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HCUA Introduces Credit Union Modernization Bill

A credit union-focused bill is now making its way through the Kansas House, just in time for credit union leaders to encourage lawmaker support during Kansas Day at the Capitol. We introduced House Bill 2101 on January 28, which was built by an HCUA task force of credit union CEOs, attorneys and compliance specialists. House Bill 2101 will make broad changes to the Kansas Credit Union Act, which governs state-chartered credit unions. The task force members spent months this past summer and fall analyzing the state’s existing credit union statutes and recommending changes that would modernize the law and increase local control.

Specifically, House Bill 2101:

  • Does a technical clean-up of the credit union statutes to bring them in line with other statutes and federal law, and to remove outdated requirements like producing certain forms “in triplicate” in a time where carbon copy paper is no longer used.
  • Removes language that duplicates what is already spelled out in a credit union’s bylaws to protect local control and flexibility. This allows credit union members to continue to determine what best fits their community’s needs rather than being required to take a “one size fits all” approach.
  • Modernizes consumer notification requirements by giving members the option to receive electronic notification versus mailed notification regarding their account.
  • Better protects Kansans from financial fraud by prohibiting scam artists from using the term “credit union” in a website URL in order to portray themselves as a legitimate financial institution to consumers.

 

 

Vocab Legislation: