Nebraska U.S. Senator Ben Sasse (R-NE) has introduced the Credit Union Employee and Member Safety Act of 2021 which would provide that federal credit unions can adopt a policy to expel a member for cause including a material loss to the credit union; a violation of the membership agreement; a substantial disruption to the operations of the credit union; and fraud, attempted fraud, other illegal behavior or abusive behavior such as physical or verbal abuse of credit union employees or members. “The safety and security of credit union employees and credit union members is paramount to Nebraska’s credit unions and therefore we strongly support the Credit Union Employee and Member Safety Act and urge its passage. Nebraska credit unions thank Senator Ben Sasse for his commitment to the safety of credit union employees and their members.”
The bill would allow the board of directors of a credit union to create a policy by which they could vote to expel a disruptive member. If the board votes to expel, the expelled member can request a hearing before the board within fifteen days of receiving the expulsion notice. If the member does not request such a hearing within fifteen days, the expulsion would go into effect. An expelled member can request to be reinstated but a two-thirds vote of those members attending would be required for the expelled member to be reinstated. There is no requirement that the expelled member be permitted to attend the reinstatement meeting.
A similar bill has been introduced in the United State House of Representatives.