Washington State

House of Representatives

Office of Program Research



Business & Financial Services Committee

SB 5300

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Updating the department of financial institutions' regulatory enforcement powers regarding credit unions and organizations providing services to credit unions.

Sponsors: Senators Benton, Mullet, Fain, Darneille, Hobbs and Angel; by request of Department of Financial Institutions.

Brief Summary of Bill

  • Amends provisions regarding the corporate governance of credit unions.

  • Clarifies and broadens the Department of Financial Institutions' enforcement authority with respect to credit unions.

  • Amends what practices credit unions may engage in.

Hearing Date: 3/17/15

Staff: David Rubenstein (786-7153).


Credit unions doing business in Washington may be chartered by the state or federal government. The National Credit Union Administration (NCUA) regulates federally chartered credit unions. The Department of Financial Institutions (Department) regulates state-chartered credit unions.

Credit Union Corporate Governance.

State credit unions are governed by a board of directors. A supervisory committee monitors both the financial condition of the credit union and the decisions of the board. The credit union's bylaws must prescribe the manner in which the business of the credit union will be conducted, including the frequency of regular meetings and the manner in which members may call a special membership meeting. State law also provides the following with respect to credit union corporate governance:Ÿ

Credit Union Practices.

Various provisions of law govern how a credit union may operate, including:Ÿ


The Department enforces laws governing credit unions through various tools and actions, including: removing or suspending officers, directors, or supervisory committee members; issuing temporary cease and desist orders; assessing fines; inspecting records and business practices; and liquidating a credit union or taking it into receivership.

Summary of Bill:

Credit Union Governance.

Credit union corporate governance provisions are modified as follows:Ÿ

Credit Union Practices.

Regulations regarding credit union practices are modified as follows:Ÿ


The Department's regulatory and enforcement powers are modified as follows:

Appropriation: None.

Fiscal Note: Available for companion House Bill 1062.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.