A package of six bills designed to update the state’s credit union laws are currently moving through the Michigan House of Representatives, according to the Michigan CU League.
The proposed bills [HB 5017-5022], supported by the state league, will be heard in committee on Wednesday. In connection with the upcoming hearing, MCUL’s government affairs team is mobilizing targeted credit union volunteers and professionals to contact legislators on the House Financial Services Committee.
MCUL noted that the Michigan CU Act has not been updated in more than twelve years and that the league is pushing for a number of provisions that would provide regulatory relief for credit unions, technical fixes and credit union protections.
Among other measures, the bills call for:
* Regulatory relief, including eliminating unnecessary barriers, updating requirements for board meetings, modernizing IT vendor-contracting requirements, eliminating limitations on loan prepayment penalties.
* Improving the examination process for credit unions, including ensuring that exam reports are kept confidential, the exam process is transparent and that credit unions aren’t penalized for declining to follow best practices not required by law.
* Expanded powers for credit unions, including allowing Michigan-based CUSOs to provide trust services, confirming credit union’s ability to offer educational scholarships and providing financial counseling in underserved areas.
“We’re making real progress in our efforts to bring the [MCUA] into the 21st century,” said MCUL & Affiliates president and CEO David Adams in a statement. “It’s crucial that we work with lawmakers to get this legislation passed so that credit unions across Michigan can serve their members with a full array of product offerings without unnecessary regulatory burdens.”
Pat Keefe, the vice president of communications at National Association of State Credit Union Supervisors (NASCUS), praised the MCUL’s efforts.
“Any time that a state charter can be enhanced to benefit the credit unions in its state helps to enhance and strengthen the state credit union system nationwide,” he told Credit Union Journal.
Keefe added that NASCUS consults with all of the state regulators with regard to their state acts and regulations on an ongoing basis.
