Proposed laws that would allow state-chartered credit unions inTennessee and Washington to compensate board members are movingquickly through their respective state legislatures.

The Tennessee House and Senate unanimously approved legislationThursday that would give state-chartered credit unions the optionto compensate board members.

If signed by Gov. Bill Haslam, the law would require creditunion boards in the Volunteer State to adopt a resolution that thecredit requires expertise among board members for the generalmanagement of the CU's operations.

The board also would be required to adopt a policy governing theparticipation and attendance of board members in order to receivecompensation, and that the board members' compensation be publishedin the CU's annual report.

On March 5, the Washington State House unanimously approved abill that would give state-chartered credit unions to pay boardmembers.

H.B. 1582 will now be scheduled for a hearing in that state'sSenate, according to the Northwest Credit Union Association.

Last month, the Washington Senate also unanimously approved acompanion Senate Bill 5302, which is scheduled to be heard beforethe House Business and Financial Services Committee. The Senatebill also has a provision that would give Washingtonstate-chartered credit unions the option to compensate boardmembers.

“Our bills have not encountered any opposition, and our successthis year was made possible by the outstanding advocacy efforts ofour credit unions,” said Mark Minickiello, NWCUA's vice presidentof legislative affairs.

The proposed bills also would allow state-chartered creditunions in the Evergreen State to invest in a mutual fund thatincludes permitted investments, give credit unions six years topartially occupy unimproved real property purchased for futureexpansion, and require credit unions' board of directors to meet asfew as six times a year with as least one meeting in eachquarter.