Monday, March 2, 2020

3 CU Bills Introduced to Modernize CU Governance

Three credit union bills were introduced during the last week of February in Congress addressing credit union governance issues.

Senators Tina Smith (D-MN) and Ben Sasse (R-NE) introduced bipartisan legislation -- the Credit Union Governance Modernization Act (S. 3323) -- that would make credit unions safer for employees and members, and simplify rules for credit union operations.

The measure would allow federal credit unions to expel members for violations of credit union policies, without requiring a vote of membership. Under current law, a federal credit union must hold of a vote of its entire membership before it can expel a member who engages in unacceptable, sometimes dangerous behavior. (Read the press release).

In addition, Senators Thom Tillis (R-NC) and Richard Burr (R-NC)introduced a bill -- the Credit Union Modernization Act (S. 3326) -- that would remove outdated responsibilities of boards of directors of Federal credit unions.

Representatives Katie Porter (D-CA) and Mark Amodei (R-NV) introduced the Credit Union Board Modernization Act (H.R. 5981) on February 26. The bill would modify the Federal Credit Union Act requirement that credit union boards meet once a month to not more than six times per year. The bill also requires that credit union boards meet at least once each fiscal quarter.

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