SB 846 - This act modifies various provisions relating to credit unions. Specifically, the requirements for credit union field of membership are modified such that, for a credit union composed of one or groups of persons, the members of the group must share: · A single common bond or occupation, association, or employer;
· Multiple common bonds of occupation, association, or employer or any combination thereof; or
· A common geographic area, as described in the act;
· Any combination of the foregoing.
Eligibility for membership in a credit union is expanded to include the following:
· Spouses of members who die while a member of a credit union group;
· Persons related as pensioners or annuitants from the common occupation or employer;
· Persons who volunteer in the common occupation or at the common employer; and
· Employees of the credit union.
Current law provides that a credit union may, at the option of the board, create one or more classes of shares which shall be known as "membership share" representing the member's ownership interest in the credit union on such terms and conditions as the board of directors may determine, not inconsistent with the bylaws, provided that each membership share shall have a par value of not less than twenty-five nor more than one hundred dollars. This act lowers the minimum par value for a membership share to $1.
The act modifies the restrictions on the merger and consolidation of credit unions. Current law provides that, with certain exceptions, only employer groups with fewer than 3,000 members shall be eligible to be included in the credit union's field of membership. This act increases that threshold to employer groups with fewer than 6,000 members.
Additionally, the act requires that in the event of the merger of two or more credit unions, the field of membership shall include the field of membership of the surviving credit union and each of the merged credit unions.
The act permits an existing credit union to apply to amend its field of membership to reflect a single common bond, multiple common bonds, or a geographic area. Any such application shall satisfy the field of membership requirements required by law.
This act is similar to SB 388 (2023) and HB 1222 (2023).
SCOTT SVAGERA