JEFFERSON CITY, Mo. – In the Missouri Credit Union Association's first legislative initiative to have the state House of Representatives take up the field of membership issue since Cole County Circuit Court Judge Richard Callahan issued his decision in the credit union field of membership case and determined the state FOM regulation invalid, the state House adjourned for the session without hearing a credit union amendment that would have grandfathered all state chartered CUs' fields of membership as of March 24, 2006.
But MCUA Senior Vice President of Public and Legislative Affairs Peggy Nalls was not fazed by the House's action.
"We knew going in that any kind of legislative change wouldn't happen in one year, but the introduction of the amendment and our grassroots effort gave us the opportunity to tell legislators that the court's decision was an adverse one."
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The amendment was introduced by Rep. Bob Johnson (R-47) as part of the annual bankers' bill, Senate Bill 892, that was brought to the House of Representatives floor late in the afternoon May 8. According to MCUA, following Johnson's introduction of the amendment, Rep. Mike Cunningham (R-145) raised a point of order that the amendment exceeded the scope of the bankers' bill, meaning the subject of the bill was different from that of the amendment. When the parliamentary committee was called to the speaker's chair, Rep. Bob Behnen (R-2) ruled that Cunningham's point of order was well taken and ruled Johnson's amendment out of order. This prevented any further discussion of the credit union amendment.
Nalls acknowledged, "We would have been much happier to see our issue discussed on the floor and a vote taken."
She added, "However, when the discussion was prevented from taking place by a point of order, it could show that leadership was concerned about where the votes were. Credit unions have gained valuable insight on who our friends are. Plus we know the credit union grassroots can be mobilized on very short notice. We'd like to thank everyone who participated. We're now one step closer to introducing legislation to address the field-of-membership issue in the 2007 legislative session."
That session begins in January 2007.
Nalls explained that MCUA asked Johnson to introduce the amendment. As a Republican and a supporter of credit unions, she said MCUA wanted someone from the majority party in the House and Senate to introduce the amendment.
"We feel it took a lot of courage for him to accept to introduce it," she said.
Even though the state House of Representatives refused further discussion of the amendment, Nalls said Missouri's state chartered credit unions are not left hanging in limbo. She explained that MCUA is currently "waiting for another time period to run out." Judge Callahan had 30 days from the date of issuing his decision – March 24 – to amend his decision. During that 30-day period, credit unions decided to request a hearing "because the judge's decision basically struck down the entire field-of-membership provision in the state regulation." Judge Callahan has 90 days to consider the credit unions' request.
"Our attorneys have told us when a decision of this type is under appeal it doesn't go into effect until it's heard by the Western Court of Appeals. So the field-of-membership regulation could stand as is until that time," said Nalls.
Until the state legislature reconvenes next January, Nalls said MCUA and credit unions will use the time to pump up their grassroots effort "to get our message and the issue out to the public" and continue to educate legislators "that something significant has changed as a result of the court's decision."
Nalls said credit unions have so far made contact with 141 of the 153 members of the House, "and they're soaking up the information we're giving them like a sponge. Based on the legislators' feedback we know they're concerned about how the court's decision impacts credit unions and their constituents' ability to join credit unions."
When the state legislature convenes for the 2007 session, Nalls said MCUA anticipates introducing the contents of the credit union amendment as a standalone bill. Since Johnson is running for the state Senate, the association will be looking for a sponsor.
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