Earlier this month, Minnesota Congressman Tom Emmer (R), along with Congressman Ed Perlmutter (D-Colo.) introduced the Credit Union Governance Modernization Act. The legislation would modernize the Federal Credit Union Act to allow a credit union board to expel a member for just cause. The bill updates the credit union member expulsion process while ensuring a fair procedure for reinstatement and was modeled on Network-sponsored legislation that was passed in Minnesota for state-chartered credit unions.
In a press release, Congressman Emmer said, “My home state of Minnesota has already taken steps to adopt a similar, important measure. It’s critical we make credit unions safer for both employees and their members. 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.”
"This bill is important to protect the safety and security of credit union employees and is a much-needed update to the federal credit union charter," said Mark Cummins, President and CEO of the Minnesota Credit Union Network. "We appreciate Representative Emmer’s commitment to Minnesota credit unions and thank him for his continued strong support of our industry."
Companion legislation in the US Senate has not been introduced yet but is expected to be in the near future by Minnesota Senator Tina Smith (D).
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