Credit Union Board Modernization Act

Floor Speech

I rise in support of H.R. 582, the Credit Union Board Modernization Act, sponsored by Representative Vargas.

This bill would modernize Federal requirements for Federal credit union board meetings to match a flexibility included in State credit union charter requirements in 17 States, including my State of California.

Specifically, Federal credit unions are currently required to meet monthly. Under this bill, Federal credit unions that receive high ratings from the regulator would only be required to meet six times annually, with at least one meeting held during each fiscal quarter.

To ensure stability and mitigate the risk of institutional failure, this bill retains certain safeguards. For example, Federal credit unions that receive low exam ratings would still be required to meet at least monthly, as well as newly formed Federal credit union boards during the first 5 years of their charter.

Additionally, if emergencies or issues arise requiring a board meeting, nothing in the bill prevents Federal credit unions from meeting more frequently than what is required.

Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Mr. Speaker, I applaud Mr. Vargas' efforts to work on this bipartisan bill and appreciate that the reforms in this bill have been structured in a way to incentivize credit union boards to take steps to ensure their institutions are safe, sound, and well managed.

This bill has broad support, including from credit unions, like the California and Nevada Credit Union Leagues, to consumer groups like Americans for Financial Reform.

I am pleased to work with Mr. Vargas to advance this bill through the House. I was pleased to do this in the last Congress.

Mr. Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.

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