HCS/SB 736 - This act modifies provisions relating to financial transactions.STATE TREASURER - CUSTODY OF GOLD AND SILVER (SECTION 30.266)
The act permits the State Treasurer to keep an amount of specie, as that term is defined in the act, in the custody of the state treasury less than or equal to 1% of total state investment holdings. This provision is effective January 1, 2025.
This provision is identical to a provision in HCS/SS/SCS/SB 835 (2024) and HCS/HBs 1955 & 2257 (2024) and similar to a provision in HB 1867 (2024).
TASK FORCE ON GOLD AND SILVER (SECTION 30.267)
The act creates the "Task Force on Gold and Silver," beginning July 1, 2025. The task force shall examine the practicality of issuing gold and silver coinage as specie in a manner consistent with the United States Constitution and examine the possibility of the state accepting gold and silver in payment of obligations to the state. This provision expires July 1, 2027.
This provision is identical to a provision in HCS/SS/SCS/SB 835 (2024) and HCS/HBs 1955 & 2257 (2024) and similar SCS/SB 1028 (2024).
LINKED DEPOSITS (SECTION 30.753)
Under current law, the state treasurer is permitted 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 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).
CENTRAL BANK DIGITAL CURRENCY (Section 34.700 AND SECTIONS 400.1-201 - 407.1043)
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 HCS/SB 736 (2024), SB 826 (2024), SB 866 (2024), and the perfected HCS/HB 2780 (2024).
The act also modifies the definition of "money" for purposes of the Uniform Commercial Code to exclude central bank digital currency from its meaning.
This provision is identical to provisions in HCS/SS/SCS/SB 835 (2024) and SB 826 (2024) and substantially similar to provisions in HB 2780 (2024).
PACE Act (Sections 67.2800 - 67.2840)
The act modifies certain provisions of the "Property Assessment Clean Energy Act".
Certain provisions of the act shall not apply to any assessment contract, project, or PACE program entered into, or established for any residential property.
A clean energy development board shall have the power to accept certain things of value, including the acquisition of loans or assessment contracts from other states or their municipalities and political subdivisions for the purpose or financing any project.
Certain terms of an assessment contract and any bond issued by a clean energy development board shall not exceed a period of thirty years, instead of twenty years.
Certain provisions of the act shall only apply to the residential PACE programs of clean energy development boards and participating municipalities from, instead of after, January 1, 2022, to August 28, 2024. As of August 28, 2024, all residential properties shall be exempt from certain provisions of the act and no assessment contract, project, or PACE program shall be entered into, undertaken, or established for any residential property.
Certain provisions of the act shall be effective and apply only to residential PACE assessment contracts entered into before August 28, 2024.
These provisions are identical to provisions in HCS/SS/SCS/SB 835 (2024) and HCS/HB 2756 (2024).
BONDS (Sections 108.170)
The act specifies that bonds, notes, or other forms of indebtedness may be issued in book-entry form, rather than bearer form, and bear interest at the current rate of 10% or at a rate up to 250 basis points above the longest maturity United States Treasury bond, whichever is greater. Such bonds may be sold at a competitive market yield not less than 50% rather than the current 95% of the par value. Such bonds may bear interest at 14% or at a rate up to 250 basis points above the longest maturity United States Treasury bond, whichever is greater, if sold at the lowest true interest cost bid received. Similar requirements are specified for industrial development revenue bonds, bonds issued by any housing authority, and revenue bonds issued for airport purposes. Provisions are repealed providing for a political subdivision to have an unenhanced bond rating of AA+ or higher or comparable rating, and replaces it with a bond rating that is one of the two highest long-term ratings or the highest short-term rating issued by a nationally recognized rating agency on its outstanding general obligation. The principal amount of general obligation bonds, currently $12.5 million, is increased to $20 million.
This provision is identical to provisions in HCS/SS/SCS/SB 835 (2024), the perfected HCS/HB 1726 (2024), a provision in HCS/HB 1725 (2024), and provisions in HCS/HB 2087 (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 provisions in HCS/SS/SCS/SB 835 (2024), SCS/SB 735 (2024), HB 1867 (2024), and HCS/HBs 1955 & 2257 (2024).
MONEY TRANSMISSION MODERNIZATION ACT
(Sections 361.900 to 361.1035)
This act repeals the Sale of Checks Law and creates in its stead the "Money Transmission Modernization Act of 2024". The act regulates money transmission, defined as any of the following:
· Selling or issuing payment instruments to a person located in Missouri;
· Selling or issuing stored value to a person located in Missouri;
· Receiving money for transmission from a person located in Missouri; or
· Payroll processing services.
Money transmission does not include the provision solely of online or telecommunications services or network access.
The Director of the Division of Finance within the Department of Commerce and Insurance is responsible for administering this act.
LICENSURE OF MONEY TRANSMITTERS
The act prohibits any person from engaging in the business of money transmission or advertising, soliciting, or holding itself out as providing money transmission unless the person has been licensed pursuant to this act. Licenses last for no more than one calendar year and are not transferable or assignable. Applications must be on forms required by the Director and shall be accompanied by an application fee, as determined by the Director.
Additionally, certain individuals in control of a licensee, seeking to control a licensee, and any key individual, as that term is defined in the act, are required to furnish background materials to the Director, including fingerprints, criminal background checks, and employment history, among other things listed in the act.
The Director is permitted to implement the licensure process in such a way as to make it consistent with other states and nationwide protocols, to the extent consistent with this act. The Director is additionally permitted to collaborate with the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors (NMLS) as provided in the act.
CONFIDENTIALITY OF INFORMATION
The act provides that all information provided to the Director is considered confidential except basic identifying information of the licensee as detailed in the act. Exceptions are included with respect to disclosures to certain government agencies.
ACQUISITION OF CONTROL
Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the Director prior to acquiring control. An application must be submitted in a form prescribed by the Director along with a fee, as determined by the Director.
REPORTING AND RECORDS
Each licensee is required to submit to the Director the following reports:
· A report of condition each calendar quarter;
· An audited financial statement prepared by an independent certified public accountant at the end of the fiscal year; and
· A report of authorized delegates at the end of each calendar quarter.
A licensee shall file a report with the Director within one business day if the licensee has reason to know of:
· The filing of a petition by or against the licensee under the federal United States Bankruptcy Code;
· The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; or
· The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed.
A licensee shall file a report with the Director within three business days if the licensee has reason to know of:
· A conviction of the licensee or of a key individual or person in control of the licensee for a felony; or
· A conviction of an authorized delegate for a felony.
A licensee shall maintain the following records, for determining its compliance with this act for at least three years:
· A record of each outstanding money transmission obligation sold;
· A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;
· Bank statements and bank reconciliation records;
· Records of outstanding money transmission obligations;
· Records of each outstanding money transmission obligation paid within the three-year period;
· A list of the last known names and addresses of all of the licensee's authorized delegates; and
· Any other records the director reasonably requires by rule.
PRUDENTIAL STANDARDS
Licensees are required to maintain at all times a tangible net worth more than $100,000, or 3% of total assets for the first $100,000,000, 2% of additional assets between $100,000,000 and $1 billion, and 0.5% of additional assets over $1 billion. Additionally, licensees shall maintain security consisting of a surety bond in an amount based on the licensee's average daily money transmission liability and tangible net worth.
The act establishes requirements for permissible investments of a licensee.
ADMINISTRATIVE, CRIMINAL, AND CIVIL ENFORCEMENT MECHANISMS
The act allows the Director to suspend or revoke licenses and designations of authorized delegates under circumstances and using procedures as described in the act. The Director is also permitted to issue cease and desist orders and enter into consent decrees for the resolution of matters arising under this act.
The act creates the following criminal penalties associated with money transmission:
· A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained pursuant to this act or that intentionally makes a false entry or omits a material entry in such a record is guilty of a class E felony;
· A person that knowingly engages in an activity for which a license is required pursuant to this act without being licensed and who receives more than $500 in compensation within a 30-day period from this activity is guilty of a class E felony;
· A person that knowingly engages in an activity for which a license is required pursuant to this act without being licensed and who receives no more than $500 in compensation within a 30-day period from this activity is guilty of a Class A misdemeanor.
The Director is also permitted to assess civil penalties not to exceed $1,000 per day for each violation of this act.
These provisions are identical to provisions in HCS/SS/SCS/SB 835 (2024), HCS/SS/SB 1359 (2024), and HCS/HB 2087 (2024) and substantially similar to SB 737 (2024), HB 2780 (2024), SB 633 (2023), and HB 1340 (2023).
MISSOURI FAMILY TRUST COMPANY ACT (SECTIONS 362.1010-362.1117)
Currently, a family trust company is not permitted to conduct business in Missouri without first registering with the Secretary of State. This act provides that a family trust company shall instead file, with the Director of the Division of Finance, the initial registration and original filing fee along with the relevant proposed business filings and fees required by the Secretary. The family trust company shall not conduct business until it has received an order approving the application from the Director, who shall file with the Secretary the order, the proposed business filings, and required filing fees. Any family trust company that was in good standing with the Secretary as of August 28, 2024, shall be deemed to have complied with the requirements of this act. Furthermore, the Director shall enforce the provisions of this act and carry out the duties and functions originally assigned to the Secretary.
These provisions are identical to provisions in HCS/SS/SCS/SB 835 (2024) and HB 2798 (2024) and substantially similar to SB 1482 (2024).
METHODS OF REIMBURSEMENT TO HEALTH CARE PROVIDERS (Section 376.1345)
Currently, if a health carrier initiates or changes the method used to reimburse a health care provider to a method that requires the provider to pay a fee or remit some other form of remuneration, the carrier must notify the provider of the cost, provide clear instructions as to how to select an alternative payment method, and use that alternative method if requested by the provider. This act requires the health carrier or entity acting on its behalf to first receive approval from the health care provider before reimbursing the health care provider with such payment method. If a health carrier is currently reimbursing a health care provider with a payment method, the health care provider can send one notice to the health carrier for all the health care provider's patients covered by such health carrier stating that the health care provider declines to be reimbursed with a payment method. The notice will remain in effect for the duration of the contract unless the health care provider requests otherwise. All payments made by the health carrier to the health care provider after receipt of the notice declining to be reimbursed with a payment method cannot require the health care provider to pay a fee, discount the amount of the provider's claim for reimbursement, or remit any other form of remuneration in order to redeem the amount of the provider's claim for reimbursement.
This provision is identical to provisions in HCS/SS/SCS/SB 835 (2024) and HCS/HB 2087 (2024).
SELF-SERVICE STORAGE PROVIDERS (SECTION 379.1640)
This act increases, from $5,000 to $15,000, the maximum insurance coverage that may be offered by limited lines self-service storage insurance producers and their associates.
This provision is identical to SB 927 (2024) and provisions in HB 2780 (2024), the perfected HB 2440 (2024), HCS/SS/SB 1359 (2024), and HCS/SS/SCS/SB 835 (2024).
CONSTITUTIONAL MONEY ACT (Section 408.010)
The act creates the "Constitutional Money Act." Under these provisions, the state of Missouri and all departments, agencies, courts, political subdivisions, and instrumentalities thereof are prohibited from:
• Seizing from any person any specie legal tender that is owned by such person, except as otherwise provided by law. Any person whose specie legal tender is seized in violation of this provision shall have a cause of action in a court of competent jurisdiction, with any successful action resulting in the award of attorney's fees;
• Enforcing or attempting 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 as provided in this act;
• Restricting in any way the ability of a person to acquire specie legal tender or use specie legal tender in transactions; or
• Enacting any law discriminating or favoring one means of legal tender in the course of a transaction over another means of legal tender.
Any gain or loss recognized from the sale or exchange of gold or silver shall be treated in accordance with the provisions of the Internal Revenue Code of 1986, as amended, or any successor statute on any purchase after January 1, 2026, and held less than one year. The state shall not impose any additional tax, fee, or penalty on transactions involving the use of gold or silver as legal tender, beyond those applicable to transactions conducted using fiat currency.
These provisions are identical to certain provisions in HCS/SS/SCS/SB 736 (2024) and HCS/HBs 1955 & 2257 (2024) and similar to provisions in HB 1867 (2024) and the perfected SS/SCS/SB 735 (2024).
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.
This provision is identical to a provision in HCS/SS/SCS/SB 835 (2024), HCS/HB 2086 (2024), HCS/HB 2087 (2024), and HCS/SS/SB 1359 (2024).
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.
This provision is identical to a provision in HCS/SS/SCS/SB 835 (2024), HCS/HB 2086 (2024), HCS/HB 2087 (2024), and HCS/SS/SB 1359 (2024).
SALE OF STORED PROPERTY (SECTION 415.415)
The act modifies the requirements of notice for sale by an operator of a self-service storage facility for the sale of personal property of an occupant in default by permitting the operator to advertise in the classified section of a newspaper prior to sale or advertise in any other commercially reasonable manner. An advertisement is commercially reasonable if at least three independent bidders attend the sale.
This provision is identical to provisions in HCS/SS/SCS/SB 835 (2024), HCS/HBs 1948, 2066, 1721, & 2276 (2024), and HB 2780 (2024) and substantially similar to SB 938 (2024).
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 a provision in HCS/SS/SCS/SB 835 (2024) and SB 753 (2024) and substantially similar to provisions in HCS/SS/SB 1359 (2024), HB 2063 (2024), HCS/HB 2087 (2024), HB 2780 (2024), 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 provision is identical to provisions in HCS/SS/SCS/SB 835 (2024), HCS/HB 2086 (2024), and HCS/HB 2087 (2024).
SCOTT SVAGERA