Pennsylvania Credit Union Parity Bill Passed

HARRISBURG, Pa. – The Pennsylvania House voted unanimously to approve the State Credit Union Parity Bill (S.B. 1222), with no amendments. The Pennsylvania Senate passed the bill unanimously in June. S.B. 1222 now goes to Gov. Mark Schweiker’s desk for signing. He has 30 days to act and officially sign the bill into law. The original state Credit Union Act was signed in 1933. Among the provisions of S.B. 1222, it gives state-chartered credit unions the ability to petition the Secretary of Banking for parity with federal credit union in three areas – powers and activities; FOM, and CUSO participation. The new credit union code allows state-chartered CUs to be involved with any activity allowed federal credit unions under the Federal Credit Union Act and the rules and regulations of NCUA; allows SCCUs to create, amend, or expand their FOMs as permitted in the Federal Credit Union Act; allows SCCUs to control, hold an interest in or participate in a CUSO and offer the same services allowed FCUs; and make housekeeping changes to the State Credit Union Code by the Pennsylvania Department of Banking. Eighty-three of Pennsylvania’s 740 credit unions, are state-chartered.