The National Credit Union Administration (NCUA) Board’s March 15 proposal on suspension and debarment of contractors and advance notice of proposed rulemaking (ANPR) on federal credit union (FCU) bylaws are slated for publication Wednesday in the Federal Register. Both notices include a 60-day comment period, which would put the comment deadline for each at or near May 21.
The NCUA notes that the FCU bylaws haven’t been “significantly” updated in nearly 10 years. The ANPR, recommended by the agency’s Regulatory Reform Task Force and released for comment March 15 by the NCUA Board, solicits stakeholder comments on ways to streamline, clarify, and improve the standard federal credit union (FCU) bylaws. The standard FCU bylaws provide a comprehensive set of corporate governance procedures that are mandatory for any FCU that had not adopted bylaws as of Nov. 30, 2007.
The Federal Credit Union Act gives the agency some flexibility in drafting the bylaws, but the bylaws must be consistent with basic corporate governance procedures set out in the FCU Act that are designed to protect fundamental FCU member rights. These include the rights to: (1) maintain a share account; (2) maintain FCU membership; (3) have access to credit union facilities; (4) participate in the director election process; (5) attend annual and special meetings; and (6) petition for removal of directors and committee members.
The suspension/debarment proposal addresses contractors engaged by the NCUA. It would set forth suspension and debarment policies and establish administrative proceedings for contractors subject to the policies. The aim is to ensure the NCUA’s use of responsible contractors only.