WASHINGTON– The House has passed the credit union-supported Credit Union Board Governance Modernization Act (H.R. 6889).
The bill, introduced by Reps. Juan Vargas (D-CA) and Anthony Gonzalez (R-OH) and would modify the Federal Credit Union Act requirement that credit union boards meet no less than six times per year (from the current once per month).
“This bill would provide a needed update to credit union board meeting requirements, freeing up time and resources that can be dedicated to meeting members’ needs,” said CUNA President/CEO Jim Nussle in a statement. “We thank Reps. Vargas and Gonzalez for their leadership on this issue, as well as the House members who voted to support it.”
“The credit unions in California applaud Rep. Vargas’ leadership and recognize his efforts,” said Diana Dykstra, president/CEO of the California Credit Union League, in a statement. “A lot of time and effort has gone into this very simple charter enhancement, and that is not something credit unions take lightly.”
“Credit union boards need to adopt reasonable governance practices that best meet membership obligations. Empowering federally chartered credit unions with modern and flexible operational management authorities will enable credit unions to focus more on serving members,” said Jared Weiser, director of legislative affairs for the Ohio Credit Union League, in a statement. “Ohio credit unions appreciate Congressman Anthony Gonzalez’s leadership that led to the bipartisan passage of this important Federal Credit Union Act modernization component.”
NAFCU has also been advocating for passage of the bill.
The bill has a Senate ccompanion which was introduced in May by Sens. Kyrsten Sinema (D-AZ), Bill Hagerty (R-TN), Alex Padilla (D-CA) and Thom Tillis (R-NC).