State Legislation - February 10
Information new this week is in italics.
The Missouri Credit Union Association (MCUA) is in the process of analyzing bills introduced in the 2012 session of the Missouri General Assembly. If you would like to weigh in on any of the topics, contact Peggy Nalls at (800) 392-3074, ext. 1305 or email@example.com.
HB 1159, Sponsor: Rep. Shelia Solon (R-District 55) This is the same language the representative introduced in 2011. It would increase the homestead exemption in bankruptcy from $15,000 to $125,000 for those over 62. Click here for bill language.
Impact: The bill would reduce the amount of funds available for credit unions and other holders of unsecured credit in a bankruptcy.
Position: Against, will be discussing the bill with the sponsor.
Status: 1-9-12, Read second time in the House.
SB 462, Sponsor: Sen. Joe Keaveny (D-District 4) and SB 476, Sponsor: Sen. John Lamping (R-District 24) The bill applies to payday lenders, and does not apply to other financial institutions. Changes to current law include a prohibition renewing a payday loan more than once and a prohibition of making payday loans to consumers who have one outstanding loan or within one day of a borrower paying a previous loan. Disclosures must be made on the duration, amount, date due, and amount of interest and fees charged during the duration of the loan. Current law allows loans with a 14-day minimum and a 31-day maximum. Under the act, the minimum is 90 days with required payments every 15 days. Click here for the bill language.
Impact: The bill does not apply to credit unions.
Status: 2-6-12, SB 462 Meeting was set for 2-6-12 in the Senate Committee on Financial/Gov. Org. and Elections, but the hearing was cancelled. 2-6-12, SB 476 Hearing was held in the Senate Committee on Financial/Gov. Org. and Elections.
HB 1294, Sponsor: Rep. Mary Still (D-District 25) Mirrors payday lending ballot initiative language that would cap a combination of fees and interest rate at 36%.
Impact: This bill would institute a 36% usury limit on all lending and would affect credit unions. Click here for bill language.
Status: 1-17-12, Read second time in the House.
HB 1393, Sponsor: Rep. Don Gosen (R-district 84) Sets out that payday lenders cannot make more than one unsecured loan of $500 or less to a consumer, within one day of the consumer paying off a loan, and any consumer may not have more than $500 outstanding at any time among all payday lenders. The Division of Finance is directed to set up a database to track all payday loans in the state. Click here for bill language.
Impact: Credit unions are exempted.
Status: 1-23-12, Read second time in the House.
Renters and Foreclosure
SB 554, Sponsor: Sen. Kiki Curls (D-District 9) The bill changes a 10-day requirement to notify renters in a foreclosure action to 90 days. Federal statutes are currently at 90 days to notify a renter. The federal law takes precedence. There is a sunset provision that would take effect in 2014. Click here for bill language.
Impact: The bill would impact credit unions if Congress does not sunset the 90-day provision. If the state 10-day notice is not changed to a 90-day notice and the federal law sunset is not renewed, Missouri law would revert to the 10-day notice.
Position: Neutral, at this time.
Status: 1-5-12, Referred to Senate Committee on Judiciary Civil/Criminal Jurisprudence.
Non-Judicial Foreclosure and Mediation
SB 670, Sponsor: Sen. Tim Green (D-District 13) and HB 1611, Sponsor: Rep. Jamilah Nasheed (D-District 60) This bill would allow a homeowner facing non-judicial foreclosure to choose mediation or judicial foreclosure as alternatives.
Impact: Would add time and expense for credit unions to the foreclosure process.
Position: Assessing. Click here for bill language.
Status: 2-2-12, SB 670 referred to the Senate committee on Judiciary Civil/Criminal Jurisprudence. 2-2-12, HB 1611 Read second time.
Abandoned, towed vehicles
HB 1111, Sponsor: Rep. Don Gosen (R-District 84) The bill allows towed abandoned property to be released to the owner’s designated representative. Currently, it can only be released to the owner or to the holder of a valid security interest of record. Click here for bill language.
Impact to credit unions: Assessing.
Status: 1-5-12, Read second time in the House.
SB 633, Sponsor: Sen. Kevin Engler (R-District 3) and HB 1064, Sponsor: Rep. Mike McGee(R-District 122) Salvage companies would like to avoid having to provide the original certificate of title, salvage certificate, or junking certificate when a vehicle is ten years old or older. Instead, they would like to submit a copy of the seller’s state identification along with the bill of sale. Click here for bill language.
Impact: There is no protection for lienholders or consumers if a car is taken illegally and turned over to a salvage company if the car is over 10 years old.
Status: 2-8-12, SB 633 Heard in the Senate Transportation Committee. Credit unions testified against the bill. 1-5-12, HB1064 Read second time in the House.