U.S. Rep. Tom Emmer (R-MN) recently proposed his chamber’s version of the bipartisan Credit Union Governance Modernization Act to update credit union practices and bolster employee safety.
“When our community financial institutions are already facing difficulties navigating burdensome regulations as they support their local neighborhoods and businesses,” Rep. Emmer said, “we need to take steps to make their vital work easier.”
Rep. Emmer and U.S. Rep. Ed Perlmutter (D-CO) introduced the bill, which has not yet been published in the congressional record, to modernize certain processes regarding the expulsion of credit union members for cause, according to the text of the bill.
Currently, U.S. law requires a federal credit union to hold a vote of its entire membership before it can expel a member who engages in egregious or illegal conduct, such as physical damage to property, harassment, or threats, according to information provided by Rep. Emmer’s office.
If enacted, the measure would broaden the ability of federal credit unions to remove members due to such actions.
“This effort already began in the state of Minnesota, and would make credit unions safer for both employees and members,” said Rep. Emmer. “Safety is key, and this nonpartisan legislation will ensure our Main Street credit unions have the tools to succeed.”
The same-named companion bill, S. 3323, was introduced in February by U.S. Sens. Ben Sasse (R-NE) and Tina Smith (D-MN). The bill remains under consideration by the U.S. Senate Banking, Housing, and Urban Affairs Committee.
The measure has garnered support from the Minnesota Credit Union Network, the National Association of Federally-Insured Credit Unions, and the Credit Union National Association.