Bill > H921

This bill proposes changes to how credit unions, which are member-owned financial cooperatives, can amend their bylaws, specifically those related to membership qualifications, and aims to enhance fair competition among financial institutions. The bill outlines a detailed process for credit unions seeking to change their membership criteria, requiring them to submit an application to the commissioner (likely the Commissioner of Banks) with extensive information, including the reasons for the change, existing and proposed bylaw text, membership projections, and implementation budgets. This application will be publicly noticed through newspaper publications, postings at credit union offices, and on the credit union's website, with a public comment period and the possibility of a public hearing. The commissioner will approve or deny the application based on whether it unreasonably affects competition among financial institutions and promotes public convenience and advantage, considering the impact on existing community banks. Furthermore, credit unions must establish and maintain a written policy to verify membership qualifications, retaining documentation for each new member and making this policy publicly available. The bill also details how examiners will review these policies and the consequences for credit unions if members are found to be ineligible, including potential negative impacts on examination ratings and requiring the termination of accounts and sale of loans for ineligible members. Finally, credit unions that expand their membership through bylaw amendments will be required to report membership increases to the commissioner for five years, and the commissioner will annually report to the legislature on credit union membership applications, approved or denied amendments, and enforcement actions taken.