Credit Union Board Modernization Act

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 It also illustrates how Members can come together to create nonpartisan legislation, modernizing outdated practices and policies.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.

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.

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.

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. 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.

Madam Speaker, I was unable to cast votes on the following legislative measures. If I were present for roll call votes, I would have voted Aye for the following votes:

Roll 461, September 29, 2022: On Motion to Suspend the Rules and Pass S. 4900--SBIR and STTR Extension Act of 2022.

Roll 462, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 8466--Chai Suthammanont Healthy Federal Workplaces Act of 2022, as amended.

Roll 463, September 29, 2022: On Motion to Suspend the Rules and Pass S. 3470--End Human Trafficking in Government Contracts Act of 2022.

Roll 464, September 29, 2022: On Motion to Suspend the Rules and Pass S. 2551--AI Training Act.

Roll 465, September 29, 2022: On Motion to Suspend the Rules and Pass S. 958--Maximizing Outcomes through Better Investments in Lifesaving Equipment for (MOBILE) Health Care Act.

Roll 466, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 6965--Visit America Act, as amended.

Roll 467, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 7321--Global Aircraft Maintenance Safety Improvement Act, as amended.

Roll 468, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, House Amendment to S. 3662--Preventing PFAS Runoff at Airports Act.

Roll 469, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 8888--Food Security for All Veterans Act.

Roll 470, September 29, 2022: On Motion to Suspend the Rules and Pass S. 2794--Supporting Families of the Fallen Act.

Roll 471, September 29, 2022: On Motion to Suspend the Rules and Pass, As Amended, H.R. 8446--Global Food Security Reauthorization Act of 2022, as amended.

Roll 472, September 29, 2022: On Motion to Suspend the Rules and Pass H.R. 8463--Millennium Challenge Corporation Eligibility Expansion Act.

Roll 473, September 29, 2022: On Motion to Suspend the Rules and Pass Certain Bills and Concur in the Senate Amendments on H.R. 8956, H.R. 6967, H.R. 8163, H.R. 4081, H.R. 6889, H.R. 1638, Senate Amendment to

Mr. Speaker, pursuant to section 10 of House Resolution 1396, I move to suspend the rules and pass the bills: H.R. 1638, H.R. 3304, H.R. 4081, H.R. 4821, H.R. 6889, H.R. 6967, H.R. 8163, H.R. 8510, H.R. 8681, H.R. 8875, H.R. 8956, and S. 1198, and concur in the Senate amendments to H.R. 5641.

Mr. Speaker, on that I demand the yeas and nays.