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2012 Missouri State Legislative Wrap-up

2012 Missouri State Legislative Wrap-up

The Missouri General Assembly passed several bills that have impact for credit unions and their members in the 2012 legislative session.  An overview of the legislation is below. The effective date for new laws is August 28, 2012.

Credit unions gained a number of concessions to protect members in salvage vehicle legislation (HB 1150).  Out of 11 groups consulted, only credit unions raised the issue of consumer protection.  Without the negotiated changes, salvage yards would have been able to accept any car more than 10 years old with no notification to the owner or lienholder.  Credit unions also participated in the development of other pieces of legislation to bring positive results for credit unions and their members. 

While bills that passed are important, so are the bills that didn’t pass.  Several bills regarding foreclosure that would have had onerous implications for credit unions never made it to the governor’s desk.  If you have questions regarding legislation, contact Peggy Nalls at (800) 392-3074, ext. 1305, or

Salvage Vehicles, Protections for Credit Union Interests in Cars Over 10 Years Old (HB 1150)

Scrap metal operations are now allowed to acquire a vehicle that is at least 10 models years old without receiving the original certificate of title, salvage certificate or junking certificate if the operator checks with the Department of Revenue to make certain there is no lien on the vehicle and the vehicle meets the definition of “inoperable.”  “Inoperable” means a motor vehicle that is in a rusted, wrecked, discarded, worn-out, extensively damaged, dismantled and mechanically inoperative condition and the vehicle’s highest and best use is for scrap purposes.  If the vehicle is more than 20 years old, and inoperable, the scrap metal operator is not required to check for a lien.

Credit Unions Exempted from Filing with the Real Estate Appraisers Commission (HB 1103)

In legislation passed in 2011, language inadvertently required credit unions and banks to file with the Missouri Real Estate Appraisers Commission.  Realizing that the language was an error, the state did not require credit unions and banks to file.  The language passed in HB 1103 clearly exempts credit unions from the requirement to comply with the statute.

Refinancing Vehicle Loans (HB 1150)

This legislation clarifies that the requirement to file a notice of lien to perfect the lien only applies to a refinance by a different lender on a prior loan.  There is no need to file if you are refinancing your credit union’s own loan.

No-Call List Now Accepts Cell Phone Numbers (HB 1549)

Previously, statutes did not provide for including cell phone numbers in the state’s No-Call List.  This legislation will allow you to do that.

Qualified Spousal Trusts Redefined (SB 636)

Currently trusts that hold a certain kind of property owned by a husband and wife will be considered a qualified spousal trust if the property is held in one trust or the property is held in two separate shares of one trust.  This change allows a trust to be considered a qualified spousal trust if the trust consists of both property held in one trust for both spouses and property held in two shares of one trust for each spouse.

More Protection for Your Elderly Members (SB 689)

Under current law, a person who recklessly and purposely causes serious injury to an elderly person commits the crime of second degree elder abuse.  This act adds undue influence to the types of acts that, when committed against an elderly or disabled person, constitute the crime of financial exploitation.  Undue influence is defined as influence by a person who has authority over the elderly or disabled person in order to take unfair advantage of the person's vulnerable state of mind, neediness, pain, or agony. It includes improper use of various types of fiduciary authority.