Sens. Alex Padilla (D-CA), Kyrsten Sinema (I-AZ), Bill Hagerty (R-TN), and Thom Tillis (R-NC) introduced the Credit Union Board Modernization Act this week in the U.S. Senate, which 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 requirement).
The House passed this bipartisan bill — spearheaded by the California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA) — in January via voice-vote.
“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 and CEO of the Leagues.
With Padilla’s leadership and support, this bipartisan bill would modernize outdated requirements so every federally chartered credit union can focus more on member service — especially smaller credit unions serving rural communities and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, Dykstra said. Credit union boards are already communicating effectively and adequately with today’s connectivity and technology, which means this bill would free up time and resources so they can focus more on their members’ needs.
“We encourage additional senators to help modernize credit unions and support local credit union members by adding their names to this vital legislation,” she added.
In January, Reps. Juan Vargas (D-CA) and Bill Huizenga (R-MI) reintroduced the Credit Union Board Modernization Act in the U.S. House of Representatives, which unanimously passed the legislation by a voice-vote. The bill had numerous co-sponsors from California. It was an early victory in the congressional session which the Leagues and credit unions were honored to see.
The bill would reshape an antiquated rule and provide federally chartered credit unions and their boards much-needed flexibility to operate in today’s environment. By spearheading this legislation and working toward enactment with growing bipartisan congressional support, Vargas and Padilla and other members of Congress can make sure credit unions utilize their time and resources more efficiently. The bill would give credit union boards greater flexibility to adjust their meetings while maintaining a focus on safety and soundness, allowing credit unions to dedicate more time and resources to serving their members and communities.
The bill was originally introduced in conjunction with the 2022 CUNA Governmental Affairs Conference (GAC) during the last congressional session.