HCS/SCS/SB 1038 - This act modifies a number of laws associated with banking.

State employees are authorized to make investment deposits from their paycheck into their bank or savings and loan (Sections 33.103, 362.191 and 369.176).

This act allows an income tax deduction of up to $8,000 per taxpayer for annual contributions made to qualified savings programs and, prior to August 28, 2010, to any similar I.R.C. Section 529 plan authorized by this state or any other state or political subdivision. Currently, the income tax deduction is only available for contributions made to the Missouri Higher Education Savings Program. The tax deduction won't apply to contributions made to another state's 529 plan unless such state permits the creation of an account by means of an initial contribution of $50 or less, or the state program permits automated periodic contributions (Section 166.435).

This act creates the "Missouri Higher Education Deposit Program" (Sections 166.435 to 166.556). This program is a nonexclusive alternative to the Missouri Higher Education Savings Program and participants may elect to participate in both programs subject to aggregate program limitations. The program is administered by the Missouri Higher Education Savings Program Board. The Board is required to meet at least quarterly. The act adds an additional member to the Board who shall be a private member with experience in banking or deposit rate determination and placement of depository certificates of deposit (Section 166.415).

The Board shall possess similar powers and duties as the Missouri Higher Education Savings Board. The Board may invest the funds received from participants in appropriate investment instruments held by depository institutions or directly deposit the funds in such institutions. The investment of funds may be delegated by the Board to representatives of financial entities, but the investment must be in certificates of deposit and other deposits in federally insured depository institutions. Such representatives must pass a board-approved qualification test and be certified by the Board.

The Board is responsible for establishing various deposit opportunities based on amounts deposited and time held that are uniformly available to all depository institutions that participate in the program. The various categories of fixed or variable rates shall be the only interest rates available under this program. The program shall sunset in six years, if not re- authorized.

The recording fee for the expedited filing of title or liens with the department of revenue is increased from $6 to $15 (Section 408.032). Currently, contracts may provide for a charge for late payment on installments in an amount not to exceed the greater of 5% of each installment due or $15, except that a minimum charge of $10 may be made. The act deletes language concerning the minimum charge of $10 (Section 408.140).

On loans of more than $600, the lender may collect a fee in advance for allowing a debtor to defer monthly loan payments, provided the debtor agrees in writing and the fee is no more than the lesser of $50 or 10% of the loan payments deferred (Section 408.178). The charging of certain fees shall be considered permitted, even if the loans are exempt from other requirements under Missouri law (Sections 408.190 and 408.232). Changes made in this act to sections concerning allowable fees are remedial in nature and shall have no effect in any case filed prior to January 1, 2004 (Section 408.480).

The act creates definitions for the deceptive use of a financial institution's name in notification or solicitation and deceptive use of another's name in notification or solicitation. A financial institution whose name is deceptively used may bring a private civil action and may recover a minimum of $10,000, plus court costs and attorneys fees, plus any damages such financial institution proves at trial (Section 427.225). Debtors are prohibited from maintaining an action or defense related to a commercial credit agreement, regardless of the legal theory advanced (Section 432.047). The act provides that secured parties receiving satisfaction for debt secured with regard to a mortgage who fail to submit a sufficient deed of release for recording with 45 days shall be liable to the mortgagor for the lesser of an amount of $300 a day or 10% of the amount of the security instrument. If a document is rejected for recording, the secured party shall 60 days to resubmit the document (Section 443.130).

The Board of Fund Commissioners of the state and the State Board of Public Buildings are authorized to execute or perform obligations under certain agreements or contracts necessary to incur obligations at a fixed or variable interest rate. Such entities may also obtain without bidding credit enhancement or other financing arrangements and perform any obligations to facilitate such enhancement or financing arrangements (Section 1).

The act repeals the truly agreed to HB 916 regarding identity theft and reenacts similar provisions. Venue in criminal prosecutions for the crime of identity theft shall be commenced in:

(1) The county in which the offense is committed; or

(2) The offense is committed partly in one county and partly in another, or if the elements of the offense occur in more than one county, then in any of the counties where any element of the offense occurred; or

(3) The county in which the victim resides; or

(4) The county in which the property obtained or attempted to be obtained was located (Section 541.033).

Venue in civil actions regarding identity theft shall be commenced in the same places as in a criminal prosecution as well as the county where the defendant resides (Section 506.290).

The act creates a list of various forms of identification such as social security numbers, drivers license numbers, and other information, which are to be considered the subject of identity theft.

Under this act, it is a Class A misdemeanor if a person commits identity theft involving no more than $500. A subsequent offense involving no more than $500 is a Class D felony. It is a Class C felony if the value of the identity theft exceeds $500, but involves no more than $10,000. It is a Class B felony if the value of the identity theft exceeds $10,000, but involves no more than $100,000. It is a Class A felony if the value of the identity theft exceeds $100,000.

This act allows any person who commits identity theft to be liable to the victim for up to $5,000, in addition to criminal penalties. The victim may also bring a civil action to enjoin future acts of identity theft by the individual.

This act allows a deceased person's estate to recover damages for identity theft to which the decedent was a victim.

This act is not applicable in certain situations when a person obtains the identity of another. Such situations include, obtaining an identity to buy alcoholic beverages, receiving credit information in a commercial transaction, lawfully exercising a security interest by a creditor, complying with a court order or other decree, and where the person is acting lawfully.

This act defines the offense of trafficking stolen identities as manufacturing, selling, transferring, purchasing, or possessing identification documents for the purposes of identity theft. Under this act, trafficking of stolen identification documents is a Class B felony. Possession of five or more identification documents of one person, or identification documents of five or more people, is evidence that the person intends to commit identity theft.

This act is identical to SCS/HCS/HB 959 (2004).
JIM ERTLE