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House passes compromise to give smaller credit unions broader lending powers
Summary
First substitute Senate Bill 296, a compromise backed by banks and credit unions, passed the House. The bill raises certain consumer‑loan caps, indexes a $250,000 business‑loan limit for inflation and waives a six‑month membership requirement, passing 69–0.
The Utah House approved first substitute Senate Bill 296, a measure negotiated between banks and credit unions that makes three principal changes to state credit‑union law. House sponsor Representative Garn told the chamber the bill "does 3 things": it raises the cap on consumer loans from 1% to 4% of capital and surplus, indexes the $250,000 limit on business loans for inflation, and waives the six‑month membership requirement before a member can receive a loan.
Garn framed the bill as a pragmatic compromise that avoids decade‑long rancor on banking issues: "I commend the credit unions and the banks for coming together and making this process the way it should be." Representative Allen asked about assurances that the arrangement would hold beyond five years; Garn described a "gentlemen's agreement" and said parties had committed to the terms and indicated no further adjustments were needed for at least five years.
The House voted and the substitute passed 69 yes, 0 no. The bill will be returned to the Senate for consideration and signature.
