CU Board Modernization Act Passes House
Backed by NAFCU and CUNA, the legislation would reduce the number of times CU boards must meet each year.
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In a letter to lawmakers ahead of Thursday’s vote, NAFCU SVP of Government Affairs Greg Mesack wrote, “Reducing the outdated requirements for credit union boards of directors to meet each month to no fewer than six times per year is a welcome modernization that will give credit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.”