up to expectations again this year. In fact, the Senate is expected to reconvene this morning to pass some additional measures. Here’s a look at some of the key legislation that may impact your credit union’s operation. Remember that none of these bills have been signed by the Governor yet.
- A9408/S7112 Field of Membership Bill: This bill gives state chartered credit unions more flexibility in developing their fields of membership. For example, an employee-based credit union would be able to apply for permission to extend membership to persons who live in the community in which it operates. Similar legislation was vetoed last year by the Governor. This year’s bill was amended to address the Governor’s concerns. For example, any membership modifications are subject to the approval of the Department of Financial Services. I’m sure I’ll be telling you more about this bill in the months ahead.
- A9037-a/S6905-b Prize Linked Savings Program: This bill passed both Houses earlier this session and allows credit unions and banks to offer lotteries as an incentive to open savings accounts. The initiative has been successful in other states and, if it is approved by the Governor, may provide innovative ways of encouraging people to invest their lottery money rather than throw it away.
- A8106-c/S5885-b Modifications to the Wage-Theft Prevention Act: One of the most obnoxious mandates New York State has imposed on employers in recent years is the requirement that they provide employees with an annual written notice of their salary. In the closing hours of the Senate, common sense prevailed and a bill was passed eliminating the annual notice requirements. Great job by the Legislature for being willing to take a second look at one of its laws.