Missouri Security Deposit Trust Accounts

Currently, in Missouri State Law, Landlords are required to hold all tenant security deposits in a trust account.  Not many even know what that means, the cost to legally have a trust account is prohibitive, and not many follow the law.  These bills will repeal this law.

HB1901:  Introduced by Representative Gary Cross of Lees Summit

This Bill was referred to the General Laws Committee and Passed.
Bill has now been referred to the Rules – Legislative Oversight Committee in the House

Gary Cross tells us the committee will be discussing this bill on Tuesday February 6th at 8 am.

Summary:  This bill repeals:

(1) The requirement that security deposits held by landlords for
tenants be held in a trust in a bank, credit union, or depository
institution that is insured by an agency of the federal government, in an account in the name of the trustee;

(2) The provision prohibiting security deposits from being
commingled with other funds of the landlord;

(3) The provision specifying that all interest earned on a security
deposit shall be the property of the landlord; and

(4) The provision that a housing authority created under Section
99.040, RSMo, or any other government entity acting as a landlord shall not be subject to the terms of the above-mentioned provisions.

Missouri POA Supports this Bill

This Bill has been Referred to the Rules – Legislative Oversight Committee in the House  on February 14th

 


SB 581:  Introduced by Senator Doug Libla

This Bill passed the Senate

Summary:

 This act repeals provisions of law which require a landlord to keep all security deposits in a trust account and prohibits commingling of the security deposit with other funds of the landlord.

This act is similar to SCS/SB 234 (2017).

Missouri POA Supports This Bill

Passed the Senate Small Business & Industry Committee

Perfected and Passed Senate.

Read Twice in the House

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