A priority measure for the Missouri Bankers Association for the 2018 state legislative session was passed by lawmakers during during a rare Friday session May 11. 

House Bill 1879, the public funds task force measure, was approved 28-3 by the Missouri Senate on May 11. The bill cleared the Missouri House of Representatives by a 140-3 vote May 10.

The legislation was introduced in the House on Jan. 3, the first day of the session. Its sponsor, Rep. Lyndall Fraker, R-Marshfield, chairs the House Financial Institutions Committee. Sen. Mike Cunningham, R-Marshfield, handled the bill in the Senate.

House Bill 1879 improves and lowers administrative costs for banks serving or bidding to serve as public depositaries. The measure makes changes to Missouri’s public funds statutes to:

  • improve efficiencies and lower administrative costs for banks serving or bidding to serve as public depositaries
  • attract banks to serve political subdivisions
  • benefit political subdivisions with more attractive interest rates and/or lower fees on public deposits

The legislation is based on recommendations put forward by the MBA’s Public Funds Task Force. The Task Force was created to review Missouri’s public fund statutes and identify changes to benefit both banks and public entities.

“We appreciate our members contacting their representatives and senators about this bill,” said Craig Overfelt, MBA senior vice president. “Your support played a significant role in the bill’s passage.”

As The Missouri Banker went to press, lawmakers were still meeting for the session’s final days. The session ends at 6 p.m. Friday, May 18. House and Senate leaders have until the end of May to send passed legislation to the governor. The deadline for the governor to sign or veto bills is July 14. MBA will provide legislative updates in the Missouri Banker Update e-newsletter.