A Moment with Mike for June 18th, 2008

One of the rewarding parts of a successful session is watching as many of the important pieces of legislation we passed are signed into law and join the ranks of the Missouri statutes that govern our state. If you have been watching the news lately, you have seen that Governor Blunt has been around the state signing bills that were passed this session. We have seen bills dealing with scrap metal theft, agriculture and economic growth signed into law and I look forward to sharing more as the summer progresses.
As the Governor travels the state his main objective is to visit with the people and promote the new legislation, however, his signature marks the final step for a bill to become a law. He can veto a bill that has been passed by the general assembly but that veto can be overridden by a 2/3 vote during the veto session in September. I know of no plans for that at this time. The Governor can also take no action on bills. On July 14, any bills he signs or takes no action on will become law. All new laws have an effective date of August 28 unless they have an emergency clause.
One of the bills that was signed this last week was House Bill 2188 that protects consumers in Missouri from the increasing problem of mortgage fraud. This legislation stems from the work of the Interim Committee on Consumer and Financial Protection that found the state was limited in its ability to prosecute individuals committing mortgage fraud. The bill places local prosecutors on the same footing as federal investigators who were the only ones able to prosecute offenders. Mortgage fraud often includes illegally inflating property appraisals, concealing a second mortgage from a primary lender, or concealing a borrower’s identity. These practices ultimately contribute to higher loan costs and more restrictive lending practices.
Although we see little of this type of fraud in Northwest Missouri, our state is not immune to this occurrence as you have read about or heard on the news. This legislation seeks to reduce occurrences of fraud by creating civil and criminal penalties for residential mortgage fraud. The legislation makes it a Class C felony to employ a device, scheme, or artifice to defraud; make an untrue statement or omit information; receive any portion of the purchase, sale, or loan proceeds in connection with a real estate arrangement that has to do with fraud; and influence appraisals in certain circumstances.
While this legislation seeks to discourage fraud, we should all educate and protect ourselves by being informed, asking questions and dealing only with those that we know are reputable.
Another bill signed into law last week was House Bill 1341, referred to as Ethan’s Law. This bill came about as a result of a tragic drowning of a young man who drowned at a private water park. The pool where the tragedy took place held no liability insurance and had no certified lifeguards. This legislation requires the owner of a for-profit, privately owned pool to maintain one million dollars in liability insurance which will in turn force them to enact safety measures and certified lifeguards to be eligible for insurance coverage.
If you have questions, you may reach me at my Capitol number 573-751-9465, at the local district number, 660-582-4014, by email at mike.thomson@house.mo.gov or by mail at Room 406A State Capitol Building, Jefferson City, MO 65101.