[Congressional Record Volume 168, Number 157 (Wednesday, September 28, 2022)]
[House]
[Pages H8157-H8158]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CREDIT UNION BOARD MODERNIZATION ACT
Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 6889) to mend the Federal Credit Union Act to modify the
frequency of board of directors meetings, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6889
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
[[Page H8158]]
the Congressional Record by the Chairman of the House Budget
Committee, provided that such statement has been submitted
prior to the vote on passage.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
California (Ms. Waters) and the gentleman from Wisconsin (Mr. Steil)
each will control 20 minutes.
The Chair recognizes the gentlewoman from California.
General Leave
Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
First, I thank the gentleman from California (Mr. Vargas) for
offering H.R. 6889, the Credit Union Board Modernization Act.
This bipartisan bill would revise Federal credit union board meeting
requirements to bring highly rated Federal credit unions in line with
State credit union charter requirements in 17 States, including my home
State of California.
Under this bill, Federal credit unions that are highly rated by their
regulator, including a highly rated management team, would be required
to meet at least six times annually, with at least one meeting held
during each fiscal quarter. This would be a reduction from the current
requirement to meet monthly.
To ensure stability and mitigate the risk of institutional failure,
there are important safeguards included in the bill. For example, de
novo or new Federal credit union boards would still be required to meet
at least monthly during the first 5 years of receiving a charter, as
well as Federal credit unions that have received low exam ratings.
Additionally, if emergencies or issues arise requiring a board
meeting, nothing in the bill prevents Federal credit unions from
meeting more frequently.
Credit unions and consumer groups support H.R. 6889, including the
California and Nevada Credit Union Leagues, Americans for Financial
Reform, and Center for Responsible Lending.
Mr. Speaker, I urge Members to support this bill as well, and I
reserve the balance of my time.
Mr. STEIL. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 6889, the Credit Union Board Modernization
Act.
I thank the gentlewoman from California (Ms. Waters), the chairwoman
of the Financial Services Committee, as well as the gentleman from
California (Mr. Vargas) for introducing this legislation, and the
gentleman from Ohio (Mr. Gonzalez) for cosponsoring.
The commonsense bill will modernize credit union practices while
ensuring the safety and soundness of Federal credit unions.
H.R. 6889 would amend the Federal Credit Union Act to revise the
frequency of meetings that a Federal credit union's board of directors
is required to hold.
Specifically, the bill requires monthly meetings for de novo Federal
credit unions during the first 5 years of existence. Highly rated
credit unions, 1 or 2 CAMELS rating, with high management ratings, must
hold at least six meetings annually, with at least one meeting held
during each fiscal quarter. Lower rated credit unions, 3, 4 or 5
CAMELS, must continue meeting once a month.
This is a change from current law, which requires all Federal credit
union boards to meet at least once a month. This meeting requirement
can be burdensome for credit union staff and their volunteer board
members. This is especially true for smaller credit unions and for
those with few employees or those located in rural areas.
The resources needed to run monthly board meetings shift valuable
employee and board member time and focus away from services that credit
unions provide to their consumers.
Commonsense, regulatory right-sizing bills like this one help
American families by reducing costs and the challenges associated with
accessing financial services.
H.R. 6889 is a strong, bipartisan bill that protects the safety and
soundness of credit unions. It also illustrates how Members can come
together to create nonpartisan legislation, modernizing outdated
practices and policies. I look forward to working with my colleagues
across the aisle to meaningfully support our community financial
institutions.
Mr. Speaker, I reiterate to my colleagues that H.R. 6889 is
commonsense legislation that will modernize credit unions.
Mr. Speaker, I urge my colleagues to support the bill, and I yield
back the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself the balance of my time to
close.
H.R. 6889 will incentivize Federal credit union boards to ensure
their institutions are highly rated and well run in order to reduce the
number of board meetings they need to hold.
I therefore urge Members to support H.R. 6889, and I yield back the
balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from California (Ms. Waters) that the House suspend the
rules and pass the bill, H.R. 6889, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. FULCHER. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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