[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10511 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10511
To amend the Federal Credit Union Act to permit credit unions to serve
certain underserved areas, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 18, 2024
Ms. Waters introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Credit Union Act to permit credit unions to serve
certain underserved areas, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Expanding Financial Access for
Underserved Communities Act''.
SEC. 2. CREDIT UNION SERVICE TO UNDERSERVED AREAS.
Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is
amended--
(1) in subsection (c)(2)--
(A) by striking ``the field of membership category
of which is described in subsection (b)(2),'';
(B) by amending subparagraph (A) to read as
follows:
``(A) the Board determines that the local
community, neighborhood, or rural district is an
underserved area; and''; and
(C) in subparagraph (B), by inserting ``not later
than 2 years after having such underserved area added
to the credit union's charter,'' before ``the credit
union''; and
(2) by adding at the end the following:
``(h) Change of Field of Membership To Include Underserved Areas.--
``(1) In general.--If an existing Federal credit union
applies to the Board to alter or expand the field of membership
of the credit union to serve an underserved area, the credit
union shall submit a business and marketing plan with such
application that explains the credit union's ability and intent
to serve the population of the underserved area through the
change in field of membership.
``(2) Report by smaller credit unions.--Not later than 2
years after the date on which a Federal credit union with
$10,000,000,000 or less in assets has an application described
under paragraph (1) approved, the credit union, as part of the
ordinary course of the examination cycle and supervision
process, shall submit a report to the Administration that
includes--
``(A) an estimate of the number of members of the
credit union who are members by reason of the
application;
``(B) a description of the types of financial
services utilized by members of the credit union who
are members by reason of the application; and
``(C) an update of the credit union's
implementation of the plan described under paragraph
(1).
``(3) Additional requirements for large credit unions.--
With respect to a Federal credit union with more than
$10,000,000,000 in assets:
``(A) Consumer advisory panel.--If an application
described under paragraph (1) is approved, the Federal
credit union shall--
``(i) establish a consumer advisory panel
that is representative of the population of the
underserved area; and
``(ii) consult with the consumer advisory
panel at least once every 6 months on how the
credit union can best serve the convenience and
needs of the population of the underserved
area.
``(B) Plan contents.--A plan required to be
submitted under paragraph (1) shall also include--
``(i) a compliance plan that explains how
the credit union's ability and intent to serve
the population of the underserved area through
the change in field of membership will be done
in compliance with all applicable laws and
regulations, including the credit union's
ability to comply with all applicable anti-
discrimination and fair lending requirements;
and
``(ii) a plan to establish a consumer
advisory panel described under subparagraph
(A).
``(C) Approval requirements.--Before approving an
application described under paragraph (1), the Board
shall--
``(i) consult with the Director of the
Bureau of Consumer Financial Protection; and
``(ii) take into account the Federal credit
union's compliance with consumer financial
protection laws.
``(D) Ongoing reporting.--Not later than 2 years
after the date on which the Federal credit union has an
application described under paragraph (1) approved, and
every 2 years thereafter, the Federal credit union
shall, as part of the ordinary course of the
examination cycle and supervision process, submit a
report to the Administration that includes--
``(i) an estimate of the number of members
of the credit union who are members by reason
of the application;
``(ii) a description of the types of
financial services utilized by members of the
credit union who are members by reason of the
application;
``(iii) an update of the credit union's
implementation of the plan described under
paragraph (1), including the contents described
under subparagraph (B)(i); and
``(iv) a description of how the credit
union has addressed issues identified by the
consumer advisory panel.''.
SEC. 3. MEMBER BUSINESS LENDING IN UNDERSERVED AREAS.
Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C.
1757a(c)(1)(B)) is amended--
(1) in clause (iv), by striking ``or'' at the end;
(2) in clause (v), by striking the period and inserting ``;
or''; and
(3) by adding at the end the following:
``(vi) that is made to a member or
associated borrower that lives in or operates
in an underserved area.''.
SEC. 4. UNDERSERVED AREA DEFINED.
Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is
amended--
(1) in paragraph (8), by striking ``; and'' and inserting a
period;
(2) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(10) The term `underserved area' means a geographic area
consisting of one or more population census tracts or one or
more counties, that encompass or are located within--
``(A) an investment area, as defined under section
103(16) of the Community Development Banking and
Financial Institutions Act of 1994;
``(B) groups of contiguous census tracts in which
at least 85 percent individually qualify as low-income
communities, as defined under section 45D(e) of the
Internal Revenue Code of 1986; or
``(C) an area that is more than ten miles, as
measured from each point along the area's perimeter,
from the nearest branch of a depository institution (as
defined under section 3 of the Federal Deposit
Insurance Act) or credit union.''.
SEC. 5. REPORTS BY THE NATIONAL CREDIT UNION ADMINISTRATION.
Not later than 3 years after the date of enactment of this Act, but
no sooner than 2 years after the date of enactment of this Act, and
every 2 years thereafter, the National Credit Union Administration
shall issue a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the implementation of the amendments
made by this Act.
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