Bill amending credit union internal governance, guidelines for expelling members passes House

The House passed a bill Thursday that would allow credit unions to change internal procedures like amending bylaws and expelling members.

HF3224 would allow state-chartered credit unions to adopt, amend or repeal bylaws if at least 3 percent of its members propose a resolution – a new, outlined threshold – and it would allow for electronic voting. Two-thirds of a credit union’s directors would be able to amend its bylaws and certificate organization, and the board would be allowed to expel members for specific misdeeds, under the bill.

Passed 127-0, the bill goes to the Senate where Sen. David Senjem (R-Rochester) is the sponsor.

Rep. Randy Jessup (R-Shoreview), the bill sponsor, said credit union officials see the changes as “good, best practices.”

“They want to update those laws so that if someone is stealing from the bank, if someone is verbally or physically abusive,” Jessup said, “they have cause to dispel that member from the credit union.”

The bill would add specific causes that could expel members: Losses to the credit union, a violation of the membership agreement, fraud, attempted fraud and other illegal or inappropriate behavior like physical or verbal abuse toward staff.