Credit Union Board Modernization Act passes House committee
July 27, 2022
The House Financial Services Committee advanced the CUNA and League-led Credit Union Board Modernization Act (H.R. 6889) Wednesday. Reps. Juan Vargas, D-Calif., and Anthony Gonzalez, R-Ohio, introduced the bill during the 2022 CUNA 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 needed flexibility,” said CUNA President/CEO Jim Nussle. “This bill addresses an outdated Federal Credit Union Act requirement and will free up credit union staff and board members to focus more on member service.”
The bill would allow boards of federally charted credit unions the flexibility to meet at minimum 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 on this basic charter update for federal credit unions,” said Jeremy Empol, vice president of federal government affairs for the California and Nevada Credit Union Leagues. “We appreciate not only Rep. Vargas’ understanding of the need to modernize the Federal Credit Union Act, but we also appreciate the time and effort his team has put into this bill. While it seems simple to us, hours of research, discussions and negotiations have gone into this much needed measure.”
“H.R. 6889 is common-sense legislation that empowers federally chartered credit unions with modern and flexible operational management authorities,” said Jared Weiser, director of legislative affairs for the Ohio Credit Union League. “Given the enhanced digital capabilities experienced over the last several years, credit union boards need to meet a 21st-century environment with the permissive authority to adopt reasonable governance practices that best meet membership obligations. Ohio credit unions appreciate the leadership provided by Congressman Anthony Gonzalez that led to the bi-partisan passage of this important Federal Credit Union Act modernization component.”
Sens. Kyrsten Sinema, D-Ariz., Bill Hagerty, R-Tenn., Alex Padilla, D-Calif., and Thom Tillis, R-N.C., introduced the Senate version in May.
CUNA and Leagues have engaged with policymakers throughout the 117th Congress on this and other Federal Credit Union Act updates. The Credit Union Governance Modernization Act was signed into law in March by President Joe Biden as part of an omnibus government funding package.
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