Senators introduce bill to update FCU meeting requirements

March 1, 2023

Sens. Kyrsten Sinema, I-Ariz., Bill Hagerty, R-Tenn., Alex Padilla, D-Calif., and Thom Tillis, R-N.C., introduced the CUNA-League led Credit Union Board Modernization Act Wednesday. The bill would update the Federal Credit Union Act to allow federal credit union boards to meet six times per year (instead of the current once per month).

The House passed the bill in January via voice vote.

“We thank the Senators for their bipartisan work to give federal credit unions flexibility to free up board time and resources to better serve members,” said CUNA President/CEO Jim Nussle. “This common-sense bill has broad bipartisan support, as shown by the House’s quick action to advance the bill, and we encourage the Senate to move the bill forward quickly.”

"We are thankful for Senator Hagerty’s continued leadership on this issue. Common sense updates like Board Modernization allow credit unions to better serve their members and help to ensure their financial well-being,” said Tennessee League Chief Advocacy Officer Sarah Waters.

"If this legislation passes, it will ultimately help credit unions put additional focus on serving the 133 million consumers who've chosen credit unions as their trusted financial partners," said Troy Stang, president/CEO of GoWest Credit Union Association. "Modernizing the governance of credit unions’ charter in a manner that is consistent with the rapidly changing environment for financial services is critical for our future strength and success. It was an honor to work closely with Sen. Sinema last year when she introduced similar legislation, and we are pleased that she has again stepped forward for consumers and their chosen financial institutions."

“We want to thank Senator Padilla and his colleagues for advancing this practical legislation that will help credit unions utilize their resources more efficiently so they can stay committed to offering quality financial services to member-owners,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues. “With Senator Padilla’s leadership and support, this bipartisan bill would modernize outdated requirements so every federally chartered credit union can focus more on member service — especially smaller credit unions serving rural communities and underserved areas.”

“We thank Senator Tillis for his continued work alongside credit unions as we work together on common-sense regulation, including this needed update to board governance provisions in the Federal Credit Union Act,” said Carolinas Credit Union League President/CEO Dan Schline. “This bill would provide needed flexibility to credit unions and boards, ensuring credit unions can rightly focus on what they do best: serving their members and communities.”