HB228 Alabama 2019 Session

Summary

Primary Sponsor

Chris BlackshearRepresentative

Republican

Session

Regular Session 2019

Title

Credit Unions, federal charter parity provision clarified, Credit Union Administration Board authorize to appoint National Credit Union Admin as conservator of a credit union, membership of supervising committees increased, reimbursement of bd and committee member travel costs, merger meeting notice requirement increased, definition of official revised, Secs. 5-17-4, 5-17-8, 5-17-10, 5-17-11, 5-17-22, 5-17-55 am'd.

Summary

HB 228 clarifies federal parity rules for state-chartered credit unions, allows NCUA conservatorship, expands supervisory committee size, permits travel reimbursements, lengthens merger notice, and broadens who can serve on the Alabama Credit Union Administration Board.

What This Bill Does

It clarifies that the federal charter parity provision applies to asset and liability management, including regulatory net worth and capital management. It authorizes the Alabama Credit Union Administration Board to appoint the National Credit Union Administration as conservator of a state-chartered credit union. It allows supervisory committees to have more than three members and permits reimbursement of reasonable travel costs for board/committee members and one guest on official business. It increases the merger vote notice period for merging credit unions and expands who may serve on the Alabama Credit Union Administration Board to include high-ranking officials such as a president or CEO, or a member-elected representative of the credit union’s governance groups.

Who It Affects

• State-chartered credit unions and their members: the bill affects governance and oversight by allowing larger supervisory committees, clarifying asset/liability management rules, enabling conservatorship if needed, providing travel reimbursements for officials, and giving more time for members to vote on mergers.
• Alabama Credit Union Administration Board and related governance: the bill expands who can serve on the board (including a president/CEO or member-elected representatives) and governs new authority to appoint NCUA as conservator, as well as handling merger notices and travel reimbursements.

Key Provisions

• Clarifies and codifies the federal charter parity provision to mean asset liability management, including regulatory net worth or capital management and composition.
• Authorizes the Alabama Credit Union Administration Board to appoint the National Credit Union Administration as conservator of a state-chartered credit union.
• Allows credit union supervisory committees to consist of more than three members.
• Permits payment or reimbursement of reasonable travel costs of a board or committee member and one guest for official state-chartered credit union business.
• Increases the meeting notice period before the merger vote of a merging credit union.
• Expands the definition of an official who may serve on the Alabama Credit Union Administration Board to include a president, chief executive officer, or a person elected by the membership to serve on the board, credit committee, or supervisory committee of a state-chartered credit union.

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