Expanding Financial Access for Underserved Communities Act
Bill: S.4879 | Sponsor: Sen. Padilla, Alex (D-CA)
Policy area: Finance and Financial Sector

Summary:
Expanding Financial Access for Underserved Communities Act
This bill eases credit union membership requirements to allow more access for persons in underserved areas. A credit union must, however, submit a business and marketing plan to the National Credit Union Administration explaining the credit union's ability and intent to serve such population.
The bill also excludes loans made to members in underserved areas from certain credit union limits on member business loans.

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 ability and intent of the credit 
        union to serve the population of the underserved area through 
        the change in field of membership.
            ``(2) Report by credit union.--Not later than 2 years after 
        the date on which an application described under paragraph (1) 
        is 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, including breakdowns by each State 
                (including the District of Columbia and each territory 
                of the United States), Tribal government entity, and 
                congressional district;
                    ``(B) a description of the types of financial 
                services utilized by members of the credit union who 
                are members by reason of the application;
                    ``(C) an update of the implementation of the credit 
                union of the business and marketing plan described 
                under paragraph (1); and
                    ``(D) a description of the types of financial 
                education programs made available to members of the 
                credit union, including those who are members by reason 
                of the application and those in rural areas, where 
                applicable.''.

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 1 or more population census tracts or 1 or more 
        counties, that encompass or are located within--
                    ``(A) an investment area, as defined in section 
                103(16) of the Community Development Banking and 
                Financial Institutions Act of 1994 (12 U.S.C. 
                4702(16));
                    ``(B) groups of contiguous census tracts in which 
                at least 85 percent individually qualify as low-income 
                communities, as defined in section 45D(e) of the 
                Internal Revenue Code of 1986; or
                    ``(C) an area that is more than 10 miles, as 
                measured from each point along the perimeter of the 
                area, from the nearest branch of a depository 
                institution, as defined in section 3 of the Federal 
                Deposit Insurance Act (12 U.S.C. 1813) or credit 
                union.''.

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

    (a) Initial Report.--During the 1-year period beginning on the date 
that is 2 years after the date of enactment of this Act, the National 
Credit Union Administration shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report on the implementation 
of the amendments made by this Act.
    (b) Update.--On the date that is 5 years after the date on which 
the report required under subsection (a) is submitted, the National 
Credit Union Administration shall submit to the committees described 
that subsection an updated report.

SEC. 6. RULE OF CONSTRUCTION.

    Nothing in this Act or the amendments made by this Act may be 
construed to prevent or otherwise impede the ability of insured 
depository institutions, as defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813) to establish branches and provide 
banking services in underserved areas.
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