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WASHINGTON, D.C. - Today, July 23, 2026, U.S. Representative Warren Davidson (R-OH) introduced the Privately Insured Credit Unions Conversion Modernization Act, also known as the Private Insurance Parity Act, legislation to remove outdated federal barriers that make it difficult for state-chartered credit unions to convert to private insurance or merge with a privately insured credit union.
Under current law, at least 20 percent of a credit union's entire membership must participate in a vote to convert to private insurance or merge with a privately insured credit union. If that participation threshold is not met, the proposal cannot be approved regardless of how members vote. Current law also limits the voting period to between seven and 30 days, giving members limited time to review the proposal and cast a ballot.
The Privately Insured Credit Unions Conversion Modernization Act would eliminate the 20 percent turnout requirement, allow the decision to be made by a majority of members who vote, and extend the voting period to at least 90 days.
"Credit unions should be free to choose the insurance model that best serves their members," said Davidson. "Outdated federal requirements make it unnecessarily difficult for state-chartered credit unions to transition to private insurance, even when their members support the change. This bill modernizes the process, removes burdensome regulations, and gives credit unions greater freedom to make decisions based on the needs of their members."
"Credit unions thrive when they have value-driven choices. ASI's private deposit insurance provides KH Credit Union with a proven alternative that delivers strong member protection while allowing us a choice that best aligns with our strategic goals and mission. This legislation encourages innovation, strengthens the credit union movement, and ultimately benefits the members we serve by easing the conversion burden and providing credit unions with choice." said Bradley Mader, President, KH Credit Union.
"The proposed parity bill would give members - and ultimately consumers - the freedom to choose the insurance backing deposits at their wholly owned cooperative. As we celebrate our country's anniversary, few principles are more American than Freedom of Choice. Passing this bill would help level an uneven playing field that requires enormous hurdles for member-driven initiatives to self-determine the direction of their credit union. It would also allow privately insured credit unions to compete with federally insured institutions in a fair and equitable manner. Most importantly, the ultimate winner is the people of the communities that the credit unions serve." said Tim Boellner, President & CEO of AurGroup's Financial Credit Union.
"The Private Insurance Parity Act will not only level the playing field for privately-insured credit unions, but it will also ensure that unnecessary government regulations don't get in the way of Ohio credit unions doing what they do best: serving the financial needs of their members and their local communities. Ohio's Credit Union Movement is grateful to Senators Moreno and Cortez-Masto, as well as Congressman Davidson, for their thoughtful leadership on this issue. As the home of private share insurance, the Ohio Credit Union League and our member credit unions look forward to continuing to partner with our Congressional champions in support of this important, common-sense bill that will benefit Ohio credit unions, members, businesses, and communities." said Paul Mercer, President & CEO of the Ohio Credit Union League.
"Advancing this legislation is an important step toward ensuring all credit unions are treated fairly under federal law. Modernizing outdated conversion and merger requirements promotes parity for privately insured credit unions, strengthens consumer choice, supports innovation, and reinforces state-chartered institutions' ability to meet the evolving needs of their members. By providing equal treatment under federal law, this legislation helps preserve a strong and diverse credit union system that benefits consumers and communities alike." said Theresa Mason, President & CEO of American Share Insurance.
The Privately Insured Credit Unions Conversion Modernization Act is the House companion to the Private Insurance Parity Act introduced in the Senate by Senators Catherine Cortez Masto (D-NV) and Bernie Moreno (R-OH).
The full text of the legislation can be found HERE.
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