RALEIGH, N.C.–Prior to leaving for their summer break members of the North Carolina House of Representatives attempted to give state-chartered credit unions new authority but lost in a landslide vote in the Senate that was related to a larger bill.

The state Senate voted 41-1 against concurring with the House’s rewrite of Senate Bill 595.

“The two chambers have been at odds on credit-union policy for a couple sessions,” NCBusiness reported, adding that the House proposal was similar to a bill one that has been getting pigeonholed in the Senate after passing the House 85-25.

According to the report, the House majority favors allowing credit unions to broaden their lines of business if the bill passes, and to enroll members from a larger pieces of the state’s population.

Bank Opposition

But the bill has drawn consistent opposition from the state’s banks, NCBusiness reported. As the CU Daily has reported, there has long been antagonism between banks and credit unions in the Tarheel State.

NCBusiness quoted Nathan Batts, a lobbyist for the North Carolina Bankers association, as saying the House approach would “give credit unions the ability to go from having one common bond to stitching multiple common bonds together and thereby be able to include anyone, anywhere in the world, and any business as a member. That monumental change — plus additional new powers — sought to give credit unions practically all the powers of banks, without taxing, supervising and regulating them like banks.”

The report cited some members of the House who share Batts’ view. 

Concern Over Banking Deserts

The proposed changes, however, have support in the House because “many banks have downsized their branch networks in recent years, leaving many rural residents with reduced access to in-person services,” NCBusiness reported, with legislators lamenting the creation of banking deserts.