Financial Service Committee to Consider CU Member Expulsion Bill

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Read more at the Washington CU Daily

The House Financial Services Committee on Tuesday will consider legislation that would make it easier for credit unions to expel members who pose a threat or engage in dangerous or illegal conduct.

Under current law, a credit union must hold a membership meeting to expel members. The bill, sponsored by Rep. Tom Emmer, R-Minn., would allow a credit union to hold a board meeting to expel a member. Two-thirds of a quorum of a credit union’s board would be needed to expel a member. The legislation also would allow a member to apply for reinstatement.

In a memo prepared to demonstrate the need for the legislation, Financial Services Committee Democratic staff said that the Defense Credit Union Council reported in August 2020 instances where members threatened the life of an installation commander, physically attacked credit union employees, or engaged in several acts of fraud.

During the Tuesday markup, the committee also will consider legislation that would expand employment opportunities at banks and credit unions for people convicted of minor criminal offenses. The bill reduces the “look back” period for criminal charges from an indeterminate timeline to those that are over seven years old if a person has been released from incarceration for at least five years.

The bill, sponsored by Rep. Joyce Beatty, D-Ohio, chairwoman of the Financial Services Committee’s Diversity and Inclusion Subcommittee, also states that criminal charges that have been expunged, sealed or dismissed are not included in consideration of a person’s eligibility to be employed.

In 2019, the National Credit Union Administration board approved a policy statement designed to make it easier for people convicted of minor offenses to be employed by credit unions. However in arguing for the need for the legislation, a Democratic staff memo states that the NCUA did not address treatment of drug-related offenses, consideration of a potential employee’s role at a credit union, or the length of time since an offense occurred.

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  • A veteran Washington reporter, David spent four years as Washington correspondent for the Credit Union Times before starting Washington Credit Union Daily. He has spent his career writing and editing for many of the capital’s leading publications, including CongressDaily, National Journal magazine and Congressional Quarterly Weekly. He was part of a team that won a 2005 National Headliner Award for a special issue of National Journal on “The State of Congress.” He holds a B.A. in political science from The George Washington University and an M.A. in journalism from Indiana University.

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