Kansas’ Field of Membership Legislation
At this point it looks like the new credit union field of membership legislation is going to become law. It will force BWCU and several other Kansas chartered credit unions to reduce our current field of membership. We will not know the full extent of this change until our regulator has time to interpret the new law and develop a process for transition. Thank you to all of our members that took the time to write, call or email their legislators and ask them to oppose Substitute for Senate Bill (SSB) 535.
This is an injurious mandate to place on credit unions especially in today’s economy. We are a pro-consumer industry but yet we are being forced to reduce our potential reach while predatory lenders and other financial institutions open outlets almost anywhere they please. Long-term, this restriction will hurt Kansans by limiting their ability to join a credit union. In the current business environment, everyone knows that standing still is the same as going backwards. In fact, this bill does not even permit several Kansas credit unions, including BWCU, to stand still. It will force us to reduce our potential reach.
The vote in the Senate was 35 in favor of the bill, three did not vote and two local Senators voted in favor of credit unions by opposing SSB 535. Senator Phil Journey (Haysville) did a tremendous job of raising many valid concerns about the new legislation while it was being debated on the Senate floor. He and Senator Mike Petersen (Wichita) were the only two that voted against SSB 535. We would ask you to support these two senators in their upcoming re-election bids especially if you live in either of their districts. They stood alone for credit unions. There were other Senators that said they would support us but in the end they did not.
The House later voted final action on SSB 535 by a vote of 115 Aye, 8 No. Five members explained the rationale for their vote. Those voting against the bill were Rep. Mike Burgess, Topeka, Rep. Nile Dillmore, Wichita, Rep. Mike Kiegerl, Olathe, Rep. Annie Kuether, Topeka, Rep. Judith Loganbill, Wichita, Rep. Ann Mah, Topeka, Rep. Sue Storm, Overland Park, Rep. Valdenia Winn, Kansas City.
The bill will now move to the Governor for her signature.
We will not know the full effects of this legislation for several months. Until then, be assured BWCU is more determined than ever to provide unsurpassed service and valuable products and services to all of our current and potential future members.
Gary Regoli
Chief Executive Officer
gregoli@bwcu.org
