SCS/SB 430 - This act creates new provisions relating to family trust companies. A family trust company is a corporation or limited liability company owned and exclusively controlled by, directly or indirectly, one or more family members. The company must operate exclusively for the benefit of a family member, as that term is defined in the act. Under this act, a family trust company is not permitted to conduct business in Missouri without first registering with the Secretary of State, maintaining a capital account of not less than $250,000, and paying a origination fee of $5,000. Furthermore, the company shall also maintain a physical office in Missouri, a registered agent who maintains an office in Missouri, and a deposit account with a state-chartered or national financial institution that has a principal or branch office in Missouri. A family trust company is also thereafter required to file annual registration reports with the Secretary of State reaffirming the company's compliance with the this act. These reports must be signed under penalty of perjury. Failure to file such report may be subject to a fine of up to $100 for each day the report is overdue. Failure to file the report within 60 days will result in termination of the company's registration as a family trust company.
The act establishes the Family Trust Company Fund for the purpose of enabling the Secretary of State to perform its required functions under this act.
A family trust company may not engage in commercial banking or advertise its services to the public.
The Secretary of State, or a designee of the Secretary, is permitted to examine or investigate a family trust company at any time deemed necessary to determine if the company violated certain provisions of this act. The Secretary may additionally examine the books and records of the company as necessary to determine if the company is complying with this act. The company is responsible for paying the costs of such examinations.
The Secretary of State may issue and serve upon the family trust company or a family trust company affiliated party a notice of charges when the Secretary has reason to believe that the company, party, or any individual named in the charge is engaging or has engaged in certain actions which are contrary to the provisions of this act. Such notices issued by the Secretary shall contain a statement of the facts as well as an opportunity for a hearing. If the Secretary finds that the conduct engaged in is likely to cause substantial prejudice to the trust accounts of the company, the Secretary may issue a cease and desist order.
The CEO of a family trust company is required to notify the Secretary of State if he or she has actual knowledge that a affiliated party of the company is charged with a felony in a state or federal court. Additionally, if such a party is charged with a felony in a state or federal court, or certain crimes in foreign countries with which the United State maintains diplomatic relations, then the Secretary may enter an emergency order suspending the party.
The books and records of each family trust company are confidential and available for inspection and examination only by certain entities, including the Secretary of State. The willful unlawful disclosure of confidential information in violation of this provision is a Class E felony.
Additionally, the act outlines certain types of information held by the Secretary of State which shall remain confidential and not subject to the Sunshine law. This information may be disclosed by the Secretary under certain circumstances, but generally the willful disclosure of such information is a class E felony.
Any person aggrieved by any order made by the Secretary of State under this act is entitled to a hearing before the Secretary.
This act is identical to provisions in the truly agreed to SS/SCS/HCS/HB 292 (2017) and substantially similar to HCS/HB 291 (2017).
SCOTT SVAGERA