SB 769 Modifies provisions relating to financial transactions by public entities
Sponsor: Cunningham
LR Number: 5199H.09T Fiscal Notes
Committee: Insurance and Banking
Last Action: 7/5/2018 - Signed by Governor Journal Page: S2511
Title: HCS SCS SB 769 Calendar Position:
Effective Date: August 28, 2018
House Handler: Fraker

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Current Bill Summary


HCS/SCS/SB 769 - This act modifies several provisions relating to financial transactions.

SECURITY-COLLATERAL LIST (Sections 30.270 and 95.530)

Under current law, the State Treasurer and the Treasurer of the City of St. Louis are limited in the types of securities they may require as collateral from banks or financial institutions selected and approved for the safekeeping and payment of deposits. This act adds brokered or negotiable certificates of deposit that are fully insured by the FDIC or the National Credit Union Share Insurance Fund to the collateral list.

INVESTMENT OF PUBLIC FUNDS (Section 67.085)

Under current law, any public entity or political subdivision may invest public deposits if, among other things, on the same date that the public funds are deposited the financial institution also receives an amount of deposits from other financial institutions equal to the amount of the public funds deposited. This act repeals this requirement.

DEPOSITARIES FOR PUBLIC FUNDS (Section 110.010)

Current law provides restrictions on the security of the public funds of specific political subdivisions. This act stipulates that the requirements apply to all political subdivisions of the state. Furthermore, the act also allows banks serving as a depositary for public funds to invest in the same manner as the State Treasurer is constitutionally permitted.

CERTIFIED CHECK REQUIREMENTS (Sections 110.080, 110.140, 165.221, 165.231, and 165.271)

Current law requires certain bids made by banks, associations, or trust companies to be accompanied by a certified check. This act repeals those requirements.

CORPORATE TAX FILINGS (Section 143.433)

The act provides that any entity not subject to certain corporate taxes shall not be required to complete or file any document or return related to corporate income taxes.

FINANCIAL INSTITUTION TAX REDUCTIONS (Section 148.720)

The act provides that in each year in which there is a reduction in the rate of taxes applied to corporations, there shall be a corresponding and proportional reduction in the rate of taxes applicable to banks, credit institutions, and credit unions and savings and loan associations.

This provision is substantially similar to a provision in HCS/SS#2/SB 674 (2018).

DORMANT BANK ACCOUNTS (Section 447.200)

Under this act, whenever an consumer deposit account with a banking organization or financial organization has been inactive for 12 months or more and inactivity fees apply to the account, the organization is required to notify the account holder of such inactivity through first class mail postage prepaid marked "Address Correction Requested" or through electronic notice if the consumer has agreed to receive such notices under the federal Truth in Savings Act. Additionally, the bank is required to send annual statements for such account and charge a fee up to $5 per statement. Such fee shall be withdrawn from the inactive account.

The act also stipulates that the funds of any bank account which has been inactive for a period of five years shall be remitted to the Abandoned Fund Account administered by the State Treasurer.

Several provisions in this act are identical or substantially similar to the truly agreed to CCS/SS/SCS/HCS/HB 1879 (2018).

SCOTT SVAGERA