Missouri Credit Union Act update signed into law
Missouri Gov. Mike Parson has signed into law a bill to modernize the state’s credit union statutes.
A number of states have undertaken efforts to update their credit union laws in recent years, including Michigan, Kansas and Washington.
The law will take effect on Aug. 28 and includes a number of changes for state-chartered institutions. Chief among them is a provision that would gives the director of the Missouri’s Division of Credit Unions the authority to accept an examination from the National Credit Union Administration in lieu of an exam performed by state examiners. The measure is intended to save time and resources, particularly at a time when many regulators are limiting their on-site work due to the coronavirus.
Board and committee powers have also been streamlined, modifying regulations to differentiate what can be delegated to credit union staff and which matters must be handled by the board. Expulsion authority has also been expanded, giving CEOs or an executive designated by the board the power to remove a member from the credit union’s roster if certain justifications are met.
The law also reduces the number of copies of certain documents — including bylaws and articles of merger of consolidation — credit unions must distribute to the secretary of state and Division of Credit Unions.
Heartland Credit Union Association, which serves CUs in Kansas and Missouri, thanked the governor for signing the bill into law, which “will help Missouri credit unions better serve their membership by focusing on efficiencies, streamlining requirements, and making sure language reflects changes in technology,” Ian Dunlap, Heartland’s director of Missouri legislative and political affairs, said in a post on the group's website.
Heartland led a successful push last year to update the Kansas Credit Union Act as well.