Bill Overview
Title: Credit Union Board Modernization Act
Description: This bill revises the frequency of meetings required to be held by a credit union's board of directors. Specifically, the bill requires monthly meetings for new credit unions during their first five years and for credit unions with a low soundness rating. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter. Currently, all credit union boards must meet at least once a month.
Sponsors: Rep. Vargas, Juan [D-CA-51]
Target Audience
Population: People who are members of credit unions
Estimated Size: 126000000
- The bill affects credit unions directly by changing their board meeting requirements.
- There are approximately 5,100 credit unions in the United States.
- The bill proposes changes only for credit unions with new status or low soundness ratings or those that have been established for longer and are already sound.
- This will impact credit union executives, board members, and potentially employees who rely on updated governance for operational decisions.
- Credit union members may be indirectly impacted due to changes in governance that might affect credit union policies or financial stability.
- Globally, credit unions operate similarly, though U.S. legislation directly impacts only those in the U.S.
Reasoning
- The policy directly impacts credit union board governance, mainly affecting those on the boards and potentially the staff involved in the administration of these meetings.
- Credit union members might be slightly impacted if changes in governance lead to policy shifts. However, the indirect impact on the general member experience is likely minimal.
- Most credit unions should not require drastic changes; thus, the burden of the policy would likely fall on a specific portion of credit unions identified as new or with low soundness ratings.
- We want to ensure an inclusive sample considering location (rural vs. urban differences), roles (board members, credit union staff), and potential members' varying perspectives.
Simulated Interviews
Credit Union Board Member (rural Wisconsin)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The increased meeting frequency for new credit unions seems important for our governance as we are still building our processes.
- However, these extra meetings require more time commitment, which could be challenging to manage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Credit Union CEO (San Francisco, California)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Our credit union is sound, so the reduction in required meetings provides us with more flexibility.
- This policy allows us to focus more on strategic initiatives rather than constant meetings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Credit Union Teller (Orlando, Florida)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- I don't expect major changes in my daily duties.
- If meeting changes affect policies, it might trickle down and affect the way we operate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired, Credit Union Member (New York, New York)
Age: 65 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- Governance changes are beyond my interest unless they affect my dividends or the stability of my credit union.
- I trust the leadership to maintain good practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Credit Union Marketing Director (Austin, Texas)
Age: 40 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- It might help streamline our operations to have fewer mandatory meetings.
- More time could be spent on member engagement and less on meeting prep.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Credit Union Compliance Officer (Chicago, Illinois)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Meeting changes will affect how we document accountability and compliance.
- It's crucial to manage these adjustments carefully to avoid penalties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Financial Analyst at Credit Union (Seattle, Washington)
Age: 27 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The policies might ease our workflow since fewer mandatory meetings could mean more time analyzing data rather than preparing reports monthly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Credit Union Legal Counsel (Los Angeles, California)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- The shift in meeting schedules could reduce our oversight if not managed properly.
- We must ensure continued rigorous evaluation each quarter.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Credit Union Member-Owner (Miami, Florida)
Age: 46 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- I appreciate more transparency and governance standards.
- Reducing standard meetings might reduce the view into credit union management.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Credit Union IT Support (Denver, Colorado)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Policy changes may affect how often I need to ensure meeting technology is ready.
- Less frequent meetings could mean fewer urgent tech supports.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $2000000 (Low: $1500000, High: $2500000)
Year 2: $2000000 (Low: $1500000, High: $2500000)
Year 3: $2000000 (Low: $1500000, High: $2500000)
Year 5: $2000000 (Low: $1500000, High: $2500000)
Year 10: $2000000 (Low: $1500000, High: $2500000)
Year 100: $2000000 (Low: $1500000, High: $2500000)
Key Considerations
- Flexibility in meeting requirements may improve operational efficiency for established, sound credit unions.
- The legislation aligns oversight frequency with perceived risk to financial soundness.
- Potential marginal benefit from cost savings through reduced board meetings.