Legislative & Regulatory Update

​If you’re in Devils Lake or Bismarck today, don’t miss this opportunity to be part of the conversation! Plus, NCUA’s succession planning proposal comes under scrutiny. 

by John Alexander, Director of Legislative & Regulatory Affairs

Today: Pints & Politics Ignites Credit Union Advocacy in Devils Lake and Bismarck
Today marks a key moment for North Dakota’s credit unions as the Dakota Credit Union Association’s (DakCU) Pints & Politics kicks off in two key locations—VFW Post 756 in Devils Lake and The Elks in Bismarck. These gatherings are more than just casual meetups; they are the front line of credit union advocacy, bringing together credit union professionals, board members, and employees with state and federal lawmakers.

If you're part of the credit union movement, this is where you need to be. Legislative engagement has never been more crucial, and today’s events offer a rare opportunity to speak directly with the decision makers who influence the policies that impact credit unions. With laws and regulations constantly evolving, it’s essential for credit union voices to be heard, and Pints & Politics is your chance to ensure that happens. These events create a relaxed atmosphere for meaningful conversations about the future of the credit union movement, all while building stronger connections with lawmakers and endorsed candidates.

Today's events in Devils Lake and Bismarck are part of a series of advocacy-focused gatherings designed to reinforce the importance of grassroots political involvement. Credit unions rely on legislative support to continue serving their communities effectively, and the role of chapters in these efforts cannot be overstated. By showing up today, you’re playing a vital part in the movement's ongoing success, helping to shape the political landscape in favor of credit unions.

So, if you’re in Devils Lake or Bismarck, don’t miss this opportunity to be part of the conversation. Your involvement today ensures that credit unions remain at the forefront of legislative discussions—and ultimately, continue to thrive in the face of new challenges. Be there, make your voice heard, and strengthen the future of the credit union movement.

Congress passes bill to fund federal government.
The House voted 341-82 and the Senate 78-18 Wednesday on a bill to fund the federal government through December 20. The bill averts a federal government shutdown that would have occurred without funding beyond September 30.

NCUA's Succession Planning Proposal Called Inappropriate and Redundant.
The National Credit Union Administration’s (NCUA) strategic planning proposal has come under heavy scrutiny for being "wholly inappropriate" as a regulation, though some believe it may offer value as guidance for certain credit unions. Partnering with state leagues, over 150 credit unions submitted comment letters voicing their concerns by Monday.

At the heart of the issue is the requirement for credit unions to establish and adhere to formal succession planning processes. This proposal expands on a 2022 measure that initially targeted state-chartered credit unions but now seeks to broaden the range of individuals covered in the succession plan. However, the sweeping mandate raises alarms across the industry.

The problem, as outlined by America’s Credit Unions and backed by the Dakota Credit Union Association (DakCU), lies in the “one-size-fits-all” nature of the regulation. For some federally insured credit unions, this approach could be ineffective or even harmful, introducing unnecessary risks instead of resolving any real threat. According to industry feedback, the so-called systemic risk posed by a lack of a mandated succession plan simply doesn’t exist, contrary to the NCUA’s assertions.

DakCU acknowledges that succession planning is a vital part of any credit union’s strategic framework. In fact, NCUA examiners already assess succession planning during the management component of the CAMELS rating system. This fact renders the proposed rule redundant, creating unnecessary layers of oversight.

If the NCUA insists on moving forward with this rulemaking, DakCU and its allies recommend several key clarifications. First, the NCUA must outline the specific steps that boards of directors need to take to develop a "working familiarity" with a credit union's succession plan. Next, there must be transparency about the potential consequences if examiners find a credit union’s plan inadequate. Furthermore, credit unions deserve assurances that their succession plans will remain confidential, preventing sensitive internal strategies from being exposed. Finally, the NCUA should provide clear guidance on how credit unions should proceed if they are unable to follow their succession plan due to unforeseen circumstances.

These measures are crucial to ensure that credit unions are not burdened by unnecessary regulations that add complexity without clear benefits, all while maintaining flexibility in their internal management strategies.

As always, don't hesitate to contact me with any advocacy questions!