SCS SB 951 -- EMERGENCY RESPONSE WITHIN FINANCIAL INSTITUTIONS

SPONSOR:  Scott (Spreng)

COMMITTEE ACTION:  Voted "do pass by consent" by the Special
Committee on Financial Institutions by a vote of 10 to 0.

This substitute allows the Governor, during a state of emergency,
to authorize the Director of the Division of Finance and the
Director of the Division of Credit Unions within the Department
of Insurance, Financial Institutions, and Professional
Registration to suspend laws and rules applicable to the
divisions that are reasonable and necessary to preserve the
safety and soundness of financial institutions, facilitate
disaster response and recovery efforts to serve essential civil
needs and protect the public interest, and coordinate emergency
response with financial institutions and emergency responders.
The division directors must file written waivers, suspensions,
actions, and directives in the director's office.

Currently, banks and trust companies may operate under emergency
bylaws in certain circumstances.  The substitute allows banks and
trust companies to do the same when the General Assembly or
Governor declares a state of emergency.  The board of directors
or the president of the bank or trust company must notify the
Director of the Division of Finance of the implementation of
emergency bylaws and the status of its emergency response
operations.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the bill allows the Division of
Finance and the Division of Credit Unions to be included in
emergency declaration orders so these agencies can move promptly
to respond and authorizes banks and credit unions to respond and
restore financial services following an emergency.

Testifying for the bill were Senator Scott; Division of Finance,
Department of Insurance, Financial Institutions, and Professional
Registration; Missouri Credit Union Association; and Missouri
Bankers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:13 pm