HLS 21RS-422 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 466
BY REPRESENTATIVE JORDAN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CREDIT/UNIONS: Provides relative to credit unions
1 AN ACT
2To amend and reenact R.S. 6:649(A)(2) and 665(C)(1)(a) and to repeal R.S. 6:649(C),
3 relative to credit unions; to allow for compensation; to specify that insurance is not
4 to be considered compensation; to allow for reimbursement; to increase the
5 examination rating necessary to change bylaws by a field of membership expansion;
6 and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 6:649(A)(2) and 665(C)(1)(a) are hereby amended and reenacted to
9read as follows:
10 §649. Directors; officers; compensation; reimbursement
11 A.
12 * * *
13 (2) At the first meeting after the annual meeting of the members, the
14 directors shall elect from their number the board officers specified in the bylaws.
15 Only one board officer shall be compensated as an officer of the board; and the
16 bylaws shall specify such positions, as well as the specific duty of each of the board
17 officers. A credit union may compensate an officer, director, or committee member
18 for the member's services to the credit union. Life, health, accident, and similar
19 insurance protection provided by the credit union to an officer, director, or
20 committee member shall not be considered compensation. A credit union may
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 466
1 reimburse directors, officers, and committee members for necessary expenses
2 incidental to the performance of the official business of the credit union. The board
3 shall elect from their number a financial officer who shall give bond with good and
4 sufficient surety in an amount and character to be determined by the board of
5 directors in compliance with the conditions of this Section.
6 * * *
7 §665. Bylaws
8 * * *
9 C.(1) Notwithstanding Subsection B of this Section, a credit union may
10 amend its bylaws through a field of membership expansion by providing written
11 notice to the commissioner in the manner and on a form prescribed by him, if the
12 credit union meets all the criteria below:
13 (a) The most recent credit union examination rating is two three or better.
14 * * *
15 Section 2. R.S. 6:649(C) is hereby repealed in its entirety.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 466 Original 2021 Regular Session Jordan
Abstract: Changes regulatory measures imposed upon credit unions.
Present law allows a credit union to compensate only one board officer as an officer of the
board and requires that the bylaws specify those positions, as well as the specific duty of
each of the board officers.
Proposed law repeals present law and allows a credit union to compensate an officer,
director, or committee member for the member's services to the credit union. Present law
does not limit the number of members who may be compensated.
Proposed law allows a credit union to reimburse directors, officers, and committee members
for necessary expenses incidental to the performance of the official business of the credit
union.
Present law prohibits a member of the board of directors or of the credit or supervisory
committees to receive any compensation for his services as a member of the board or of the
committee, but allows members to receive expense reimbursement for loss of pay while
away from work on credit union business, or per diem when provided for in the bylaws.
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HB NO. 466
Proposed law repeals present law.
Present law allows the commissioner to approve such bylaw provision when the credit
union's legal reserves are in excess of six percent of risk assets.
Proposed law repeals present law.
Proposed law provides that the payment by the credit union of premiums for liability, travel,
accident, hospitalization, or life insurance coverage on the director or committee member
shall not be considered as compensation.
Proposed law retains present law in part, but applies only to life, health, accident and similar
insurance.
Present law requires a credit union's most recent examination rating to be two or better, as
a condition to amending bylaws through a field of membership expansion.
Proposed law raises the requisite examination rating from two to three.
(Amends R.S.6:649(A)(2) and 665(C)(1)(a); Repeals R.S. 6:649(C))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.