Arizona Act Update Bill Passes

Great news to report from Arizona: SB 1296, legislation modernizing the state charter, passed in the House of Representatives Thursday with overwhelming support. The vote was 53 Ayes, 1 Nay, 5 Not Voting, and 1 Vacant. Having already passed in the Senate the bill now moves to Governor Hobbs’ desk for her signature.

This bill is the result of a successful advocacy process starting last year with the Arizona State Issues Work Group, and continuing this year with the Governmental Affairs Committee and the hard work of credit union advocates. Thank you to all who leaned in!

Once effective, the legislation will make 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  • Updates definitions & language that references outdated duties, organizations, regulations & statutes.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.