The proposed bill SB1296 seeks to modernize and enhance the operational framework for credit unions in Arizona by amending various sections of the Arizona Revised Statutes. Key changes include allowing credit unions to establish loan conditions through board decisions rather than bylaws, lowering the minimum interest rate on loans from 10% to 5%, and requiring board approval for loans that obligate officials beyond a specified threshold. The bill also simplifies the expulsion process for members and the suspension of officials, thereby increasing governance flexibility.

Additionally, SB1296 reduces the required frequency of credit union meetings from ten per year to one every two months, while still permitting the Deputy Director to call for additional meetings as necessary. It removes outdated requirements, such as maintaining ATMs at locations other than main offices and the fiscal year ending on December 31. The bill also expands the definition of "credit union" to emphasize member assistance in financial management and clarifies the definition of "branch office." Overall, SB1296 aims to provide credit unions with greater autonomy and operational efficiency while ensuring compliance with updated standards.

Statutes affected:
Introduced Version: 6-501, 6-506, 6-510, 6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564, 6-126, 6-543
Senate Engrossed Version: 6-501, 6-506, 6-510, 6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564, 6-126, 6-543
Chaptered Version: 6-501, 6-506, 6-510, 6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564, 6-126, 6-543