ALBANY, N.Y.—New York Gov. Andrew Cuomo has signed into law legislation that will allow state-chartered credit unions to combine select employer groups, associational and community groups into a single field of membership.
The New York Credit Union Association, which called the legislation “historic,” said it had been working with the governor’s office, the Department of Financial Services (DFS) and top lawmakers in the state help draft and advance the legislation.
“The law marks the first time that stand-alone, pro-credit union legislation—beyond federal parity legislation—has been incorporated into the state credit union act,” the NYCUA said.
Under the law, state-chartered credit unions will now be allowed to apply for a membership field that includes community, association and occupation-based groups at the same time. Credit unions must still meet common-bond requirements, and the law does not create any new affiliation or membership categories. The DFS will still be responsible for approving field of membership expansion requests.
“New York has a long banking history and is largely considered a bankers’ stronghold. But this law shows significant progress, and it sends a strong message that New York supports and recognizes the economic and financial importance of state-chartered credit unions,” said NYCUA President/CEO William J. Mellin. “This law is a testament to many years of hard work and the positive relationships built between the association, the state’s credit unions and our elected officials.”
The legislation passed through the state Legislature in June for the second time in two years. In 2013, a previous version of the legislation was vetoed by Cuomo, who was concerned that the bill diluted the authority of the DFS. However, the new law contains clarifying language regarding the DFS’ authority, as well as language empowering the DFS to determine additional permissible investments for state-chartered credit unions. The NYCUA pushed for the new legislation in an effort to provide the state’s credit unions with a viable, healthy, attractive and competitive alternative to the federal charter.
The law takes effect March 16, 2015.