STATE OF NEW JERSEY

ASSEMBLY RESOLUTION No. 231

STATE OF NEW JERSEY

216th LEGISLATURE

INTRODUCED MAY 7, 2015

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.

AR231 COUGHLIN, MUKHERJI 2

1 AN ASSEMBLY RESOLUTION urging the Congress of the United

2

States to update the "Federal Credit Union Act" by adopting the

3

recommendations of the National Credit Union Administration.

4

5 WHEREAS, The "Federal Credit Union Act" was enacted in 1934 with

6

the purpose of making credit available and promoting thrift through

7

a national system of nonprofit, cooperative credit unions; and

8 WHEREAS, According to Vice Chair Rick Metsger of the National

9

Credit Union Administration, the agency which charters and

10

regulates federal credit unions, changes to field-of-membership

11

laws and regulations of the "Federal Credit Union Act" will help

12

credit unions grow and serve more Americans, especially those of

13

modest means; and

14 WHEREAS, The changes Mr. Metsger recommended, which will

15

streamline National Credit Union Administration regulations and

16

expand access to credit union services, include allowing credit

17

unions to convert from single or multiple common bonds to

18

community charters that continue to serve select employer groups

19

regardless of location, permitting the addition of adjacent areas to

20

community charters, eliminating the requirement that a community

21

charter be based on a core area of a core-based statistical area,

22

simplifying the process for determining that an area is underserved,

23

and automatically qualifying active-duty military personnel and

24

their families as low-income households; and

25 WHEREAS, Mr. Metsger also urged lawmakers to make statutory

26

changes, which will give the National Credit Union Administration

27

authority to streamline field-of-membership regulations and permit

28

credit unions to better serve communities that lack access to credit

29

unions; and

30 WHEREAS, These recommended statutory changes include allowing all

31

credit unions to add underserved areas, simplifying the "facilities"

32

test for determining if an area is underserved, and giving

33

community-based federal credit unions the option to structure their

34

fields of membership in accordance with the law of the state in

35

which the credit unions operate; and

36 WHEREAS, The State of New Jersey recognizes the importance of Mr.

37

Metsger's recommendations in helping credit unions to grow and

38

provide affordable financial services to more people; now,

39

therefore,

40

41

BE IT RESOLVED by the General Assembly of the State of New

42 Jersey:

43

44

1. This House urges the Congress of the United States to

45 update the "Federal Credit Union Act" by adopting the

46 recommendations of the National Credit Union Administration.

AR231 COUGHLIN, MUKHERJI 3

1

2. Copies of this resolution, as filed with the Secretary of State,

2 shall be transmitted by the Clerk of the General Assembly to the

3 presiding officers of the United States Senate and the House of

4 Representatives, and to each member of Congress elected from the

5 State of New Jersey.

6

7

8

STATEMENT

9

10

The "Federal Credit Union Act" was enacted in 1934 with the

11 purpose of making credit available and promoting thrift through a

12 national system of nonprofit, cooperative credit unions. According

13 to Vice Chair Rick Metsger of the National Credit Union

14 Administration, the agency which charters and regulates federal

15 credit unions, changes to field-of-membership laws and regulations

16 of the "Federal Credit Union Act" will help credit unions grow and

17 serve more Americans, especially those of modest means.

18

The changes Mr. Metsger recommended, which will streamline

19 National Credit Union Administration regulations and expand

20 access to credit union services, include allowing credit unions to

21 convert from single or multiple common bonds to community

22 charters that continue to serve select employer groups regardless of

23 location, permitting the addition of adjacent areas to community

24 charters, eliminating the requirement that a community charter be

25 based on a core area of a core-based statistical area, simplifying the

26 process for determining that an area is underserved, and

27 automatically qualifying active-duty military personnel and their

28 families as low-income households.

29

Mr. Metsger also urged lawmakers to make statutory changes,

30 which will give the National Credit Union Administration authority

31 to streamline field-of-membership regulations and permit credit

32 unions to better serve communities that lack access to credit unions.

33 These recommended statutory changes include allowing all credit

34 unions to add underserved areas, simplifying the "facilities" test for

35 determining if an area is underserved, and giving community-based

36 federal credit unions the option to structure their fields of

37 membership in accordance with the law of the state in which the

38 credit unions operate.

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