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Legislative Advocacy

Your Credit Union, Your Voice, Your Impact
The Leagues' Government Affairs team works diligently in Sacramento, Carson City, and Washington, D.C. We promote credit unions' legislative agenda, review hundreds of bills each year, and provide credit union leaders with opportunities to meet with legislators. Please take part in these essential advocacy efforts. (Continue to meet the staff...)
Federal Government Affairs

California and Nevada's voice in Washington D.C. The Leagues are the only Leagues with a full time staff dedicated to working with Congress, Government Agencies, and Federal Regulators. The resources in this area will help you keep informed of the latest developments and credit union priorities.

State Advocacy

State Government Advocacy efforts brings the voice of credit unions to Sacramento and Carson City. Our advocacy team works daily with elected officials, staff, the executive offices, gubernatorial appointees, and the decision-makers of California and Nevada. This area will keep you updated on all advocacy efforts at the state level of Government.

From the Editors of CU Weekly

Sharon Lindeman, VP of Regulatory Advocacy for the California and Nevada Credit Union Leagues
updated 06/11/13 11:24 AM
Deadline is July 29
Your credit union's comments are needed regarding the National Credit Union Administration's (NCUA) proposed derivatives rule and the potentially precedent-setting use of fees associated with the derivatives program. Whether or not your credit union is eligible for derivatives authority under this proposed rule, it may still share the cost.

NCUA's Derivatives Proposal
The proposed rule would allow eligible credit unions limited authority to purchase simple derivatives, interest rate swaps and interest rate caps, as a hedge against interest rate risk (IRR).

The rule would apply to eligible federal credit unions and federally insured state-chartered credit unions that are permitted under state law to engage in derivatives, and that meet NCUA's criteria. California and Nevada credit unions may engage in derivatives if they receive authorization in writing from their commissioners (CA Financial Code 14653.5, Nevada NRS 678.460).

The proposal requires credit unions seeking derivatives authority to apply for one of two levels of authority and demonstrate how derivatives will be part of an overall IRR management plan. Level I and Level II authority differ on the permissible levels of transactions as well as the application, expertise, and systems requirements associated with operating a derivatives program.

Under the proposal, eligible credit unions include credit unions with a CAMEL rating of 1, 2, or 3, a management component of 1 or 2, and credit unions that have assets of at least $250 million. Credit unions seeking Level II authority must also show why the limits under Level I are insufficient to effectively mitigate interest rate risk under their plan.

Associated Fees
The NCUA is proposing application fees, as well as supervision or examination fees. This is the first time the NCUA has proposed charging credit unions fees in this manner, and some are concerned this might set a precedent for use of fees for other credit union activities the NCUA deems carries a higher level of risk.

The proposed rule calls for application fees for those credit unions that apply for derivatives authority. Level I application fees would start at $25,000, and Level II applications would range from $75,000 to $125,000.

In addition to application fees, the NCUA is considering whether their ongoing costs associated with the supervision of credit unions engaged in derivatives should be borne entirely by those credit unions or shared by all federally insured credit unions. In addressing this cost recovery, the NCUA asks you to consider whether all federally insured credit unions and the National Credit Union Share Insurance Fund (NCUSIF) indirectly benefit when credit unions that purchase derivatives successfully reduce potential losses and indirectly benefit from NCUA’s enhanced supervision of derivatives.

Your Comments Are Needed
The comment deadline is July 29, 2013. We encourage you to use PowerComment to access the Leagues’ summary of the proposed rule and other related documents, discuss the proposal with your peers, and submit your comment letter to the NCUA! Use PowerComment to let your voice be heard on this important issue!

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Grassroots Advocacy
Grassroots Advocacy efforts connects you to your government. Whether issues arise at the Federal or State level, you can be an advocate for your credit union by participating in our programs. Using traditional Grassroots tactics, the Leagues connects you to our cause.
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Talking Points
If your credit union would like talking points for an issue, such as member business lending (MBL) or supplemental capital, the Leagues' Consumer Advocacy Department can develop one to suit your particular needs. Please contact Public Affairs and Consumer Advocacy Specialist Tina Ramos-Ingold at tinar@ccul.org, or by phone at 909-212-6050.