FEDERAL WAY, Wash. (6/3/13)--The Washington Department of Financial Institutions has scheduled a stakeholder meeting for June 20 to begin the rulemaking process that gives the state credit union regulator authority to allow compensation for credit union directors, the Northwest Credit Union Association (NWCUA) said.
On April 22, Washington Gov. Jay Inslee signed Senate Bill 5302, which will allow credit unions to offer board compensation and other updates to the state Credit Union Act (Anthem Recap May 31). The changes will take effect July 28.
The updates were identified by the Washington Model Act Subcommittee and are designed to advance the charter and operating environment for credit unions in the state.
Nearly 120 credit union advocates attending credit union day at the Capitol supported the legislation. More than 200 advocates wrote or contacted their legislators to support the measure, NWCUA.
Among the compensation issues to be considered are the qualification requirements for board member or supervisory committee members, disclosure to members of compensation, the nomination process, election methods, the process if an election is contested and updating the bylaws, NWCUA said.
Currently, credit unions in nine states can pay at least one member of the board while 12 others allow for more comprehensive board compensation, according to the Credit Union National Association.
NWCUA intends to provide state credit unions with research and information on how other states and cooperatives handle board compensation, said John Trull, NWCUA director of regulatory affairs.
The league has aggregated data on state statutes and is examining applicable rules in other states, Trull said. NWCUA is working with National Cooperative Business Association to gather information on how other cooperatives address board compensation, and with other credit unions.
NWCUA supports a transparent process and is encouraging state-chartered credit unions to participate in the process, Trull said.