HB316 Alabama 2018 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

Regular Session 2018

Title

Credit Unions, regulation of; voting and notice requirements for board meetings, provided for, conversion of credit unions chartered in other states to Alabama state chartered credit union, provided for, access provided to certain third-party examination reports, executive session of boards, provided for, certain public disclosures, provided for, Secs. 5-17-22, 5-17-40, 5-17-45, 5-17-56, 5-17-60, am'd.

Summary

HB 316 allows out-of-state credit unions to convert to Alabama state charters, strengthens merger voting/notice rules, expands access to examination and third-party reports, and clarifies executive-session and disclosure rules for Alabama credit unions.

What This Bill Does

The bill lets credit unions chartered in other states convert to Alabama state charters with the administrator's written approval and requires the conversion to be reported to the Secretary of State and probate judge. It adds concrete voting and notice requirements for mergers, including a 15-day notice to members and a two-thirds vote by attendees, with a certificate of merger filed and property and liabilities transferred to the surviving union. It gives state-chartered credit unions greater access to examination, audit, and third-party reports (and allows service providers to share these reports with the credit union), under confidentiality rules. It also sets rules for when the Credit Union Board may meet in executive session and how information can be disclosed to enforce laws, while protecting confidential data and limiting disclosures to authorized parties.

Who It Affects

• Credit unions chartered in other states that operate in Alabama and their members, who may convert to Alabama state charters and are subject to new merger notice/voting requirements and access to enhanced reporting.
• Regulators, including the Alabama Credit Union Administration, and service providers who may handle examination and third-party reports and participate in enforcement and supervisory actions under clarified confidentiality and disclosure rules.

Key Provisions

• Conversion provision: A credit union chartered under the laws of another state may be converted to an Alabama state chartered credit union with written approval from the administrator; notice of conversion must be filed with the Secretary of State and the judge of probate of the county where the credit union's principal office is located.
• Merger voting/notice provision: For a merger, two-thirds of those in attendance must vote to approve, notice must be mailed to members at least 15 days before the meeting, and a certificate of merger detailing meeting times, votes, and plan must be forwarded to the administrator and filed accordingly.
• Access to reports provision: State-chartered credit unions may access examination, audit, and other third-party reports; service providers must provide requested reports to the credit union or its designee, subject to confidentiality and review by the administration.
• Executive session and disclosure provisions: The Credit Union Board may enter executive session under specified confidentiality rules; information may be disclosed for enforcement or supervisory actions under controlled conditions, with restrictions on further dissemination, and reports remain confidential except as permitted by law.

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

Subjects

Credit Unions