SB 835
Modifies provisions relating to financial instruments
Sponsor:
LR Number:
3810H.08C
Last Action:
4/24/2024 - HCS Reported Do Pass H Financial Institutions
Journal Page:
Title:
HCS SS SCS SB 835
Effective Date:
August 28, 2024
House Handler:

Current Bill Summary

SS/SCS/SB 835 - This act modifies provisions relating to financial transactions.

LINKED DEPOSIT PROGRAM (Section 30.753)

Current law allows the state treasurer to invest in linked deposits in an amount up to $800 million at any one time. This act increases that threshold to $1.2 billion.

Furthermore, the act modifies the total deposit for linked deposits that may be used for different borrowers as follows:

• Up to 5% of the aggregate for eligible multitenant development enterprises;

• Up to 5% of the aggregate for eligible property developers and eligible residential property owners;

• Up to 20% of the aggregate for eligible job enhancement businesses; and

• Up to 5% of the aggregate for eligible water systems.

All other linked deposits not allocated to the above may be used as permitted by law.

This provision is identical to a provision in the perfected SB 736 (2024) and HB 1803 (2024) and substantially similar to SCS/SBB 657 (2023), and provisions in HCS/SCS/SB 187 (2023), HCS/HB 586, SCS/HCS/HB 725 (2023), the perfected HCS/HB 809, and HCS/HB 1109 (2023).

PROHIBITION ON USE OF ESG SCORES BY PUBLIC ENTITIES (Section 34.710)

This act prohibits any public entity from discriminating or giving preferential treatment to any bidder, offeror, contractor, or subcontractor, when engaged in procuring or letting contracts for any purpose, based on an environmental, social and governance score, as defined in the act.

This provision is substantially similar to a provision in SB 1518 (2024), SB 177 (2023), and SB 316 (2023).

CENTRAL BANK DIGITAL CURRENCY (Section 34.700)

The act prohibits public entities from accepting payments using any central bank digital currency, as defined in the act. Furthermore, public entities are prohibited from participating in any test of central bank digital currency by any Federal Reserve branch.

This provision is identical to a provision in SB 826 (2024) and SB 866 (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).

INCOME TAXATION ON GOLD AND SILVER SPECIE (Section 143.121)

Current law exempts all purchases of bullion and investment coins from all state and local sales taxes. This act additionally exempts from state income tax the portion of capital gain on the sale or exchange of gold and silver specie that are otherwise included in the taxpayer's federal adjusted gross income.

This provision is identical to a provision in SCS/SB 735 (2024).

GOLD AND SILVER AS LEGAL TENDER (Section 408.010)

The act creates the "Constitutional Money Act" and declares that specie legal tender and electronic currency, as those terms are defined in the act, shall be accepted as payment for all public debts and may be received as payment for all private debts contracted for in the state of Missouri, in the discretion of the receiving entity.

The state of Missouri is required to accept specie legal tender and electronic currency as payment for any debt, tax, fee, or obligation owed. Costs incurred in the course of verification of the weight and purity of any specie during any such transaction shall be borne by the receiving entity.

Except as expressly provided by contract, no person or entity shall be required to use specie legal tender or electronic currency in the payment of any debt and nothing in this act shall prohibit the use of federal reserve notes in the payment of any debt.

Under no circumstance shall the state of Missouri or any department, agency, court, political subdivision, or instrumentality thereof:

• Seize from any person any specie legal tender or electronic currency that is owned by such person, except as otherwise provided by law. Any person whose specie legal tender or electronic currency is seized in violation of this provision shall have a cause of action in a court of competent jurisdiction, with any successful such action resulting in the award of attorney's fees;

• Enforce or attempt to enforce any federal acts, laws, executive orders, administrative orders, rules, regulations, statutes, or ordinances infringing on the right of a person to keep and use specie legal tender and electronic currency as provided in this act;

• Restrict in any way the ability of a person or financial institution to acquire specie legal tender and electronic currency or use specie legal tender and electronic currency in transactions; or

• Enact any law discriminating or favoring one means of legal tender in the course of a transaction over another means of legal tender.

These provisions are identical to provisions in the introduced SB 735 (2024) and substantially similar to the perfected SS/SCS/SB 100 (2023).

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.

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.

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 transaction documentation or materials found to be in violation of this act.

Violation of any provision of this act does not affect the enforceability or validity of the underlying agreement.

This act does not create a private cause of action against any person or entity based upon noncompliance with this act.

The Attorney General is given exclusive authority to enforce the provisions of this act.

This act contains various exemptions.

The registration and disclosure requirements of this act take effect either (1) 6 months after the Division of Finance finalizes promulgating rules, if the Division intends to promulgate rules; or (2) February 28, 2025, if the Division does not intend to promulgate rules.

This provision is identical to SB 753 (2024) and substantially similar to provisions in HCS/SCS/SB 187 (2023), SCS/HB 585 (2023), a provision in the perfected HCS/HB 809 (2023), HCS/HB 584 (2023), SCS/SB 963 (2022), a provision in SCS/HB 2571 (2022), and HB 2706 (2022).

REAL ESTATE TRANSACTIONS - WOMAN'S STATUS AS WIFE (Section 442.210)

A provision of law is repealed requiring description of a woman's status as "wife" when executing a certificate of acknowledgment form in the course of a real estate transaction with her husband.

This act contains a severability clause.

SCOTT SVAGERA