For the second time in three years, significant updates to the Alabama State Credit Union Act have passed the House and Senate. The Alabama House passed SB 209, the Alabama Credit Union Update, late Wednesday evening by a unanimous vote of 104-0. The update heads to Gov. Bentley’s desk for his signature.
SB 209, sponsored by Sen. Bill Holtzclaw (R-Madison), seeks to improve the operating environment of state chartered credit unions and increase efficiency for day-to-day activities. Some of the changes include new investment language providing parity with federally chartered credit unions, new parity language for products and services, allowing credit committees to be appointed rather than elected, increased membership protection during voluntary dissolutions, and increased confidentiality provisions to better protect credit unions and members.
The League thanks Sen. Holtzclaw and Rep. Ken Johnson, who sponsored the House companion bill, and all of the members of the Alabama House and Senate for the quick passage of this legislation and their continued support of credit unions. The League also would like to thank the State Act Workgroup for their work on the update.