2010 Alabama State Legislative IssuesVoter’s Guide on Key Credit Union Issues

Know Before You Vote!

2010 Alabama State Legislative Issues

As not-for-profit financial institutions owned entirely by the members they serve, credit unions are not just structured differently than other financial institutions, they are different. That difference can be measured by lower rates on loans, higher rates on savings, fewer and lower fees, and a mentality of treating the people they serve like an owner, not just an account number. This focus on members, rather than profits, has generally kept credit unions safe while other types of financial institutions face significant problems and seek government bail-outs.

Throughout the recent economic crisis, consumers, the media, and lawmakers have seen credit unions as the bright spot in an otherwise gloomy picture. However, this positive image does not insulate credit unions from the threat of onerous legislation and regulation, either of which can hinder our ability to serve our members. Nor does our success guarantee the ability of credit unions to make changes to existing laws in order to improve how we serve members.

The League of Southeastern Credit Unions (LSCU) Governmental Affairs Department, along with the Governmental Affairs Committee (GAC), is working to develop a proactive legislative agenda for 2011. Ultimately, our success depends on how lawmakers view our issues, and whether they are willing to support them. Although we can never know every issue that may be raised during a legislative session, we do know what some of the bigger issues may be.

Based on that, the League sent questionnaires to all incumbents and candidates for the state House and Senate, asking for their position on some of our bigger issues. The next page outlines the questions we asked and an explanation of why the question was important. Each incumbent or candidate who responded has had their responses listed, so you can see where they stand on some of our priority issues. We have also included an answer key to better understand each answer.

The LSCU is the credit union trade association, formed by joining the Alabama and Florida Credit Union Leagues into one association representing credit unions in both states. We represent over 300 credit unions who serve more than 6.5 million members.

In addition to the candidate surveys for the State House and Senate, the LSCU has also compiled a scorecard of our Congressional delegations in Washington. This allows you to quickly see how your member of Congress voted on issues that are important to credit unions. You can find the scorecard on the LSCU website at www.lscu.coop/Governmental-Affairs/Campaigns-and-Elections. We hope you find both voter guides useful as you head to the polls November 2.

Patrick La PinePresident/CEOLeague of Southeastern Credit Unions

2010 Alabama Leadership Spotlight

Representative Marcel Black (D-3) was elected in 1990, and serves as the Chairman of the House Judiciary Committee. As an attorney in the Shoals area, Representative Black has worked with credit unions for years, assisting them with a number of legal and operational issues, and understands and appreciates the unique position of credit unions and how they serve members. In the Legislature, Representative Black is a leader often bringing together different sides of issues to create a reasonable and effective legislative environment.

Representative Jack Page (D-29) was elected in 1993 and is the Vice Chairman of the House Government Appropriations Committee which writes the state’s General Fund Budget. Representative Page has successfully sponsored legislation protecting credit unions from increased taxes. In Committee and on the House floor, he has spoken out on the unique nature and structure of credit unions, and how that difference means credit unions should not be treated the same as for-profit financial institutions.

Representative Greg Wren (R-75) is serving his third term in the Alabama House of Representatives. He served from 1994 through 2002 and was elected to his current term in 2005. Outside the Legislature, Representative Wren is the Vice-Chairman of the Commerce, Financial Services and Communications Committee of the National Conference of State Legislatures (NCSL), which develops model legislation affecting credit unions around the country. Representative Wren is always accessible to credit unions, and understands our issues, and has been very supportive of the ability of credit unions to best serve their members.

Representative Lesley Vance (D-80) was elected in 1994 and serves as the Chairman of the House Banking and Insurance Committee, which is of key importance to credit unions. As Chairman of the Committee, Representative Vance has always been accessible to credit unions, understands our issues, and successfully guides the committee through a number of important and complex financial industry issues. He ensures that all sides of issues are heard, understands how the legislative process affects credit unions and our members, and has worked to prevent unnecessary and harmful legislation, while promoting bills that allow financial services to best serve consumers. Representative Tammy Irons (D-1) was elected to the Alabama House of Representatives in a special election held in 2006. Representative Irons is an attorney in the Shoals area who works closely with credit unions and small businesses, and understands the challenges they face. In the House of Representatives, she authored important legislation heavily supported by credit unions to ensure that the private data on credit and debit cards is protected from hackers and other criminals, helping prevent consumers from fraud and identity theft.

Senator Roger Bedford (D-6) is serving his sixth term in the Senate, and is the Chairman of the Senate Finance and Taxation General Fund Committee, and serves on the Senate Banking Committee, as well as the Commerce Committee, among other important committee assignments. In the Senate, he sponsored the credit union supported data security legislation to protect sensitive debit and credit card information to prevent fraud and identity theft. He has worked to prevent raids on the Alabama Credit Union Administration’s budget, which is completely funded by credit unions, not tax dollars, and has been a strong proponent of a fair and reasonable legal and regulatory environment for credit unions.

Senate Minority Leader J.T. “Jabo” Waggoner (R-16) has served five terms in the Alabama State Senate. He was elected as Minority Leader in for the 2002 – 2006 term and again for the 2007 – 2010 term. As the Senate Minority Leader, Senator Waggoner sits on all Committees of the Senate, and is someone credit unions work with closely on a number of issues. In his leadership position, Senator Waggoner has consistently worked on behalf of credit unions and their members to ensure fairness and to create a system under which credit unions can effectively meet the financial needs of their members.

2010 Candidate Survey Questions

The following are four questions that were posed to candidates for the State House of Representatives and State Senate, along with some background information on the issue. The incumbents’/candidates’ answers are listed, along with an answer key detailing what the different answers mean. Some candidates indicated support for issues, but stated they needed additional information on specifics of any legislation, while some did not answer specific questions, citing the need for additional information before they would make a determination. We have indicated such responses through the legend at the bottom of this page.

Question 1If elected, would you support maintaining the corporate income tax exemption for state-chartered credit unions?

Background - Credit unions are not-for-profit, financial cooperatives owned by their members. All money not needed to operate the credit union is returned to members in the form of lower rates on loans, higher rates on savings, lower fees, and dividends paid to members. Because of their unique structure and operation, credit unions are exempted from paying corporate income taxes, although they do pay other forms of State taxes including payroll and property tax. Because they are owned by their members, any new tax on credit unions would be a tax on the individual members. An answer of YES means the candidate supports the credit union position.

Question 2If elected, would you support additional statutory changes to eliminate unnecessary regulations as well as allow credit unions to expand the products and services they can offer their members?

Background - Like other financial institutions, credit unions are highly regulated on the State and Federal level. Some of these laws and regulations ensure safety and soundness of credit unions, while others are designed to ensure consumer protection. However, many laws and regulations are out-of-date, duplicate other requirements, or create unnecessary barriers to the ability of credit unions to meet the needs of members with flexibility. When credit unions first began to offer checking accounts to their members in the 1970s, there was much opposition from banks who claimed credit unions should only be able to offer deposit accounts, and credit unions have had to pass legislation to be able to offer their members many of the services that are now commonplace. It is important that credit unions be allowed to update their services to keep pace with the advances in financial services and meet members’ needs. An answer of YES means the candidate supports the credit union position.

Question 3If elected, would you support data security legislation to make those responsible for a data breach be responsible for the costs associated with the breach?

Background - Each year, credit unions and other financial institutions pay millions of dollars that are lost as a result of some merchants mishandling sensitive consumer information found on debit and credit cards. These losses are often caused by companies failing to follow required security measures, yet it is the credit union and the consumer who end up paying for the problems. The LSCU supports legislation that would prohibit the storage of card data; PIN numbers; and security codes from credit or debit cards. Merchants could be required to reimburse financial institutions for the cancellation or re-issuance of cards, closing of accounts, fraud losses and notification of cardholders. These proposals give retailers added incentive to protect consumers’ information. An answer of YES means the candidate supports the credit union position.

Question 4If elected, would you support efforts to include credit unions as permissible depositories [of public funds]?

Background - As local units of government look to minimize fees and increase their return on deposits and investments, credit unions are well positioned to offer competitive rates. Credit unions are financially sound, historically offer better rates on deposits, and are federally insured. However, under current State law, the State, local units of government, and school districts are prohibited from depositing funds in State-chartered credit unions. This removes an important option for State and municipal agencies, which could benefit from increased choices and the competitive rates of credit unions. An answer of YES means the candidate supports the credit union position.

Answer Key

* by Name Indicates an incumbent. If neither candidate is shown as an incumbent, it indicates an open seat race.

NR Indicates no response to the question.

YES Indicates support for the credit union position.

Yes* Indicates support for the credit union position, but qualified answer, or stated that it would depend on specifics of possible legislation.

NO Indicates lack of support for the credit union position.

No* Indicates lack of support for the credit union position, but qualified answer or stated that it would depend on specifics of possible legislation.

Info Indicates candidate did not answer one way or the other, citing the need for additional information on the issue.

Alabama Political Structure By the Numbers

House Members 105

Senate Members 35

Term 4 Years (No Term Limits)

To be eligible for the office of state Senator, a person must be at least 25 years of age; for the office of Representative, at least 21 years of age. Both Senators and Representatives must be qualified voters and must have been resident citizens of Alabama for three years.

Alabama State Senate Information

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

1Tammy Irons (D)Gerald Freeman (R)

YESInfo

YESInfo

YESInfo

YESInfo

2Tom Butler (D)*Bill Holtzclaw (R)

YESNR

YESNR

YESNR

YESNR

3 Arthur Orr (R)* NR NR NR NR

4Zeb Little (D)Paul Bussman (R)

NRNR

NRNR

NRNR

NRNR

5Brett Wadsworth (D)Greg Reed (R)

YESYES

YESYES

YESYES

YESYes*

6Roger Bedford (D)*Jim Bonner (R)

YESYES

YESYES

YESYES

YESYES

7Paul Sanford (R)*Jeff Enfinger (D)

YESNR

YESNR

YESNR

YESNR

8Lowell Barron (D)*Shadrack McGill (R)

NRNR

NRNR

NRNR

NRNR

9Tim Mitchell (D)Clay Scofield (R)

NRNR

NRNR

NRNR

NRNR

10Larry Means (D)*Phil Williams (R)

YESNR

YESNR

YESNR

YESNR

11 Jerry Fielding (D) YES YES YES YES

12Del Marsh (R)*Wallace Wyatt

NRYES

NRYES

NRYES

NRYES

13Greg Varner (D)Gerald Dial (R)

NRNR

NRNR

NRNR

NRNR

14 Cam Ward (R) YES YES YES YES

15 Slade Blackwell (R) NR NR NR NR

16 Jabo Waggoner (R)* YES YES YES YES

17Scott Beason (R)*Tommy Hudson (I)

NRNR

NRNR

NRNR

NRNR

18 Roger Smitherman (D)* NR NR NR NR

19 Priscilla Dunn (D)* NR NR NR NR

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

20 Linda Coleman (D)* YES Info YES YES

21Phil Poole (D)*Gerald Allen (R)

YESYES

YESYES

YESYES

YESYES

22Mar Keahey (D)*Danny Joyner (D)

NRYES

NRYES

NRYES

NRYES

23 Hank Sanders (D)* YES YES YES YES

24 Bobby Singleton (D)* NR NR NR NR

25Dick Brewbaker (R)Doug Smith (D)

NRNR

NRNR

NRNR

NRNR

26 Quinton Ross (D)* NR NR NR NR

27Ted Little (D)*Tom Whatley (R)

YESNR

InfoNR

YESNR

YESNR

28Bill Beasley (D)Kim West (R)

NRNR

NRNR

NRNR

NRNR

29Jennifer Adams (D)George Flowers (R)Harri Anne Smith (I)

NRNRNR

NRNRNR

NRNRNR

NRNRNR

30Wendell Mitchell (D)*Bryan Taylor (R)

NRYES

NRYES

NRInfo

NRInfo

31 Jimmy Holley (R)* NR NR NR NR

32 Trip Pitman (R)* YES YES YES YES

33Vivan Figures (D)*Brad Moser (R)

NRNR

NRNR

NRNR

NRNR

34 Rusty Glover (R) YES YES YES YES

35Ben Brooks (R)*Scott Buzbee (D)

NRNR

NRNR

NRNR

NRNR

2010 Alabama State Senate Candidate Information 2010 Alabama State Senate Candidate Information

Alabama State House Information

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

1Greg Burdine (D)Quinton Hanson (R)

NRYES

NRInfo

NRYES

NRYes*

2Mike Curtis (D)*Lyn Greer (R)

YESYES

YESYES

YESYES

YESYES

3 Marcel Black (D)* YES YES YES YES

4Mickey Hammon (R)*Vaughn Goodwin (D)

YESYES

YESYES

YESYES

YESYES

5Henry White (D)*Dan Williams (R)Jerry Hill (I)

YESYESNR

YESYESNR

YESYESNR

YESYESNR

6 Phil Williams (R)* NR NR NR NR

7Jody Letson (D)*Ken Johnson (R)

NRNR

NRNR

NRNR

NRNR

8Bill Dukes (D)*Terri Collins (R)

NRNR

NRNR

NRNR

NRNR

9Ed Henry (R)Kathy Goodwin (D)

YESYES

YESYES

YESYES

YESYES

10 Mike Ball (R)* NR NR NR NR

11Jeremy Oden (R)*Joe Perry (R)

NRNR

NRNR

NRNR

NRNR

12James Fields (D)*Mac Buttram (R)

NRYES

NRYES

NRYES

NRYES

13Tommy Sherer (D)*Bill Roberts (R)

NRYES

NRYES

NRInfo

NRYES

14Ken Guin (D)*Richard Baughn (R)

NRNR

NRNR

NRNR

NRNR

15 Allen Farley (R) NR NR NR NR

16William Thigpen (D)*Donald Bowman (R)

NRNR

NRNR

NRNR

NRNR

17 Mike Millican (R)* NR NR NR NR

18 Johnny Morrow (D)* YES YES YES YES

19 Laura Hall (D)* NR NR NR NR

20 Howard Sanderford (R)* NR NR NR NR

21Randy Hinshaw (D)*Jim Patterson (R)

YESYES

YESYES

YESYES

YESYES

22Buch Taylor (D)*Wayne Johnson (R)

YESNR

YESNR

YESNR

YESNR

23 John Robinson (D)* NR NR NR NR

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

24Todd Greeson (R)*Nathaniel Ledbetter (D)

YESYES

YESYES

YESInfo

YESYes*

25 Mac McCutheon (R)* YES YES YES YES

26Randall White (D)Kerry Rich (R)

YES YES

YESInfo

YES Info

YES Info

27Jeff McLaughlin (D)*Wes Long (R)

Yes*NR

Yes*NR

Yes*NR

Yes*NR

28 Craig Ford (D)* YES YES YES YES

29Jack Page (D)*Becky Nordgren (R)

YESNR

YESNR

YESNR

YESNR

30Blaine Galliher (R)*Wally Burns (D)

YESYES

YESYES

YESYES

YESYES

31 Barry Mask (R)* NR NR NR NR

32Barbara Boyd (D)*Ron Stuzik (R)

NRNR

NRNR

NRNR

NRNR

33 Ron Johnson (R)* NR NR NR NR

34 Elwyn Thomas (R)* YES YES YES YES

35Steve Hurst (D)*Steven Dean (R)

YESYES

YESYES

YESYES

YESYES

36Rand Wood (R)*Garry Bearden (D)

NRNR

NRNR

NRNR

NRNR

37Richard Laird (D)*Bob Fincher (R)

YESNO

YESYES

YESYES

YESInfo

38Duwayne Bridges (R)*Huey Long (D)

NRNR

NRNR

NRNR

NRNR

39Richard Lindsey (D)*Tim Sprayberry (R)

NRNR

NRNR

NRNR

NRNR

40Koven Brown (R)*Lindsay Ford (D)

NRNR

NRNR

NRNR

NRNR

41 Mike Hill (R)* NR NR NR NR

42Jimmy Martin (D)*Kurt Wallace (R)

YESYES

YESYES

YESYES

YESYES

2010 Alabama State House Candidate Information 2010 Alabama State House Candidate Information

Alabama State House Information

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

43Mary McClurkin (R)*Virginia Sweet (D)

YESYES

YESInfo

YESInfo

YESYES

44 Arthur Payne (R)* YES Yes* YES YES

45Owen Drake (R)*Charlene Cannon (D)

YESYES

YESYES

YESYES

YESYES

46 Paul DeMarco (R)* NR NR NR NR

47Jack Williams (R)*Chip McCallum (I)

NRNR

NRNR

NRNR

NRNR

48 Greg Canfield (R)* NR NR NR NR

49 April Weaver (R) NR NR NR NR

50 Jim McClendon Info Info YES Yes*

51 Allen Treadaway (R)* NR NR NR NR

52 John Rogers (D)* NR NR NR NR

53 Demetrius Newton (D)* YES YES YES YES

54 Patricia Todd (D)* YES YES YES YES

55 Rod Scott (D)* NR NR NR NR

56 Lawrence McAdory (D)* NR NR NR NR

57 Merika Coleman (D)* NR NR NR NR

58 Oliver Robinson (D)* NR NR NR NR

59 Mary Moore (D)* NR NR NR NR

60 Juandalynn Givan (D) NR NR NR NR

61Alan Harper (D)*Frank Chandler (R)

YESYES

YESYES

YESYES

YESYES

62Ed Patterson (D)John Merrill (R)

NR YES

NR YES

NR YES

NR YES

63Bill Poole (R)Susan P. Hammill (D)

NRYES

NRYES

NRYES

NRYES

64 Harry Shiver (R)* NR NR NR NR

65 Elaine Beech (D)* YES YES YES YES

66 Alan Baker (R)* NR NR NR NR

67 Darrio Melton (D) NR NR NR NR

68 Thomas Jackson (D)* NR NR NR NR

69 David Colston (D) NR NR NR NR

70 Chris England (D)* NR NR NR NR

71 A.J. McCampbell (D)* NR NR NR NR

72 Ralph Howard (D)* NR NR NR NR

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

73David Grimes (R)*Joe Hubbard (D)

YESNR

YESNR

Yes*NR

YESNR

74 Jay Love (R)* NR NR NR NR

75Greg Wren (R)*Glenn Allen (D)

YESNR

YESNR

YESNR

YESNR

76 Thad McClammy (D)* YES YES YES YES

77 John Knight* NR NR NR NR

78 Alvin Holmes (D)* NR NR NR NR

79 Mike Hubbard (R)* NR NR NR NR

80Lesley Vance (D)*Melvin Dudley (R)

YESNR

YESNR

YESNR

YESNR

81Betty C. Graham (D)*Mark Tuggle (R)

NRYES

NRYES

NRYES

NRYES

82 Pebblin Warren (D)* NR NR NR NR

83 George Bandy (D)* NR NR NR NR

84Betty Forte (D)Joyce Perrin (R)

NRNR

NRNR

NRNR

NRNR

85Dexter Grimsley (D)Jody Singleton (R)

NRNR

NRNR

NRNR

NRNR

86Benjamin Lewis (R)*Merrit Carothers (D)

NRYES

NRYES

NRYES

NRYES

87Vickie Moore (D)Danny Chesteen (R)

NRNR

NRNR

NRNR

NRNR

88 Paul Beckman (R) YES YES YES YES

89 Alan Boothe (D)* NR NR NR NR

90Charles Newton (D)*Jerry Hartin (R)

NRNR

NRNR

NRNR

NRNR

91Terry Spicer (D)*Barry Boore (R)

YESYES

YESYES

YESYES

YESYES

92David Darby (D)Mike Jones (R)Don Cotton (I)

NRYESNR

NRYESNR

NRYESNR

NRYESNR

2010 Alabama State House Candidate Information 2010 Alabama State House Candidate Information

Alabama State House Information

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

93Steve Clouse (R)*Ronnie Helms (D)

YESNR

YESNR

YESNR

YESNR

94 Joe Faust (R)* NR NR NR NR

95 Steve McMillan (R)* NR NR NR NR

96 Randy Davis (R)* NR NR NR NR

97 Yvonne Kennedy (D)* NR NR NR NR

98Napoleon Bracy (D)Sharon Powe (R)

NRNR

NRNR

NRNR

NRNR

99 James Buskey (D)# YES Yes* Yes* YES

DISTRICT Candidate

Supports Tax

Exemption

Credit Union

FlexibilityData

SecurityPublic

Deposits

100 Victor Gaston (R)* YES YES YES YES

101 Jamie Ison (R)* NR NR NR NR

102 Chad Fincher (R)* NR NR NR NR

103 Joseph Mitchell (D)* YES YES YES YES

104 Jim Barton (R)* NR NR NR NR

105 Spencer Collier (R)* NR NR NR NR

2010 Alabama State House Candidate Information 2010 Alabama State House Candidate Information

For any questions regarding the candidate survey, the state scorecard or credit union issues, contact:

Patrick La Pine, President/CEO866.231.0545 x1002

Will McCarty, SVP of Governmental Affairs 866.231.0545 x2137

Robbie Gordon, Grassroots & Political Action Coordinator866.231.0545 x2164

Answer Key

* by Name Indicates an incumbent. If neither candidate is shown as an incumbent, it indicates an open seat race.

NR Indicates no response to the question.

YES Indicates support for the credit union position.

Yes* Indicates support for the credit union position, but qualified answer, or stated that it would depend on specifics of possible legislation.

NO Indicates lack of support for the credit union position.

No* Indicates lack of support for the credit union position, but qualified answer or stated that it would depend on specifics of possible legislation.

Info Indicates candidate did not answer one way or the other, citing the need for additional information on the issue.