Credit Union Governance Modernization Act of 2021
This bill revises the procedure for expelling members from a federal credit union. Specifically, a member may be expelled for cause pursuant to a policy adopted by a majority vote of a quorum of the directors of a credit union. Currently, a member may be expelled by a two-thirds vote of the credit union membership present at a special meeting.
The member may request a hearing from the board of directors. After the hearing, the board shall hold a vote on expelling the member.
The expelled member may request reinstatement through a two-thirds vote of the members present at a meeting.
Member conduct that may be cause for expulsion includes
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2311 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2311
To amend the Federal Credit Union Act to modernize certain processes
regarding expulsion of credit union members for cause, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2021
Mr. Emmer (for himself and Mr. Perlmutter) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Credit Union Act to modernize certain processes
regarding expulsion of credit union members for cause, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Credit Union Governance
Modernization Act of 2021''.
SEC. 2. EXPULSION OF FEDERAL CREDIT UNION MEMBERS FOR CAUSE.
Section 118(a) of the Federal Credit Union Act (12 U.S.C. 1764(a))
is amended to read as follows:
``(a) Expulsion for Cause.--
``(1) In general.--Except as provided in subsection (b) of
this section, a member may be expelled for cause pursuant to a
policy adopted by a majority vote of a quorum of the directors
of the Federal credit union and provided in written or
electronic form to all members of the Federal credit union.
``(2) Procedures.--
``(A) Notification of pending expulsion.--If a
member will, subject to the policy adopted under
paragraph (1), be subject to expulsion, the member
shall be notified in advance of the expulsion, along
with the reason for such expulsion. Such notice shall
be provided in written form or, if the member has
elected to receive electronic communications from the
Federal credit union, may be provided electronically.
``(B) Right to a hearing.--
``(i) In general.--A member shall have 15
days from the date of receipt of a notification
under subparagraph (A) to request a hearing
from the board of directors of the Federal
credit union.
``(ii) Expulsion if no hearing.--If a
member does not request a hearing during the
15-day period described under clause (i), the
member shall be expelled after the end of the
15-day period.
``(C) Hearing; vote on expulsion.--If a member
requests a hearing during the 15-day period described
under subparagraph (B)(i)--
``(i) the board of directors of the Federal
credit union shall provide the member with a
hearing; and
``(ii) after such hearing, the board of
directors of the Federal credit union shall
hold a vote on expelling the member in a timely
manner.
``(D) Notice of expulsion.--If a member is expelled
under subparagraph (B)(ii) or (C)(ii), the member shall
be provided with written or electronic notice of the
expulsion.
``(3) Reinstatement.--
``(A) In general.--A member expelled under this
subsection--
``(i) shall be given an opportunity to
request reinstatement of membership; and
``(ii) may be reinstated by a two-thirds
vote of the members of the Federal credit union
present at a meeting.
``(B) Rule of construction.--Nothing in this
paragraph may be construed to require that an expelled
member be allowed to attend the meeting described in
subparagraph (A)(ii) in person.
``(4) Cause defined.--In this subsection, the term `cause'
includes--
``(A) a material loss to the Federal credit union;
``(B) a violation of the membership agreement of
the Federal credit union;
``(C) a substantial disruption to the operations of
a Federal credit union; and
``(D) fraud, attempted fraud, other illegal
behavior, or dangerous or abusive behavior, as defined
by the policy described in paragraph (1), such as
physical or verbal abuse of Federal credit union
members or staff.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
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