WASHINGTON–Reps. Juan Vargas (D-CA) and Anthony Gonzalez (R-OH) have introduced the Credit Union Board Modernization Act (HR 6889), which would update the Federal Credit Union Act by modifying the requirement that credit union boards meet not less than six times per year.
That is a change from the current once-a-month requirement. The legislation was introduced at the same time CUNA was hosting its Governmental Affairs Conference (GAC).
“This commonsense legislation will allow credit unions the flexibility to set their board meeting schedule, freeing up time and resources that can be dedicated to improving their members' financial well-being and advancing their communities,” said CUNA President/CEO Jim Nussle. “We thank Reps. Vargas and Gonzalez for their bipartisan leadership on this important issue.”
CUNA said it and the California and the Ohio Credit Union Leagues have worked closely with Reps. Vargas and Gonzales on the bill, which would provide flexibility for credit unions, “especially small and rural institutions which would be able to prioritize member service under the proposed legislation.”
Leadership ‘Appreciated’
“The California Credit Union League greatly appreciates the leadership and effort by Rep. Vargas and his team. We’ve always enjoyed a strong relationship with Rep. Vargas through his tenure in the state legislature and now in Congress as a member of the Financial Services Committee,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues. “We applaud his efforts and were happy to connect him with this issue. This is another example of quality bipartisan leadership on issues that are important to our industry.
In the 116th Congress, CUNA noted that it and the California and Nevada Credit Union Leagues worked with Reps. Katie Porter (D-Calif.) and Mark Amodei (R-Nev.) to introduce similar bipartisan legislation.
“Both Porter and Amodei have committed to being original co-sponsors of this bill, sending a message they are firmly behind their initiative from last Congress, and both are leaders for the credit union industry,” CUNA said.
Additional original cosponsors on the Credit Union Board Modernization Act include Aguilar (D-CA.), Roybal-Allard (D-CA.), Titus(D-NV.), Case (D-HI), Kahele (D-HI), Brownley (D-CA.), Sessions (R-TX), Timmons (R-SC.), Moore (R-Utah), Mooney (R-W. VA), Budd(R-NC), Mary Miller (R-IL.), Fitzpatrick (R-PA.), Davidson (R-OH), and Johnson (R-LA).
Amendment to E-SIGN Act
Separately, Sens. John Thune (R-SD), Todd Young (R-IN), Marsha Blackburn (R-TN) and Jerry Moran (R-KS) have reintroduced legislation to amend the Electronic Signatures in Global and National Commerce (E-SIGN) Act they say reflects technological advancements and consumer preferences and reduces burdens on financial institutions.
The bill, known as the E-SIGN Modernization Act, was originally introduced in 2020 and was passed out of the Senate Commerce Committee but did not advance further. The legislation aims to "streamline how consumers consent to receiving electronic documents like bank statements, account information, and contracts," according to a release from the senators.
More specifically, if signed into law the legislation would remove the unwieldly requirement that consumers prove they can access documents electronically before they can agree to receive digital versions. Instead, documents would be sent electronically once the consumer is provided with disclosure information and consents to receive them via digital means.