HB500 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Credit Unions, state, regulation by Alabama Credit Union Administration, Secs. 5-17-1 to 5-17-12, inclusive, 5-17-14 to 5-17-16, inclusive, 5-17-19, 5-17-22, 5-17-40, 5-17-41, 5-17-44, 5-17-45, 5-17-46, 5-17-48, 5-17-50 to 5-17-52, inclusive, 5-17-55, 5-17-56 am'd.; Secs. 5-17-25 to 5-17-28, inclusive, 5-17-49, 5-17-53, 5-2A-100 to 5-2A-103, inclusive, repealed

Summary

HB500 rewrites Alabama's state credit union law to create a centralized Alabama Credit Union Administration, expand regulation and powers of state credit unions, and reorganize governance and protections for members.

What This Bill Does

It creates the Alabama Credit Union Administration as the exclusive regulator of state-chartered credit unions and moves many regulatory duties from other agencies to this new body. It changes chartering processes, imposes civil penalties for misusing the term 'credit union,' and shifts member expulsion authority to the credit union's board. It establishes an annual operating assessment to fund the Administration, grants the Administration powers to take possession or appoint a conservator for troubled unions, and broadens credit union powers (investing, mergers, cross-state activities, and off-premises operations) while strengthening safeguards (insurance requirements, minor deposits, survivorship rules).

Who It Affects

• State-chartered Alabama credit unions and their members, who would be regulated by the new Alabama Credit Union Administration, face new chartering processes, assessments, account protections, and enhanced supervision.
• Credit union boards, officers, directors, and the Alabama Credit Union Administration personnel, who would experience changes in governance structure, liability rules, regulatory authority, and supervisory oversight (including appointment, removal, and conservatorship procedures).

Key Provisions

• §5-17-40: Establishes the Alabama Credit Union Administration as the exclusive regulator of Alabama state-chartered credit unions, transferring authorities from the former supervision framework.
• §5-17-41: Creates the Administrator as the chief executive, appointed by the Governor with Senate consent; outlines qualifications and terms.
• §5-17-44 and §5-17-45: Sets grounds for removal of the Administrator or Board; authorizes expanded regulatory powers including cross-state/regulatory cooperation and expanded consumer protections.
• §5-17-46: Allows the Administrator to issue regulations and interpretations and requires Board ratification of policies or interpretations.
• §5-17-48: Requires annual reporting by the Administration and public disclosure of activities; updates on examinations and condition of credit unions.
• §5-17-50: Allows appointment of assistants and other personnel under merit-system rules; establishes supervision and employment parameters.
• §5-17-51 and §5-17-52: Provides liability protections for administrators, Board members, and staff acting in good faith; requires examiners to take oaths and operate under supervision.
• §5-17-55: Reconstitutes the Credit Union Board with seven gubernatorial appointees plus the Administrator as ex officio chair; outlines nomination procedures, terms, and vacancy rules; requires experience in credit unions.
• §5-17-56: Specifies meeting notice requirements for the Credit Union Board and mandates at least one meeting per year.
• §5-17-2, §5-17-3, §5-17-4: Reforms chartering and organizational procedures, including certificate of organization, bylaws, penalties for misusing 'credit union' name, and availability of standard charter forms.
• §§5-17-7 to 5-17-19: Establishes the financial framework for credit unions under ACUA, including annual operating fees scaled to assets, penalties for delinquency, and the special fund for administration expenses.
• §§5-17-22 to 5-17-28 and §5-2A-100 to §5-2A-103 repealed: Repeals outdated provisions related to chartering and regulation.
• §§5-17-40 to 5-17-46: Expands regulatory authority to include data sharing with federal agencies, reciprocal arrangements, and expanded cross-state operations where permitted by law.
• §§5-17-14 to 5-17-19: Sets out member rights and account protections (minors' deposits, survivorship, and insurance requirements) and allows private insurance for accounts.
• §§5-17-25 to 5-17-28, §5-17-49, §5-17-53: Repealed sections related to former regulatory framework and transitional provisions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking