Reps. Katie Porter (D-Calif.) and Mark Amodei (R-Nev.) introduced the latest bipartisan Federal Credit Union Act modernization bill Wednesday, the third in in as many days. The Board Governance Modernization Act would modify the Federal Credit Union Act requirement that credit union boards meet once a month to not less 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 lead bill sponsor Porter, who announced the legislation while speaking on the main stage at CUNA’s Governmental Affairs Conference.
“I’m proud to be teaming up with Rep. Porter on legislation that will give our credit unions the flexibility they need to continue providing quality services to the members in their communities," said Rep. Amodei.
CUNA, as well as the California/Nevada Credit Union Leagues, worked closely with Porter and Amodei on the bill. Modernizing the Federal Credit Union Act is a main CUNA/League advocacy goal this year.
“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 GAC, and is the product of strong CUNA/League advocacy and a recognition by lawmakers that updating the policies governing credit union governance enhances credit unions' ability to advance their communities.
“Advancing modernizations to the federal Credit Union act in all shapes and forms is vitally important to movement,” said Jeremy Empol, vice president of federal government affairs at the California/Nevada Credit Union Leagues. “We greatly appreciate Representatives Porter and Amodei for their collaboration and effort to further advance our efforts.”
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 Thom Tillis (R-N.C.) and Richard Burr (R-N.C.) introduced the Credit Union Fairness Act (S.3326) would remove outdated duties for credit union boards and remove the requirement for credit unions to provide NCUA with the names of its loan officers from the Federal Credit Union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.