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Tennessee has become the second state this year to consider a proposed law that would let state-chartered credit unions compensate their board members.
Committees in the Tennessee House and Senate recently approved the proposed law. The legislation will go before the state’s House of Representatives on March 7. The bill hasn’t been scheduled for consideration by the full Senate yet.
Committees in the House and Senate in the state of Washington also recently approved bills that would let state-chartered credit unions compensate their board members.
On February 26, the Washington Senate unanimously approved the bill. The bill might be introduced to the Washington House next week, according to the Credit Union Times.
Right now, Tennessee law lets credit unions reimburse board members or other committee members for loss of earnings (at an amount that the board of directors determines) because of time spent serving the credit union.
The proposed bills would give an alternative to reimbursement by compensating board members if certain conditions are met.
The Tennessee Credit Union League (TCUL) supports the proposed legislation, said David Wilson the executive vice president of TCUL. Click here to read more.