CU Legislation Advances Through Senate, House

Our legislation [companion bills HB813 / SB296] allowing compensation for members of a state-chartered credit unions’ board of directors, supervisory committee or credit committee has now passed both chambers of Virginia General Assembly. The bills cap compensation at $6,000 annually. The bill also specifically exempts certain insurance coverage for officials from the compensation calculation, though that exemption has been the case in Virginia for some time. Credit union officials will continue to be reimbursed for expenses incurred while on credit union business, consistent with guidance from the Internal Revenue Service.

“Serving as an official at a credit union today requires considerable time, broad expertise and a working knowledge of a whole host of areas, including accounting and finance, human resource management, regulatory compliance, marketing, technology, cybersecurity, and more,” says League President Rick Pillow. “The reality is that individuals with that knowledgebase, along with leadership and governance experience, are in high demand. We believe compensation is an appropriate and effective tool in helping credit unions recruit and retain those individuals. I think it’s important to remember that this would only provide a state-chartered credit union the authority to compensate its officials; in no way does it demand such compensation. Each state-chartered credit union will need to debate the merits of compensation as they relate to their own credit union’s needs and expectations.”

The House and Senate bills are identical, so we do not anticipate any issues as we hit crossover day, when each chamber will consider legislation passed by the other.

In other legislative news, a bill we were closely monitoring that would have allowed Virginia’s localities and political subdivisions to hold public deposits in a credit union has been set aside for the session.

“While we didn’t seek the introduction of a public deposits measure this year, we agree with [bill patron Del. Lee Carter] that public deposits authority for credit unions is good public policy,” said Pillow. “We believe that providing local government with another choice for financial services can only benefit taxpayers and those local government agencies.”

We continue to monitor numerous bills winding their way through the committee and floor vote process, including measures on the minimum wage, open-end credit and elder financial abuse reporting.

[See the status of the Senate and House bills of interest to credit unions]