House Passes CU Board Modernization Bill; Rep. Griffith Signed on as Co-Sponsor

H.R. 582, the Credit Union Board Modernization Act, passed the U.S. House today on a voice vote. Rep. Morgan Griffith (R-9th) signed on to the measure as a co-sponsor.

This bill revises the frequency of meetings required to be held by a federally chartered credit union's board of directors. Specifically, the bill requires monthly meetings for new credit unions during their first five years of operation and for credit unions with a low soundness rating. All other federally chartered credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter. Currently, all federally chartered credit union boards must meet at least once a month.

Offering federally chartered credit unions the flexibility to hold fewer board meetings will not only reduce the administrative burden on staff of preparing for monthly board meetings, but will also help credit unions retain and attract skilled and experienced board members whose schedules may not allow for monthly board meetings.

"We appreciate the House’s vote on this measure so early in the session and Congressman Griffith's support. If enacted, this measure would modernize an outdated board meeting requirement and promises to reduce the regulatory burden on eligible credit unions," noted Virginia Credit Union League President/CEO Carrie Hunt.

Rep. Griffith's support of the measure was a direct result of credit union and League advocacy efforts. We highlighted this bill and other key bills of interest to credit unions in recent meetings with the Congressman and his staff members.

This measure passed the House last session, as well, but was not taken up by the Senate. Of interest, Sen. Tim Kaine was, at the urging of the League and credit unions, a co-sponsor of the Senate version of this legislation (S.4325) last session.