Bill Text: NJ AR231 | 2014-2015 | Regular Session | Introduced
Bill Title: Urges Congress to update "Federal Credit Union Act" by adopting recommendations of National Credit Union Administration.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2015-06-11 - Filed with Secretary of State [AR231 Detail]
Download: New_Jersey-2014-AR231-Introduced.html
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
SYNOPSIS
Urges Congress to update "Federal Credit Union Act" by adopting recommendations of National Credit Union Administration.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the Congress of the United States to update the "Federal Credit Union Act" by adopting the recommendations of the National Credit Union Administration.
Whereas, The "Federal Credit Union Act" was enacted in 1934 with the purpose of making credit available and promoting thrift through a national system of nonprofit, cooperative credit unions; and
Whereas, According to Vice Chair Rick Metsger of the National Credit Union Administration, the agency which charters and regulates federal credit unions, changes to field-of-membership laws and regulations of the "Federal Credit Union Act" will help credit unions grow and serve more Americans, especially those of modest means; and
Whereas, The changes Mr. Metsger recommended, which will streamline National Credit Union Administration regulations and expand access to credit union services, include allowing credit unions to convert from single or multiple common bonds to community charters that continue to serve select employer groups regardless of location, permitting the addition of adjacent areas to community charters, eliminating the requirement that a community charter be based on a core area of a core-based statistical area, simplifying the process for determining that an area is underserved, and automatically qualifying active-duty military personnel and their families as low-income households; and
Whereas, Mr. Metsger also urged lawmakers to make statutory changes, which will give the National Credit Union Administration authority to streamline field-of-membership regulations and permit credit unions to better serve communities that lack access to credit unions; and
Whereas, These recommended statutory changes include allowing all credit unions to add underserved areas, simplifying the "facilities" test for determining if an area is underserved, and giving community-based federal credit unions the option to structure their fields of membership in accordance with the law of the state in which the credit unions operate; and
Whereas, The State of New Jersey recognizes the importance of Mr. Metsger's recommendations in helping credit unions to grow and provide affordable financial services to more people; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House urges the Congress of the United States to update the "Federal Credit Union Act" by adopting the recommendations of the National Credit Union Administration.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the presiding officers of the United States Senate and the House of Representatives, and to each member of Congress elected from the State of New Jersey.
STATEMENT
The "Federal Credit Union Act" was enacted in 1934 with the purpose of making credit available and promoting thrift through a national system of nonprofit, cooperative credit unions. According to Vice Chair Rick Metsger of the National Credit Union Administration, the agency which charters and regulates federal credit unions, changes to field-of-membership laws and regulations of the "Federal Credit Union Act" will help credit unions grow and serve more Americans, especially those of modest means.
The changes Mr. Metsger recommended, which will streamline National Credit Union Administration regulations and expand access to credit union services, include allowing credit unions to convert from single or multiple common bonds to community charters that continue to serve select employer groups regardless of location, permitting the addition of adjacent areas to community charters, eliminating the requirement that a community charter be based on a core area of a core-based statistical area, simplifying the process for determining that an area is underserved, and automatically qualifying active-duty military personnel and their families as low-income households.
Mr. Metsger also urged lawmakers to make statutory changes, which will give the National Credit Union Administration authority to streamline field-of-membership regulations and permit credit unions to better serve communities that lack access to credit unions. These recommended statutory changes include allowing all credit unions to add underserved areas, simplifying the "facilities" test for determining if an area is underserved, and giving community-based federal credit unions the option to structure their fields of membership in accordance with the law of the state in which the credit unions operate.
