Credit Union Board Modernization Act
Floor Speech
Mr. Speaker, I thank Chairman Hill and Ranking Member Waters for their support throughout this process.
Mr. Speaker, I rise in support of H.R. 975, the Credit Union Board Modernization Act. Credit unions are a vital part of our country's economic stability and success. These not-for-profit, member-owned institutions serve over 140 million Americans. Yet for over 40 years, volunteer-led Federal credit union boards have been burdened by an unnecessary requirement on meeting frequency.
This bill gives financially sound and well-managed Federal credit unions the flexibility they deserve. It will adjust the board meeting requirement by allowing qualifying Federal credit unions to move from the current monthly meeting to meeting a minimum of six times annually with at least one meeting each fiscal quarter.
This is a commonsense fix that allows Federal credit unions with a proven record of stability to dedicate more time and resources to the local communities they serve, like in San Diego, my hometown, and across the country.
This fix also makes it easier for more Americans who currently are not able to serve on these boards, due to the time commitment, to have an opportunity to bring their perspectives to the table. This bill contains key safeguards to ensure stability and mitigate risk.
Newly formed credit unions and those with poor ratings, as Mr. Hill stated, will still be held to the current monthly meeting requirements. Under this bill, only Federal credit unions with strong ratings from our Federal regulators and proven management capacities and capabilities will be eligible for the new meeting requirements. This reasonable bipartisan bill passed the House twice in both the 117th and 118th Congresses.
Again, I thank my colleague, the gentleman from Michigan (Mr. Huizenga) for working with me on advancing this legislation and his deep knowledge of the issues. It was actually a pleasure working with him again.
Mr. Speaker, I urge all of my colleagues to support this bill, and I reserve the balance of my time.
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Mr. VARGAS. Mr. Speaker, credit unions are vital to our economy and to our communities. I urge my colleagues to support this bill and the consumers and small businesses that they serve.
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