The U.S. House of Representatives on Monday passed a bill introduced by U.S. Rep. Bill Huizenga (R-MI) that would align federal and state regulations for credit unions in good standing by allowing the credit union boards to meet every other month instead of monthly.
The congressman on Feb. 4 cosponsored the bipartisan Credit Union Board Modernization Act, H.R. 975, with bill sponsor U.S. Rep. Juan Vargas (D-CA). The bill has since gained 21 more cosponsors, including U.S. Reps. Young Kim (R-CA) and Frank Lucas (R-OK).
“These common-sense reforms will allow federally chartered credit unions in good standing to be afforded the same, reasonable governance practices that already exist at the state level,” Rep. Huizenga said. “I’m happy to lead this bipartisan effort with Congressman Vargas and look forward to seeing these reforms enacted into law.”
If enacted, H.R. 975 also would require new credit unions and credit unions with a low soundness rating to continue to meet monthly, as required under current law. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter, according to the text of the bill.
“Credit unions play a critical role in helping local small businesses access credit while expanding economic opportunity for families across all walks of life,” said Rep. Huizenga, vice chairman of the U.S. House Financial Services Committee. “The Credit Union Board Modernization Act will go a long way in providing necessary regulatory relief for credit unions in Southwest Michigan and around the country.”
Rep. Vargas thanked Rep. Huizenga for helping to lead the bill with him and said it’s time to change the outdated requirement to allow credit unions more flexibility. “This legislation will help credit unions dedicate more time and resources to their true mission,” he said, “providing quality financial services to our communities.”
On Feb. 11, the U.S. Senate received H.R. 975 and referred it to the U.S. Senate Banking, Housing, and Urban Affairs Committee for consideration.