Description:
H.R. 2311 would add a new procedure for expelling members from a federal credit union. Under current law, federal credit unions may expel members under two circumstances: by a majority vote of the board of directors of a credit union for nonparticipation according to a policy adopted by that credit union or by a two-thirds vote of the credit union membership present at a meeting called for the purpose of expelling a member. H.R. 2311 would allow federal credit unions to expel members for cause by a two-thirds vote of the directors of the credit union. Under the bill, the National Credit Union Administration (NCUA) would be required to conduct rulemaking to establish the procedures credit unions must follow to expel members under that authority. Using information from the NCUA, CBO estimates that implementing the bill would cost less than $500,000 over the 2022-2031 period. However, the NCUA collects fees from federal credit unions to offset their operating costs. Both the operating costs and the fees are classified as direct spending. Thus, on net, CBO estimates that enacting H.R. 2311 would have a negligible effect on direct spending. If the NCUA increased annual fee collections to offset the costs associated with implementing the bill, H.R. 2311 would increase the cost of an existing private-sector mandate on entities required to pay those fees. CBO estimates that the incremental cost of the mandate would be small and would fall below the threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($170 million in 2021, adjusted annually for inflation).
