A group of U.S. Senators introduced legislation that seeks to reduce the amount of board meetings credit unions are required to have.
At present, credit union boards are required to meet at least once a month. The Credit Union Board Modernization Act revises the frequency of board of director meetings, requiring monthly meetings for only new credit unions during their first five years and those with a low soundness rating. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter.
The senators said this change will lower costs for credit unions, as board meetings are costly to produce, particularly for smaller credit unions in rural areas. A single board meeting typically requires hundreds of hours of staff time to pull together, in addition to travel, per diem, and other related logistics costs for credit unions.
U.S. Sen. Kyrsten Sinema (D-AZ) introduced bipartisan legislation that lowers costs for credit unions, particularly those in rural areas, by modernizing board meeting requirements so they can continue serving the Arizonans who rely on their banking services.
“Modernizing board meeting requirements for Arizona credit unions will lower costs and support local credit unions Arizonans rely on – especially in rural areas,” Sinema said.
Sens. Bill Hagerty (R-TN), Alex Padilla (D-CA), and Thom Tillis (R-NC) also sponsored the bill.
“Thank you to Sens. Sinema, Hagerty, Padilla, and Tillis for their bipartisan leadership on this important issue,” Credit Union National Association President and CEO Jim Nussle said. “This legislation will give credit unions flexibility when setting board meeting schedules, allowing additional time and resources to go toward serving local consumers.”