According to CourierNet, House Financial Institutions Chairman Mike Cunningham (R-145) said, "There are some credit unions and some banks that are not happy with the legislation, which means it must be a good compromise bill." Cunningham shepherded the bill through the House. A March 2006 Cole County Court decision stripped the Commission of its ability to define "geographic area" but provided no alternative so state chartered credit unions have not been able to expand in this manner since then. In 1998, the Missouri legislature passed a law permitting credit unions to expand their fields of membership, leaving implementation to the Credit Union Commission. A series of lawsuits by the Missouri Bankers Association go back to 2001, challenging the commission's definition of "geographic area", which a Cole County Circuit Court judge also disagreed with. This legislation establishes a definition of 'geographic area' for field of membership purposes.

An unofficial copy of the legislation read, "A geographic area which may include all those persons who reside or work in a city not within a county or a county, in which the main office of the credit union is located as reported on the National Credit Union Administration (NCUA) 2006 year-end 5300 call report, and counties contiguous to such areas as may be approved by the director. The director shall not allow a geographic area credit union to expand beyond counties contiguous to a city not within a county or a county in which its main office is located. The director shall not allow a credit union to expand its geographic area due to a relocation of the credit union's main office."

The legislation would also grandfather geographic area credit unions relying on the previous law (between April 1, 1998 and March 24, 2006) where they have branch offices located that were in operation prior to April 15, 2007. Additionally, S.B. 591 would restrict Missouri state chartered credit union federal parity powers; only allow credit unions to serve the county where it is headquartered and those contiguous counties, including in mergers; if an employer group credit union adopts a geographic area, it can no longer accept new members from outside the geographic field of membership; employee groups of 3,000 or more must consider the feasibility of starting another credit union before joining an existing one; service to low-income areas are restricted to those nearby; field of membership expansions will be posted weekly on the Division of Credit Unions' Web site to speed the process; the division must consider income and loan usage of current members before granting a geographic area expansion; and prohibits credit unions from establishing a branch outside its geographic area.

McLard said that, in theory, the new law should put an end to the bankers' lawsuits relating to this and the MCUA is "hopeful."

While the Missouri Bankers Association has said the bill is a solid compromise, it has made no guarantees that there will not be litigation in the future. Settlement was not on the table during negotiations, according to MBA.

The new law has an Aug. 28 effective date, according to CourierNet. –[email protected]