To amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.
Sponsors
Juan Vargas
D-CA | Primary Sponsor
Legislative Progress
Passed HouseReceived; read twice and referred to the Committee on Banking, …
Passed House (inferred from eh version)
Mr. Vargas (for himself and Mr. Huizenga) introduced the following …
Summary
What This Bill Does:
The Credit Union Board Modernization Act changes how often federal credit union boards must hold meetings. Currently, all credit union boards are required to meet monthly. This bill allows well-managed credit unions to meet less frequently while maintaining stricter requirements for new credit unions and those with regulatory concerns.
Who Benefits and How:
Federal credit unions with strong financial ratings (1 or 2 on the regulatory scale) benefit most, as their boards could reduce mandatory meetings from 12 per year to just 6. Board members and executives at these well-run institutions gain more flexibility, saving time and administrative costs associated with preparing for and attending monthly meetings. This could be particularly valuable for volunteer board members who serve without compensation.
Who Bears the Burden and How:
Poorly-rated credit unions (with composite ratings of 3, 4, or 5) must continue meeting monthly, which maintains regulatory oversight pressure on struggling institutions. There are no significant new burdens created by this bill - it simply maintains existing requirements for at-risk institutions while relaxing them for healthy ones.
Key Provisions:
- New credit unions must hold monthly board meetings for their first 5 years of operation
- Credit unions with composite ratings of 1 or 2 may reduce to 6 meetings annually (at least one per quarter)
- Credit unions with composite ratings of 3, 4, or 5 must continue monthly meetings
- Management capability ratings are also considered in determining meeting frequency requirements
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
The Credit Union Board Modernization Act aims to amend the Federal Credit Union Act by modifying the frequency of board of directors' meetings, particularly for de novo credit unions and those with varying composite ratings.
Policy Domains
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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