The President's Perspective

​North Dakota credit unions invited to State Capitol next week. And, a very sad farewell to a longtime credit union friend, Kelly Miller. 

Interchange Bill will impact credit unions and our members.
As the South Dakota legislative session wraps up this week, North Dakota lawmakers are busy considering bills that survived the first half of the session. Also this week, Dakota credit union advocates will be back at the Capitol in Bismarck pushing back on SB 2217, which seeks to change the way costs associated with credit card transactions are processed. Specifically, it would prohibit interchange fees from being collected on the sales tax portion of a transaction.

The bill’s supporters claim that they are acting on behalf of the North Dakota retailers and small businesses. However, this bill would be a damaging, costly tax on those small businesses that they are trying to help, and a tax that would likely be passed on to North Dakota consumers.

Consumers across the country rely on credit and debit cards to make life happen, from paying for groceries and school supplies to covering emergency car repairs or medical expenses. Accepted nearly everywhere, credit cards offer robust security, fraud protection, and access to credit that may not otherwise be available. For credit unions, interchange fees cover the cost of fraud detection, credit monitoring, and fraud protection that make consumers and merchants whole when bad actors attack.

Today, when any debit or credit card is used, the transaction gets processed as a full amount, including all taxes. That amount is transferred across the payment networks to the financial institution that issued the customer’s credit card. That financial institution or card issuer then transfers the payment in full across the same payment network to the financial institution that the merchant uses. There is no structure in place to separate the sales tax from the main transaction amount as transactions are processed between financial institutions. Therefore, major changes would have to be made to the existing electronic payments infrastructure at a significant, unknown cost. Ultimately, those costs would be passed on to the small businesses and consumers in North Dakota.

This bill is part of a broader effort by mega retailers across the country to reduce interchange fees and process credit card transactions across less secure alternative networks. If successful, consumers will bear the full burden additional costs and expenses added to the exchange networks. What’s behind the curtain? Big box retailers stand ready to make billions on the backs of the small retailers who are fronting this fight.

North Dakota Credit Union Legislative Day set for Wednesday, March 22 in Bismarck.
The ND Government Affairs Committee has added a Credit Union Day at the North Dakota Capitol to the calendar. We are asking all ND credit union leaders and advocates to come to Bismarck on the 22nd to meet with the legislative representatives about our FOM modernization bill, SB 2266.  We’ll be hosting a Credit Union Town Hall for all ND credit unions this Wednesday, March 8, at 3:00 p.m. to tee up the event. Watch for an email invite in your inbox today.
 
Goodbye to a special and passionate credit union friend.
This past weekend, I learned of the passing of Kelly Miller. Many of you may recall that Kelly had a long and successful career working in credit unions in both North and South Dakota. Most recently before he retired, he was the AVP/Community Relationship Director at Highmark Federal Credit Union in Custer, SD. Kelly had also worked at Williston Cooperative Credit Union (Western Cooperative) and at Dakota Plains FCU in Lemmon, SD.
 
This sudden and sad news on Sunday really hit me hard. Those who knew him were undoubtably familiar with his unique and wonderful gifts, especially his cheerful personality. His positive, carefree disposition was contagious and drew people in. It certainly did me. He was such a pleasure to be around, always smiling, and always content. I admired that most about him… total contentment.
 
We featured Kelly in a Memo Spotlight back in 2019, prior to his retirement at Highmark. This particular quote he made puts his credit union career into perspective: “I have always enjoyed helping people through the credit union. I can help people buy that special auto, their first home, or their first business. I find that very rewarding.”
 
If you wish to read the entire article, here is a link to the story about our friend, Kelly Miller.  
 
Dakotans make strong showing at CUNA GAC
What a great week advocating for credit unions with 33 of the best credit union professionals in the country. Kudos to our Dakota credit union delegation who not only participated in the 2023 GAC, but were shining brightly! This year’s record breaking event brought more than 5,700 credit union leaders to Washington, DC, including our 30+ from North and South Dakota. Our visits to our congressional representatives were featured in this CUNA “GAC Hikes” article, and Jim Schaefbauer, CEO of United Savings CU (Fargo, ND) was featured in a “financial well-being for all” video compilation of interviews for the great work they are doing in their community to bring financial education to their local schools and universities. I could not be prouder of our showing this year, and I thank those who made the trip as well as those who followed along via the Memo and engaged on social media.
 
Floyd Rummel appointed to CFPB’s Credit Union Advisory Committee.
I would like to congratulate Floyd Rummel, III, President/CEO or Northern Hills FCU, who has been appointed to the national Consumer Financial Protection Bureau’s Credit Union Advisory Council, the first South Dakota credit union leader to serve in this capacity. Having a seat at the table on this important Advisory Council is very exciting news for Dakota Credit unions and for all small financial institutions that are meeting the financial needs in their communities they serve. Floyd’s experience as credit union executive as well as a chair of a correspondent corporate credit union will be a valuable asset in helping to guide the agency in their mission of helping consumers and not hurting them with harmful regulatory burdens or rules. Watch for a detailed Memo story later this week about his appointment.
 
Shout out to Town & Country CU
The North Dakota Housing Finance Agency (NDHFA) has recognized Town & Country CU (Minot, ND) as a Champion of Affordable Housing. This award honors those who help make homeownership obtainable for North Dakotans, helping to provide low to moderate income buyers with low-cost mortgage loans. More evidence of Dakota credit unions working for “financial well-being for all!” Well done.
 
Congratulations to Mindee Kohlman
While she is not ready to step away quite yet, Mindee Kohlman, CEO of Aspire CU (Minot, ND) has announced her retirement for 2023. Mindee has been a strong credit union advocate for all Dakota credit unions and has always been willing to step up when our industry has needed her. Under her leadership, Aspire is a true example of a credit union that is connected to their members and their community and responsive in every way. Thank you for all you have done, all you continue to do, and best wishes to you on this next life adventure.

Thank you for your continued support.
Finally, I want to thank those who have submitted their 2023 dues to the Dakota Credit Union Association. We deeply appreciate your continued support as we strive to advocate for and promote credit unions. As a reminder, annual membership dues were payable by March 5, 2023. We all know that credit unions are the best financial choice for consumers, families, and communities. That’s why your “Membership Matters.” Great organizations can do remarkable things and solve complex problems when we work together. If you need a copy of your dues invoice or have any questions, please contact Karla Clark at 1-800-279-6328 extension 926 or e-mail her at [email protected].
 
Have a wonderful week!

DakCU President/CEO