Published by the New Jersey Credit Union League, www.njcul.org

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In this issue:

1. Spread the News: Fresh Educational Offerings Complement Existing Programs
2. Leaders Needed
3. Credit Union Movement’s Agenda for the 110th Congress
4. NJCUL Hikes-the-Hill
5. State Legislation Impacts FCUs Too
6. Paid Family Leave Advances in Trenton
7. NJ Lobbyist Registration & Reporting, Among Nation’s Strictest
8. NJ Credit Union Advisory Council
9. Credit Union House Supporters
10. Are You Connected?
11. Consider Organ Donation During April - National Organ and Tissue Donor Awareness Month
12. Boost Member Retention, Increase Fee Income With Auto and Homeowners Insurance
13. Keep Members Informed with EZ Mail
14. NJCUL’s Annual Leadership Conference - April 16-18, 2007
15. Save the Date: NJCUL’s 19th Annual Golf Outing
16. 73rd Annual Meeting & Convention - September 23-25, 2007
17. Join the Advertising Cooperative: We Need YOU!
18. Jobs, Jobs and More Jobs

Spread the News: Fresh Educational Offerings Complement Existing Programs
In February, the NJ Credit Union League held a Consumer Lending Fundamentals class in Hightstown, NJ that was attended by 14 people with favorable reviews! Two Compliance Roundtables were also held. Thank you to Proponent Federal Credit Union for hosting the Feb. 27th session and thank you to Bay Atlantic Federal Credit Union for hosting the session on Feb. 28th. Twenty-two people participated!

Current Educational Offerings:

Our first mini session, Decedent Accounts, is offered in the following locations:

• March 21, 2007 at the NJ Credit Union League in Hightstown, NJ
• March 28, 2007 at Proponent Federal Credit Union in Nutley, NJ
• April 4, 2007 at Campbell Community Federal Credit Union in Cherry Hill, NJ

Have you signed up yet? These classes are filling up quickly!

HR and Lending professionals: It’s not too late to sign up for a Roundtable!

• Lending Roundtable: March 20, 2007 at Fort Billings FCU in Paulsboro, NJ
• Lending Roundtable: March 22, 2007 at North Jersey FCU in Totowa, NJ
• HR Roundtable: March 27, 2007 at the NJ Credit Union League in Hightstown, NJ
• HR Roundtable: March 29, 2007 at Novartis FCU in East Hanover, NJ

Roundtables are a great way to gain education and valuable information by networking with other professionals like you!

What to look forward to in April:

• The NJ Credit Union League will hold Consumer Lending Fundamentals II on April 11, 2007 in Hightstown, NJ.
• Our second mini-session, Reading Credit Reports will be offered in the following locations:
  • April 24, 2007 at the NJ Credit Union League in Hightstown, NJ
  • April 25, 2007 at Novartis Federal Credit Union in East Hanover, NJ
  • April 26, 2007 at Bay Atlantic Federal Credit Union in Vineland, NJ
• The second Finance, Accounting and Investments Roundtable is being held in April as well as two new Roundtables: Collections and Marketing. Visit our Web site for dates and locations. Detailed brochures will be mailed shortly!

Leaders Needed
Have you signed up for the 2007 Annual Leadership Conference yet? We have an excellent program this year at the beautiful Borgata Hotel with magnificent speakers and great educational sessions! Visit the home page of our website to view the full registration booklet! If you have any questions, please call Barbara Agin, Director of Education and Training at 609-448-2426 x111.

Credit Union Movement’s Agenda for the 110th Congress

Credit Union Regulatory Improvement Act (CURIA)
Credit unions remain the most highly regulated and restricted of all insured financial institutions, particularly after the passage of CUMAA in 1998, which imposed new, severe restrictions on credit unions in several areas. Though four technical provisions were enacted last Congress as part of the Regulatory Relief Act, there are several key issues that would help eliminate some of the worst examples of statutory micro management that have placed unreasonable constraints on the ability of credit unions and their boards to function efficiently and in the best interests of their members. CUNA is working with the Congress on the reintroduction of a new and enhanced version of CURIA, focusing on the following issues:

Prompt Corrective Action (PCA) Reform:
CUNA is working closely with the NCUA and the Treasury Department to develop revised language that will modernize credit union capital requirements by reducing net worth ratio requirements and including a risk-based asset approach to PCA, thereby instituting a new measurement that would improve the safety and soundness of credit unions and the safety of the National Credit Union Share Insurance Fund;

Underserved Areas:
CUNA is working to include language in the new CURIA legislation that would restore the ability of single common bond and community chartered credit unions to add underserved areas to their field of membership (FOM). As a result of a lawsuit filed by the American Bankers Association (based on a misinterpretation of CUMAA) the NCUA was forced, in July 2006, to issue a regulation that prohibits these credit unions from adding underserved areas to their field of membership. The ability for all credit unions to serve underserved areas is part of the core mission of credit unions. CUNA urges Congress to provide the technical fix that is necessary to allow all credit unions to continue to serve underserved areas, and strongly urges the banking industry to put an end to their hypocrisy;

Member Business Lending (MBL):
CUNA supports provisions that will provide a substantial increase in the current limit of 12.25 percent of assets on credit union member business lending (prior to CUMAA there were no limitations), and allow the NCUA to raise the loan cap from $50,000 to $100,000 and index for inflation. The Small Business Administration issued a study in March 2005 and found that the growth in bank consolidations was leading to a decline in access to credit for small business owners. Credit unions are uniquely positioned to fill the niche that is not being served by many banks.

Data Security
CUNA supports legislation that would prohibit the retention of sensitive, identifying information by merchants and certain non-financial companies from plastic card magnetic strips that could be obtained in connection with financial transactions, including the imposition of fines for failure to comply. CUNA also supports the requirement that the breaching party (i.e., the merchant) reimburse the consumer or financial institution for any losses incurred, as well as a uniform national standard. CUNA urges Congress to incorporate credit union backed provisions in any data security legislation that moves forward this year.

Credit Union Tax Exemption
The credit union federal tax-exemption is bound by the not-for-profit, cooperative nature of credit unions, not by the size of the credit union, those it serves, or the products and services that are offered. This rationale for the tax-exempt status has been ratified several times by Congress, the most recent in 1998 as part of the Credit Union Membership Access Act (CUMAA).

Although the bank lobby claims credit unions are “growing beyond their means” and should therefore pay taxes, the credit union share of total assets has remained virtually unchanged. From 1992 to 2006, credit unions’ market share has remained at a constant 6 percent of total assets in America's financial depository institutions. Most importantly, credit unions exist to serve their members, providing financial literacy counseling, short-term loans and other unique services when members are in need. CUNA opposes all attempts to subject credit unions to taxation, as well as efforts to use the tax debate to prevent credit unions from gaining regulatory relief.

Federal Fee Study / Business Checking Bill
Representative Nydia Velazquez (D-NY) introduced legislation, H.R. 41, the Business Checking Fairness Act, on the opening day of the 110th Congress that would renew, on a permanent basis, the requirement that the Federal Reserve Board conduct an annual survey of retail financial services fees, and include credit unions as a part of the study. Including credit unions in the Fed’s annual retail bank fee survey will document the differences in costs between banks, thrifts and credit unions in a way that helps consumers and enhances competition in the marketplace. CUNA urges swift action on this important provision.

For more information on these and other federal issues contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127.

NJCUL Hikes-the-Hill
Last month representatives of eleven credit unions joined NJCUL staff for its February Hike-the-Hill following Credit Union National Association’s (CUNA) annual Government Affairs Conference (GAC). This important grassroots effort was particularly timely given the opening of the new Congress, now under Democrat control. We were able to get numerous commitments to co-sponsor the re-introduction of a Credit Union Regulatory Improvement Act (CURIA) in the 110th Congress to address capital, field of membership and member business loan restrictions.

In addition to key staffers, we met with seven of our thirteen House members, Representatives Scott Garrett and Albio Sires, both members of the House Financial Services Committee, Representatives Frank Pallone, Donald Payne and Steve Rothman, past CURIA co-sponsors and Representatives Rush Holt and Frank LoBiondo. In all, we had very positive contact with the offices of eleven members of New Jersey’s fifteen member Congressional delegation.

Our thanks go out to NJCUL Chairman Rina Pantano of NJ Gateway, NJCUL Board Directors, John DiNofrio of Jersey Shore, Cindy Rein-Zima of Hamilton Horizons, Steve Schlundt of Atlantic City Firemen’s, Bob Steeves of Essex County Teachers, and Jolene Constantine of People’s First Choice, Mike Greenwood of E 53, Andy Jaeger of Credit Union of NJ, Alvin Johnson of People’s First Choice, Jim Miller, Jr. of Liberty Savings, Henry Slootmaker of People’s First Choice, Mark Stewart of E 53 and Vinnie Sullivan of People’s First Choice for taking time following the GAC to participate. Special thanks also got to Nelson Graf of Members United, Sean McDonald of Liberty Savings, Elaine Pollard of Members United and Marc Vogel of Rutgers FCU for traveling to Washington for the day in order to support this important grassroots effort.

For more information on how to participate in this and other government affairs and political activities contact Chris Abeel, the League’s director of government affairs.

State Legislation Impacts FCUs Too
While much of a federally chartered credit union’s activities fall under the Federal Credit Union Act (FCU Act), the regulatory purview of NCUA and other federal statutes addressing some aspects of lending, savings, real estate settlement, mortgage disclosure and electronic funds transfer, federally chartered credit unions are also subject to state laws covering these and a host of other areas. With so much focus placed on complying with federal laws and regulations, FCUs sometimes overlook just how much state law and regulation applies to them. A FCU that ignores what’s going on at the state level does so at its own risk. As employers, FCUs are subject to payroll taxation, mandated employee benefits and workplace legislation. As property owners they’re subject to property taxation, building codes, zoning & land use law. And, as financial service providers they’re subject to laws and regulations concerning other facets of lending, deposits, collections and privacy/data security, not to mention ATM security, abandon property, advertising and more. In short, any area not pre-empted by federal statute is generally fair game for the state legislature.

For more information on state issues contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127.

Paid Family Leave Advances in Trenton
On February 5 the NJ Senate Labor Committee approved a bill (S-2249, Sweeney, Buono plus 6) which would provide 12 weeks of paid family leave for employees at every business in the state regardless of size. Under the measure employees would be entitled to receive up to 12 weeks of temporary disability insurance (TDI) benefits while taking leave to participate in providing care certified to be necessary for a family member suffering a serious health condition, including providing psychological comfort, arranging third party care for the family member or taking leave to be with a child of the worker during the first 12 months after the child's birth or placement for adoption with the worker's family. The employee would receive up to $502 per week in benefits. Employers would be prohibited from requiring employees to use more than two weeks of their existing paid sick or vacation time first and there is no small-business exemption -- existing family leave laws provide for unpaid leave and apply only to companies with 50 or more employees. The legislation, which is being actively opposed by every business trade group in the state, is now before the NJ Senate Budget & Appropriations Committee.

For more information on this and other state issues contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127.

NJ Lobbyist Registration & Reporting, Among Nation’s Strictest
Did you know that NJ’s registration and reporting requirements for lobbyists are among the most comprehensive and complicated in the nation? In short, anyone who spends more than 20 hours, or is paid or reimbursed more than $200, a year for attempting to “influence a governmental process” (legislation, regulations or the award of contracts or permits) must register as a lobbyist with the NJ Election Law Enforcement Commission (ELEC) and is subject to periodic reporting.

Credit union directors, employees or members who have regular dealings with NJ lawmakers or state officials should consult the ELEC website (www.elec.state.nj.us) for registration and reporting requirements.

NJ Credit Union Advisory Council appointees are not required to register. Council members are not exempt per se, just those activities in connection with their council-related duties.

For more information about this or other government affairs issues contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127.

NJ Credit Union Advisory Council
The NJ Credit Union Advisory Council was established through legislation enacted in 1984 as a vehicle through which state chartered credit unions can advise the Executive and Legislative branches of state government on credit union-related matters. Members are appointed by the governor with the “advice and consent” of (must be confirmed by) the state Senate. Terms are five years and members serve without compensation. The Council meets bi-monthly and expenses are borne by the credit unions. NJ Credit Union Advisory Council appointees are not required to register. Council members are not exempt per se, just those activities in connection with their council-related duties.

It membership includes Shirley Spruill (Renaissance Community Development CU) who serves as chair, Andy Jaeger (Credit Union of New Jersey), Bonnie Karczewski (NJ Law & Public Safety CU) and JoAnne Lazzara (First Jersey CU) all of whom are to be saluted for contributing their valuable time to serve the credit union movement.

In recognition that federally chartered credit unions, though primarily regulated by the federal government are also subject to numerous state laws and regulations, legislation is being drafted to expand the Council membership to included representation of federal credit unions as well.

Credit Union House Supporters
Credit Union House is the credit union movement’s “embassy” on Capitol Hill. It serves as a home away from home for credit union officials visiting Washington, a command post for legislative activities and a gracious place to entertain dignitaries. More than one-half the members of both houses of Congress have visited for a variety of special events and functions. It symbolizes the credit union movement’s commitment to an ongoing role in the public policy process and the highly visible, permanent presence sends the message that credit unions, and the credit union movement, are here to stay.

Special thanks go to the following for their financial support of Credit Union House.

Are You Connected?
The League’s bi-monthly government affairs newsletter Capitol Connections keeps readers plugged-in to the public policy arena. It includes briefings on important goings-on in Washington (On-the-Hill) and Trenton (Under-the-Dome) and has sections on credit union movement grassroots activities (In-the-Trenches) and key issues (On-the-Soapbox) as well as back grounders on who’s who (Meet-the-Players), interesting facts (Trivia-not-Trivial) and important calendar items (Save-the-Date).

If you’re not already plugged-in, contact Chris Abeel, the League’s director of government affairs to be added to the Capitol Connections electronic distribution list.

Consider Organ Donation During April - National Organ and Tissue Donor Awareness Month
Realizing the urgent need for organ and tissue donors around the country, National Organ and Tissue Donor Awareness Week (NOTAW) was established by Congress in 1985 to promote a greater understanding about the life-saving benefits of organ donation. A single organ donor can save eight lives and enhance the lives of up to 75 others. For more information on how to become an organ donor or to join the NJ Donor Registry, call NJ Sharing Network at 1-800-SHARE-NJ or visit their web site at www.sharenj.org.

Boost Member Retention, Increase Fee Income With Auto and Homeowners Insurance
The competition has always made it clear that they’re out to recruit your credit union’s members. However, the number and type of those competitors is growing in new and ominous ways.
Depository institutions still threaten to erode your membership base, especially those members who see only rates and terms as reasons to belong. The fastest-growing threat, however, comes from insurance companies, mortgage lenders, and other nontraditional providers who’ve established or purchased their own banks, enabling them to offer many of the services you offer. Members who buy products or secure loans from these companies are that many steps further away from your credit union and that much closer to becoming customers of other financial providers.

However, by offering insurance products from the insurance companies and strategic partners of CUNA Mutual Group, you can leverage the situation in reverse. Rather than lose members to financial providers who’ve only recently discovered banking, you can maximize your members’ existing relationships to offer products they want and need. Your credit union earns non-interest fee income, while also increasing your institution’s strength and providing valuable services to those your members.

Consider a strategy built around MEMBERS™ Auto and Homeowners Insurance, which supplies affordable and reliable protection that your members need, plus property and casualty coverage at member-only rates. The coverage, made available by CUNA Mutual Insurance Agency, Inc., and developed in partnership with Liberty Mutual, the country’s eighth-largest auto and homeowners insurer, and Progressive, the nation’s third-largest auto carrier, gives your credit union capabilities to counter the competition’s attack while realizing three specific advantages:

• By offering MEMBERS™ Auto and Homeowners Insurance made available by CUNA Mutual, you have another product to gain greater member “wallet share.” As you know, the more products members have, the more loyalty they exhibit toward the credit union and the more products they are likely to purchase in the future.

• Through competitive pricing and services, MEMBERS™ Auto and Homeowners Insurance helps keep competition from non-depository institutions at arm’s length. If you can provide members with products that are superior to what the competition offers, there’s less reason for those members to transfer their loyalties and less likelihood they’ll do so.

• Finally, by offering MEMBERS™ Auto and Homeowners Insurance, your credit union can realize increased non-interest fee income through the sale of those policies. In an era of ever-tightening margins, there are few better ways to profit from more effectively serving your members.

On top of that, MEMBERS™ Auto and Homeowners Insurance can be marketed to your members through MemberCONNECT™ CUNA Mutual’s direct marketing program. Our results have proven that credit union affinity leveraged in direct marketing pieces carry great importance and attract immediate attention from members receiving them. If your members respond to direct mail advertising for the insurance products you make available, then there’s a good chance they may never get to offers from “those other guys.”

Strategy should always drive the product selection you offer members. Let MEMBERS™ Auto and Homeowners Insurance spearhead your efforts to keep the competition at bay while strengthening your relationship with members and your bottom line. For more information, call your CUNA Mutual representative.

Keep Members Informed with EZ Mail
In just a few minutes a moth, credit unions can easily send their members a high quality monthly email newsletter filled with personal finance tips and credit union branch news through CUNA’s new offering, Credit Union EZ Mail.

Credit Unions that subscribe to EZ Mail decide what the newsletter should look by selecting one of several e-newsletter templates. The template is then customized with the individual credit unions colors and logo, so each edition has the look and feel of the credit union’s web site.

Each month, a professionally written and researched newsletter is crafted with articles, tips, and advice to help keep members up to date on important consumer issues, such as: identity theft, the Internet, wealth building, the credit union industry and saving money.

The credit union will receive a preview of each issue before it is sent to members on the 10th of each month, or any other specified date by the credit union. The newsletter is delivered to the credit union subscriber from a white-list server, which means that more messages arrive in members’ “In box”, rather than their junk, spam or garbage folders.

Credit unions can also track their results through a variety of reports to determine how many messages were delivered and opened; the number of times specific links were followed; and even who opened the newsletter.

Yearly subscription prices for Credit Union EZ Mail are based on credit union asset size.

For more information, go to buy.cuma.org and enter “EZ Mail in the product finder search box; or contact a product sales representative at CUNA, at 800.356.9655.

NJCUL’s Annual Leadership Conference - April 16-18, 2007
You won’t want to miss this year’s Annual Leadership Conference at the Borgata Hotel, Casino and Spa in Atlantic City. Registration materials have been mailed, call for an additional copy, or download your copy here.
( http://www.njcul.org/07leaderconf.asp)

Save the Date: NJCUL’s 19th Annual Golf Outing
Mark your calendar and get ready to tee off! The 19th Annual NJCUL Golf Outing is scheduled for Tuesday, June 12, 2007 at the Cranbury Golf Club in Cranbury, NJ. More information is coming soon, but if you’d like to be a sponsor at this popular outing, contact Yvette Segarra at ysegarra@njcul.org or call 609.448.2426 x103.

73rd Annual Meeting & Convention - September 23-25, 2007
New place. New Dates. Great New Opportunities. This year’s Annual Meeting & Convention is poised to be our best yet. Some of the great reasons to mark your calendar: We’ve moved to the Tropicana! That means there will be no more trouble getting rooms! That’s right. Our entire group will be housed under one roof and what a roof it is! With great shops and restaurants, you’ll never have to venture outside, but if you want to, the beautiful September air will be there to greet you. Stay tuned and watch your mailboxes for information on this exciting event! If you’d like to exhibit or know someone who might, please contact Yvette Segarra at 609.448.2426 x103.

Join the Advertising Cooperative: We Need YOU!
The NJCUL Advertising Cooperative is hard at work planning our next round of advertising and advocacy efforts. If you haven’t paid your voluntary dues yet, please hurry. The sooner we have the funds set aside, the sooner we can move on our next round of exciting activities. Need more info? Visit: http://www.njcul.org/members/index.asp or call Sharon Dilling at 609.448.2426 x110.

Jobs, Jobs and More Jobs
Find a job at a credit union or post a vacancy. It’s easy if you are a league member. Click here to see current vacancies.