The recent Supreme Court ruling on the Chevron case marks a significant shift in administrative law and is set to impact various sectors, including Dakota credit unions. The Chevron doctrine, originating from the 1984 case, Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., has long dictated that courts should defer to a government agency’s interpretation of ambiguous statutes. However, the Supreme Court’s decision to curtail this deference carries profound implications. In a landmark decision, the Supreme Court has limited the scope of the Chevron doctrine. The ruling emphasizes a more stringent review of agency interpretations, requiring courts to engage in a more thorough examination of statutory language before deferring to agency expertise. The ruling reflects a growing skepticism about the breadth of administrative power and a shift towards judicial assertiveness in statutory interpretation, which will likely lead to more court battles in the future on existing rules or guidance that credit unions see as vague or unclear. The Chevron doctrine established a two-step process for judicial review of agency interpretations of statutes. First, if a statute is clear, the court must enforce the clear meaning. Second, if the statute is ambiguous, the court should defer to the agency's reasonable interpretation. This deference has enabled agencies to wield significant power in interpreting laws, impacting regulations across industries. The short of it is that this ruling will have both beneficial and harmful implications for our industry. For Dakota credit unions, this ruling could lead to a more stable and predictable regulatory environment. The ruling will certainly slow down the rulemaking process and thus credit unions might face fewer abrupt regulatory changes based on evolving agency perspectives. This could lead to more predictability and stability in the regulatory environment, a welcome relief after years of rule making and new regulatory burdens. Judicial interpretations tend to be more stable over time compared to agency rulings, which can change with different administrations. By limiting the NCUA's and the CFPB’s ability to unilaterally interpret ambiguous statutes openly, the ruling could reduce the overall regulatory burden on credit unions. This might result in fewer compliance costs and administrative hurdles. In addition, credit unions may find it easier to challenge unfavorable regulatory interpretations in court. With courts less likely to defer to the NCUA, there could be a higher chance of prevailing in legal disputes over statutory interpretations. On the flip side, the ruling may lead to an increase in litigation as credit unions may end challenging agency interpretations more frequently. This could lead to higher legal costs and prolonged uncertainty during litigation. There will be an uncertain transitional period as courts, agencies, and regulated entities adjust to the new framework. This could result in temporary regulatory uncertainty. The increased role of courts in interpreting statutes could also lead to unevenness depending on the jurisdiction and the specific judges involved and may create a patchwork of interpretations until consistent judicial precedents are established. The Supreme Court’s decision to limit the Chevron doctrine is a pivotal change in the balance of power between federal agencies and the judiciary. For Dakota credit unions, this ruling provides both opportunities and challenges. The potential for a more predictable regulatory environment and reduced compliance costs is balanced against the risks of increased litigation and transitional uncertainties. As the legal landscape evolves, we need to stay vigilant and adapt to the new dynamics of regulatory interpretation moving forward. Foundation Golf Scramble & Professionals Forum just one month away! It’s hard to imagine that we are only a month away from our 8th annual Dakota Credit Union Foundation Golf Scramble. I’m looking forward to connecting with many of you at this year’s event on Tuesday, August 13, in Fargo. We are looking for players, teams, and of course, event sponsors. I hope you will join us with a team or individual player, and if possible, help out as a contributing sponsor. Once again, 100% of proceeds will benefit Sanford Children’s Hospital in support of the CU4Kids Micropreemie Care Unit. You can check out sponsorship opportunities and sign up here. This event is held in conjunction with the CU Professionals Forum, which takes place on Monday, August 12. As always, the Forum is a FREE event for DakCU members, but we do ask you to please register in advance. Coming soon! #ILoveMyCreditUnion Don’t forget to mark your calendars for Friday, July 26, when credit unions across the country (and even around the world) will once again be creating a social media blitz as we unite using a common hashtag: #ILoveMyCreditUnion. This organized social media campaign creates more credit union awareness and visibility as credit union advocates post messages across the social media platforms, creating a high-energy trend. I encourage you to get involved by signing up (it’s free – only for tracking purposes) and then create your own message OR choose from a multitude of pre-made and pre-sized graphics found here. Fall Hike the Hill is filling quickly – reserve your spot now! We are looking for a few more credit union advocates to join us for our annual Fall Legislative and Regulatory Hike the Hill, September 9 – 12. There are only a few spots open as we limit this trip to a smaller group of Dakota credit union professionals. This year marks our 12th consecutive year taking a group to Washington, DC to meet with key policymakers and our chief regulator. Once again, we have meetings planned with NCUA and the CFPB, as well as some exciting networking opportunities. Be sure to check out Chesney’s article in today’s Memo for all the details and financial assistance information available for credit unions under $100 million in assets. Please reach out to Chesney Garnos at [email protected] for more information. BND names next President/CEO Some exciting developments at the Bank of North Dakota (BND) over the July 4th holiday week, as Todd Steinwand officially retired and Don Morgan was named the next president/CEO. Morgan has more than 20 years’ experience in the banking industry, most recently as CEO of Starion Bank. BND’s mission, “to support agriculture, commerce and industry,” has not changed since its earliest days in 1919. BND is the only state-owned bank in the nation, and many of our North Dakota credit unions utilize them for correspondent services in their daily operations. I had the opportunity to golf with Don last summer at a Senate golf outing, and I am looking forward to his leadership and engagement with North Dakota credit unions. Congratulations to Lexxi Hunter! I would like to send a shout out to Lexxi Hunter, member service rep and mortgage loan officer at Lakota Federal Credit Union, for being selected as a featured presenter at this week’s DEI Summit being hosted in Minneapolis by the National Credit Union Administration. The event is putting a spotlight on Native American Institutions and their impact on economic empowerment and inclusion within their communities. We know Lakota FCU has been making huge strides in financial well-being for their members! Congratulations and well done! Reminder - CEO Town Hall Today! One final reminder to join us this afternoon (Tuesday, July 9) at 3:00 p.m. (CT) for our regularly scheduled CEO Town Hall virtual meeting. DakCU staff will provide an update on the latest activities from our association, from advocacy to upcoming events to credit union awareness wins! We also have a special guest, Tiffany Villagomez with ViClarity. Tiffany has extensive knowledge in board governance, operations, BSA and regulatory compliance, and currently provides state and regulatory compliance assistance and training to ViClarity’s affiliated leagues. If you need the meeting link please contact me ASAP this morning. Have a terrific week! DakCU President/CEO
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