On Monday night, January 30th, the House passed the CUNA-supported Credit Union Board Modernization Bill, which would alter the minimum amount of required credit union board meetings from once a month to six times per year. The bipartisan bill was introduced last week by Representatives Juan Vargas (D) from California and Bill Huizenga (R) from Michigan.
At the time of its introduction, CUNA submitted a letter of support for the bill, arguing that the mandatory monthly meetings are too frequent and place additional burdens on credit unions’ volunteer board members as well as the credit union staff that must prepare for said meetings. Furthermore, they argue that those burdens take time and resources away from helping members–which should be credit unions’ top priority.
“We appreciate the bipartisan leadership by Reps. Vargas and Huizenga in introducing this much-needed, commonsense update to the Federal Credit Union Act,” said CUNA President/CEO Jim Nussle. “This bill would give boards greater flexibility to adjust their meetings, while maintaining our focus on safety and soundness, allowing credit unions to dedicate more time and resources to serving their members and communities.”
The bill received over 100 co-sponsors and several credit union leagues across the country spoke out in favor of the relief it would bring smaller credit unions in particular, who they claim are disproportionately affected by these requirements.
In response to the bill, Michigan Credit Union League CEO Patty Corkery voiced her support, stating that “The Credit Union Board Modernization Act is a welcome change to our board operations. The current board requirements place an undue burden on credit unions, especially smaller organizations with fewer employees and resources. If passed into law, federal credit unions could spend more time serving the needs of their members and community.”
“I applaud our MCUL and CUNA advocacy teams for their hard work as well as our Michigan credit union advocates who recognize the importance of meeting and working with our representatives to make change,” she added.
From here, the bill goes to the Senate for another vote, where CUNA expects another swift victory.
“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,” said CUNA President/CEO Jim Nussle. “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.”
