LANSING, Mich.–A package of six bills designed to provide comprehensive updates to the Michigan Credit Union Act (MCUA) have been introduced in the Michigan Legislature.
The bills (HB 5017-5022) were introduced in the House and a committee hearing has been scheduled for Oct. 28. The Michigan Credit Union League said its government affairs team is mobilizing targeted credit union volunteers and professionals to contact legislators on the House Financial Services Committee.
“We’re making real progress in our efforts to bring the Michigan Credit Union Act into the 21st century,” said MCUL & Affiliates President and CEO David Adams. “It’s crucial that we work with lawmakers to get this legislation passed so that credit unions across Michigan can serve their members with a full array of product offerings without unnecessary regulatory burdens."
According to the league, the Act has not been updated in more than a dozen years. Among the measures addressing regulatory relief, technical fixes, and credit union protections included in the legislation are, according to the MCUL:
- Regulatory relief, including eliminating unnecessary barriers, updating requirements for board meetings, modernizing IT vendor-contracting requirements, eliminating limitations on loan prepayment penalties and more.
- Improving the examination process for credit unions, including ensuring that exam reports are kept confidential, the exam process is transparent and that credit unions aren't penalized for declining to follow "best practices" not required by law or safety and soundness.
- Expanded powers for credit unions, including allowing Michigan-based CUSOs to provide trust services, confirming CUs’ ability to offer educational scholarships and providing financial counseling in underserved areas.