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Bill that would modernize federal credit union act introduced at GAC

Credit union boards may be required to meet less often, thanks to a bill introduced this week at CUNA GAC. Rep. Katie Porter (D-Calif.) introduced the Board Governance Modernization Act, which would modify the Federal Credit Union Act requirement that credit union boards meet once a month to not more than six times per year.

“Credit unions play an essential role in our banking ecosystem. We need to help credit unions continue to thrive and provide necessary services to our communities, which means that we need to tailor regulatory requirements to their unique size and needs. I’m proud to introduce legislation to do just that,” said Porter, who produced the legislation in partnership with Rep. Mark Amodei (R-Nev.).

Modernizing the Federal Credit Union Act is a focal point of the CUNA/League 2020 advocacy agenda.

“CUNA and the Leagues have prioritized these types of bills this year because Main Street communities stand to benefit greatly from important credit union governance modernization,” said CUNA President/CEO Jim Nussle. “We thank Reps. Porter and Amodei for working across the aisle on this important subject, and CUNA and the Leagues will continue working directly with legislators to move this bill and others like it through the legislative process.”

This bill is the third piece of credit union modernization legislation introduced in Congress during the CUNA GAC and is the product of CUNA/League advocacy and a recognition by lawmakers that updating the policies governing credit union governance enhances credit unions’ ability to advance their communities.

Earlier this week, Sen. Thom Tillis (R-N.C.) and Richard Burr (R-N.C.) introduced the Credit Union Fairness Act (S.3326) would remove outdated duties for credit union boards and remove the requirement for credit unions to provide NCUA with the names of its loan officers from the Federal Credit Union Act, and Sens. Tina Smith (D-Minn.) and Ben Sasse (R-Neb.) introduced the Credit Union Governance Modernization Act (S.3323), a bipartisan bill that would allow a credit union board to expel a member for just cause, a bill also resulting from CUNA, Minnesota Credit Union Network and Nebraska Credit Union League engagement.

This article first appeared on CUNA’s website.

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The League of Southeastern Credit Unions & Affiliates represents nearly 300 credit unions throughout Alabama, Florida, and Georgia. It has a combined total of almost $200 billion in assets and 12.4 million members. LSCU provides advocacy, compliance services, education and training, cooperative initiatives, and communications.

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