Rep. Howard files bill in North Carolina House to update credit union statutes

A new bill filed by State Rep. Julia C. Howard in the North Carolina House seeks to update and clarify the state’s credit union laws and regulatory framework, according to the North Carolina State House.

The bill, filed as HB 187 on Feb. 24 during the 2025 regular session, was formally listed with the short title: ‘Credit Union Update.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill seeks to update North Carolina’s credit union statutes by revising definitions, supervision, regulation, and powers associated with credit unions. It outlines fees and penalties for credit unions under the Administrator’s supervision and details reporting requirements, including penalties for late reports. The bill mandates examination frequency and accommodates more frequent evaluations if necessary. It expands on record retention and admissibility, attorney selection for loan closings, hearings, appeals, and the removal of officers due to dishonesty or incompetence. Furthermore, the bill details additional authority for the Administrator during emergencies, including issuing cease-and-desist orders. It revises membership eligibility, investment approaches, powers of credit unions, and voting rights at meetings. The act also allows credit unions to engage in activities otherwise restricted if deemed necessary for the state’s welfare. Lastly, an effective date is set for Jan. 1, 2026.

Of the four sponsors of this bill, John R. Bell, IV and Jennifer Balkcom proposed the most bills (10) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Howard graduated from Salem College in 2003 with a BA.

Howard, a Republican, was elected to the North Carolina State House in 2019 to represent the state’s 77th House district, replacing previous state representative Harry Warren.