CCS#2 SCS HCS HB 959 -- BANKING

This bill changes the laws regarding financial services,
including college savings programs; deceptive use of a financial
institution's name; identity theft; restrictions on small loans;
procedures for releasing a deed of trust; use of variable rate
debt instruments by state bonding entities; and exemptions from
attachment and execution.

COLLEGE SAVINGS PROGRAMS

The College Tuition Savings Plan (also known as a "529 Plan") is
expanded by establishing an additional savings plan, to be known
as the Missouri Higher Education Deposit Program.  The deposit
program allows any bank in Missouri to establish savings accounts
as part of a 529 Plan.  State employees may request automatic
payroll deductions for deposit into these accounts.  Annual
contributions made to savings programs up to $8,000 will be
subtracted from the participant's gross income, and any income
earned by the investment will not be subject to state income tax.
The deposit program must be administered in the same fashion as
the current savings program.  These provisions will expire six
years from the effective date.

DECEPTIVE USE OF A FINANCIAL INSTITUTION'S NAME

A cause of action for the deceptive use of the name of another
financial institution is created.  A financial institution may
sue any person or entity that creates a misleading advertisement
or solicitation by including its name without consent.  A
plaintiff prevailing in this action will be entitled to $10,000
in statutory damages, plus any proven actual damages, attorney
fees, and court costs.

IDENTITY THEFT

The bill changes the laws regarding the crime of identity theft.
The bill:

(1)  Makes it a class A misdemeanor when the identity theft
results in the theft or appropriation of credit, money, goods,
services, or other property valued at less than $500.  Current
law sets a penalty of six months in jail for a first offense and
does not refer to the value of the stolen property;

(2)  Makes attempted identity theft a class B misdemeanor;

(3)  Makes identity theft a class D felony when the value of the
stolen property is more than $500 but does not exceed $1,000;

(4)  Makes identity theft a class C felony when the value of the
stolen property is more than $1,000 but does not exceed $10,000;

(5)  Makes identity theft a class B felony when the value of the
stolen property is more than $10,000 but does not exceed
$100,000;

(6)  Makes identity theft a class A felony when the value of the
stolen property exceeds $100,000;

(7)  Makes identity theft a class A felony when the identity
theft is performed for the purpose of committing a terrorist act;

(8)  Makes identity theft a class C felony when the identity
theft is performed for the purpose of committing an election
offense;

(9)  Makes the identity thief liable to the victim for civil
damages of up to $5,000 per incident or three times the amount of
actual damages, whichever is greater.  Venue in this type of
civil suit is proper in any county where any of the property
stolen was located, where the defendant or victim resides, or in
any county in which an element of a criminal charge of identity
theft was committed;

(10)  Allows the victim to seek a court order restraining the
identity thief from future acts that would constitute identity
theft.  In these actions, the court may award reasonable attorney
fees to the plaintiff;

(11)  Clarifies that the estate of a deceased person may pursue
civil remedies when the estate is a victim of identity theft;

(12)  Establishes a limitation on civil suits at five years and
clarifies that a criminal conviction is not a prerequisite for a
civil claim;

(13)  Clarifies that identity theft does not include a minor's
misrepresentation of age by using an adult person's
identification;

(14)  Clarifies that a criminal prosecution for identity theft
may be conducted in any county where a victim or defendant
resides, where the stolen property was located, or in any county
where an element of the crime was committed;

(15)  Makes a second offense of identity theft or attempted
identity theft a class D felony when the value of the property is
less than $500; and

(16)  Creates the crime of trafficking in stolen identities, a
class B felony, and is committed when a person possesses or
transfers any means of identification for the purpose of
committing identity theft.  Unauthorized possession of a means of
identification for five persons will be evidence of the intent.

DEEDS OF RELEASE

Several changes are made to the laws regarding a deed of release
on a mortgage.  Current law requires the lender to issue a
release to the borrower within 15 business days after a mortgage
has been paid off.  The bill lengthens this time frame to 45
calendar days and allows the lender to have the document
recorded, rather than sent to the borrower.  If the document
cannot be recorded for any reason, the lender will have an
additional 60 days to file a document that can be recorded.  The
bill limits the damages that may be awarded for noncompliance to
$300 per day or 10% of the amount of the loan, whichever is less.

SMALL LOANS

The bill changes the laws regarding small loans and increases
from $6 to $15 the maximum amount which may be charged as an
expediter fee.  The expediter fee is money collected by a third
party to expedite the retrieval of a debtor's motor vehicle title
from the Department of Revenue.  The bill repeals a provision
allowing a $10 charge as a late payment fee and allows lenders to
collect a fee in advance for allowing the debtor to defer monthly
loan payments of $600 or more.  The fee may be between $25 to
$50, but not more than 10% of the payments deferred.  This
provision does not apply to pre-computed loans.

STATE BONDING ENTITIES

The Board of Fund Commissioners and the State Board of Public
Buildings are authorized to issue and refinance existing
financial instruments, converting them into variable rate
issuances and other financial arrangements.  Up to 20% of the
state's outstanding debt may be variable rate debt.

ATTACHMENT AND EXECUTION EXEMPTIONS

The bill increases the exemption from attachment and execution
for certain belongings including household goods, from $1,000 to
$3,000; value of any other property of any kind from $400 to
$600; wedding rings up to $1,500; tools of a trade, from $2,000
to $3,000; motor vehicles in the aggregate, from $1,000 to
$3,000; mobile homes not attached to real estate in which the
debtor has a fee interest, from $1,000 to $5,000; alimony, from
$500 to $750 a month; and the exemption for being the head of a
household, from $850 plus $250 for each dependent to $1,250 plus
$350 for each dependent, including dependents who are determined
to be disabled.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am