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S 4808

Privately Insured Credit Unions Conversion Modernization Act

119th Congress Introduced by Catherine Cortez Masto and 1 co-sponsor

S. 4808 would modernize privately insured credit union conversions by eliminating the 20% voting threshold and requiring a fixed minimum 90-day notice window.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4808

Overview

  • Bill: S. 4808 (119th Congress, 2nd Session)
  • Title: Privately Insured Credit Unions Conversion Modernization Act
  • Purpose: Amend the Federal Credit Union Act to modernize the process by which privately insured credit unions convert to or reorganize, reducing certain procedural barriers and extending minimum notice periods.
  • Introduced by: Sen. Catherine Cortez Masto (with Sen. Bernie Moreno)
  • Status: Introduced and referred to the Senate Committee on Banking, Housing, and Urban Affairs (as of June 17, 2026)

main purpose and intent

The bill seeks to streamline and modernize the conversion process for privately insured credit unions under the Federal Credit Union Act. Specifically, it adjusts voting and notice requirements to facilitate conversion-related decisions, aiming to provide clearer timelines and less rigidity in participation thresholds that trigger conversion actions.

Key provisions and changes

  • Voting threshold modification:

    • The existing requirement that a conversion vote be conducted “in a vote in which at least 20 percent of the total membership participates” is removed. This effectively eliminates the 20% participation cutoff as a prerequisite for a conversion-related vote.

  • Notice/timing changes:

    • The current directive stating that notification or voting must occur within a window of “not more than thirty nor less than seven days” is replaced. The bill inserts a fixed minimum period of “not less than 90 days” for the relevant notice or decision window. This extends the notice period substantially, increasing lead time for members to receive information and participate.

  • Target scope:

    • Applies to privately insured credit unions under the Federal Credit Union Act, focusing on modernization of the conversion process (which could include conversions to different insurance regimes, mergers, restructurings, or other conversions contemplated under the act).

who would be affected

  • Privately insured credit unions: Credit unions whose members are not insured by the National Credit Union Administration (NCUA) or whose insurance is provided privately would be directly impacted by the revised voting and notice requirements.
  • Members/owners of privately insured credit unions: Members would experience changes in how and when they vote on conversion actions, with more extended preparation and information periods.
  • Regulators and supervisory bodies: The bill would require regulatory alignment with the amended thresholds and timelines, affecting oversight, compliance, and notification processes.

procedural and timeline considerations

  • Legislative action:
    • The bill amends Section 206(d)(2) of the Federal Credit Union Act. Specific textual changes:
    • Elimination of the 20% participation voting threshold.
    • Extension of the minimum notice/voting period to at least 90 days.
  • Next steps:
    • If reported favorably by the Committee on Banking, Housing, and Urban Affairs, the bill could advance to floor consideration and potential passage in the Senate, followed by House action and potential conference if there are differences.
  • Effective date:
    • The text provided does not specify an effective date; standard practice would be to include an effective date or phased implementation in later legislative stages.

Summary

S. 4808 proposes to modernize how privately insured credit unions handle conversion decisions by removing a low participation voting barrier and guaranteeing a longer, standard minimum notice period of 90 days. The changes are intended to enhance process transparency and member preparation for significant structural changes to a privately insured credit union’s status or organization.

Compiled from official sources — confirm details with the bill’s official record.

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