AUSTIN, Texas (2/12/13)--The Texas Credit Union League is backing a provision in a Texas Credit Union Department omnibus bill that seeks to provide state-chartered credit unions with an increase in the size of their boards.
Senate Bill 244 has several housekeeping measures to update the Credit Union Act, said TCUL in one its legislative updates (The Advocate Update Feb. 8).
"The Texas Credit Union League is seeking an increase in the number of advisory directors that can serve on a state-chartered credit union's board," Jim Phelps, TCUL vice president of advocacy, told News Now. "Current law limits Texas credit unions to appointing three honorary or advisory directors; TCUL is seeking to increase this limit to six honorary or advisory directors.
"Making this change would allow credit unions the opportunity to identify and engage new directors who wish to serve in a board governance role, and, facilitate the transition of long-term directors who may no longer wish to serve as an active member of the board, but whose institutional knowledge will continue to benefit the credit unions and its members," he added.
The Credit Union Department of the Credit Union Commission has regulatory authority over state-chartered credit unions.
S.B. 244 allows credit unions to provide financial services in an efficient manner and ensure sound practices among state-regulated institutions, said a state analysis of the bill. The bill clarifies supervisory and regulatory matters, removes outdated references, enhances corporate governance, and provides rules for the disclosure of information.
S.B. 244 also provides guidance for compliance with federal and foreign credit unions, clarifies the process by which a state-chartered credit union converts to a federal credit union, and gives state-chartered credit unions limited parity with federal credit unions on interest rates for certain losses.
TCUL said it expects a Senate committee vote on the bill later this week. The bill has not been introduced in the state House yet.