Credit Union Board Modernization Act
Bill: H.R.6889 | Sponsor: Rep. Vargas, Juan (D-CA)
Policy area: Finance and Financial Sector

Summary:
Credit Union Board Modernization Act
This bill revises the frequency of meetings required to be held by a credit union's board of directors. Specifically, the bill requires monthly meetings for new credit unions during their first five years and for credit unions with a low soundness rating. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter. Currently, all credit union boards must meet at least once a month.

To amend the Federal Credit Union Act to modify the frequency of board 
             of directors meetings, 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 ``Credit Union Board Modernization 
Act''.

SEC. 2. FREQUENCY OF BOARD OF DIRECTORS MEETINGS.

    Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is 
amended--
            (1) by striking ``monthly'' each place such term appears;
            (2) in the matter preceding paragraph (1), by striking 
        ``The board of directors'' and inserting the following:
    ``(a) In General.--The board of directors'';
            (3) in subsection (a) (as so designated), by striking 
        ``shall meet at least once a month and''; and
            (4) by adding at the end the following:
    ``(b) Meetings.--The board of directors of a Federal credit union 
shall meet as follows:
            ``(1) With respect to a de novo Federal credit union, not 
        less frequently than monthly during each of the first five 
        years of the existence of such Federal credit union.
            ``(2) Not less than six times annually, with at least one 
        meeting held during each fiscal quarter, with respect to a 
        Federal credit union--
                    ``(A) with composite rating of either 1 or 2 under 
                the Uniform Financial Institutions Rating System (or an 
                equivalent rating under a comparable rating system); 
                and
                    ``(B) with a capability of management rating under 
                such composite rating of either 1 or 2.
            ``(3) Not less frequently than once a month, with respect 
        to a Federal credit union--
                    ``(A) with composite rating of either 3, 4, or 5 
                under the Uniform Financial Institutions Rating System 
                (or an equivalent rating under a comparable rating 
                system); or
                    ``(B) with a capability of management rating under 
                such composite rating of either 3, 4, or 5.''.

SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives September 29, 2022.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.