SB300 Alabama 2018 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB 300 would update Alabama credit union rules to add voting and notice rules for board actions, allow out‑of‑state charters to convert to Alabama charters, give Alabama‑chartered unions access to certain reports, and clarify executive‑session and public‑disclosure rules.

What This Bill Does

If passed, the bill would require specific voting and notice procedures for major actions (such as mergers) involving credit unions, including member notice about meetings and voting thresholds. It would permit credit unions chartered in other states to convert to Alabama state charters, with the conversion effective upon written approval and formal notice filings. It would give state‑chartered unions access to examination, audit, and third‑party reports from service providers under defined conditions, and it would establish when the Credit Union Board can meet in executive session and what information may be disclosed. It would also set limits and conditions on public disclosures, confidentiality safeguards, and enforcement‑related disclosures to regulatory bodies and insurers.

Who It Affects

• Alabama state‑chartered credit unions and their members (they gain clearer rules for board voting/notice on major actions, potential access to third‑party reports, and clarified public‑disclosure and confidentiality practices).
• Credit unions chartered in other states that convert to Alabama state charters (they must follow the conversion process, notice requirements, and related regulatory interactions, and will become subject to Alabama’s reporting and disclosure rules).

Key Provisions

• Amendments to merger voting/notice requirements: member meetings must provide notice (at least 15 days) and require a two‑thirds vote of those in attendance for merger approval, with documentation of votes and actions.
• Conversion of out‑of‑state credit unions: non‑Alabama state‑chartered unions may convert to Alabama state charters, effective upon administrator approval, with notice filed with the Secretary of State and probate judge.
• Access to reports for state‑chartered unions: state‑chartered unions may obtain examination, audit, and third‑party reports from service providers; providers must furnish reports to the union or its designee, subject to confidentiality.
• Executive session rules: the Credit Union Board may enter executive session for confidential information, pending enforcement actions, and other purposes permitted by law, in line with Open Meetings Act constraints.
• Public disclosures and confidentiality: reports and information remain confidential unless disclosure is permitted for enforcement or supervisory purposes; the administrator can disclose as needed to regulators or insurers, with restrictions on third‑party use and retention.

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