A bill allowing the Department of Revenue to create and implement an electronic lien release system is one step further along in the legislative process. SB 954, sponsored by Senator Mike Cunningham (R-District 33) (pictured), was heard in the Senate Transportation and Infrastructure Committee on April 2. It would allow a lienholder – including credit unions – to electronically release a lien on a motor vehicle or trailer if the lienholder filed the lien electronically. David Kent, director of state legislative affairs for Missouri Credit Union Association, testified in support of the bill.
“We reached out to our member credit unions asking for their input and the feedback we received was overwhelmingly positive,” says Kent. “Credit union leaders want the ability to release a lien in an easy and convenient manner and this bill will definitely give them that capability.”
An identical bill in the House – HB 1999 sponsored by Rep. Tony Dugger (R-District 141) – was already voted out of the House Financial Institutions Committee and is waiting to be placed on the House calendar for debate. MCUA Advocacy also testified in support of this bill.
Financial Institutions Committee News
The House Financial Institutions Committee met briefly April 2 to vote out the so called "payday lending reform" bill. SB 694, sponsored by Senator Mike Cunningham (R-District 33), makes several changes to the laws regulating payday lenders. The most significant change is barring the “roll over” option on an existing loan. Instead, the borrower may enter into an extended payment plan allowing the loan to be paid off without accumulating additional interest.
On the other side of the Chamber, the Senate Financial Institutions Committee heard a number of bills when it met on March 31 - including a bill that clarifies lien priority on condominiums. SB 913 is sponsored by Committee Chairman, Senator Jay Wasson (R-District 20) (pictured) and protects a credit union’s lien priority over a condo association’s special assessment. However, the condo association will have limited lien priority only to the extent of the unpaid common assessments for the six months preceding the foreclosure sale. MCUA Advocacy was in attendance to support the bill.
The impetus for this bill was a 2013 ruling by the Missouri Supreme Court that a condo association’s special assessment held lien priority over the lender. In this particular case, the special assessment was nearly $80,000.
MCUA Hosts House Financial Institutions Committee Dinner
The Missouri Credit Union Association and credit union leaders met with members of the House Financial Institutions Committee on April 2. The dinner at Madison's Cafe provided an opportunity to meet with members of the committee one-on-one and discuss credit union issues. Leaders from credit unions in Kansas City, St. Louis, Springfield and central Missouri attended, providing perspective on issues credit unions are facing throughout the state.
"This is a busy time in the legislative year, and we appreciate that committee members gave us a chance to visit with them and talk about credit unions," says Amy McLard, senior vice president for advocacy for MCUA. "We had a great turnout, from both credit union representatives and the committee, and thank everyone who participated."
Bills You Want to Know About
Click here for an overview of the bills with potential impact to credit unions. MCUA provides this information each week, and it is updated regularly as more bills are introduced and tracked.
Financial “Tip of the Week” – Financial Spring Cleaning Tips
During the 2014 legislative session, MCUA provides lawmakers with a financial “Tip of the Week” to share with constituents. This week MCUA provided financial spring cleaning tips. Credit unions are welcome to share these tips with members. Read the full tip here.
If you have any specific examples to share with legislators on this topic, please contact Amy McLard or David Kent and we will be happy to help you get that information in to the hands of the right lawmakers. MCUA Advocacy also welcomes suggestions for timely financial education/news topics with a consumer focus to share with lawmakers.
April Events Calendar