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Congress is currently considering two credit union board modernization bills, H.R. 6889 and S. 4325. Both bills are called the Credit Union Board Modernization Act. While there are some minor differences between the two versions, both aim to allow federally chartered credit union boards to meet at a minimum of six times a year rather than twelve. Supporters believe this bill will help encourage more credit union members to consider serving on the board, while also providing credit union staff additional time to focus on services for their communities.
There are proposed exemptions to the reduced meeting requirements. Newly founded credit unions will not qualify for the reduced meeting requirements until they have been operating for five years. Additionally, credit unions must maintain a certain CAMELS rating in order to qualify. The specific CAMELS rating has not yet been determined. H.R. 6889 proposes that credit unions must have a CAMELS composite rating of 1 or 2 in addition to a management rating of 1 or 2. S. 4325 exempts any credit union with a CAMELS composite ratio higher than 4. Proponents say these exemptions promote safety and soundness by incentivizing federally chartered credit unions to perform at a high level. In Maine, state chartered credit unions already enjoy similar board meeting requirements.
If your credit union supports Congress reducing the minimum amount of required board meetings for federally chartered credit unions, the League would like to hear from you! Specifically, we would like to know how this change might enhance your ability to recruit new board members. We also are interested in learning more about challenges you’ve faced in recruiting and retaining candidates for your board. If you do not support this effort, or have concerns about this legislation, we’d like to hear that feedback as well. Your responses might be used by the League’s Advocacy team.
Please provide us your input using our convenient Advocacy In Action online form. If you have questions about these legislative proposals, please contact Robert Caverly.