Act Modernization Bill Advances in Arizona

February 15, 2024

SB 1296 is now positioned for a vote on the Senate floor.

SB 1296, the GoWest-backed bill to modernize the Arizona Credit Union Act cleared another hurdle this week. After unanimously passing the Senate Finance and Commerce Committee Feb. 5, the bill’s next step was clearing the Senate Rules Committee. That happened Monday, and since no Senators objected within 48 hours, there will be no need for a floor debate. The next step is a vote on the Senate floor.  We expect the Senate President to schedule the vote next week. Stay tuned to the On the Move blog for updates.

Background:

S.B. 1296 is a result of large stakeholder process in 2023, that included the Arizona State Issues Work Group, Arizona Governmental Affairs Committee and the Arizona Department of Insurance and Financial Institutions.

The legislation makes the following changes:

Changes to better align state statute with existing federal law or regulations.

This includes provisions to:

• Allow credit unions flexibility to determine their fiscal year.
• Reduce the participation loan limit requirements.
• Better align statutes that govern credit union field of membership and their ability to purchase assets allow loan and deposit accounts policies to be set by the board.

Changes to modernize credit union governance.

This includes provisions to:

• Update procedure and processes for the removal of officials or a dangerous/abusive member.
• Provide flexibility in the number of board meetings, without compromising oversight.
• Update the threshold and process that trigger how loans made to officials must be reported to regulator.

Changes to address technological advancements.

This includes provisions to:

• Ensure that the statutes around how boards conduct telephonic conferencing also includes other forms of electronic meetings, like zoom/or teams.
• Remove requirement to report ATMs to DIFI

Other technical changes

• Updates definitions & language that references outdated duties, organizations, regulations & statutes.

Posted in Advocacy on the Move, Arizona Advocacy.