Lopez bill updating out-of-state credit union regulations advances through Virginia legislature

Legislation put forward by State Del. Alfonso H. Lopez seeks to update and clarify requirements for out-of-state credit unions and ensure reciprocal treatment for those based in Virginia, the Virginia State House reports.

The measure cleared both the House and Senate, with final enrollment occurring on March 3, 2026. Votes were unanimous in both chambers, with the bill passing the House 98-0 and the Senate 40-0.

Labeled as HB902 and introduced Jan. 14, 2026 during the regular legislative session, the bill’s summary from the state legislature reads: “Financial institutions; out-of-state credit unions.”

See below for a breakdown derived from the bill’s official text, which is interpreted for clarity here.

The measure modifies requirements for out-of-state credit unions to conduct business in Virginia and refines reciprocity standards for Virginia-chartered credit unions seeking to open offices elsewhere. Under the bill, an out-of-state credit union must obtain State Corporation Commission approval, establish proper organization and regulation in its home state, provide evidence of share insurance, and demonstrate a legitimate need for a Virginia location. Additional provisions require compliance with state interest rate caps and consumer protection statutes, maintenance of a registered agent, submission of examination reports, selected notifications for members, adherence to a specific code section, and recognition of service-of-process rules for share insurers. The commission holds authority to suspend or revoke operating permission for failure to meet requirements.

Among House members, 63 Democrats and 35 Republicans voted in support of the bill.

In the Senate, supporters included 21 Democrats and 19 Republicans.

The legislation was solely sponsored by Del. Alfonso H. Lopez, a Democrat representing the 3rd District.

Lopez earned his bachelor’s degree at Vassar College in 1992 and completed his JD at Tulane University in 1995.

Lopez, a Democrat, was elected in 2024 to represent Virginia’s 3rd House district, taking over from Will Morefield.

In Virginia, the legislative process starts with a bill’s introduction in the House of Delegates or Senate. It then goes through committee hearings for discussion and possible revision. If a committee approves the bill, it proceeds to full debate and voting in each chamber. Bills approved by both are sent to the governor, who can sign, veto, or allow new laws to take effect without a signature. The Virginia General Assembly meets in regular session each year beginning on the second Monday in January. Lawmakers introduce hundreds of proposals each session, but only a share reach enactment.

Information in this article was obtained from the Virginia State House. The source data can be found here.