Representatives Introduce Legislation Again to Modernize CU Boards

Reps. Juan Vargas (D-Calif.) and Bill Huizenga (R-Mich.) introduced bipartisan legislation Thursday to modify current federal requirements for federal credit union board meetings. The Credit Union Board Modernization Act, supported by NAFCU and CUNA, would alter requirements that credit union boards meet once each month to every other month.

A similar bill was introduced last year by Rep. Vargas and Rep. Anthony Gonzalez (R-Ohio), where the bill passed the U.S. House of Representatives but never made it to the Senate floor for a vote.

“It’s time to change an outdated requirement to allow credit unions and their board members more flexibility,” Rep. Vargas said. “This legislation would ensure that credit unions can free up time and resources to provide quality financial services to their communities. I hope to see the legislation move forward with bipartisan support and modernize our nation’s credit unions.”

“Credit unions play an important role in many local communities, often working with families and small businesses to gain access to credit,” Rep. Huizenga said. “The Credit Union Board Modernization Act will go a long way to providing necessary regulatory relief for rural credit unions in Michigan’s 4th Congressional District and across the nation. By passing these commonsense reforms, federally chartered credit unions in Michigan will be afforded similar and reasonable governance practices that already exist at the state level. I’m happy to lead this bipartisan effort with Congressman Vargas and look forward to seeing these reforms enacted into law.”

NAFCU President/CEO Dan Berger issued a statement Thursday after the bill was introduced. He said, “We thank Representatives Vargas and Huizenga for their leadership in reintroducing the Credit Union Board Modernization Act. Ensuring credit unions have every tool necessary to better serve their members and grow their local economies is a priority for NAFCU, and this legislation is a much-needed modernization of an outdated requirement that will provide them with increased flexibility and free up more resources. We urge Congress to enact this bipartisan legislation in a timely manner.”

CUNA President/CEO Jim Nussle said, “We appreciate the bipartisan leadership by Reps. Vargas and Huizenga in introducing this much needed, commonsense update to the Federal Credit Union Act. This bill would give boards greater flexibility to adjust their meetings, while maintaining our focus on safety and soundness, allowing credit unions to dedicate more time and resources to serving their members and communities.”

Included on the Rep. Vargas website were statements from two credit union league leaders in support of the legislation.

Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues, said, “We are honored to see Congressman Vargas reintroduce the Credit Union Board Modernization Act this year to reshape an antiquated rule and provide federally chartered credit unions and their boards much-needed flexibility to operate in today’s environment.”

“This bill modernizes outdated requirements so that every federally chartered credit union can focus more on member service, especially smaller credit unions serving rural communities and underserved areas,” she added. “With today’s technology and connectivity, credit union boards are already communicating effectively and adequately. We encourage additional House legislators to help modernize credit unions and support local credit union members by adding their names to this bipartisan legislation.”

Michigan Credit Union League CEO Patty Corkery said, “The Credit Union Board Modernization Act is a welcome change to our board operations. The current board requirements place an undue burden on credit unions, especially smaller organizations with fewer employees and resources. If passed into law, federal credit unions could spend more time serving the needs of their members and community.”

She added, “We are extremely pleased to have Rep. Bill Huizenga serve as a lead sponsor of the legislation. As a longtime credit union supporter, he understands the importance of removing unnecessary and burdensome requirements on credit unions.”