HCS/SCS/SB 386 - This act makes the following changes relating to financial institutions:

Section 95.530 - Requires any financial institution acting as a depository or custodian of public funds of various entities which handles collection, management, investment or disbursement of governmental funds for the City of St. Louis to report annually to the city's Fund Committee;

Section 143.471 - Specifies the formula to be used to calculate the pro rata share of the tax credit for bank tax paid by S Corporation shareholders of bank and bank holding companies. A shareholder may carry forward the tax credit for up to five years.

Section 164.161 - Removes the current limit on disposing of urban school district bonds at no less than ninety-five percent of par value.

Section 362.077 - Requires any state bank, trust company or national bank which is in existence in another state but is relocated to Missouri to calculate the age of its bank charter as of the date the charter is moved to Missouri. That charter must be at least five years old before the bank or trust company is permitted to engage in an interstate acquisition or merger if the result is the merger or relocation to another state with Missouri branches remaining. This section is identical to SB 456.

Section 362.247 - Allows bank or trust company directors who are not physically present at a meeting to be counted towards a quorum under the following conditions:

(1) The bank or trust company has a composite rating of 1 or 2 under the Capital, Assets, Management, Earnings, Liquidity and Sensitivity Rating System;

(2) The board meeting is not attended by representatives of the bank or trust company state or federal bank regulator; and

(3) Any director not physically present has to have signed an affidavit that the director received formal notice of the meeting and meeting information and that he or she was alone during the participation in the meeting.

Failure to follow these procedures can result in enforcement action by the Division of Finance.

Section 362.275 - Current law requires every regular meeting of boards of directors for bank and trust companies to have lists of loans and related information submitted. This act allows debtors' information to be redacted or masked by code for directors not physically present at the meeting. A board of directors is authorized to ratify a poll taken by senior officers of the company on any issue in need of immediate action and ultimate board approval under certain conditions.

Section 362.550 - Permits trusts or other fiduciary instruments to specify, by reference to this section, that the trustee or other fiduciary does not have the authority to invest in mutual funds.

Section 362.610 - Makes a technical change to reflect the fact that federal law now permits out-of-state banks to merge with a national bank headquartered in Missouri.

Section 362.925 - Deletes statute authorizing state bank holding companies to acquire control of Missouri banks or bank holding companies if reciprocal conditions are met in the adjoining state. Section 362.930 removes the reference to the deleted section.

Section 365.020 - Includes within definition of "principal balance" for purposes of the Missouri Motor Vehicle Time Sales Law any amounts paid or to be paid under an agreement to discharge a security interest, lien or lease interest on property traded in. Bailment contracts are removed from the definition of "retail installment contract".

Section 365.200 - Allows, for any motor vehicle not subject to the Motor Vehicle Time Sales Law, a seller to include in the contractual time sale the outstanding balance of a prior loan or lease of a motor vehicle used as a trade in. A seller must first qualify as a retail seller under the time sales law.

Section 370.107 - Removes the existing fee schedule for credit unions which support the Division of Credit Unions and requires the Director of the Division to determine the fee, up a maximum specified amount.

Sections 374.070-374.205 - Maintains confidentiality of work papers of the Director of the Department of Insurance which relate to finalized cases or matters and clarifies that an out- of-state examination report of a foreign or alien insurer will be accepted after January 1, 1994, only if the report meets certain accreditation standards.

Section 375.1205-379.888 - makes several changes to the administration of insurance receiverships. It requires a liquidator to make early access disbursements to a guaranty association and establishes standards for these disbursements. It also prohibits a receiver from requiring payment from a reinsurer based on estimated incurred but not reported losses. This portion of the act expires on December 31, 2000.

This act excludes companies that provide commercial property and casualty insurance from the requirements to submit certain information for review by the Department of Insurance. Commercial property and commercial casualty insurance policies which meet requirements (see below) shall not be required to submit policy forms and rating plans for review by the Department of Insurance. To be exempt from the regulations regarding policy forms and rating, the policyholder must either use the services of an independent insurance advisor, or its commercial operations must meet any two of the following six criteria: (1) 100 or more employees; (2) Net worth of over $25 million; (3) Net revenues or sales of over $50 million; (4) Paid aggregate annual insurance premiums of over $50,000, excluding workers' compensation and employer's liability insurance; (5) Is a not-for-profit or public entity with an annual budget or assets of at least $25 million; or (6) Is a municipality with a population over 50,000 inhabitants.

The Department of Insurance still retains authority to make certain that the rates for commercial property or commercial casualty policies insurance rates are not excessive, inadequate, or unfairly discriminatory. These sections are similar to SCS/HCS/HB 599.

Section 408.620 - Requires mortgage servicers to pay property tax obligations from escrow accounts in one annual payment before January 1 of the year following the year the tax is levied.

Section 427.200 - Allows any person to hold personal property for lease. A lease must be in writing and may be either the functional equivalent of a loan or a true lease. The act allows motor vehicle leases to include the outstanding balance of a prior loan or lease of a motor vehicle used as a trade in. Lease payments shall be considered in the nature of rent rather than interest, and Chapter 408, RSMo, provisions do not apply. This provision is similar to SB 248.

Section 456.040 - Current law requires deposits by personal property lessees to be returned to the lessee or applied in accordance with the agreement at the end of the lease term. This act exempts from this requirement leases entered into by lessors who are also financial institutions in commercial lease transactions of at least $25,000.

Section 456.520 - Allows trustees to borrow money from any person, including themselves, which will be repaid from or secured by trust assets. Trustees are permitted to employ or contract with certain persons if they are associated or affiliated with the trustee.

Section 475.092 - Allows a court or other grantor to establish an inter vivos trust for the benefit of a minor or disabled person if, upon the person's death, the State of Missouri is reimbursed for Medicaid expenses and any creditors are paid amounts due for the person's care, maintenance and support. Trustees of any trusts created prior to the effective date of the act are not liable if the trust has insufficient property to reimburse the State of Missouri or the creditors.

Section 475.093 - Authorizes the establishment of a trust for the benefit of a protectee under the Missouri Family Trust Fund provisions and for a minor and disabled person.

Section 483.310 - Allows a circuit court to have funds collected by the court clerk, other than court costs, deposited in savings deposits of credit unions. The funds may only be placed in investments permitted by the State Treasurer under constitutional provision. Deposits in excess of federal deposit insurance limits must be secured by government securities or in accordance with the State Treasurer's requirements.

Section 511.030 - Allows court judgments to include affirmative or other relief for plaintiffs as well as for defendants. If a minor or disabled person is entitled to judgment, the court is authorized to direct or ratify any transaction for the person's physical or financial needs.

Section 620.010 - Removes the current requirement that credit union fees be sufficient to cover examination and administration expenses as well as support services. This provision, as modified, is transferred to Section 370.107.

Section 1 - Allows Subchapter S corporation shareholders of a bank or bank holding company to take as a tax credit a pro rata share of either the bank franchise tax or tax in lieu of the franchise tax.

Section 2 - Prohibits any person from knowingly making or causing to be made a false statement or obtaining unauthorized person identifying information of another person to procure or use a credit card or debit card. Violation of the provisions is a Class A misdemeanor.

Section 3 - Requires the State Lottery Commission, prior to implementing a plan to permit lottery prize winners currently receiving annuity payments to elect a lump sum cash payment, to submit the plan to state officials. Before being implemented the plan must be approved by the General Assembly by concurrent resolution and signed by the Governor.

The act has an emergency clause for certain sections.

This act is similar to SCS/HS/HB 822.
RUSS HEMBREE