NASHVILLE, Tenn. (3/4/13)--Legislation that would allow Tennessee state-chartered credit unions to compensate board members or reimburse them for any lost wages caused by time spent in the service of the credit union--but not both--has advanced in the State Senate and State House.
Tennessee is the second state, along with Washington, to consider such legislation in 2013. The legislative battle in Nashville has been going on since 2009.
According to the Tennessee Credit Union League, the original legislative proposal simply gave members of a credit union board the ability to compensate themselves and to set the amount of compensation. The league said there was broad, general opposition to the proposal from credit unions throughout the state, and the league board and management reflected that opposition in meetings with legislators on the committees that would hear the bill.
However, as TCUL President/CEO Fred Robinson told News Now, this year when it became apparent the bill would pass in some form, the league worked to negotiate some conditions that would be required for a credit union to compensate their board members.
In the bills now under consideration, the decision to reimburse or compensate is optional based on the credit union's philosophy to be governed by volunteers or compensated board members. Four conditions must be met.
House Bill 258 will be placed on the regular calendar for House consideration Thursday. Senate Bill 587 was referred to a committee Tuesday, and has not yet been scheduled to go before the full Tennessee Senate.