Bill to modernize Missouri banking code advances with bankers’ backing at hearing

Representative Clemens presented House Bill 754 to a Missouri House committee as a package of technical and deregulatory updates to the state banking code intended to provide regulatory relief for nearly 200 state-chartered banks. "This change gives the division of finance more discretion to determine whether a bank is allowed to use video technology to conduct board meetings," Clemens said while walking the committee through section-by-section revisions.

Clemens said the bill would allow a bank’s articles of agreement to include a board authorization to issue additional shares of stock without amending and restating the articles every time new shares are issued; that amendment is intended to lower legal expenses and delay. The proposal would also remove an antiquated requirement that a bank publish its call report in a local newspaper if the report is otherwise made available; Clemens said customers would still be able to request and obtain a copy. The bill would repeal a statutory provision that required banks to provide lengthy lists of loans or accounts held by employees, officers, or directors and would instead rely on Federal Reserve Regulation O for insider lending limits and reporting.

Clemens also told the committee that a conflicting state provision on abandoned or inactive accounts (citations discussed in testimony as section 447.2 and 447.507) creates confusion; HB 754 would harmonize state practice with federal regulations and remove duplicative or contradictory language.

David Kent, a registered lobbyist for the Missouri Bankers Association, testified in support and described the bill as routine modernization of the banking code. "This is something that we do maybe every couple of years, where we get calls from banks and have questions about particular sections of statute that maybe are antiquated," Kent told the committee.

Committee members asked several implementation questions. Representative Castile inquired whether newly issued shares would be limited to accredited investors; Clemens replied that whether a bank offers shares broadly depends on whether it is publicly traded or privately held. Representative Murray asked about compliance costs for smaller community banks; Kent said compliance costs have risen substantially and noted that many institutions hire additional compliance staff or third-party auditors to meet federal and state requirements.

No witnesses testified in opposition. The hearing record contains no committee vote; the bill received industry support and detailed section-by-section presentation from the sponsor and bankers' association representatives.