GOVERNMENT LENDING TRANSPARENCY ACT

(Section 29.420)

This act establishes the Government Lending Transparency Act and requires each administering agency, as defined in the act, to report to the State Auditor not later than August 30 of each year the following information:

· The name and statutory authority for each lending program and credit support program administered by the agency;

· For the immediately preceding fiscal year, the total dollar amount of all lending for each lending program administered by the agency and the total amount of debt supported by each credit support program administered by the agency; and

· For the immediately preceding fiscal year, the reasonable estimates of the costs of likely defaults for each lending program and credit support program administered by the agency, using private sector accounting standards to evaluate the likelihood and costs of defaults.

The State Auditor is required to make an annual report compiling all of the data received from administering agencies under this act and submit it to the General Assembly not later than December 15 of each year.

Intentional or knowing failure to comply with any reporting requirement contained in this act is punishable by a fine of up to two thousand dollars.

This provision is identical to provisions in the truly agreed to and finally passed SCS/HCS/HB 362 (2021) and the perfected HCS/HB 29 (2021), substantially similar to provisions in the perfected HCS/HB 814 (2021), and similar to SB 605 (2021) and HCS/HB 1177 (2021).

GOVERNMENT ACCOUNTABILITY PORTAL

(Section 37.850)

This act requires various public entities to report on the Government Accountability Portal the name, salary data, and incentive pay for all employees of the entity in the same manner as all other state departments and agencies are currently required.

This provision is identical to a provision in HCB 1 (2021) and the perfected HCS/HB 29 (2021) and substantially similar to a provision in the perfected HCS/HB 814 (2021).

STATE BANKING AND SAVINGS AND LOAN BOARD

(Section 361.097)

Under current law, two members of the State Banking and Savings and Loan Board are required to have at least 5 years of active bank management experience. This act requires at least three members to have at least 5 years of active bank or association management experience at an institution chartered under state law.

ELECTRONIC POSTINGS

(Section 361.110)

Current law requires the Director of the Division of Finance to keep a bulletin board in his or her office containing various statements of information concerning corporations and persons doing business in the state. This act modifies that requirement by requiring such statements to be posted on the Division of Finance website instead, to be updated each Monday. All such statements shall be public documents and at all reasonable times shall be retained by the Division, open to public inspection, and available on the Division website.

BANKING REGULATIONS

(Sections 362.044 - 362.765)

The act permits electronic notification of annual or special stockholders' meetings. (Section 362.044)

The act permits directors of a bank or trust company to attend board meetings by telephonic conference call or video conferencing, and such directors may be counted as part of the quorum, provided the bank or trust company has a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System of the Federal Financial Institution Examination Counsel. The meeting minutes must reflect that a director appeared remotely and that he or she received notice of the meeting, received board meeting information required by law, was alone when participating in the hearing, and was able to hear the meeting clearly.

The act permits the Director of the Division of Finance to promulgate additional regulations to provide for the integrity of the board of directors' operations when directors attend board meetings remotely and for the safety and soundness of the bank and trust company's operation.

The act repeals a provision providing a remedy for when a bank, trust company, or director fails to follow the procedures for directors who are not physically present and counted toward the board's quorum. (Section 362.247)

Current law requires the oath taken by every elected director of a bank or trust company to be immediately transmitted to the Director of Finance to be filed and preserved in that office. This act repeals that requirement and requires the oath to be retained with the official records of the board of directors. (Section 362.250)

The act requires the inclusion of the relevant information relative to the amount or penal sum of the bonds or policies and the sureties or underwriters thereon on a form provided by the Division of Finance and retained and preserved by the bank or trust company. The Director of Finance shall publish an annual tiered schedule of minimum levels of coverages. (Section 362.340)

The act permits a bank or trust company to merge with one or more of its nonbank subsidiaries or affiliates pursuant to an agreement of merger in the manner described in the act. The Director of Finance must be presented the agreement of merger and approve or decline the agreement within 30 days. If the agreement is declined, the bank or trust company may appeal the decision to the State Banking and Savings and Loan Board. (Section 362.765)

SAVINGS AND LOAN REGULATIONS

(Sections 369.049 - 369.705)

Current law requires the name of every savings and loan association to include either the words "Savings Association" or "Savings and Loan Association." This act removes such requirement and instead permits it. The act further repeals the prohibition on using the following words in an association name: "National", "Federal", "United States", "Insured", "Guaranteed", "Government", and "Official."

The act permits a savings and loan institution or savings bank to merge with one or more of its subsidiaries or affiliates pursuant to an agreement of merger in the manner described in the act. The Director of Finance must be presented the agreement of merger and approve or decline the agreement within 30 days. If the agreement is declined, the savings and loan institution or savings bank may appeal the decision to the State Banking and Savings and Loan Board.

SECOND MORTGAGES

(Sections 408.233 and 408.234)

The act allows the charge of a reasonable and bona fide third-party fee incurred for the remote or electronic filing of the perfection, release, or satisfaction of a security interest related to a second mortgage loan. (Section 408.233)

The act repeals a prohibition on the issuance of a second mortgage loan in an initial principal amount of less than $2,500. (Section 408.234)

These provisions are substantially similar to provisions in SB 385 (2021).

LENDERS OF CONSUMER CREDIT LOANS

(Section 367.150)

The act repeals a law requiring lenders of consumer credit loans to file a report with the director of the Division of Finance detailing, among other things, the financial condition of the lender and the total aggregate number and principal amount of loans made by the lender.

Various provisions in this act are substantially similar to the truly agreed to and finally passed SB 106 (2021), SB 362 (2021), and certain provisions in the perfected HCS/HB 814 (2021).

SCOTT SVAGERA