Vargas, Huizenga Introduce Legislation to Modernize Credit Union Boards
WASHINGTON, D.C. (January 26, 2023) – Today, Representatives Juan Vargas (CA-52) and Bill Huizenga (MI-4) reintroduced legislation to modernize credit union board policies and procedures. Called the Credit Union Board Modernization Act, this legislation would update the Federal Credit Union Act to modify current federal requirements for federal credit union board meetings, and alter requirements that credit union boards meet once per month to once every other month.
“It’s time to change an outdated requirement to allow credit unions and their board members more flexibility,” said Rep. Vargas. “This legislation would ensure that credit unions can free up time and resources to provide quality financial services to their communities. I hope to see the legislation move forward with bipartisan support and modernize our nation’s credit unions.”
“Credit unions play an important role in many local communities, often working with families and small businesses to gain access to credit,” said Rep. Huizenga. “The Credit Union Board Modernization Act will go a long way to providing necessary regulatory relief for rural credit unions in Michigan’s 4th Congressional District and across the nation. By passing these commonsense reforms, federally chartered credit unions in Michigan will be afforded similar and reasonable governance practices that already exist at the state level. I’m happy to lead this bipartisan effort with Congressman Vargas and look forward to seeing these reforms enacted into law.”
“We appreciate the bipartisan leadership by Reps. Vargas and Huizenga in introducing this much needed, commonsense update to the Federal Credit Union Act. This bill would give boards greater flexibility to adjust their meetings, while maintaining our focus on safety and soundness, allowing credit unions to dedicate more time and resources to serving their members and communities,” said Jim Nussle, CUNA President and Chief Executive Officer.
“We are honored to see Congressman Vargas reintroduce the Credit Union Board Modernization Act this year to reshape an antiquated rule and provide federally chartered credit unions and their boards much-needed flexibility to operate in today’s environment. By reintroducing this legislation and working toward enactment with growing bipartisan congressional support, Representative Vargas, the bill’s co-sponsors and other members of Congress are making sure credit unions can utilize their time and resources more efficiently and stay committed to their promise of offering quality financial services to members,” said Diana Dykstra, President and Chief Executive Officer of the California and Nevada Credit Union Leagues.
“We thank Representatives Vargas and Huizenga for their leadership in reintroducing the Credit Union Board Modernization Act (CUBMA). Ensuring credit unions have every tool necessary to better serve their members and grow their local economies is a priority for NAFCU, and this legislation is a much-needed modernization of an outdated requirement that will provide them with increased flexibility and free up more resources. We urge Congress to enact this bipartisan legislation in a timely manner,” said B. Dan Berger, President and Chief Executive Officer, National Association of Federally-Insured Credit Unions (NAFCU).
The bill would continue to allow credit union boards to meet as frequently as needed and would require monthly board meetings for credit unions exhibiting unsound practices.
The legislation received bipartisan approval by the House of Representatives in the previous Congress.
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Vargas represents California’s 52nd Congressional District, which includes the southern portion of San Diego County, including the cities of San Diego, National City, Chula Vista, and Imperial Beach. Vargas was first elected to the U.S. House of Representatives in 2012 and is currently serving his sixth term in Congress.