I 
117TH CONGRESS 
1ST SESSION H. R. 2311 
To amend the Federal Credit Union Act to modernize certain processes 
regarding expulsion of credit union members for cause, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2021 
Mr. EMMER (for himself and Mr. PERLMUTTER) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To amend the Federal Credit Union Act to modernize certain 
processes regarding expulsion of credit union members 
for cause, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Credit Union Govern-
ance Modernization Act of 2021’’. 
SEC. 2. EXPULSION OF FEDERAL CREDIT UNION MEMBERS 
FOR CAUSE. 
Section 118(a) of the Federal Credit Union Act (12 
U.S.C. 1764(a)) is amended to read as follows: 
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‘‘(a) EXPULSION FOR CAUSE.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) of this section, a member may be expelled 
for cause pursuant to a policy adopted by a majority 
vote of a quorum of the directors of the Federal 
credit union and provided in written or electronic 
form to all members of the Federal credit union. 
‘‘(2) PROCEDURES.— 
‘‘(A) NOTIFICATION OF PENDING EXPUL-
SION.—If a member will, subject to the policy 
adopted under paragraph (1), be subject to ex-
pulsion, the member shall be notified in advance 
of the expulsion, along with the reason for such 
expulsion. Such notice shall be provided in writ-
ten form or, if the member has elected to re-
ceive electronic communications from the Fed-
eral credit union, may be provided electroni-
cally. 
‘‘(B) RIGHT TO A HEARING.— 
‘‘(i) IN
GENERAL.—A member shall 
have 15 days from the date of receipt of a 
notification under subparagraph (A) to re-
quest a hearing from the board of directors 
of the Federal credit union. 
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‘‘(ii) EXPULSION IF NO HEARING.—If 
a member does not request a hearing dur-
ing the 15-day period described under 
clause (i), the member shall be expelled 
after the end of the 15-day period. 
‘‘(C) HEARING; VOTE ON EXPULSION.—If 
a member requests a hearing during the 15-day 
period described under subparagraph (B)(i)— 
‘‘(i) the board of directors of the Fed-
eral credit union shall provide the member 
with a hearing; and 
‘‘(ii) after such hearing, the board of 
directors of the Federal credit union shall 
hold a vote on expelling the member in a 
timely manner. 
‘‘(D) NOTICE OF EXPULSION.—If a mem-
ber is expelled under subparagraph (B)(ii) or 
(C)(ii), the member shall be provided with writ-
ten or electronic notice of the expulsion. 
‘‘(3) REINSTATEMENT.— 
‘‘(A) IN
GENERAL.—A member expelled 
under this subsection— 
‘‘(i) shall be given an opportunity to 
request reinstatement of membership; and 
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