Credit Union Board Modernization Act Passes House Committee | 2022-07-27
The House Financial Services Committee on Wednesday advanced the CUNA-League-led Credit Union Board Modernization Act (HR 6889). Representatives Juan Vargas, D-Calif., and Anthony Gonzalez, R-Ohio, introduced the bill at the CUNA 2022 Governmental Affairs Conference in March.
“Thank you to the House Financial Services Committee for passing this common-sense, bipartisan bill that will give credit union boards the flexibility they need,” said CUNA President and CEO Jim Nussle. “This bill addresses an outdated requirement of federal credit union law and will free up credit union staff and board members to focus more on serving members.”
The bill would give federally chartered credit union boards the ability to meet at least six times a year rather than the required 12 times a year.
“The California League continues to applaud and thank Rep. Vargas for his leadership in this basic update to the Federal Credit Union Charter,” said Jeremy Empol, Vice President of Federal Government Affairs for the Leagues. California and Nevada credit unions. “We not only appreciate Rep. Vargas’ understanding of the need to modernize the Federal Credit Union Act, but we also appreciate the time and effort his team has devoted to this bill. Although it seems simple to us, hours of research, discussion and negotiation have gone into this much needed measure. »
“HR 6889 is common sense legislation that gives federally chartered credit unions modern and flexible operational management powers,” said Jared Weiser, director of legislative affairs for the Ohio Credit Union League. “Given the enhanced digital capabilities experienced in recent years, credit union boards must adapt to a 21st century environment with the permissive power to adopt reasonable governance practices that best meet the member obligations. Ohio credit unions appreciate the leadership provided by Congressman Anthony Gonzalez in leading to the bipartisan passage of this important modernization component of the Federal Credit Union Act.
The senses. Kyrsten Sinema, D-Arizona, Bill Hagerty, R-Tenn., Alex Padilla, D-Calif., and Thom Tillis, RN.C., presented the Senate version in May.
CUNA and the leagues engaged with decision makers throughout the 117e Congress about this and other updates to the Federal Credit Union Act. The Modernizing Credit Union Governance Act was signed into law in March by President Joe Biden as part of a government omnibus funding package.