March 29, 2024

This week was a busy and productive week for bills supported by the Missouri Bankers Association. Several issues that are a priority this session advanced in both the Missouri House and Senate. With just seven weeks of session left to go, lawmakers are starting to add amendments to bills progressing through the legislative process, which can be either dangerous or an opportunity.

House Committee To Hear Credit Union Expansion Bill Tuesday

MBA urges banks to voice opposition with committee, representatives

The House Financial Institutions Committee will hold a hearing at 11 a.m. Tuesday, April 2, on legislation that would dramatically shift current field-of-membership requirements for state-chartered credit unions. MBA urges its members to submit their testimony opposing House Bill 2452 online before Tuesday’s hearing so that it can be included in the official record for the hearing.

As previously shared by MBA, House Bill 2452 would allow credit unions to include bordering counties of branch locations, rather than just the credit union headquarters, as part of their field-of-membership. The bill also would allow the surviving credit union in a merger to add the field-of-membership of the merged credit union(s). This would allow a large credit union to strategically purchase smaller credit unions and potentially expand across the entire state.

Missouri’s large and aggressive credit unions are pushing for this change so that they can expand beyond their existing communities, which would increase their commercial lending capacity and further remove them from their original mission.

“The results would harm Missourians by increasing unfair competition with community banks and by reducing the number of small credit unions through mergers and acquisitions,” said MBA President and CEO Jackson Hataway.

He added that banks believe in competition, “but we are opposed to an unlevel playing field where the largest credit unions are allowed to look and act like banks but don’t have to play by the same rules as banks.”

MBA urges bankers to complete the online form before Tuesday’s hearing and to reach out to their state representatives to oppose House Bill 2452.

“They need to know the differences between banks and credit unions and the threat this bill poses to their constituents and local banks,” Hataway said.

When completing the online form, check the box for “Opposition” and include any comments on the bill you would like to share with the committee. Complete your personal information and click “Submit.” Contact MBA Vice President Emily Lewis with any questions.

Senate Gives First Round Approval To Amended Banking Bill

Following more than two hours of debate, the Missouri Senate gave first round approval (perfected) to Senate Bill 835 sponsored by Sen. Sandy Crawford, R-Buffalo. The original bill includes a provision that will allow banks to pass through the cost of a credit report on consumer loans to individuals. The bill was amended to include the following.

• increase to the cap for the MOBUCK$ program
• update the request for proposal process for municipalities seeking a depository
• prohibit public entities from using a central bank digital currency
• add new disclosure requirements for revenue-based financing companies
• prohibit public entities from using environmental social governance scores when bidding a contract
• require the state to accept gold and silver as legal tender

Senate Bill 835 must go through the Fiscal Review Committee, which is scheduled for Tuesday, April 2. If approved, the bill will return to the Senate floor for a final vote before moving to the House. MBA thanks Crawford and the leadership team of Sen. Caleb Rowden, R-Columbia, and Sen. Cindy O’Laughlin, R-Shelbina for shepherding this bill through the legislative process.

House Approves Credit Report Legislation With Several Provisions

The House approved and sent to the Senate House Bill 2087 sponsored by Rep. Michael O’Donnell, R-St. Louis. This bill includes the following.

• credit report cost pass-through on consumer loans
• Money Transmission Modernization Act, a uniform bill being promoted by the Conference of State Bank Supervisors
• disclosure requirements for revenue-based financing companies
• updates and reforms to bonds
• other provisions that were approved by the House Financial Institutions Committee

MBA Testifies Against Bills On Bankruptcy Exemptions

During a House committee hearing this week, MBA General Counsel Keith Thornburg testified in opposition to two bills that would modify the state’s bankruptcy exemption laws. House Bill 1656 would allow a debtor  to choose between state or federal bankruptcy law for property listed in Title 11 of the U.S. Code; House Bill 1657 would increase the current bankruptcy exemption limits under state law. The bills are not expected to move forward this session.