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: Sen. Sinema, Kyrsten [D-AZ]
Target Audience
Population: Credit Union Members
Estimated Size: 130000000
- The bill affects credit unions directly, as it changes regulations specific to their board meeting frequencies.
- Credit unions serve specific communities, including individual members from those communities.
- In the United States, there are approximately 4,800 federally insured credit unions serving over 130 million members.
- The global impact is lesser than the national impact since credit unions largely operate within national boundaries, specifically in places like the United States, Canada, and some parts of Europe.
Reasoning
- The targeted population is members of credit unions, which includes a diverse body of individuals across different demographics in the United States.
- The policy mainly affects credit union board members and indirectly impacts members aggregately as administrative costs might alter available services or fees.
- Given the specific nature of the policy, not all credit unions will have or need changes in board meeting frequencies, hence the impact will be nuanced and not universally felt.
- Increased board efficiency could lead to improved financial health of the credit unions, potentially translating to better services for members.
- There will be variations in impact based on whether individuals are part of credit unions undergoing changes in board meeting frequencies or not.
- Most members might not noticeably feel the direct policy shifts unless their credit unions are at risk or newly established.
Simulated Interviews
Teacher, retired (Chicago, IL)
Age: 63 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I don't think I'll be much affected since I am not involved in board meetings.
- If it helps my credit union avoid problems, then it seems fine.
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 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Software Engineer (Austin, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Changing the meeting frequency seems beneficial for oversight and development.
- This will help us stay ahead in the first challenging years.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Entrepreneur (Raleigh, NC)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I trust my credit union's leadership with or without this policy change.
- As long as services remain the same, I'm not worried.
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 |
Accountant (Los Angeles, CA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I'm not directly affected since I don't deal with board matters.
- No issues unless changes are passed down in fees.
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 |
Medical Resident (Seattle, WA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- More efficient board management could mean better services for us.
- I'm optimistic about these changes aiding member satisfaction.
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 | 7 | 6 |
| Year 20 | 6 | 6 |
Retired Bank Manager (Miami, FL)
Age: 72 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- I’ve seen many regulations come and go and this seems minor.
- As long as it helps keep the credit union solvent, I'm all for it.
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 |
Nurse (Philadelphia, PA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I don't think I attend any meetings, so not much impact here.
- If it keeps us safe from recession impacts, that's good.
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 |
Journalist (New York, NY)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Could make managing them easier for new and struggling credit unions.
- Less frequent meetings might mean cost savings reflecting in better rates or services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Freelance Artist (Denver, CO)
Age: 50 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I'm interested in how this helps reduce operation costs.
- My hope is that service fees might go down as a result.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Small Business Owner (Boise, ID)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- The frequency change might help with longer-term stability.
- Indirect benefits like improved service or lower fees would be nice.
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 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $3000000 (Low: $2000000, High: $5000000)
Year 3: $3000000 (Low: $2000000, High: $5000000)
Year 5: $3000000 (Low: $2000000, High: $5000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Regulatory compliance costs versus operational cost savings for credit unions.
- The balancing of increased meeting frequency for new and low-rated credit unions against reduced frequency for others.
- Potential perception of lower oversight frequency leading to increased risk.