U.S. Capitol building, Washington, D.C. (Source: Shutterstock)
The House of Representatives passed the Credit Union Board Modernization Act on Thursday, the fate of which goes to the Senate, where a similar version was introduced in May.
The bill would alter the Federal Credit Union Act's requirement that federally charted credit unions meet 12 times each year and reduce that number to a minimum of six times each year.
For months, CUNA and NAFCU officials have backed the bill, along with representatives from the California and Ohio Credit Union Leagues.
"This bill would provide a needed update to credit union board meeting requirements, freeing up time and resources that can be dedicated to meeting members' needs," CUNA President/CEO Jim Nussle said. "We thank Reps. Vargas and Gonzalez for their leadership on this issue, as well as the House members who voted to support it."
"The credit unions in California applaud Rep. Vargas' leadership and recognize his efforts," Diana Dykstra, president/CEO of the California Credit Union League, said. "A lot of time and effort has gone into this very simple charter enhancement, and that is not something credit unions take lightly."
"Credit union boards need to adopt reasonable governance practices that best meet membership obligations. Empowering federally chartered credit unions with modern and flexible operational management authorities will enable credit unions to focus more on serving members," Jared Weiser, director of legislative affairs for the Ohio Credit Union League, said. "Ohio credit unions appreciate Congressman Anthony Gonzalez's leadership that led to the bipartisan passage of this important Federal Credit Union Act modernization component."
In a letter to lawmakers ahead of Thursday's vote, NAFCU SVP of Government Affairs Greg Mesack wrote, "Reducing the outdated requirements for credit union boards of directors to meet each month to no fewer than six times per year is a welcome modernization that will give credit unions more flexibility and free up resources that could otherwise be used for serving members. This is particularly true for small credit unions in rural and underserved areas. With all of the connectivity and technology available today, credit union boards are able to communicate in an ongoing manner that has negated the necessity of monthly meetings."
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
