Jun 27
During this legislative session, the General Assembly passed SB1359, which streamlines the process for municipalities to solicit banking services, among other items by creating a new Section 110.075, and repealing current Sections 95.280, 95.285, and 95.355 RSMo.
As it applies to banking services, the law provides for:
Municipalities to select a municipal depository with a state-chartered or federally chartered banking institution through a competitive process.
Each municipality to develop requirements for a request for proposals, as provided in the act, to provide to banking institutions interested in becoming a municipal depository.
Municipalities to select a banking institution and enter into a contract outlining the terms and conditions of the depository relationship.
The repeal of provisions relating to procedures for third and fourth class cities annually selecting banking institutions "doing business within the city" to be depositories for the municipality.
It is also worth noting that Governor Parsons has not yet signed this bill, which was delivered to him on May 30th. If he does not act by July 14, 2024, it will become law by operation of Constitutional provisions. If this bill becomes law, cities will need to ensure their solicitations for banking services meet these new provisions. If you having any questions, please contact us.