Credit Union Board Modernization Act

Bill: 117-hr-6889
Sponsor: full_name: Rep. Vargas, Juan [D-CA-51]
Introduced: 2022-03-01
Policy area: Finance and Financial Sector
Subjects: Administrative remedies

Banking and financial institutions regulation

Corporate finance and management

National Credit Union Administration
Latest action: action_date: 2022-10-11
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-03-01
action_desc: Introduced in House
text: <p><b>Credit Union Board Modernization Act </b></p> <p>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.</p>

action_date: 2022-09-29
action_desc: Passed House
text: <p><b>Credit Union Board Modernization Act </b></p> <p>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.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 6889 IN THE HOUSE OF REPRESENTATIVES March 1, 2022 Mr. Vargas (for himself, Ms. Porter , Mr. Aguilar , Ms. Roybal-Allard , Ms. Titus , Mr. Case , Mr. Kahele , Ms. Brownley , Mr. Gonzalez of Ohio , Mr. Sessions , Mr. Amodei , Mr. Timmons , Mr. Moore of Utah , Mr. Mooney , Mr. Budd , Mrs. Miller of Illinois , Mr. Fitzpatrick , Mr. Davidson , and Mr. Johnson of Louisiana ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To mend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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 Federal credit union, not less than six times annually, with at least one meeting held during each fiscal quarter. (2) 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. (3) With respect to a Federal credit union with composite rating of either 4 or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system), not less frequently than once a month. .

tv_txt: I 117th CONGRESS 2d Session H. R. 6889 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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. . 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. Cheryl L. Johnson, Clerk.

tv_txt: IB Union Calendar No. 386 117th CONGRESS 2d Session H. R. 6889 [Report No. 117–517] IN THE HOUSE OF REPRESENTATIVES March 1, 2022 Mr. Vargas (for himself, Ms. Porter , Mr. Aguilar , Ms. Roybal-Allard , Ms. Titus , Mr. Case , Mr. Kahele , Ms. Brownley , Mr. Gonzalez of Ohio , Mr. Sessions , Mr. Amodei , Mr. Timmons , Mr. Moore of Utah , Mr. Mooney , Mr. Budd , Mrs. Miller of Illinois , Mr. Fitzpatrick , Mr. Davidson , and Mr. Johnson of Louisiana ) introduced the following bill; which was referred to the Committee on Financial Services September 28, 2022 Additional sponsors: Ms. Sánchez , Ms. Bonamici , Mr. Swalwell , Mrs. Torres of California , Mr. Carbajal , Mr. Cohen , Mr. Norman , Mr. Issa , Mr. LaMalfa , Mr. Babin , Ms. Mace , Mr. Wilson of South Carolina , Mr. Barr , Mr. Calvert , Mr. Rodney Davis of Illinois , Ms. Craig , Ms. Norton , Mr. Feenstra , Mrs. McClain , Mr. Moore of Alabama , Mr. Garbarino , Mr. Garamendi , Mr. Huffman , Ms. Adams , Mr. Panetta , Mr. David Scott of Georgia , Mr. Costa , Ms. Eshoo , Mr. Lowenthal , Mr. Sherman , Mr. Cooper , Mr. Loudermilk , Mr. Valadao , Mrs. Hinson , Mr. Grothman , Mr. Levin of California , Mr. Peters , Mr. Cárdenas , Mr. DeSaulnier , Mrs. Kim of California , Mrs. Walorski , Mr. Schiff , Mr. Horsford , Mr. Kildee , Mr. Rutherford , Mr. Obernolte , Mr. Evans , Mr. Neguse , Mr. Bishop of Georgia , Mr. Emmer , Mr. Bilirakis , Mr. Carl , Mr. Kelly of Mississippi , Mr. Burchett , Mr. Lieu , Ms. Manning , Mrs. Fischbach , Mr. Kelly of Pennsylvania , Ms. Herrera Beutler , Mr. Kustoff , Mr. Armstrong , Mr. Blumenauer , Mr. Casten , Mrs. Lee of Nevada , Ms. McCollum , Mr. San Nicolas , Mr. Phillips , Ms. Chu , Mr. Posey , Mr. Huizenga , Mr. McKinley , Mr. Bentz , Ms. Davids of Kansas , Mr. LaTurner , Mr. Griffith , Mr. Mann , Mr. Stauber , Mrs. Miller-Meeks , Mrs. Steel , Mrs. Bice of Oklahoma , Mr. Johnson of South Dakota , Ms. Wild , Mr. Lamborn , Mr. Larsen of Washington , Ms. Williams of Georgia , Ms. Bourdeaux , Mr. Crow , Mrs. Luria , Mr. Kilmer , Mr. Finstad , and Mr. Fulcher September 28, 2022 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on March 1, 2022 A BILL To mend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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. .

Amend the title so as to read: A bill to amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes. .

September 28, 2022 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: IIB 117th CONGRESS 2d Session H. R. 6889 IN THE SENATE OF THE UNITED STATES October 11, 2022 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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. . 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. Cheryl L. Johnson, Clerk.