BISMARCK, N.D.– A bill has been introduced into the 68th North Dakota State Legislative Assembly that aims to provide relief to state-chartered CUs from one of the “strictest field of membership statutes in the nation.” The legislation, SB 2266, is being supported by the Dakota Credit Union Association.
Currently, North Dakota’s 18 state-chartered CUscan only serve those residing within 75 miles of a credit union’s home office, or similar limited radius of a branch.
“Because we are primarily a rural state with great distances between our communities, many North Dakotans are being left behind or have limited options for financial services,” the association said. “Why don’t North Dakota credit unions just convert to a federal charter then? That’s a fair question. However, this is about preserving local oversight and control. There are clear advantages to being a state chartered credit union; having the North Dakota Department of Financial Institutions (DFI) as their primary regulator and guidance from the North Dakota State Credit Union Board are the obvious ones.”
Bill Would Provide Parity
As written, SB 2266 would give North Dakota credit unions similarity with federally chartered credit unions by allowing an individual to join a credit union if they work or attend school in the credit union’s community, in addition to residing, DakCU said.
“We are also seeking to expand the radius to allow credit unions to serve more rural communities and banking deserts,” the association stated. “With just 10% of North Dakota’s market share, our mission in supporting SB 2266 is to improve the financial well-being of our members and advance the communities we serve. If passed, this important legislation will open our state for North Dakota credit unions and protect financial choice for all North Dakotas.”