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Charter Enhancement Bill Passes the State Legislature!

HB 185 by Rep. Bruce Williamson (R-Monroe) passed the full Senate on March 18th! This bill creates operational improvements for the credit union charter, which were identified during the summer of 2018 by the credit union task force dedicated specifically to generate ideas for changes to the credit union state law. These improvements include:

  • Addressing operational issues when there’s a merger between credit unions,
  • Clearing up federal insurance and membership issues if a credit union purchases a bank,
  • Outlining a clear and fair process for member expulsion by a credit union,
  • Clarifying processes and definitions, including that of purchasing/selling loan participations for credit unions, and
  • Renaming supervisory committee to audit committee to avoid confusion that the duties are the same as the duties of a supervisory committee for a federally chartered credit union.

Our thanks to the Department for working with credit unions in the off session. The bill also contains multiple clean-up provisions in the law as it pertains to the banking industry, mortgage licensing and others. Throughout the process GCUA has been engaged in private discussions with legislators, and is very pleased to see this bill clear the entire legislative path this early in the session (and not get hung up in the normal amendment frenzy that happens in the final days of the session).

So, what’s next? After the end of the state session on April 2nd, this bill as well as the others that are fortunate enough to pass the entire process will then head to the Governor for his consideration. He will then have 40 days to review, and can either sign the measure into law, veto it outright, or let it sit until the last day for it to automatically become law. At that point, if the bill becomes law, the Department will begin the corresponding rulemaking process.

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