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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10511 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10511

To amend the Federal Credit Union Act to permit credit unions to serve 
           certain underserved areas, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2024

  Ms. Waters introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Credit Union Act to permit credit unions to serve 
           certain underserved areas, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Financial Access for 
Underserved Communities Act''.

SEC. 2. CREDIT UNION SERVICE TO UNDERSERVED AREAS.

    Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is 
amended--
            (1) in subsection (c)(2)--
                    (A) by striking ``the field of membership category 
                of which is described in subsection (b)(2),'';
                    (B) by amending subparagraph (A) to read as 
                follows:
                    ``(A) the Board determines that the local 
                community, neighborhood, or rural district is an 
                underserved area; and''; and
                    (C) in subparagraph (B), by inserting ``not later 
                than 2 years after having such underserved area added 
                to the credit union's charter,'' before ``the credit 
                union''; and
            (2) by adding at the end the following:
    ``(h) Change of Field of Membership To Include Underserved Areas.--
            ``(1) In general.--If an existing Federal credit union 
        applies to the Board to alter or expand the field of membership 
        of the credit union to serve an underserved area, the credit 
        union shall submit a business and marketing plan with such 
        application that explains the credit union's ability and intent 
        to serve the population of the underserved area through the 
        change in field of membership.
            ``(2) Report by smaller credit unions.--Not later than 2 
        years after the date on which a Federal credit union with 
        $10,000,000,000 or less in assets has an application described 
        under paragraph (1) approved, the credit union, as part of the 
        ordinary course of the examination cycle and supervision 
        process, shall submit a report to the Administration that 
        includes--
                    ``(A) an estimate of the number of members of the 
                credit union who are members by reason of the 
                application;
                    ``(B) a description of the types of financial 
                services utilized by members of the credit union who 
                are members by reason of the application; and
                    ``(C) an update of the credit union's 
                implementation of the plan described under paragraph 
                (1).
            ``(3) Additional requirements for large credit unions.--
        With respect to a Federal credit union with more than 
        $10,000,000,000 in assets:
                    ``(A) Consumer advisory panel.--If an application 
                described under paragraph (1) is approved, the Federal 
                credit union shall--
                            ``(i) establish a consumer advisory panel 
                        that is representative of the population of the 
                        underserved area; and
                            ``(ii) consult with the consumer advisory 
                        panel at least once every 6 months on how the 
                        credit union can best serve the convenience and 
                        needs of the population of the underserved 
                        area.
                    ``(B) Plan contents.--A plan required to be 
                submitted under paragraph (1) shall also include--
                            ``(i) a compliance plan that explains how 
                        the credit union's ability and intent to serve 
                        the population of the underserved area through 
                        the change in field of membership will be done 
                        in compliance with all applicable laws and 
                        regulations, including the credit union's 
                        ability to comply with all applicable anti-
                        discrimination and fair lending requirements; 
                        and
                            ``(ii) a plan to establish a consumer 
                        advisory panel described under subparagraph 
                        (A).
                    ``(C) Approval requirements.--Before approving an 
                application described under paragraph (1), the Board 
                shall--
                            ``(i) consult with the Director of the 
                        Bureau of Consumer Financial Protection; and
                            ``(ii) take into account the Federal credit 
                        union's compliance with consumer financial 
                        protection laws.
                    ``(D) Ongoing reporting.--Not later than 2 years 
                after the date on which the Federal credit union has an 
                application described under paragraph (1) approved, and 
                every 2 years thereafter, the Federal credit union 
                shall, as part of the ordinary course of the 
                examination cycle and supervision process, submit a 
                report to the Administration that includes--
                            ``(i) an estimate of the number of members 
                        of the credit union who are members by reason 
                        of the application;
                            ``(ii) a description of the types of 
                        financial services utilized by members of the 
                        credit union who are members by reason of the 
                        application;
                            ``(iii) an update of the credit union's 
                        implementation of the plan described under 
                        paragraph (1), including the contents described 
                        under subparagraph (B)(i); and
                            ``(iv) a description of how the credit 
                        union has addressed issues identified by the 
                        consumer advisory panel.''.

SEC. 3. MEMBER BUSINESS LENDING IN UNDERSERVED AREAS.

    Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C. 
1757a(c)(1)(B)) is amended--
            (1) in clause (iv), by striking ``or'' at the end;
            (2) in clause (v), by striking the period and inserting ``; 
        or''; and
            (3) by adding at the end the following:
                            ``(vi) that is made to a member or 
                        associated borrower that lives in or operates 
                        in an underserved area.''.

SEC. 4. UNDERSERVED AREA DEFINED.

    Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is 
amended--
            (1) in paragraph (8), by striking ``; and'' and inserting a 
        period;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(10) The term `underserved area' means a geographic area 
        consisting of one or more population census tracts or one or 
        more counties, that encompass or are located within--
                    ``(A) an investment area, as defined under section 
                103(16) of the Community Development Banking and 
                Financial Institutions Act of 1994;
                    ``(B) groups of contiguous census tracts in which 
                at least 85 percent individually qualify as low-income 
                communities, as defined under section 45D(e) of the 
                Internal Revenue Code of 1986; or
                    ``(C) an area that is more than ten miles, as 
                measured from each point along the area's perimeter, 
                from the nearest branch of a depository institution (as 
                defined under section 3 of the Federal Deposit 
                Insurance Act) or credit union.''.

SEC. 5. REPORTS BY THE NATIONAL CREDIT UNION ADMINISTRATION.

    Not later than 3 years after the date of enactment of this Act, but 
no sooner than 2 years after the date of enactment of this Act, and 
every 2 years thereafter, the National Credit Union Administration 
shall issue a report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate on the implementation of the amendments 
made by this Act.
                                 <all>
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