Today, Congressman Tom Emmer's (MN-06) Credit Union Governance Modernization Act was adopted by the House Financial Services Committee by a unanimous vote. It now awaits consideration by the full House of Representatives.
The Credit Union Governance Modernization Act (H.R. 2311) updates credit union practices and improves employee and member safety. Specifically, the legislation modifies the credit union member expulsion process while ensuring a fair procedure for reinstatement.
Current law requires a federal credit union to hold a vote of its entire membership before it can expel a member who engages in egregious, dangerous, or illegal conduct. This can include physical damage to property, harassment, or threats. The Credit Union Governance Modernization Act broadens the ability to expel members for cause and streamlines the expulsion and reinstatement process.
"Today, the House Financial Services Committee took a step to improve the safety of credit unions across the nation. My home state of Minnesota has already taken steps to enact changes similar to what the Committee agreed upon today. It's critical we make credit unions safer for both employees and their members," said Emmer.
"Our community financial institutions are already facing difficulties navigating burdensome regulations as they support their local neighborhoods and businesses, and we need to take steps to make their vital work easier. This nonpartisan legislation will ensure our main street credit unions have the tools to succeed. I hope this legislation will advance past the House floor soon," Emmer concluded.