HB 1654 -- Credit Unions

Sponsor:  Burton

This bill makes many changes to credit union organization and
regulation.  The bill:

(1)  Abolishes the State Banking Board and transfers all powers,
duties, and functions of that board to the "State Depository
Financial Institution Board," which is established;

(2)  Increases the number of bank members on the board from 2 to
3 bank members;

(3)  Repeals all sections relating to the State Banking Board;

(4)  Authorizes the Director of Finance to adopt, promulgate,
amend, and repeal rules and regulations without the approval of
the board;

(5)  Transfers all powers, functions, and duties of the Director
of the Division of Credit Unions to the Director of the Division
of Finance;

(6)  Authorizes the Director of Finance to issue orders granting
certain authority to financial institutions without the approval
of the banking board;

(7)  Abolishes the Division of Credit Unions and places credit
unions under the Division of Finance;

(8)  Limits credit union organization to one common bond of
either occupation, association, or groups residing within a
well-defined neighborhood, community, or rural district;

(9)  Defines the term "smaller credit unions" and allows them to
be composed of one or more groups of persons which share a
common occupation, association, and employer or which work in a
defined geographic area;

(10)  Defines the term "larger credit unions" as any credit
union with total assets of $25 million or more as of its last
report;

(11)  Grandfathers current credit union individual members;

(12)  Requires larger credit unions to:

      (a)  Continue operating as a credit union with new members
having a well-defined single common bond;

      (b)  Establish, within 6 months of becoming a larger
credit union, a new common bond and not accept any commercial or
business entity members; or

      (c)  Convert to a state savings bank with no limitation on
membership.

(13)  Creates criteria for approval of a new common bond;

(14)  Requires that any larger credit union over $25 million
provide an alphabetical list of names of grandfathered members
along with social security numbers within 30 days of becoming a
larger credit union;

(15)  Allows a credit union to convert to a savings bank or
mutual association savings bank, as long as the savings bank is
located in the same city or town;

(16)  Repeals the section creating the Supervisor of Credit
Unions;

(17)  Requires the Director of Finance to determine the costs of
annual or special examinations paid by credit unions;

(18)  Creates the Credit Union Supervision Fund which is devoted
solely to paying actual expenditures incurred by the Division of
Finance;

(19)  Abolishes the Division of Credit Union Fund which is
replaced by the Credit Union Supervision Fund.  All remaining
funds in the Division of Credit Union Fund are transferred to
the Credit Union Supervision Fund;

(20)  Revokes a foreign credit union's authority to do business
in Missouri when its assets in Missouri exceed $25 million and
requires the credit union to stop operations in Missouri within
one year of that time;

(21)  Allows the State Depository Financial Institution Board to
conduct hearings and determine appeals; and

(22)  Requires the members of the State Depository Financial
Institution Board to receive $300 per day as compensation and
necessary travelling and other expenses.