SS SCS SB 591 -- CREDIT UNIONS

SPONSOR:  Scott (Cunningham, 145)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Financial Institutions by a vote of 12 to 0.

This substitute changes the laws regarding credit unions.  In its
main provisions, the substitute:

(1)  Defines the geographic area in which a credit union can
operate.  Credit unions can be formed in a county or within a
city not within a county and can expand into counties contiguous
to the areas;

(2)  Prohibits employer groups with 3,000 or more employees from
joining an existing credit union unless it is not feasible or
reasonable for the group to establish its own single, common-bond
credit union;

(3)  Requires the Director of the Division of Credit Unions
within the Department of Insurance, Financial Institutions, and
Professional Registration, upon authorization of the expansion of
a credit union's membership, to publish the expansion in the
division's electronic bulletin; and

(4)  Allows any person or entity, with an interest different from
that of a member of the general public, who may have been
aggrieved by an authorized expansion to contest the decision to
the Credit Union Commission.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill will help Missouri's
credit unions.  If the bill is not passed, credit unions may
abandon their state charter and switch to a federal charter.  One
credit union in St. Louis has already switched to a federal
charter and that will result in the state losing $146,000
annually in taxes and fees.  Credit unions need the legislation
to prevent banks from filing lawsuits that prohibit credit unions
from expanding.

Testifying for the bill were Senator Scott; Rosie Holub, Missouri
Credit Union Association; Missouri Bankers Association; and
Missouri Independent Bankers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:22 am