- Introduced -
SB 1038 - This act modifies a number of laws associated with banking.
State employees are authorized to make investment deposits from their paycheck into their bank or savings and loan. (Sections 33.103, 362.191 and 369.176).
This act creates the "Missouri Higher Education Deposit Program" (Sections 166.435 to 166.556). This program is a nonexclusive alternative to the Missouri Higher Education Savings Program and participants may elect to participate in both programs subject to aggregate program limitations. The program is administered by the Missouri Higher Education Deposit Program Board which shall consist of the Director of the Division of Finance, who shall serve as chair, the Commissioner of the Department of Higher Education, the Commissioner of the Office of Administration and private citizen representatives with experience in the areas of deposit rate determination and placement of certificates of deposit. Private citizen members shall serve four year terms. Members of the Board shall be subject to conflict of interest provisions for public employees. The Board is required to meet at least quarterly.
The Board is granted certain powers to develop and implement the program, including the power to enter into agreements with financial entities for the operation of the deposit program, provided that such entity is a private for-profit or not-for-profit entity, and the power to enter into participation agreements with participants in the program. The Board may invest the funds received from participants in appropriate investment instruments held by depository institutions or directly deposit the funds in such institutions. The investment of funds may be delegated by the Board to representatives of financial entities, but the investment must be in certificates of deposit and other deposits in federally insured depository institutions. Such representatives must pass a board-approved qualification test and be certified by the Board.
The Board is responsible for establishing various deposit opportunities based on amounts deposited and time held that are uniformly available to all depository institutions that participate in the program. The various categories of fixed or variable rates shall be the only interest rates available under this program.
The Board is authorized to enter into agreements with participants on behalf of beneficiaries. The agreement must include certain terms and conditions, including the method for calculating the return on the contribution, the risks associated with the investment, the maximum amount that may be contributed annually, and an understanding that the agreement does not guarantee admittance to any eligible educational institution. The Board shall establish the maximum annual amount that may be contributed by a participant and the minimum length of time that contributions and earnings must be held by the program. Early withdrawals shall be subject to a penalty.
Contributions and earnings in the program may be used for qualified educational expenses. Participants may cancel a participation agreement at will. The Board shall impose a maximum 10% penalty of the earnings of the account for any distribution not used for certain purposes. The State Auditor shall, semi-annually, review the financial status and investment policy of the program as well as the participation rate and continued viability of the program. Money accruing to and deposited in individual deposit accounts shall not be part of "total state revenues" as defined by the Missouri Constitution. Personally identifiable information regarding participants and beneficiaries shall be confidential.
The act authorizes state chartered banks to purchase a non-controlling interest in any business, provided national banks have the same power. State chartered banks are prohibited from purchasing an interest in a real estate brokerage business (Section 362.105). The recording fee for the expedited filing of title or liens is increased from $6 to $15 (Section 408.032). Currently, contracts may provide for a charge for late payment on installments in an amount not to exceed the greater of 5% of each installment due or $15, except that a minimum charge of $10 may be made. The act deletes language concerning the minimum charge of $10 (Section 408.140).
On loans of more than $600, the lender may collect a fee in advance for allowing a debtor to defer monthly loan payments, provided the debtor agrees in writing and the fee is no more than the lesser of $50 or 10% of the loan payments deferred (Section 408.178). The charging of certain fees shall be considered permitted, even if the loans are exempt from other requirements (Sections 408.190 and 408.232). Changes made in this act to sections concerning allowable fees are remedial in nature (Section 408.480).
The act creates definitions for the deceptive use of a financial institution's name in notification or solicitation and deceptive use of another's name in notification or solicitation. A financial institution whose name is deceptively used may bring a private civil action and may recover a minimum of $10,000, plus court costs and attorneys fees, plus any damages such financial institution proves at trial (Section 427.225). Debtors are prohibited from maintaining an action or defense related to a credit agreement, regardless of the legal theory advanced (Section 432.045). The act provides that secured parties receiving satisfaction for debt secured with regard to a mortgage who fail to submit a sufficient deed of release for recording with 45 days shall be liable to the aggrieved party for an amount not to exceed $300 a day. The amount shall not exceed $10,000 in the aggregate, but such aggregate shall be limited to 10% of the amount of the security instrument. If a document is rejected for recording, the secured party shall 60 days to resubmit the document (Section 443.130).
The act modifies the crime of identity theft. The act defines what "means of identification" fall within the parameters of the crime. The punishment for the crime is graduated depending on the dollar amount of the stolen property, ranging from a Class A misdemeanor to a Class A felony. The act authorizes the filing of a civil action to recover damages of up to $5,000 per incident or three times the amount of actual damages, whichever is greater. Such action may also seek injunctive relief. Such civil action may be commenced regardless of whether a criminal prosecution ever occurs. The act sets out exemptions to the provisions of this section. Any person who subsequently is criminally convicted of this crime after a first offense shall be guilty of a Class D felony (Section 570.223). The act creates the crime of trafficking in stolen identities. Possession of five or more identification documents of the same person, or possession of identifying information of five or more separate persons shall be evidence that the identities are possessed with the intent to manufacture, sell, transfer or purchase identification documents for the purpose of committing identity theft. The crime of trafficking in stolen identities is a Class B felony.
JIM ERTLE