TASK FORCE ON GOLD AND SILVER (SECTION 30.267)
The act creates the "Task Force on Gold and Silver," beginning July 1, 2025. The task force shall examine the practicality of issuing gold and silver coinage as specie in a manner consistent with the United States Constitution and examine the possibility of the state accepting gold and silver in payment of obligations to the state. This provision expires July 1, 2027.
This provision is identical to a provision in HCS/SB 736 (2024) and HCS/HBs 1955 & 2257 (2024) and similar SCS/SB 1028 (2024).
PACE Act (Sections 67.2800 - 67.2840)
The act modifies certain provisions of the "Property Assessment Clean Energy Act".
Certain provisions of the act shall not apply to any assessment contract, project, or PACE program entered into, or established for any residential property.
A clean energy development board shall have the power to accept certain things of value, including the acquisition of loans or assessment contracts from other states or their municipalities and political subdivisions for the purpose or financing any project.
Certain terms of an assessment contract and any bond issued by a clean energy development board shall not exceed a period of thirty years, instead of twenty years.
Certain provisions of the act shall only apply to the residential PACE programs of clean energy development boards and participating municipalities from, instead of after, January 1, 2022, to August 28, 2024. As of August 28, 2024, all residential properties shall be exempt from certain provisions of the act and no assessment contract, project, or PACE program shall be entered into, undertaken, or established for any residential property.
Certain provisions of the act shall be effective and apply only to residential PACE assessment contracts entered into before August 28, 2024.
These provisions are identical to provisions in HCS/SB 736 (2024) and HCS/HB 2756 (2024).
DEPOSITORY INSTITUTIONS FOR MUNICIPALITIES (Sections 110.075, 95.280, 95.285, and 95.355)
This act provides that municipalities shall select a municipal depository with a state-chartered or federally chartered banking institution through a competitive process. Each municipality shall develop requirements for a request for proposals, as provided in the act, to provide to banking institutions interested in becoming a municipal depository.
The governing body of a municipality shall select a banking institution and shall enter into a contract outlining the terms and conditions of the depository relationship.
Finally, this act repeals provisions relating to procedures for third and fourth class cities selecting banking institutions to be depositories for the municipality.
These provisions are identical to SB 1292 (2024) and HB 2526 (2024).
CAMPAIGN FINANCE (SECTIONS 130.011 THROUGH 130.041)
For purposes of campaign finance law, the act permits the use of credit cards and debit cards by committees that are authorized and paid for through the official depository account. The records and accounts of each committee, required to be maintained by the treasurer of the committee, shall contain the credit card statements and records. Furthermore, expenditure reports made to the Missouri Ethics Commission must indicate the total dollar amount of expenditures made by credit card or debit card.
These provisions are identical to the perfected HCS/HB 1504 (2024), provisions in HCS/HB 2087 (2024), provisions in HCS/HB 809 (2023), HB 234 (2023), certain provisions in SCS/SB 238 (2023), HCS/SCS/SB 187, as amended (2023), and HCS/HB 586 (2023).
INCOME TAX DEDUCTION - GAIN IN INTEREST ON MUNICIPAL BONDS (Section 143.121)
For all tax years beginning on or after January 1, 2025, an income tax deduction is created for 100% of the amount of any gain in interest derived from municipal bonds or any other debt derived from sources in another state of the United States, or a political subdivision thereof, or the District of Columbia shall be subtracted from the taxpayer's federal adjusted gross income. This amount shall apply only if, at the time such derived interest was earned on such municipal bonds or any other debt obligation in such other state or the District of Columbia, either:
• This state had adopted a reciprocal agreement exempting such state's residents from taxes imposed on interest earned on such out-of-state bonds or any other out-of-state debt obligation; or
• No reciprocal agreement exists, but at the time such interest was earned on any out-of-state bonds or debt obligation, no tax was imposed by the originating state on any such Missouri bonds or debt obligation.
TRUST AND ESTATE ADMINISTRATION (SECTION 214.330)
The act exempts certain private trust companies from residency requirements governing board of directors of a corporation as described in the act.
This provision is identical to a provision in HCS/HB 1725 (2024) and the perfected HB 1987 (2024).
MONEY TRANSMISSION MODERNIZATION ACT (Sections 361.900 to 361.1035)
This act repeals the Sale of Checks Law and creates in its stead the "Money Transmission Modernization Act of 2024". The act regulates money transmission, defined as any of the following:
Selling or issuing payment instruments to a person located in Missouri;
Selling or issuing stored value to a person located in Missouri;
Receiving money for transmission from a person located in Missouri; or
Payroll processing services.
Money transmission does not include the provision solely of online or telecommunications services or network access.
The Director of the Division of Finance within the Department of Commerce and Insurance is responsible for administering this act.
LICENSURE OF MONEY TRANSMITTERS
The act prohibits any person from engaging in the business of money transmission or advertising, soliciting, or holding itself out as providing money transmission unless the person has been licensed pursuant to this act. Licenses last for no more than one calendar year and are not transferable or assignable. Applications must be on forms required by the Director and shall be accompanied by an application fee, as determined by the Director.
Additionally, certain individuals in control of a licensee, seeking to control a licensee, and any key individual, as that term is defined in the act, are required to furnish background materials to the Director, including fingerprints, criminal background checks, and employment history, among other things listed in the act.
The Director is permitted to implement the licensure process in such a way as to make it consistent with other states and nationwide protocols, to the extent consistent with this act. The Director is additionally permitted to collaborate with the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors (NMLS) as provided in the act.
CONFIDENTIALITY OF INFORMATION
The act provides that all information provided to the Director is considered confidential except basic identifying information of the licensee as detailed in the act. Exceptions are included with respect to disclosures to certain government agencies.
ACQUISITION OF CONTROL
Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the Director prior to acquiring control. An application must be submitted in a form prescribed by the Director along with a fee, as determined by the Director.
REPORTING AND RECORDS
Each licensee is required to submit to the Director the following reports:
A report of condition each calendar quarter;
An audited financial statement prepared by an independent certified public accountant at the end of the fiscal year; and
A report of authorized delegates at the end of each calendar quarter.
A licensee shall file a report with the Director within one business day if the licensee has reason to know of:
The filing of a petition by or against the licensee under the federal United States Bankruptcy Code;
The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; or
The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed.
A licensee shall file a report with the Director within three business days if the licensee has reason to know of:
A conviction of the licensee or of a key individual or person in control of the licensee for a felony; or
A conviction of an authorized delegate for a felony.
A licensee shall maintain the following records, for determining its compliance with this act for at least three years:
A record of each outstanding money transmission obligation sold;
A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;
Bank statements and bank reconciliation records;
Records of outstanding money transmission obligations;
Records of each outstanding money transmission obligation paid within the three-year period;
A list of the last known names and addresses of all of the licensee's authorized delegates; and
Any other records the director reasonably requires by rule.
PRUDENTIAL STANDARDS
Licensees are required to maintain at all times a tangible net worth more than $100,000, or 3% of total assets for the first $100,000,000, 2% of additional assets between $100,000,000 and $1 billion, and 0.5% of additional assets over $1 billion. Additionally, licensees shall maintain security consisting of a surety bond in an amount based on the licensee's average daily money transmission liability and tangible net worth.
The act establishes requirements for permissible investments of a licensee.
ADMINISTRATIVE, CRIMINAL, AND CIVIL ENFORCEMENT MECHANISMS
The act allows the Director to suspend or revoke licenses and designations of authorized delegates under circumstances and using procedures as described in the act. The Director is also permitted to issue cease and desist orders and enter into consent decrees for the resolution of matters arising under this act.
The act creates the following criminal penalties associated with money transmission:
A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained pursuant to this act or that intentionally makes a false entry or omits a material entry in such a record is guilty of a class E felony;
A person that knowingly engages in an activity for which a license is required pursuant to this act without being licensed and who receives more than $500 in compensation within a 30-day period from this activity is guilty of a class E felony;
A person that knowingly engages in an activity for which a license is required pursuant to this act without being licensed and who receives no more than $500 in compensation within a 30-day period from this activity is guilty of a Class A misdemeanor.
The Director is also permitted to assess civil penalties not to exceed $1,000 per day for each violation of this act.
These provisions are identical to provisions in HCS/SB 736 (2024), HCS/SS/SB 1359 (2024), and HCS/HB 2087 (2024) and substantially similar to SB 737 (2024), HB 2780 (2024), SB 633 (2023), and HB 1340 (2023).
PRIVATE TRUST COMPANIES (SECTION 362.245)
The act exempts certain private trust companies from certain residency requirements governing board of directors of a corporation as described in the act.
This provision is identical to HB 1938 (2024) and a provision in HCS/HB 1725 (2024).
MISSOURI FAMILY TRUST COMPANY ACT (SECTIONS 362.1010-362.1117)
Currently, a family trust company is not permitted to conduct business in Missouri without first registering with the Secretary of State. This act provides that a family trust company shall instead file, with the Director of the Division of Finance, the initial registration and original filing fee along with the relevant proposed business filings and fees required by the Secretary. The family trust company shall not conduct business until it has received an order approving the application from the Director, who shall file with the Secretary the order, the proposed business filings, and required filing fees. Any family trust company that was in good standing with the Secretary as of August 28, 2024, shall be deemed to have complied with the requirements of this act. Furthermore, the Director shall enforce the provisions of this act and carry out the duties and functions originally assigned to the Secretary.
These provisions are identical to provisions in HCS/SB 736 (2024) and HB 2798 (2024) and substantially similar to SB 1482 (2024).
METHODS OF REIMBURSEMENT TO HEALTH CARE PROVIDERS (Section 376.1345)
Currently, if a health carrier initiates or changes the method used to reimburse a health care provider to a method that requires the provider to pay a fee or remit some other form of remuneration, the carrier must notify the provider of the cost, provide clear instructions as to how to select an alternative payment method, and use that alternative method if requested by the provider. This act requires the health carrier or entity acting on its behalf to first receive approval from the health care provider before reimbursing the health care provider with such payment method. If a health carrier is currently reimbursing a health care provider with a payment method, the health care provider can send one notice to the health carrier for all the health care provider's patients covered by such health carrier stating that the health care provider declines to be reimbursed with a payment method. The notice will remain in effect for the duration of the contract unless the health care provider requests otherwise. All payments made by the health carrier to the health care provider after receipt of the notice declining to be reimbursed with a payment method cannot require the health care provider to pay a fee, discount the amount of the provider's claim for reimbursement, or remit any other form of remuneration in order to redeem the amount of the provider's claim for reimbursement.
This provision is identical to provisions in HCS/SB 736 (2024) and HCS/HB 2087 (2024).
SELF-SERVICE STORAGE PROVIDERS (SECTION 379.1640)
This act increases, from $5,000 to $15,000, the maximum insurance coverage that may be offered by limited lines self-service storage insurance producers and their associates.
This provision is identical to SB 927 (2024) and provisions in HB 2780 (2024), the perfected HB 2440 (2024), HCS/SS/SB 1359 (2024), and HCS/SB 736 (2024).
CERTIFIED FUNDS - REAL ESTATE SETTLEMENT AGENTS (SECTION 381.410)
The act modifies the definition of "certified funds" for purposes of a statute regulating the use of certain funds by real estate settlement agents and title insurance agents.
This provision is substantially similar to SCS/SB 836 (2024).
REAL ESTATE LOANS - AGRICULTURE ACTIVITY (Section 408.035)
Current law prohibits parties from agreeing in writing to any rate of interest, fees, and other terms and conditions in connection with any loan of less than $5,000 secured by real estate used for agricultural activity. This act repeals that prohibition.
This provision is identical to a provision in HCS/SB 736 (2024), HCS/HB 2086 (2024), HCS/HB 2087 (2024), and HCS/SS/SB 1359 (2024).
CHARGES FOR COST OF CREDIT REPORTS (Section 408.140)
The act permits lenders making loans pursuant to the Missouri Consumer Loan Act to charge consumers for the cost of a credit report.
This provision is identical to a provision in HCS/SB 736 (2024), HCS/HB 2086 (2024), HCS/HB 2087 (2024), and HCS/SS/SB 1359 (2024).
SALE OF STORED PROPERTY (SECTION 415.415)
The act modifies the requirements of notice for sale by an operator of a self-service storage facility for the sale of personal property of an occupant in default by permitting the operator to advertise in the classified section of a newspaper prior to sale or advertise in any other commercially reasonable manner. An advertisement is commercially reasonable if at least three independent bidders attend the sale.
This provision is identical to provisions in HCS/SB 736 (2024), HCS/HBs 1948, 2066, 1721, & 2276 (2024), and HB 2780 (2024) and substantially similar to SB 938 (2024).
COMMERCIAL FINANCING DISCLOSURE LAW (Section 427.300)
This act creates the "Commercial Financing Disclosure Law". Under this act, any person who consummates more than 5 commercial financing transactions, as defined in the act, to a business located in this state in a calendar year is required to make certain disclosures to the business with regard to the transaction. Specifically, the provider is required to disclose the following:
• The total amount of funds provided to the business under the terms of the commercial financing transaction;
• The total amount of funds disbursed to the business under the terms of the commercial financing transaction, if less than the total amount of funds provided, as a result of any fees deducted or withheld at disbursement and any amount paid to a third party on behalf of the business;
• The total amount to be paid to the provider pursuant to the commercial financing transaction agreement;
• The total dollar cost of the commercial financing transaction under the terms of the agreement, derived by subtracting the total amount of funds provided from the total of payments;
• The manner, frequency and amount of each payment; and
• A statement of whether there are any costs or discounts associated with prepayment of the commercial financing transaction including a reference to the paragraph in the agreement that creates the contractual rights of the parties related to prepayment.
The act requires registration with the Division of Finance prior to engaging in business as a broker for commercial financing. Specifically, the act requires filing a registration form, submitting a fee of $100, and obtaining a surety bond in the amount of $10,000. A registration renewal is required every year, not later than January 31st.
Violations of this act are punishable by a fine of $500 per incident, not to exceed $20,000 for all aggregated violations. Any person who violates any provision of this act after receiving written notice of a prior violation from the Attorney General shall be punishable by a fine of $1,000 per incident, not to exceed $50,000 for all aggregated violations arising from the use of the tr