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Strong Year for Positive Credit Union Legislation in Missouri

Nearly 10 bills with positive impact to credit unions are now on their way to Governor Jay Nixon's (D) desk after receiving final approval by the Missouri General Assembly. Missouri lawmakers had until 6 p.m. on May 13 to advance legislation before the session officially closed. Governor Nixon has until July 14 to either sign, veto or allow a bill to become law. Legislation that is not vetoed by the Governor will become law on August 28.

Below is a list and brief description of bills supported by Heartland Credit Union Association (HCUA) Advocacy that were Truly Agreed to and Finally Passed (TAFP) by the Missouri General Assembly.

HCUA Plays Defense on a Number of Bills

HCUA Advocacy also worked to prevent a number of bills from moving forward. These include bills dealing with judicial foreclosures, so called 'ban-the-box' measures, and a bill that would have created a civil cause of action against a financial institutions that refuses to provide services to a firearms or ammunition business.

In addition, HCUA Advocacy worked with bill sponsors and other lawmakers to amend a bill dealing with expungement of criminal records (SB 588). The underlying bill allows a person who has been granted an expungement to answer 'no' to an employer's inquiry regarding his/her criminal convictions. The amendment, supported by HCUA, exempts credit unions and ensures compliance with federal law.

HCUA Priority Bills (TAFP)

Credit Union Account Verification Parity - Reduces the regulatory requirements for account verification from every year to every other year.  Legislation also gives credit unions the option to use either statistical sampling OR direct verification.

  • HB 1721 sponsored by Rep. Tony Dugger (R-District 141), carried by Sen. Mike Cunningham (R-District 33).
  • SB 932 sponsored by Sen. Mike Cunningham (R-District 33), carried Rep. Tony Dugger (R-District 141).

Missouri Savings Promotion Act - Authorizes credit unions in Missouri to offer savings promotion accounts to members. These accounts create an incentive for participants to save money by giving them a chance to win a cash prize based on savings activity.

  • HB 2125 sponsored by Rep. Travis Fitzwater (R-District 49), carried by Sen. Eric Schmitt (R-District 15).
  • SB 833 sponsored by Sen. Jamilah Nasheed (D-District 5), carried by Rep. Travis Fitzwater (R-District 49).

Electronic Notary - Authorizes the Missouri Secretary of State to promulgate rules and regulations pertaining to electronic notarization. Electronic notarization will help modernize the notary process for Missouri businesses and provide greater convenience to customers.

  • SB 932 sponsored by Sen. Mike Cunningham (R-District 33), carried by Rep. Tony Dugger (R-District 141). Language was amended to original bill.

Clarification to Penalty for Note Robbery - Makes clear the penalty for robbery of a financial institution – even without use of force – is a Class B felony offense. The clarification follows two Missouri Supreme Court cases that challenged whether note robberies should be considered stealing or robbery. 

  • SB 624 sponsored by Sen. Doug Libla (R-District 25), carried by Rep. Sandy Crawford (R-District 129). Language was amended to original bill.

HCUA Supported Bills (TAFP)

Federal Home Loan Bank – Receivership Clarifications - Clarifies and simplifies procedures for handling a failing insurance company that is a member of the Federal Home Loan Bank (FHLB), and ensures insurance companies are treated the same way as financial institutions that are members of the FHLB. Having clear procedures assures all FHLB members – including credit unions – can continue to access FHLB services on affordable terms.

  • SB 932 sponsored by Sen. Mike Cunningham (R-District 33), carried by Rep. Tony Dugger (R-District 141). Language was amended to original bill.

Notary Seals / Notary Fraud - Contains measures to prevent Notary fraud and help track down fraud when it occurs.

  • SB 932 sponsored by Sen. Mike Cunningham (R-District 33), carried by Rep. Tony Dugger (R-District 141). Language was amended to original bill.

Possession of Stolen Credit/Debit Card - Intent is to help prevent fraud by giving law enforcement agents the ability to charge someone who is in possession of stolen credit and/or debit cards. Simply possessing stolen cards may not violate current law, according to testimony provided by the Missouri Highway Patrol.

  • SB 624 sponsored by Sen. Doug Libla (R-District 25), carried by Rep. Sandy Crawford (R-District 129).

Clarification to Vehicle Service Contract Refund - Makes clear that a refund of the vehicle service contract may go to the lienholder who financed the contract. Current law is not clear specifying which party receives the refund, even though there may be a contractual obligation between the service contract provider and the lender.

  • HB 1976 sponsored by Rep. Denny Hoskins (R-District 54), carried by Sen. Brian Munzlinger (R-District 18).

TNC Notification Requirements - Requires transportation network companies (TNCs), such as Uber or Lyft, to notify prospective drivers that driving for a TNC may violate the terms of their loan agreement. The bill also includes language specifying that the insurance payment may go directly to the repair business or jointly to the vehicle owner and the lienholder.

  • SB 947 sponsored by Sen. Mike Parson (R-District 28), carried by Rep. Elijah Haahr (R-District 134).

Closing Protection Letter - Requires a closing protection letter on all residential real estate transactions. Current law provides exemptions under certain circumstances.

  • SB 833 sponsored by Sen. Jamilah Nasheed (D-District 5), carried by Rep. Travis Fitzwater (R-District 49). Language was amended to original bill.

Missouri Legislative Bill Tracker - FINAL

Click here for a list of all the bills HCUA Advocacy is tracking in the Missouri legislature.