CU Board Modernization Act Introduced in the House

On Tuesday, a bill was introduced in the U.S. House of Representatives that proposed changes to the Federal Credit Union Act to modify the number of times credit union boards must meet each year.

Rep. Juan Vargas (D-Calif.) and Rep. Anthony Gonzalez (R-Ohio) introduced the Credit Union Board Modernization Act, which would change the current requirement for credit union boards to meet once each month, to not less than six times per year.

While the full language of the bill had not been published by the Government Publishing Office as of Wednesday, CUNA and other credit union officials praised the effort as a way to modernize credit union services and improve financial well-being.

“This commonsense legislation will allow credit unions the flexibility to set their board meeting schedule, freeing up time and resources that can be dedicated to improving their members’ financial well-being and advancing their communities,” CUNA President/CEO Jim Nussle said in a prepared statement.

According to information on the official legislative site, there are 18 co-sponsors of the bipartisan bill – 11 Republicans and seven Democrats.

In a statement, the president/CEO of the California and Nevada Credit Union Leagues, Diana Dykstra, said, “The California Credit Union League greatly appreciates the leadership and effort by Rep. Vargas and his team. We’ve always enjoyed a strong relationship with Rep. Vargas through his tenure in the state legislature and now in Congress as a member of the Financial Services Committee. We applaud his efforts and were happy to connect him with this issue. This is another example of quality bipartisan leadership on issues that are important to our industry.”

According to CUNA, the bill would provide “flexibility for credit unions, especially small and rural institutions, which would be able to prioritize member service.”