Senate Passes Senator Eldridge’s Bill: An Act Modernizing the Credit Union Laws

Legislation would update state laws for credit unions for 21st century practices.


Boston, MA - On Monday, the Massachusetts State Senate passed legislation filed by State Senator Jamie Eldridge (D-Acton), An Act Modernizing the Credit Union Laws. Among other changes, this bill proposes technical changes aimed at modernizing and streamlining credit union provisions. The bill streamlines annual meeting processes; improves internal Board communications; inserts flexibility for optional credit committees and streamlines committee composition. It also modernizes incorporation provisions. The bill is the first major update to credit union law since 1909.

 “I was very proud to file this legislation this session, given how many of my constituents rely upon credit unions, and how credit unions give back to their customers, and the communities that they are located in,” said Senator Eldridge. “I want to thank the Joint Committee on Financial Services, co-chaired by Senator Jim Welch for reporting the bill favorably, and to Senate Ways and Means Chairman Mike Rodrigues and his staff for prioritizing the legislation. Chairman Rodrigues is a long-time champion of credit unions.  The modernization of credit unions will allow for a more logical and organized system that will better serve the residents of Massachusetts.”

The bill incorporates the impact of technology by permitting applications for loans to be made electronically and by permitting certain required actions of the board of directors of Credit Union to be conducted electronically.

 It eliminates numerous outdated regulatory approvals and legislative filing requirements such as the requirement that the Commissioner of Banks file proposed regulations with the legislature 90-days before the regulations are to take effect.

"Credit Unions provide a vital service in our communities, but the outdated laws that govern them keep credit unions from working as effectively as they should," said Senator Michael J. Rodrigues (D - Westport), Chair of the Senate Committee on Ways and Means. "This bill will modernize these laws and allow credit unions to adapt to a financial landscape that has shifted dramatically over the last three decades.  Thank you to Senator Eldridge for his work on this important legislation.

“This bill provides much needed modernization to the Credit Union laws and will help to streamline operations in the financial services industry.” said Senator James T. Welch (D-West Springfield), Chair of the Joint Committee on Financial Services. “I am glad to see legislation passed as a result of several groups and advocates working together to find a balance of all interests.”

“I applaud Senator Eldridge and the entire Massachusetts Senate on their action to pass the credit union modernization bill.  This legislation will enhance the ability of Massachusetts state chartered credit unions to best serve their members and help them build a better life financially,” said Ronald McLean, President of Cooperative Credit Union Association.

The bill is now in the House Committee of Ways and Means.

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