House Panel to Review Credit Union Regulation Changes

On Wednesday, the House Financial Services Committee heard testimony regarding a package of bills aimed at making changes to the regulation of credit unions. HB 5017, HB 5018, HB 5019, HB 5020, HB 5021, and HB 5022 propose these changes.

This package of bills provides regulatory relief for credit unions and makes changes regarding examination requirements, member services, a credit union’s board of directors, and usage of regulatory fees. In addition, these bills would eliminate some reporting requirements and other regulations.

Specifically, HB 5017 allows credit unions to fund educational scholarships and provide financial counseling. Credit unions will also be allowed to establish an associate board member program. HB 5018 allows electronic and/or mail business to proceed without approval from the Department of Insurance and Financial Services (DIFS). Credit unions will also be able to manage their own minor bylaw changes without regulatory approval.

HB 5019 and HB 5022 allow credit unions to invest in venture capital investments or small business equity through Credit Union Service Organizations. Trust service and loan promotional offers will also be extended to members. HB 5020 clarifies that reports written after credit unions are examined by DIFS will focus on matters required by law and will be more transparent.

Department of Financial Services Director Pat McPharlin has commented that credit unions and the department have reached agreements on many components of the legislation, but discussions will continue until a full compromise is met.

posted by PAA Online , Friday, October 30, 2015 10:43 AM
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