CCS/SS/SCS/HCS/HB 1879 - This act modifies several provisions relating to financial transactions involving public entities.SECURITY-COLLATERAL LIST (Sections 30.270 and 95.530)
Under current law, the State Treasurer and the Treasurer of the City of St. Louis are limited in the types of securities they may require as collateral from banks or financial institutions selected and approved for the safekeeping and payment of deposits. With regard to out-of-state municipal bonds, it must be determined that the bonds are rated in the highest category by at least one nationally recognized statistical rating agency to be qualified as collateral. This act requires such bonds to be rated in one of the four highest rating categories by at least one nationally recognized statistical rating agency to be qualified as collateral.
This act additionally adds brokered or negotiable certificates of deposit that are fully insured by the FDIC or the National Credit Union Share Insurance Fund to the collateral list.
STATE PURCHASES - HIGHER EDUCATION (Section 34.010)
The act stipulates that the provisions of law regulating public purchases on behalf of state departments shall not apply to public institutions of higher education.
This provision is identical to a provision in the truly agreed to provisions in the truly agreed to CCS/HCS/SCS/SBs 807 & 577 (2018) and SS/SCS/HCS/HB 2140 (2018).
SHELTERED WORKSHOPS (Section 34.165)
The act changes the bidding preference for state purchasing from qualified nonprofit organizations for the blind and sheltered workshops from a flat 10-point bonus award to a sliding scale from 5 to 15 bonus points based on the revenue generation for and utilization of the qualified nonprofit organizations for the blind and sheltered workshops, as determined in rule by the Commissioner of Administration.
This provision is identical to SB 703 (2018).
COMPETITIVE BIDDING FOR COUNTIES (Sections 50.660 and 50.783)
Current law provides that counties must advertise a request for bids for contracts and purchases of more than $4,500 with any one person or corporation during a 90-day period. This act provides that the bidding requirement applies to contracts or purchases involving expenditures of more than $6,000.
Current law requires a county commission to seek competitive bids or proposals on single feasible source purchases of $3,000 or more, and advertise for bids on such purchases of $5,000 or more. This act requires the commission to seek bids and advertise on single feasible source purchases of more than $6,000.
These provisions are identical to SB 770 (2018) and provisions in HCS/SCS/SB 769 (2018), SCS/HB 1442 (2018), and HCS#2/SS/SB 704 (2018).
INVESTMENT OF PUBLIC FUNDS (Section 67.085)
Under current law, any public entity or political subdivision may invest public deposits if, among other things, on the same date that the public funds are deposited the financial institution also receives an amount of deposits from other financial institutions equal to the amount of the public funds deposited. This act repeals this requirement.
DEPOSITARIES FOR PUBLIC FUNDS (Section 110.010)
Current law provides restrictions on the security of the public funds of specific political subdivisions. This act stipulates that the requirements apply to all political subdivisions of the state. Furthermore, the act also allows banks serving as a depositary for public funds to invest in the same manner as the State Treasurer is constitutionally permitted.
CERTIFIED CHECK REQUIREMENTS (Sections 110.080, 110.140, 165.221, 165.231, and 165.271)
Current law requires certain bids made by banks, associations, or trust companies to be accompanied by a certified check. This act repeals those requirements.
REAL ESTATE BOOKS (Section 137.225)
Under current law, real estate books in all counties, except St. Louis City, are required to contain certain information related to all lands subject to assessment in the county. Specifically, all real estate books shall contain the residence of the owner. This act permits, upon written consent of the owner, an alternate address to be used for the purpose of mailing ad valorem property tax assessments to someone other than an owner, family trust, or mortgage holder receiving escrow payments.
This provision is identical to a provision in HCS#2/SS/SCS/SB 704 (2018).
DORMANT BANK ACCOUNTS (Section 447.200)
Under this act, whenever a consumer deposit account with a banking organization or financial organization has been inactive for 12 months or more and inactivity fees apply to the account, the organization is required to notify the account holder of such inactivity through first class mail postage prepaid marked "Address Correction Requested" or through electronic notice if the consumer has agreed to receive such notices under the federal Truth in Savings Act. Additionally, the bank is required to send annual statements for such account and charge a fee up to $5 per statement. Such fee shall be withdrawn from the inactive account.
The act also stipulates that the funds of any bank account which has been inactive for a period of five years shall be remitted to the Abandoned Fund Account administered by the State Treasurer.
Several provisions in this act are identical or substantially similar to the truly agreed to HCS/SCS/SB 769 (2018).
SCOTT SVAGERA