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While the 131st Legislature adjourned in April, most of the bills that became law are now going into effect. With the Legislature having adjourned on April 17, the effective date for new laws is August 9—90 days since the end of the legislative session.
One of the bills that passed included updates to the state charter. State chartered credit unions can now reduce their number of board meetings with the approval of the Superintendent of the Bureau of Financial Institutions “for good cause.” The Bureau indicated that one reason good cause might occur is if a credit union has had favorable and consistent examinations over time.
The bill also included an itemized list of reasons for which a member can be expelled from the credit union. This change closely mirrors the changes that went into effect last year for federal charters and allows credit unions more flexibility around expelling members who pose a threat to membership or staff.
The new law requires that a credit union create a policy and appeals process by January 1, 2025 and provide the documents to members annually. The law does not specify how the policy is provided and the Bureau does not, at this time, intend to issue rulemaking around how to best distribute the policy and appeals process to membership.
Credit unions looking for a model policy or a policy management software that they can adapt to their needs for the expulsion process have access to CU PolicyPro as a benefit of League membership. For questions concerning these policy changes, you may also reach to Ellen Parent, League Compliance Director, at eparent@mainecul.org.