The U.S. House of Representatives passed the Credit Union Board Modernization Act this week, a bill sponsored by Reps. Juan Vargas (D-CA) and Bill Huizenga (R-MI).
The bill, H.R. 582, would update the Federal Credit Union Act to modify current federal requirements for federal credit union board meetings. Specifically, it would alter the requirements for how often boards are supposed to meet – changing it from once per month to once every other month.
“I’m proud that the House passed the Credit Union Board Modernization Act, which I introduced, along with Rep. Bill Huizenga, to change the outdated requirement and allow credit unions and their board members more flexibility,” Vargas said. “This bipartisan legislation would give credit unions the ability to better dedicate their time and more effectively serve their members and communities.”
The bill would continue to allow credit union boards to meet as frequently as needed. In addition, there is still a requirement for monthly meetings for credit unions that exhibit unsound practices. It has the support of several organizations, including the Credit Union National Association (CUNA).
“Thank you to the House members for taking up and voting to advance this bipartisan, common-sense legislation that would help free up credit union time and resources to focus on members and their needs,” Jim Nussle, CUNA president and CEO, said. “CUNA, Leagues, and credit unions also thank Reps. Vargas and Huizenga for moving quickly to introduce this bill in the new Congress, and we look forward to further engagement with the Senate to get this bill across the finish line.”
The legislation now moves to the Senate for consideration.