CU Governance Modernization Act Included in Spending Bill
The legislation would provide credit unions with the power to expel members for just cause.
Congressional leaders in the House of Representatives on Wednesday included the Credit Union Governance Modernization Act (CUGMA) inside the enormous omnibus spending bill as a stopgap measure to fund the Federal government.
According to the text of the CUGMA, which passed the House Financial Services Committee in November, the legislation would update the Federal Credit Union Act to allow credit union boards to swiftly expel a member for just cause. Current law requires a full membership vote to expel a member.
Officials with CUNA and NAFCU were quick to praise the inclusion of the CUGMA in the spending bill.
“We thank House leaders for including this bipartisan update to the Federal Credit Union Act in the omnibus package, and to Reps. Emmer and Perlmutter, as well as Sens. Tina Smith and Ben Sasse, for their work on this bipartisan issue,” CUNA president/CEO Jim Nussle said in a statement Wednesday morning. “This and other Federal Credit Union Act modernizations are essential to ensuring credit unions can continue to meet the needs of 21st century consumers.”
“NAFCU applauds congressional leadership for advancing the Credit Union Governance Modernization Act and commends Senators Tina Smith and Ben Sasse and Representatives Tom Emmer and Ed Perlmutter for their leadership on this issue and continued efforts to further protect credit unions,” NAFCU Vice President of Legislative Affairs Brad Thaler said. “This important legislation will ensure safeguards for credit unions dealing with members who engage in illicit activity that endangers credit union staff and members by allowing federal credit unions establish procedures for expelling members, rather than requiring a member vote.”
Thaler added, “NAFCU and our credit union members have pushed hard to advance this bill that provides fundamental reforms for the credit union expulsion process and we stand ready to help enact this legislation.”
According to reports from congressional leaders, the House is expected to approve the spending bill Wednesday to send to the Senate for a vote later this week.