House Passes CU Board Modernization Act
The bill would reduce the number of times a credit union board must meet each year.
In a voice vote from U.S. House of Representative members, the Credit Union Board Modernization Act (H.R. 582) successfully passed through the legislative body late Monday afternoon.
The bill, which would reduce the minimum number of monthly meetings held by credit union boards from 12 to six, heads to the Senate. Last year’s similar bill also passed the House but didn’t come to a vote in the Senate.
Reps. Juan Vargas (D-Calif.) and Bill Huizenga (R-Mich.) introduced the bipartisan bill Thursday to modify current federal requirements for federal credit union board meetings.
In reaction to the passage, NAFCU President/CEO Dan Berger said, “The House’s swift passage of the Credit Union Board Modernization Act is a testament to the credit union industry’s commitment to their members. NAFCU and our member credit unions fought to make lawmakers aware of outdated requirements that can be costly and impact the ability to serve members.”
Berger continued, “Reducing the number of required annual meetings and recognizing the need for modernization in the Federal Credit Union Act will allow credit unions to utilize resources better and focus their efforts on serving their 134 million members and the underserved communities in need of safe, affordable financial products and services. We thank Representatives Vargas and Huizenga for their leadership on this issue and we urge the Senate to follow the House’s lead and pass this legislation without delay.”
After the vote, CUNA President/CEO Jim Nussle said, “Thank you to the House members for taking up and voting to advance this bipartisan, common-sense legislation that would help free up credit union time and resources to focus on members and their needs. CUNA, Leagues and credit unions also thank Reps. Vargas and Huizenga for moving quickly to introduce this bill in the new Congress, and we look forward to further engagement with the Senate to get this bill across the finish line.”
The bill introduced last year was sponsored by by Rep. Vargas and Rep. Anthony Gonzalez (R-Ohio).