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Bill

H 3933

Public Service Districts

2025-2026 Regular Session Introduced by Cody Mitchell and 1 co-sponsor

Expands the Massachusetts Credit Union Share Insurance Corp's coverage to more state/federally chartered unions and tightens supervision and approvals for excess members.

Act No. 10
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Bill Summary · H 3933

Summary — H.3933 / Act No. 10 (2025)

Title shown in docket: An Act relative to the Massachusetts Credit Union Share Insurance Corporation
Introduced: 1/16/2025 (Rep. Daniel Cahill) — Enacted: Signed by Governor 04/28/2025 — Effective: 04/28/2025 (Act No. 10)

Purpose and intent

The bill revises and modernizes the statutory framework governing the Massachusetts Credit Union Share Insurance Corporation (the “corporation”), the entity that creates and maintains a fund to insure members’ shares and deposits. The amendments expand eligibility for coverage, clarify and update several definitions, and strengthen supervisory, examination, and approval requirements for certain insured “excess members.”

Key provisions and changes

  • Expands the class of credit unions eligible for insurance by the corporation to include:
    • Credit unions chartered under Massachusetts law;
    • Credit unions chartered under the laws of Maine, New Hampshire, Vermont, New York, Connecticut or Rhode Island; and
    • Federally chartered credit unions whose principal place of business is in Massachusetts or any of the listed states.
  • Revises statutory definitions:
    • “Excess member” now includes inactive members, federally chartered credit unions, and state-chartered credit unions whose excess shares/deposits may be insured by the corporation.
    • “Federally chartered credit union” and “State chartered credit union” definitions updated to reflect the expanded multi‑state scope.
  • Removes a prior geographic limitation wording (“located within the commonwealth”) to allow multi‑state applicants.
  • Sets parity for maximum insured amounts for excess members to the limits applicable to Massachusetts state-chartered credit unions under G.L. c.171, §30.
  • Strengthens oversight and information requirements for excess members:
    • Requires excess members to provide copies of examination reports and other supervisory information, unless prohibited by law.
    • Makes excess members subject to supervision and periodic examination by the Massachusetts Commissioner (pursuant to G.L. c.167, §2). Examination costs are to be borne by the examined credit union and determined annually under G.L. c.7, §3B.
    • Grants the Commissioner authority to issue directions, recommendations, and orders following examinations (subject to federal/state law limits for federally or out‑of‑state chartered credit unions).
  • Establishes approvals required from both the corporation and the Commissioner before an excess member may:
    • Merge, consolidate, or purchase assets/assume liabilities of a bank or credit union chartered in MA, another state, or federally; or
    • Establish a branch in any state other than Massachusetts.
    • Failure to obtain required approvals results in automatic termination of excess insurance under the statutory provision referenced (section 6B).

Who is affected

  • Massachusetts Credit Union Share Insurance Corporation (the insurer/fund)
  • Credit unions seeking or holding “excess” insurance — including Massachusetts-chartered, certain neighboring-state‑chartered, and qualifying federal credit unions
  • Members of those credit unions (potentially expanded insurance coverage)
  • Massachusetts Commissioner of Banks (enhanced supervisory role)
  • The Central Credit Union Fund, Inc., and related entities that interact with the corporation

Procedural and timeline notes

  • Legislative actions in the docket indicate favorable committee reports, House and Senate passage, Governor’s signature on 04/28/2025, and an effective date of 04/28/2025 (Act No. 10).
  • The bill text in the submitted materials also contains unrelated South Carolina statutory language concerning public service district board size and appointment procedures. That South Carolina text appears to be inserted in error and is not part of the Massachusetts Act described above.

Potential impacts

  • Expands the pool of credit unions eligible for the corporation’s insurance, which could increase insured deposits and diversify risk exposure of the Massachusetts share insurance fund.
  • Increases regulatory oversight over out‑of‑state and federally chartered credit unions that obtain excess insurance, including examination costs borne by those institutions.
  • Adds procedural safeguards (approval requirements) intended to protect the insurance fund from risks arising from mergers, acquisitions, or branch expansions.

If you would like, I can produce a side‑by‑side comparison of the pre‑existing statutory text and the exact statutory language changes made by this Act.

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

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