Just days after Reps. Juan Vargas (D-CA) and Bill Huizenga (R-MI) reintroduced the Credit Union Board Modernization Act in the U.S. House of Representatives last week, the House unanimously passed this legislation by a voice-vote this past week.
The bill — led with support from the California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA) — has numerous co-sponsors from California.
“We want to thank Congressman Vargas and House members for taking up and voting to advance this bipartisan, commonsense legislation that would help free up credit union time and resources to focus on members and their needs,” said Diana Dykstra, president and CEO of the Leagues. “This is an excellent victory early in the congressional session, and we are honored to see Congressman Vargas’s continued leadership on this important issue.”
The bill now heads to the U.S. Senate where the Leagues will continue to work to ensure its passage. This legislation would update the Federal Credit Union Act by modifying the requirement that federally chartered credit union boards meet once a month, making it not less than six times per year. It would reshape an antiquated rule and provide federally chartered credit unions and their boards much-needed flexibility to operate in today’s environment.
By reintroducing this legislation and working toward enactment with growing bipartisan congressional support, Vargas, the bill’s co-sponsors, and other members of Congress can make sure credit unions utilize their time and resources more efficiently and stay committed to their promise of offering quality financial services to members, Dykstra noted. The bill modernizes outdated requirements so every federally chartered credit union can focus more on member service — especially smaller credit unions serving rural communities and underserved areas.
“With today’s technology and connectivity, credit union boards are already communicating effectively and adequately,” Dykstra said. “We encourage additional House legislators to help modernize credit unions and support local credit union members by adding their names to this bipartisan legislation.”
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. Many credit union leaders have lauded the legislation for:
The bill was originally introduced in conjunction with the 2022 CUNA Governmental Affairs Conference (GAC) during the last congressional session.