Reps. Juan Vargas (D-CA) and Bill Huizenga (R-MI) reintroduced the Credit Union Board Modernization Act in the U.S. House of Representatives this week, led by support from the California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA).
The bill 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.
“We are honored to see Congressman Vargas reintroduce the Credit Union Board Modernization Act this year to reshape an antiquated rule and provide federally chartered credit unions and their boards much-needed flexibility to operate in today’s environment,” said Diana Dykstra, president and CEO of the Leagues.
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 said. The bill modernizes outdated requirements so every federally chartered credit union can focus more on member service — especially smaller credit unions serving rural communities and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,” said CUNA President and CEO Jim Nussle. “We appreciate the bipartisan leadership by Reps. Vargas and Huizenga in introducing this much needed, commonsense update to the Federal Credit Union Act,” Nussle added.
Many credit union leaders have lauded the bill for:
The bill was originally introduced in conjunction with the 2022 CUNA Governmental Affairs Conference (GAC) during the last congressional session, eventually passing the House with more than 100 co-sponsors.