Proposed laws that would allow state-chartered credit unions in Tennessee and Washington to compensate board members are moving quickly through their respective state legislatures.
The Tennessee House and Senate unanimously approved legislation Thursday that would give state-chartered credit unions the option to compensate board members.
If signed by Gov. Bill Haslam, the law would require credit union boards in the Volunteer State to adopt a resolution that the credit requires expertise among board members for the general management of the CU’s operations.
The board also would be required to adopt a policy governing the participation and attendance of board members in order to receive compensation, and that the board members’ compensation be published in the CU’s annual report.
On March 5, the Washington State House unanimously approved a bill that would give state-chartered credit unions to pay board members.
H.B. 1582 will now be scheduled for a hearing in that state’s Senate, according to the Northwest Credit Union Association.
Last month, the Washington Senate also unanimously approved a companion Senate Bill 5302, which is scheduled to be heard before the House Business and Financial Services Committee. The Senate bill also has a provision that would give Washington state-chartered credit unions the option to compensate board members.
“Our bills have not encountered any opposition, and our success this year was made possible by the outstanding advocacy efforts of our credit unions,” said Mark Minickiello, NWCUA’s vice president of legislative affairs.
The proposed bills also would allow state-chartered credit unions in the Evergreen State to invest in a mutual fund that includes permitted investments, give credit unions six years to partially occupy unimproved real property purchased for future expansion, and require credit unions’ board of directors to meet as few as six times a year with as least one meeting in each quarter.