This week in the Alabama Legislature, two pieces of legislation providing significant regulatory relief for state-chartered credit unions cleared their first hurdles by receiving favorable reports and being passed out of committee. SB 27 by Sen. Quinton Ross (D-AL) and HB 167 by Rep. Marcel Black (D-AL) seek to extend the exam cycle for state-chartered credit unions from 12 to 18 months.

As you are aware, the NCUA recently announced that they will be moving to an expanded risk-based examination schedule for federally chartered credit unions, and achieving parity for state charters was critical. Not only do we want all credit unions treated equally when it comes to examinations, but the ability for the Alabama Credit Union Administration to coordinate exams with the NCUA would be severely damaged if the schedule is not lengthened for state charters.

Both SB 27 and HB 167 are now in position to be voted on by the entire chamber of their respective bodies. We would like to thank Sen. Ross, Rep. Black, and all the members of the Senate Banking & Insurance Committee and House Financial Services Committee for their continued support of Alabama credit unions.