Washington, Idaho Pass CU Modernization Bills
The Northwestern states pass legislation that brings updates to member access and tech services.
State lawmakers in Washington and Idaho passed credit union modernization legislation that will increase access to emerging financial technology and expand credit union access to the under- and unbanked citizens.
According to a statement from the Northwest Credit Union Association, the Washington Legislature passed HB 1165. Included was a provision that “increases credit union and member access to emerging financial technology and services, by giving credit unions more flexibility to make equity investments in businesses developing or providing these services.”
NWCUA Vice President of Legislative Affairs for Washington Joe Adamack said, “Given the digital transformation currently underway in financial services, this critically important investment authority will allow credit unions to be early adopters of fintech solutions, to be directly involved in the development of relevant products, and provide startup funding that will help these products and services benefit members sooner.”
According to the NWCUA, other key issues addressed in the legislation included COVID-related topics, such as:
- Removing the primary occupancy and move-in timeline requirements for buildings or property owned by credit unions.
- Enabling the state regulator to provide flexibility for small credit unions.
- Increasing underserved peoples’ access to financial services by allowing credit unions to provide basic services such as cashing paycheck or pandemic assistance checks.
Adamack added, “Credit union advocates should be very proud of their cooperative efforts to develop and pass this forward-thinking bill modernizing the state Credit Union Act. Legislators recognize the incredible impact of all the work credit unions are doing to serve their members and communities, every day.”
The legislation is expected to take effect in June.
In Idaho, lawmakers passed a bill that will update the credit union charter to include expanded fintech services for members, and allow virtual board and annual membership meetings, according to a statement from CUNA on Tuesday.
“The charter updates will help state-chartered credit unions remain relevant and continue to offer convenient and secure financial services to their members and communities,” Ryan Fitzgerald, vice president of legislative affairs for Idaho, said. “We’re extremely grateful to Idaho credit union advocates, the Idaho Department of Finance and the Idaho Legislature for the collaboration to make this possible.”