Missouri 2023 Regular Session

Missouri House Bill HB725 Compare Versions

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1	1
2	2	EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3	3	and is intended to be omitted in the law.
4	4	FIRST REGULAR SESSION
5	5	SENATE COMMITTEE SUBSTITUTE FOR
6	6	HOUSE COMMITTEE SUBSTITUTE FOR
7	7	HOUSE BILL NO. 725
8	8	102ND GENERAL ASSEMBLY
9	9	1244S.03C KRISTINA MARTIN, Secretary
10	10	AN ACT
11	11	To repeal sections 30.753, 303.039, 361.020, 361.098, 361.160, 361.260, 361.262, 361.715,
12	12	364.030, 364.105, 365.030, 367.140, 407.640, 408.145, 408.500, 569.010, 569.100,
13	13	570.010, and 570.030, RSMo, and section 303.041 as enacted by senate bill no. 267,
14	14	ninety-first general assembly, first regular session, and section 303.041 as enacted by
15	15	house bill no. 2168, one hundred first general assembly, second regular session, and to
16	16	enact in lieu thereof forty-seven new sections relating to financial services, with penalty
17	17	provisions.
18	18
19	19	Be it enacted by the General Assembly of the State of Missouri, as follows:
20	20	Section A. Sections 30.753, 303.039, 361.020, 361.098, 1
21	21	361.160, 361.260, 361.262, 361.715, 364.030, 364.105, 365.030, 2
22	22	367.140, 407.640, 408.145, 408.500, 569.010, 569.100, 570.010, 3
23	23	and 570.030, RSMo, and section 303.041 as en acted by senate 4
24	24	bill no. 267, ninety -first general assembly, first regular 5
25	25	session, and section 303.041 as enacted by house bill no. 2168, 6
26	26	one hundred first general assembly, second regular session, are 7
27	27	repealed and forty-seven new sections enacted in lieu thereof, 8
28	28	to be known as sections 30.753, 303.039, 303.041, 303.420, 9
29	29	303.422, 303.425, 303.430, 303.440, 361.020, 361.098, 361.106, 10
30	30	361.160, 361.260, 361.262, 361.715, 362.034, 364.030, 364.105, 11
31	31	365.030, 367.140, 407.640, 408.145, 408.500, 436.550, 436.552 , 12
32	32	436.554, 436.556, 436.558, 436.560, 436.562, 436.564, 436.566, 13
33	33	436.568, 436.570, 436.571, 436.572, 436.573, 436.574, 436.575, 14 SCS HCS HB 725 2
34	34	436.577, 436.578, 436.579, 436.580, 569.010, 569.100, 570.010, 15
35	35	and 570.030, to read as follows:16
36	36	30.753. 1. The state treasurer may invest in linked 1
37	37	deposits; however, the total amount so deposited at any one 2
38	38	time shall not exceed, in the aggregate, [eight hundred 3
39	39	million] one billion dollars. [No more than three hundred 4
40	40	thirty million dollars of ] The aggregate deposit shall be 5
41	41	used for linked deposits to eligible farming operations, 6
42	42	eligible locally owned businesses, eligible agribusinesses, 7
43	43	eligible beginning farmers, eligible livestock operations, 8
44	44	[and] eligible facility borrowers, [no more than one 9
45	45	hundred ninety million of the aggregate deposit shall be 10
46	46	used for linked deposits to ] and eligible small 11
47	47	businesses[,]. No more than [twenty million dollars ] five 12
48	48	percent shall be used for linked deposits to eligible 13
49	49	multitenant development enterprises, and no mo re than 14
50	50	[twenty million dollars ] five percent of the aggregate 15
51	51	deposit shall be used for linked deposits to eligible 16
52	52	residential property developers and eligible residential 17
53	53	property owners, and no more than [two hundred twenty 18
54	54	million dollars] twenty percent of the aggregate deposit 19
55	55	shall be used for linked deposits to eligible job 20
56	56	enhancement businesses , and no more than [twenty million 21
57	57	dollars] five percent of the aggregate deposit shall be used 22
58	58	for linked deposit loans to eligible water systems . Linked 23
59	59	deposit loans may be made to eligible student borrowers, 24
60	60	eligible alternative energy operations, eligible alternative 25
61	61	energy consumers, and eligible governmental entities from 26
62	62	the aggregate deposit. If demand for a particular type of 27
63	63	linked deposit exceeds the initial allocation, and funds 28
64	64	initially allocated to another type are available and not in 29 SCS HCS HB 725 3
65	65	demand, the state treasurer may commingle allocations among 30
66	66	the types of linked deposits. 31
67	67	2. The minimum deposit to be made by the stat e 32
68	68	treasurer to an eligible lending institution for eligible 33
69	69	job enhancement business loans shall be ninety thousand 34
70	70	dollars. Linked deposit loans for eligible job enhancement 35
71	71	businesses may be made for the purposes of assisting with 36
72	72	relocation expenses, working capital, interim construction, 37
73	73	inventory, site development, machinery and equipment, or 38
74	74	other expenses necessary to create or retain jobs in the 39
75	75	recipient firm. 40
76	76	303.039. The repeal and reenactment of [sections] 1
77	77	section 303.025 [and 303.041] shall take effect on January 2
78	78	1, 2024. 3
79	79	[303.041. 1. If the director determines 1
80	80	that as a result of a verification sample or 2
81	81	accident report that the owner of a motor 3
82	82	vehicle has not maintained financial 4
83	83	responsibility, or if the director determines as 5
84	84	a result of an order of supervision that the 6
85	85	operator of a motor vehicle has not maintained 7
86	86	the financial responsibility as required in this 8
87	87	chapter, the director shall thirty -three days 9
88	88	after mailing notice, suspend the driving 10
89	89	privilege of the owner or operator and/or the 11
90	90	registration of the vehicle failing to meet such 12
91	91	requirement. The notice of suspension shall be 13
92	92	mailed to the person at the last known address 14
93	93	shown on the department's records. The notice 15
94	94	of suspension is deemed received three days 16
95	95	after mailing. The notice of suspension shall 17
96	96	clearly specify the reason and statutory grounds 18
97	97	for the suspension and the effective date of the 19
98	98	suspension, the right of the person to request a 20
99	99	hearing, the procedure for requesting a hearing, 21
100	100	and the date by which that request for a hearing 22
101	101	must be made. If the request for a hearing is 23
102	102	received by the department prior to the 24
103	103	effective date of the suspension, the effective 25
104	104	date of the suspension w ill be stayed until a 26
105	105	final order is issued following the hearing. 27
106	106	2. Neither the fact that subsequent to the 28
107	107	date of verification or conviction, the owner 29
108	108	acquired the required liability insurance policy 30
109	109	nor the fact that the owner terminated ow nership 31
110	110	of the motor vehicle, shall have any bearing 32 SCS HCS HB 725 4
111	111	upon the director's decision to suspend. Until 33
112	112	it is terminated, the suspension shall remain in 34
113	113	force after the registration is renewed or a new 35
114	114	registration is acquired for the motor vehicle. 36
115	115	The suspension also shall apply to any motor 37
116	116	vehicle to which the owner transfers the 38
117	117	registration. Effective January 1, 2000, the 39
118	118	department shall not extend any suspension for 40
119	119	failure to pay a delinquent late surrender fee 41
120	120	pursuant to this subsection .] 42
121	121	303.041. 1. Except as otherwise provided in 1
122	122	subsection 7 of section 303.425, if the director determines 2
123	123	that the owner or operator of a motor vehicle has not 3
124	124	maintained the financial responsibility as required in this 4
125	125	chapter, the director shall thirty -three days after mailing 5
126	126	notice, suspend the driving privilege of the owner or 6
127	127	operator and/or the registration of the vehicle failing to 7
128	128	meet such requirement. The notice of suspension shall be 8
129	129	mailed to the person at the las t known address shown on the 9
130	130	department's records. The notice of suspension is deemed 10
131	131	received three days after mailing. The notice of suspension 11
132	132	shall clearly specify the reason and statutory grounds for 12
133	133	the suspension and the effective date of the suspension, the 13
134	134	right of the person to request a hearing, the procedure for 14
135	135	requesting a hearing, and the date by which that request for 15
136	136	a hearing must be made. If the request for a hearing is 16
137	137	received by the department prior to the effective date of 17
138	138	the suspension, the effective date of the suspension will be 18
139	139	stayed until a final order is issued following the hearing. 19
140	140	2. Except as otherwise provided by law, neither the 20
141	141	fact that subsequent to the date of verification or 21
142	142	conviction, the owner acquired the required liability 22
143	143	insurance policy nor the fact that the owner terminated 23
144	144	ownership of the motor vehicle, shall have any bearing upon 24
145	145	the director's decision to suspend. Until it is terminated, 25
146	146	the suspension shall remain in force after the registration 26 SCS HCS HB 725 5
147	147	is renewed or a new registration is acquired for the motor 27
148	148	vehicle. The suspension also shall apply to any motor 28
149	149	vehicle to which the owner transfers the registration. 29
150	150	Effective January 1, 2000, the department shall not extend 30
151	151	any suspension for failure to pay a delinquent late 31
152	152	surrender fee pursuant to this subsection. 32
153	153	303.420. As used in sections 303.420 to 303.440, 1
154	154	unless the context requires otherwise, the following terms 2
155	155	shall mean: 3
156	156	(1) "Program", the motor vehicle financial 4
157	157	responsibility enforcement and compliance incentive program 5
158	158	established under section 303.425; 6
159	159	(2) "Qualified agency", the department of revenue, the 7
160	160	Missouri state highway patrol, the prosecuting attorney or 8
161	161	sheriff's office of any county or city not within a county, 9
162	162	the chiefs of police of any city or municipality, or any 10
163	163	other authorized law enforcement agency recognized by the 11
164	164	state; 12
165	165	(3) "System" or "verification system", the web -based 13
166	166	resource established under section 303.430 for online 14
167	167	verification of motor vehicle financial responsibility. 15
168	168	303.422. 1. There is hereby created in the state 1
169	169	treasury the "Motor Vehicle Financial Responsibility 2
170	170	Verification and Enforcement Fund", which shall consist of 3
171	171	money received by the department of revenue under sections 4
172	172	303.420 to 303.440. The state treasurer shall be custodian 5
173	173	of the fund. In accordance with sections 30.170 and 30.180, 6
174	174	the state treasurer may approve disbursements. The fund 7
175	175	shall be a dedicated fund and money in the fund shall be 8
176	176	used solely by the department of revenue for the 9
177	177	administration of sections 303.420 to 303.440. 10 SCS HCS HB 725 6
178	178	2. Notwithstanding the provisions of section 33.080 to 11
179	179	the contrary, any moneys remaining in the fund at the end of 12
180	180	the biennium shall not revert to the credit of the general 13
181	181	revenue fund. 14
182	182	3. The state treasurer shall invest moneys in the fund 15
183	183	in the same manner as other funds are invested. Any 16
184	184	interest and moneys earned on such inve stments shall be 17
185	185	credited to the fund. 18
186	186	303.425. 1. (1) There is hereby created within the 1
187	187	department of revenue the motor vehicle financial 2
188	188	responsibility enforcement and compliance incentive 3
189	189	program. The department of revenue ma y enter into 4
190	190	contractual agreements with third -party vendors to 5
191	191	facilitate the necessary technology and equipment, 6
192	192	maintenance thereof, and associated program management 7
193	193	services, and may enter into contractual agreements with the 8
194	194	Missouri office of p rosecution services as provided in 9
195	195	sections 303.420 to 303.440. Where sections 303.420 to 10
196	196	303.440 authorize the department of revenue to enter into 11
197	197	contracts with a third -party vendor or the Missouri office 12
198	198	of prosecution services at its option, the d epartment of 13
199	199	revenue shall contract with the Missouri office of 14
200	200	prosecution services unless the Missouri office of 15
201	201	prosecution services declines to enter into the contract. 16
202	202	(2) The department of revenue or a third -party vendor 17
203	203	shall utilize technology to compare vehicle registration 18
204	204	information with the financial responsibility information 19
205	205	accessible through the system. The department of revenue 20
206	206	shall utilize this information to identify motorists who are 21
207	207	in violation of the motor vehicle fin ancial responsibility 22
208	208	law. The department of revenue may offer offenders under 23
209	209	this program the option of pretrial diversion as an 24 SCS HCS HB 725 7
210	210	alternative to statutory fines or reinstatement fees 25
211	211	prescribed under the motor vehicle financial responsibility 26
212	212	law as a method of encouraging compliance and discouraging 27
213	213	recidivism. 28
214	214	(3) All fees paid to or collected by third -party 29
215	215	vendors or the Missouri office of prosecution services under 30
216	216	sections 303.420 to 303.440 may come from violator diversion 31
217	217	fees generated by the pretrial diversion option established 32
218	218	under this section. A contractual agreement between the 33
219	219	department of revenue and the Missouri office of prosecution 34
220	220	services under sections 303.420 to 303.440 may provide for 35
221	221	retention by the Missouri office of prosecution services of 36
222	222	part or all of the violator diversion fees as consideration 37
223	223	for the contract. 38
224	224	2. The department of revenue may authorize law 39
225	225	enforcement agencies or third -party vendors to use 40
226	226	technology to collect data for the investigation, detection, 41
227	227	analysis, and enforcement of the motor vehicle financial 42
228	228	responsibility law. 43
229	229	3. The department of revenue may authorize traffic 44
230	230	enforcement officers, third -party vendors, or the Missouri 45
231	231	office of prosecution services to administer the processing 46
232	232	and issuance of notices of violation, the collection of fees 47
233	233	for a violation of the motor vehicle financial 48
234	234	responsibility law, or the referral of cases for 49
235	235	prosecution, under the program. 50
236	236	4. Access to the system shall be restricted to 51
237	237	qualified agencies and the third -party vendors with which 52
238	238	the department of revenue contracts for purposes of the 53
239	239	program, provided that any third -party vendor with which a 54
240	240	contract is executed to provide necessary technology, 55
241	241	equipment, or maintenance for the program shall be 56 SCS HCS HB 725 8
242	242	authorized as necessary to collaborate for required updates 57
243	243	and maintenance of system software. 58
244	244	5. For purposes of the program, any data collected and 59
245	245	matched to a corresponding vehicle insurance record as 60
246	246	verified through the system, and any Missouri vehicle 61
247	247	registration database, may be used to identify violations of 62
248	248	the motor vehicle financial responsibility law. Such 63
249	249	corresponding data shall constitute evidence of the 64
250	250	violations. 65
251	251	6. Except as otherwise provided in this section, the 66
252	252	department of revenue shall suspend, in accordance with 67
253	253	section 303.041, the registration of any motor vehicle that 68
254	254	is determined under the program to be in violation of the 69
255	255	motor vehicle financial responsibi lity law. 70
256	256	7. The department of revenue shall send to an owner 71
257	257	whose vehicle is identified under the program as being in 72
258	258	violation of the motor vehicle financial responsibility law 73
259	259	a notice that the vehicle's registration may be suspended 74
260	260	unless the owner, within thirty days, provides proof of 75
261	261	financial responsibility for the vehicle or proof, in a form 76
262	262	specified by the department of revenue, that the owner has a 77
263	263	pending criminal charge for a violation of the motor vehicle 78
264	264	financial responsibil ity law. The notice shall include 79
265	265	information on steps an individual may take to obtain proof 80
266	266	of financial responsibility and a web address to a page on 81
267	267	the department of revenue's website where information on 82
268	268	obtaining proof of financial responsibili ty shall be 83
269	269	provided. If proof of financial responsibility or a pending 84
270	270	criminal charge is not provided within the time allotted, 85
271	271	the department of revenue shall provide a notice of 86
272	272	suspension and suspend the vehicle's registration in 87
273	273	accordance with section 303.041, or shall send a notice of 88 SCS HCS HB 725 9
274	274	vehicle registration suspension, clearly specifying the 89
275	275	reason and statutory grounds for the suspension and the 90
276	276	effective date of the suspension, the right of the vehicle 91
277	277	owner to request a hearing, the proce dure for requesting a 92
278	278	hearing, and the date by which that request for a hearing 93
279	279	must be made, as well as informing the owner that the matter 94
280	280	will be referred for prosecution if a satisfactory response 95
281	281	is not received in the time allotted, informing the owner 96
282	282	that the minimum penalty for the violation is three hundred 97
283	283	dollars and four license points, and offering the owner 98
284	284	participation in a pretrial diversion option to preclude 99
285	285	referral for prosecution and registration suspension under 100
286	286	sections 303.420 to 303.440. The notice of vehicle 101
287	287	registration suspension shall give a period of thirty -three 102
288	288	days from mailing for the vehicle owner to respond, and 103
289	289	shall be deemed received three days after mailing. If no 104
290	290	request for a hearing or agreement to participate in the 105
291	291	diversion option is received by the department of revenue 106
292	292	prior to the date provided on the notice of vehicle 107
293	293	registration suspension, the director shall suspend the 108
294	294	vehicle's registration, effective immediately, and refer the 109
295	295	case to the appropriate prosecuting attorney. If an 110
296	296	agreement by the vehicle owner to participate in the 111
297	297	diversion option is received by the department of revenue 112
298	298	prior to the effective date provided on the notice of 113
299	299	vehicle registration suspension, then u pon payment of a 114
300	300	diversion participation fee not to exceed two hundred 115
301	301	dollars, agreement to secure proof of financial 116
302	302	responsibility within the time provided on the notice of 117
303	303	suspension, and agreement that such financial responsibility 118
304	304	shall be maintained for a minimum of two years, no points 119
305	305	shall be assessed to the vehicle owner's driver's license 120 SCS HCS HB 725 10
306	306	under section 302.302 and the department of revenue shall 121
307	307	not take further action against the vehicle owner under 122
308	308	sections 303.420 to 303.440, subject to compliance with the 123
309	309	terms of the pretrial diversion option. The department of 124
310	310	revenue shall suspend the vehicle registration of, and shall 125
311	311	refer the case to the appropriate prosecuting attorney for 126
312	312	prosecution of, participating vehicle owners who violate the 127
313	313	terms of the pretrial diversion option. If a request for 128
314	314	hearing is received by the department of revenue prior to 129
315	315	the effective date provided on the notice of vehicle 130
316	316	registration suspension, then for all purposes other than 131
317	317	eligibility for participation in the diversion option, the 132
318	318	effective date of the suspension shall be stayed until a 133
319	319	final order is issued following the hearing. The department 134
320	320	of revenue shall suspend the registration of vehicles 135
321	321	determined under the final order to have violated the motor 136
322	322	vehicle financial responsibility law, and shall refer the 137
323	323	case to the appropriate prosecuting attorney for 138
324	324	prosecution. Notices under this subsection shall be mailed 139
325	325	to the vehicle owner at the last known address shown on th e 140
326	326	department of revenue's records. The department of revenue 141
327	327	or its third-party vendor or the Missouri office of 142
328	328	prosecution services shall issue receipts for the collection 143
329	329	of diversion participation fees. Except as otherwise 144
330	330	provided in subsection 1 of this section, all such fees 145
331	331	shall be deposited into the motor vehicle financial 146
332	332	responsibility verification and enforcement fund established 147
333	333	in section 303.422. A vehicle owner whose registration has 148
334	334	been suspended under sections 303.420 to 303. 440 may obtain 149
335	335	reinstatement of the registration upon providing proof of 150
336	336	financial responsibility and payment to the department of 151
337	337	revenue of a nonrefundable reinstatement fee equal to the 152 SCS HCS HB 725 11
338	338	fee that would be applicable under subsection 2 of section 153
339	339	303.042 if the registration had been suspended under section 154
340	340	303.041. 155
341	341	8. Data collected or retained under the program shall 156
342	342	not be used by any entity for purposes other than 157
343	343	enforcement of the motor vehicle financial responsibility 158
344	344	law. Data collected and stored by law enforcement under the 159
345	345	program shall be considered evidence if noncompliance with 160
346	346	the motor vehicle financial responsibility law is 161
347	347	confirmed. The evidence, and an affidavit stating that the 162
348	348	evidence and system have identified a p articular vehicle as 163
349	349	being in violation of the motor vehicle financial 164
350	350	responsibility law, shall constitute probable cause for 165
351	351	prosecution and shall be forwarded in accordance with 166
352	352	subsection 7 of this section to the appropriate prosecuting 167
353	353	attorney. 168
354	354	9. Owners of vehicles identified under the program as 169
355	355	being in violation of the motor vehicle financial 170
356	356	responsibility law shall be provided with options for 171
357	357	disputing such claims which do not require appearance at any 172
358	358	state or local court of law , or administrative facility. 173
359	359	Any person who presents timely proof that he or she was in 174
360	360	compliance with the motor vehicle financial responsibility 175
361	361	law at the time of the alleged violation shall be entitled 176
362	362	to dismissal of the charge with no assessmen t of fees or 177
363	363	fines. Proof provided by a vehicle owner to the department 178
364	364	of revenue that the vehicle was in compliance at the time of 179
365	365	the suspected violation of the motor vehicle financial 180
366	366	responsibility law shall be recorded in the system 181
367	367	established by the department of revenue under section 182
368	368	303.430. 183 SCS HCS HB 725 12
369	369	10. The collection of data or use of any technology 184
370	370	pursuant to this section shall be done in a manner that 185
371	371	prohibits any bias towards a specific community, race, 186
372	372	gender, or socioeconomic statu s of vehicle owner. 187
373	373	11. Law enforcement agencies, third -party vendors, or 188
374	374	other entities authorized to operate under the program shall 189
375	375	not sell data collected or retained under the program for 190
376	376	any purpose or share it for any purpose not expressly 191
377	377	authorized in this section. All data shall be secured and 192
378	378	any third-party vendor or other entity authorized to operate 193
379	379	under the program may be liable for any data security breach. 194
380	380	12. The department of revenue shall not take action 195
381	381	under sections 303.420 to 303.440 against vehicles 196
382	382	registered as fleet vehicles under section 301.032, or 197
383	383	against vehicles known to the department of revenue to be 198
384	384	insured under a policy of commercial auto coverage, as such 199
385	385	term is defined in subdivision (10) of s ubsection 2 of 200
386	386	section 303.430. 201
387	387	13. Following one year after the implementation of the 202
388	388	program, and every year thereafter, the department of 203
389	389	revenue shall provide a report to the president pro tempore 204
390	390	of the senate, the speaker of the house of re presentatives, 205
391	391	the chairs of the house and senate committees with 206
392	392	jurisdictions over insurance or transportation matters, and 207
393	393	the chairs of the house budget and senate appropriations 208
394	394	committees. The report shall include an evaluation of 209
395	395	program operations, information as to the costs of the 210
396	396	program incurred by the department of revenue, insurers, and 211
397	397	the public, information as to the effectiveness of the 212
398	398	program in reducing the number of uninsured motor vehicles, 213
399	399	and anonymized demographic informa tion including the race 214
400	400	and zip code of vehicle owners identified under the program 215 SCS HCS HB 725 13
401	401	as being in violation of the motor vehicle financial 216
402	402	responsibility law, and may include any additional 217
403	403	information and recommendations for improvement of the 218
404	404	program deemed appropriate by the department of revenue. 219
405	405	The department of revenue may, by rule, require the state, 220
406	406	counties, and municipalities to provide information in order 221
407	407	to complete the report. 222
408	408	14. The Missouri office of prosecution services in 223
409	409	consultation with the department of revenue may promulgate 224
410	410	rules as necessary for the implementation of this section. 225
411	411	Any rule or portion of a rule, as that term is defined in 226
412	412	section 536.010, that is created under the authority 227
413	413	delegated in this secti on shall become effective only if it 228
414	414	complies with and is subject to all of the provisions of 229
415	415	chapter 536 and, if applicable, section 536.028. This 230
416	416	section and chapter 536 are nonseverable and if any of the 231
417	417	powers vested with the general assembly purs uant to chapter 232
418	418	536 to review, to delay the effective date, or to disapprove 233
419	419	and annul a rule are subsequently held unconstitutional, 234
420	420	then the grant of rulemaking authority and any rule proposed 235
421	421	or adopted after August 28, 2023, shall be invalid and vo id. 236
422	422	303.430. 1. The department of revenue shall establish 1
423	423	and maintain a web-based system for the verification of 2
424	424	motor vehicle financial responsibility, shall provide access 3
425	425	to insurance reporting data and vehicle registration and 4
426	426	financial responsibility data, and shall require motor 5
427	427	vehicle insurers to establish functionality for the 6
428	428	verification system, as provided in sections 303.420 to 7
429	429	303.440. The verification system, including any exceptions 8
430	430	as provided for in sections 303.420 to 303.440 or in the 9
431	431	implementation guide developed to support the program, shall 10
432	432	supersede any existing verification system, and shall be the 11 SCS HCS HB 725 14
433	433	sole system used for the purpose of verifying financial 12
434	434	responsibility required under this chapter. 13
435	435	2. The system established pursuant to subsection 1 of 14
436	436	this section shall be subject to the following: 15
437	437	(1) The verification system shall transmit requests to 16
438	438	insurers for verification of motor vehicle insurance 17
439	439	coverage via web services establ ished by the insurers 18
440	440	through the internet in compliance with the specifications 19
441	441	and standards of the Insurance Industry Committee on Motor 20
442	442	Vehicle Administration, or "IICMVA". Insurance company 21
443	443	systems shall respond to each request with a prescribed 22
444	444	response upon evaluation of the data provided in the 23
445	445	request. The system shall include appropriate protections 24
446	446	to secure its data against unauthorized access, and the 25
447	447	department of revenue shall maintain a historical record of 26
448	448	the system data for a p eriod of no more than twelve months 27
449	449	from the date of all requests and responses. The system 28
450	450	shall be used for verification of the financial 29
451	451	responsibility required under this chapter. The system 30
452	452	shall be accessible to authorized personnel of the 31
453	453	department of revenue, the courts, law enforcement 32
454	454	personnel, and other entities authorized by the state as 33
455	455	permitted by state or federal privacy laws, and it shall be 34
456	456	interfaced, wherever appropriate, with existing state 35
457	457	systems. The system shall includ e information enabling the 36
458	458	department of revenue to submit inquiries to insurers 37
459	459	regarding motor vehicle insurance which are consistent with 38
460	460	insurance industry and IICMVA recommendations, 39
461	461	specifications, and standards by using the following data 40
462	462	elements for greater matching accuracy: insurer National 41
463	463	Association of Insurance Commissioners, or "NAIC", company 42
464	464	code; vehicle identification number; policy number; 43 SCS HCS HB 725 15
465	465	verification date; or as otherwise described in the 44
466	466	specifications and standards of the IICMVA. The department 45
467	467	of revenue shall promulgate rules to offer insurers who 46
468	468	insure one thousand or fewer vehicles within this state an 47
469	469	alternative method for verifying motor vehicle insurance 48
470	470	coverage in lieu of web services, and to provide for the 49
471	471	verification of financial responsibility when financial 50
472	472	responsibility is proven to the department to be maintained 51
473	473	by means other than a policy of motor vehicle insurance. 52
474	474	Insurers shall not be required to verify insurance coverage 53
475	475	for vehicles registered in other jurisdictions; 54
476	476	(2) The verification system shall respond to each 55
477	477	request within a time period established by the department 56
478	478	of revenue. An insurer's system shall respond within the 57
479	479	time period prescribed by the IICMVA's specifica tions and 58
480	480	standards. Insurer systems shall be permitted reasonable 59
481	481	system downtime for maintenance and other work with advance 60
482	482	notice to the department of revenue. Insurers shall not be 61
483	483	subject to enforcement fees or other sanctions under such 62
484	484	circumstances, or when systems are not available because of 63
485	485	emergency, outside attack, or other unexpected outages not 64
486	486	planned by the insurer and reasonably outside its control; 65
487	487	(3) The system shall assist in identifying violations 66
488	488	of the motor vehicle financial responsibility law in the 67
489	489	most effective way possible. Responses to individual 68
490	490	insurance verification requests shall have no bearing on 69
491	491	whether insurance coverage is determined to be in force at 70
492	492	the time of a claim. Claims shall be individ ually 71
493	493	investigated to determine the existence of coverage. 72
494	494	Nothing in sections 303.420 to 303.440 shall prohibit the 73
495	495	department of revenue from contracting with a third -party 74
496	496	vendor or vendors who have successfully implemented similar 75 SCS HCS HB 725 16
497	497	systems in other states to assist in establishing and 76
498	498	maintaining this verification system; 77
499	499	(4) The department of revenue shall consult with 78
500	500	representatives of the insurance industry and may consult 79
501	501	with third-party vendors to determine the objectives, 80
502	502	details, and deadlines related to the system by 81
503	503	establishment of an advisory council. The advisory council 82
504	504	shall consist of voting members comprised of: 83
505	505	(a) The director of the department of commerce and 84
506	506	insurance, or his or her designee, who shall serve as chair; 85
507	507	(b) Two representatives of the department of revenue, 86
508	508	to be appointed by the director of the department of revenue; 87
509	509	(c) One representative of the department of commerce 88
510	510	and insurance, to be appointed by the director of the 89
511	511	department of commerce and insurance; 90
512	512	(d) Three representatives of insurance companies, to 91
513	513	be appointed by the director of the department of commerce 92
514	514	and insurance; 93
515	515	(e) One representative from the Missouri Insurance 94
516	516	Coalition; 95
517	517	(f) One representative chosen by the National 96
518	518	Association of Mutual Insurance Companies; 97
519	519	(g) One representative chosen by the American Property 98
520	520	and Casualty Insurance Association; 99
521	521	(h) One representative chosen by the Missouri 100
522	522	Independent Agents Association ; and 101
523	523	(i) Such other representatives as may be appointed by 102
524	524	the director of the department of commerce and insurance; 103
525	525	(5) The department of revenue shall publish for 104
526	526	comment, and then issue, a detailed implementation guide for 105
527	527	its online verification system; 106 SCS HCS HB 725 17
528	528	(6) The department of revenue and its third -party 107
529	529	vendors, if any, shall each maintain a contact person for 108
530	530	insurers during the establishment, implementation, and 109
531	531	operation of the system; 110
532	532	(7) If the department of revenue ha s reason to believe 111
533	533	a vehicle owner does not maintain financial responsibility 112
534	534	as required under this chapter, it may also request an 113
535	535	insurer to verify the existence of such financial 114
536	536	responsibility in a form approved by the department of 115
537	537	revenue. In addition, insurers shall cooperate with the 116
538	538	department of revenue in establishing and maintaining the 117
539	539	verification system established under this section, and 118
540	540	shall provide motor vehicle insurance policy status 119
541	541	information as provided in the rules prom ulgated by the 120
542	542	department of revenue; 121
543	543	(8) Every property and casualty insurance company 122
544	544	licensed to issue motor vehicle insurance or authorized to 123
545	545	do business in this state shall comply with sections 303.420 124
546	546	to 303.440, and corresponding rules pr omulgated by the 125
547	547	department of revenue, for the verification of such 126
548	548	insurance for every vehicle insured by that company in this 127
549	549	state; 128
550	550	(9) Insurers shall maintain a historical record of 129
551	551	insurance data for a minimum period of six months from the 130
552	552	date of policy inception or policy change for the purpose of 131
553	553	historical verification inquiries; 132
554	554	(10) For the purposes of this section, "commercial 133
555	555	auto coverage" shall mean any coverage provided to an 134
556	556	insured, regardless of number of vehicles or entities 135
557	557	covered, under a commercial coverage form and rated from a 136
558	558	commercial manual approved by the department of commerce and 137
559	559	insurance. Sections 303.420 to 303.440 shall not apply to 138 SCS HCS HB 725 18
560	560	vehicles insured under commercial auto coverage; however, 139
561	561	insurers of such vehicles may participate on a voluntary 140
562	562	basis, and vehicle owners may provide proof at or subsequent 141
563	563	to the time of vehicle registration that a vehicle is 142
564	564	insured under commercial auto coverage, which the department 143
565	565	of revenue shall record in the system; 144
566	566	(11) Insurers shall provide commercial or fleet 145
567	567	automobile customers with evidence reflecting that the 146
568	568	vehicle is insured under a commercial or fleet automobile 147
569	569	liability policy. Sufficient evidence shall include an 148
570	570	insurance identification card clearly marked with a suitable 149
571	571	identifier such as "commercial auto insurance identification 150
572	572	card", "fleet auto insurance identification card", or other 151
573	573	clear identification that the vehicle is insured under a 152
574	574	fleet or commercial policy; 153
575	575	(12) Notwithstanding any provision of sections 303.420 154
576	576	to 303.440, insurers shall be immune from civil and 155
577	577	administrative liability for good faith efforts to comply 156
578	578	with the terms of sections 303.420 to 303.440; 157
579	579	(13) Nothing in this section shall prohibit an insurer 158
580	580	from using the services of a third -party vendor for 159
581	581	facilitating the verification system required under sections 160
582	582	303.420 to 303.440. 161
583	583	3. The department of revenue shall promulgate rules as 162
584	584	necessary for the implementatio n of sections 303.420 to 163
585	585	303.440. Any rule or portion of a rule, as that term is 164
586	586	defined in section 536.010, that is created under the 165
587	587	authority delegated in this section shall become effective 166
588	588	only if it complies with and is subject to all of the 167
589	589	provisions of chapter 536 and, if applicable, section 168
590	590	536.028. This section and chapter 536 are nonseverable and 169
591	591	if any of the powers vested with the general assembly 170 SCS HCS HB 725 19
592	592	pursuant to chapter 536 to review, to delay the effective 171
593	593	date, or to disapprove and a nnul a rule are subsequently 172
594	594	held unconstitutional, then the grant of rulemaking 173
595	595	authority and any rule proposed or adopted after August 28, 174
596	596	2023, shall be invalid and void. 175
597	597	303.440. The verification system established under 1
598	598	section 303.430 shall be installed and fully operational on 2
599	599	January 1, 2025, following an appropriate testing or pilot 3
600	600	period of not less than nine months. Until the successful 4
601	601	completion of the testing or pilot period in the judgment of 5
602	602	the director of the department of revenue, no enforcement 6
603	603	action shall be taken based on the system, including but not 7
604	604	limited to action taken under the program established under 8
605	605	section 303.425. 9
606	606	361.020. 1. The division of finance shall have charge 1
607	607	of the execution of the laws relating to banks, trust 2
608	608	companies, and the banking business of this state; [credit 3
609	609	unions; and] of the laws relating to persons [, 4
610	610	copartnerships and corporations ] and entities engaged in the 5
611	611	small loan or consumer credit business in this state ; of the 6
612	612	laws relating to persons and entities engaged in the 7
613	613	mortgage loan business in this state; and of the laws 8
614	614	relating to persons and entities engaged in any other 9
615	615	financial services related business over which the division 10
616	616	of finance is granted express authority . 11
617	617	2. The director of finance may institute, in the name 12
618	618	of the state of Missouri, and defend suits in the courts of 13
619	619	this state and the United States. 14
620	620	361.098. 1. The members of the state ba nking and 1
621	621	savings and loan board shall receive as compensation for 2
622	622	their services the sum of one hundred dollars per day while 3
623	623	discharging their duties, and shall be entitled to receive 4 SCS HCS HB 725 20
624	624	their necessary traveling and other expenses incurred while 5
625	625	actually engaged in the performance of their duties as such 6
626	626	members, which shall be paid out of the division of finance 7
627	627	fund. 8
628	628	2. [A majority of the members ] Any three members of 9
629	629	the board shall constitute a quorum for the transaction of 10
630	630	any business, for the performance of any duty or for the 11
631	631	exercise of any power of the board. 12
632	632	3. The board may meet and exercise its powers in any 13
633	633	place in this state and shall meet at any time upon the call 14
634	634	of its chairman or of the director of the division of 15
635	635	finance or of any two members of the board. 16
636	636	4. The board shall have an official seal bearing the 17
637	637	inscription, "State Banking and Savings and Loan Board of 18
638	638	the State of Missouri", which shall be judicially noticed. 19
639	639	5. The division of finance may provide administrative 20
640	640	services to the board to assist the board with fulfilling 21
641	641	its statutory responsibilities. 22
642	642	361.106. 1. For purposes of this section, the 1
643	643	following terms mean: 2
644	644	(1) "Bulletin", an informal written commu nication to 3
645	645	inform or educate individuals or entities licensed, 4
646	646	chartered, or regulated by the division of finance and the 5
647	647	general public about a regulatory topic or issue. A 6
648	648	bulletin is informational in nature and is not an evaluation 7
649	649	of specific facts and circumstances; 8
650	650	(2) "Industry letter", a written communication from 9
651	651	the director of finance in response to a specific individual 10
652	652	or entity chartered, licensed, or regulated by the division 11
653	653	of finance, and that provides the division of finan ce's 12
654	654	position on a particular regulatory topic or issue with 13
655	655	respect to a specific set of facts and circumstances. 14 SCS HCS HB 725 21
656	656	2. Notwithstanding any other provision of law to the 15
657	657	contrary, the director of finance may at his or her 16
658	658	discretion issue bulletins addressing the business of the 17
659	659	individuals and entities licensed, chartered, or regulated 18
660	660	by the division in this state. Bulletins do not have the 19
661	661	force or effect of law and shall not be considered 20
662	662	statements of general applicability that would requi re 21
663	663	promulgation by rule. 22
664	664	3. Notwithstanding any other provision of law to the 23
665	665	contrary, the director of finance may at his or her 24
666	666	discretion issue industry letters in response to a written 25
667	667	request from an individual or entity licensed, chartered, or 26
668	668	regulated by the division, and that seeks the division's 27
669	669	position on an application of law. In addition to any 28
670	670	materials or information requested by the division, the 29
671	671	written request shall include: 30
672	672	(1) A brief summary of the applicable laws and rules 31
673	673	that pertain to the request; 32
674	674	(2) A detailed factual representation concerning every 33
675	675	relevant aspect of the proposed business activity or 34
676	676	activities, transaction, event, or circumstance; 35
677	677	(3) A discussion of current statutes, rules, and legal 36
678	678	principles relevant to the facts set forth; 37
679	679	(4) A statement by the person requesting the industry 38
680	680	letter of the person's own opinion in the matter and the 39
681	681	basis for such opinion; and 40
682	682	(5) A representation that the proposed business or 41
683	683	transaction in question have not commenced or, if they have 42
684	684	commenced, the present status of the proposed business or 43
685	685	transaction. 44
686	686	4. With respect to the requesting party, an industry 45
687	687	letter is binding on the division, and the requesting party 46 SCS HCS HB 725 22
688	688	shall not be subject to any administrative proceeding or 47
689	689	penalty for any acts or omissions done in reliance on an 48
690	690	industry letter, so long as there is no change in any 49
691	691	material fact or law or the discovery of a material 50
692	692	misrepresentation or omission made by the requesting party. 51
693	693	5. An industry letter request and response shall be 52
694	694	confidential, but a resulting industry letter, if published 53
695	695	by the director, may contain non -identifying facts and 54
696	696	information derived from the request. 55
697	697	6. After redacting all identifying information, the 56
698	698	director may publish industry letters for informational 57
699	699	purposes. Because the division may have a different 58
700	700	position in response to similar but non -identical facts and 59
701	701	circumstances, published industry let ters do not have the 60
702	702	force or effect of law, are not binding on the division, and 61
703	703	shall not be considered statements of general applicability 62
704	704	that would require promulgation by rule. 63
705	705	7. Industry letters issued under this section are 64
706	706	distinct from letters issued by the director under 65
707	707	subdivision (5) of section 362.106, which shall be governed 66
708	708	by that section. 67
709	709	361.160. 1. The director of finance at least once 1
710	710	each year, either personally or by a deputy or examiner 2
711	711	appointed by the director, shall visit and examine every 3
712	712	bank and trust company organized and doing business under 4
713	713	the laws of this state, and every other corporation which is 5
714	714	by law required to report to the director; except, for banks 6
715	715	or trust companies receiv ing a Camel/MOECA 1 or Camel/MOECA 7
716	716	2 rating from the division of finance, the director of 8
717	717	finance at least once each eighteen calendar months, or for 9
718	718	a private trust company at least once each thirty -six 10
719	719	months, either personally or by a deputy or exam iner 11 SCS HCS HB 725 23
720	720	appointed by the director, shall visit and examine such bank 12
721	721	or trust company, and the director of finance, at the 13
722	722	director's discretion, may conduct the director's 14
723	723	examination, or any part thereof, on the basis of 15
724	724	information contained in examin ation reports of other 16
725	725	states, the Federal Deposit Insurance Corporation or the 17
726	726	Federal Reserve Board or in audits performed by certified 18
727	727	public accountants. For purposes of this subsection, a 19
728	728	private trust company is one that does not engage in trust 20
729	729	company business with the general public or otherwise hold 21
730	730	itself out as a trustee or fiduciary for hire by 22
731	731	advertising, solicitation, or other means and instead 23
732	732	operates for the primary benefit of a family, relative of 24
733	733	same family, or single family lineage, regardless of whether 25
734	734	compensation is received or anticipated. The director shall 26
735	735	be afforded prompt and free access to any workpapers upon 27
736	736	which a certified public accountant bases an audit. A 28
737	737	certified public accountant shall retain workpa pers for a 29
738	738	minimum of three years after the date of issuance of the 30
739	739	certified public accountant's report to the bank or trust 31
740	740	company. The director or the director's agent may 32
741	741	concentrate the examinations on institutions which the 33
742	742	director believes have safety or soundness concerns. 34
743	743	2. The director, or the deputy or examiners designated 35
744	744	by the director for that purpose, shall have power to 36
745	745	examine any such corporation whenever, in the director's 37
746	746	judgment, it may be deemed necessary or expedie nt, and shall 38
747	747	have power to examine every agency located in this state of 39
748	748	any foreign banking corporation and every branch in this 40
749	749	state of any out-of-state bank, for the purpose of 41
750	750	ascertaining whether it has violated any law of this state, 42 SCS HCS HB 725 24
751	751	and for such other purposes and as to such other matters as 43
752	752	the director may prescribe. 44
753	753	3. The director and the director's deputy and 45
754	754	examiners shall have power to administer oaths to any person 46
755	755	whose testimony may be required in such examination or 47
756	756	investigation of any such corporation or agency, and to 48
757	757	compel the appearance and attendance of any person for the 49
758	758	purpose of any such examination or investigation. 50
759	759	4. On every such examination inquiry shall be made as 51
760	760	to the condition and resources of such corporation, the mode 52
761	761	of conducting and managing its affairs, the actions of its 53
762	762	directors or trustees, the investment of its funds, the 54
763	763	safety and prudence of its management, the security afforded 55
764	764	to its creditors, and whether the requirements o f its 56
765	765	charter and of law have been complied with in the 57
766	766	administration of its affairs, and as to such other matters 58
767	767	as the director may prescribe. 59
768	768	5. The director may also make such special 60
769	769	investigations as the director deems necessary to determ ine 61
770	770	whether any individual or corporation has violated any of 62
771	771	the provisions of this law. 63
772	772	6. Such examination may be made and such inquiry 64
773	773	instituted or continued in the discretion of the director 65
774	774	after the director has taken possession of the pr operty and 66
775	775	business of any such corporation, until it shall resume 67
776	776	business or its affairs shall be finally liquidated in 68
777	777	accordance with the provisions of this chapter. 69
778	778	7. The result of each examination shall be certified 70
779	779	by the director or the examiner upon the records of the 71
780	780	corporation examined [and the result of all examinations 72
781	781	during the biennial period shall be embodied in the report 73 SCS HCS HB 725 25
782	782	to be made by the director of the department of commerce and 74
783	783	insurance to the legislature ]. 75
784	784	8. The director may contract with regulators in other 76
785	785	states to provide for the examination of Missouri branches 77
786	786	of out-of-state banks and branches of banks whose home state 78
787	787	is Missouri. The agreements may provide for the payment by 79
788	788	the home state of the c ost of examinations conducted by the 80
789	789	host state at the request of the home state regulators. 81
790	790	361.260. 1. Whenever the director shall have reason 1
791	791	to believe that the capital stock of any corporation subject 2
792	792	to the provisions of this chapter is reduced by impairment 3
793	793	or otherwise, below the amount required by law, or by its 4
794	794	certificates or articles of agreement, [he] the director 5
795	795	shall issue a notice of charges in respect thereof. 6
796	796	2. Whenever [it shall appear to the director, ] the 7
797	797	director has reason to believe from any examination or 8
798	798	investigation made by [him] the director or his or her 9
799	799	examiners, that any corporation subject to the provisions of 10
800	800	this chapter, or any director, officer, employee, agent, or 11
801	801	other person participating in the conduct of the affairs of 12
802	802	such corporation, or any foreign corporation licensed by the 13
803	803	director to do business under this chapter or chapter 362 is 14
804	804	engaging in [or], has engaged in, or [there is reasonable 15
805	805	cause to believe that the co rporation or any director, 16
806	806	officer, employee, agent, or other person participating in 17
807	807	the conduct of the affairs of such corporation is about to 18
808	808	engage in,] is about to engage in: 19
809	809	(1) An unsafe or unsound practice in conducting the 20
810	810	business of such corporation [or is violating or has 21
811	811	violated, or there is reasonable cause to believe that the 22
812	812	corporation or any director, officer, employee, agent, or 23 SCS HCS HB 725 26
813	813	other person participating in the conduct of the affairs of 24
814	814	such corporation is about to violate ]; 25
815	815	(2) A violation of law, rule, or director-imposed 26
816	816	written condition [imposed, in writing, by the director in 27
817	817	connection with the granting of any application or other 28
818	818	request by the corporation or ]; 29
819	819	(3) A violation of any written agreement entered into 30
820	820	with the director[,]; or 31
821	821	(4) A violation of the corporation's charter, 32
822	822	the director may issue and serve upon the corporation or 33
823	823	such director, officer, employee, agent, or other person a 34
824	824	notice of charges in respect thereof. 35
825	825	3. Whenever it shall appear to the director that any 36
826	826	corporation subject to the provisions of this chapter does 37
827	827	not keep its books and accounts in such manner as to enable 38
828	828	him or her readily to ascertain its true condition or that 39
829	829	wrong entries or unlawf ul uses of the funds of the 40
830	830	corporation have been made, the director may issue and serve 41
831	831	upon the corporation or any appropriate director, officer, 42
832	832	employee, agent, or other person a notice of charges in 43
833	833	respect thereof. 44
834	834	4. The notice of charges shall contain a statement of 45
835	835	the facts constituting the deficiencies, [the] alleged 46
836	836	violation or violations, improper use of funds, or [the] 47
837	837	unsafe or unsound practice or practices, and shall fix a 48
838	838	time and place at which a contested hearing will be held to 49
839	839	determine whether an order to cease and desist therefrom 50
840	840	should [issue] be issued against the corporation or the 51
841	841	director, officer, employee, agent, or other person 52
842	842	participating in the conduct of the affairs of such 53
843	843	corporation. 54 SCS HCS HB 725 27
844	844	5. In the event the party or parties so served shall 55
845	845	fail to appear at the hearing, or shall consent to the cease 56
846	846	and desist order, or in the event the director shall find 57
847	847	that the fact of any deficiency, violation, unsafe or 58
848	848	unsound practice, inadequate record keeping, or improper use 59
849	849	of funds specified has been established, the director may 60
850	850	issue and serve upon the corporation or the director, 61
851	851	officer, employee, agent, or other person participating in 62
852	852	the conduct of the affairs of the corporation an order t o 63
853	853	cease and desist from the actions, violations, or practices 64
854	854	charged. 65
855	855	6. The cease and desist order: 66
856	856	(1) May require the corporation or its directors, 67
857	857	officers, employees, agents, and other persons participating 68
858	858	in the conduct of the affai rs of such corporation to cease 69
859	859	and desist from [same and,] such actions, violations, or 70
860	860	practices; 71
861	861	(2) [Further,] May require the corporation or its 72
862	862	directors, officers, employees, agents, or other persons 73
863	863	participating in the conduct of the affa irs of such 74
864	864	corporation to take affirmative action to correct the 75
865	865	conditions resulting from any such actions, violations, or 76
866	866	practices[. If the director determines that the capital of 77
867	867	the corporation is impaired, ]; 78
868	868	(3) [The order] Shall require that, if the director 79
869	869	determines that the capital of the corporation is impaired, 80
870	870	the corporation make good the deficiency forthwith or within 81
871	871	a time specified in the order [.]; 82
872	872	(4) May, if the director determines that the 83
873	873	corporation does not keep adequate records, [the order may] 84
874	874	determine and prescribe such books of account as the 85
875	875	director, in his discretion, shall require of the 86 SCS HCS HB 725 28
876	876	corporation for the purpose of keeping accurate and 87
877	877	convenient records of the transactions and accounts [.]; and 88
878	878	(5) Shall, if the director [shall determine] 89
879	879	determines that wrong entries or unlawful uses of the funds 90
880	880	of the corporation have been made, [he shall] order that the 91
881	881	entries shall be corrected, and the sums unlawfully paid out 92
882	882	restored by the perso n or persons responsible for the 93
883	883	wrongful or illegal payment thereof. 94
884	884	[6.] 7. If a notice of charges served under this 95
885	885	section specifies, on the basis of particular facts and 96
886	886	circumstances, that a corporation's books and records are so 97
887	887	incomplete or inaccurate that the director is unable, 98
888	888	through the normal supervisory process, to determine the 99
889	889	financial condition of that corporation or the details or 100
890	890	purpose of any transaction or transactions that may have a 101
891	891	material effect on the financial c ondition of that 102
892	892	corporation, the director may issue a temporary order 103
893	893	requiring the cessation of any activity or practice which 104
894	894	gave rise, whether in whole or in part, to the incomplete or 105
895	895	inaccurate state of the books or records, or affirmative 106
896	896	action to restore such books or records to a complete and 107
897	897	accurate state, until the completion of the proceedings 108
898	898	under this section. Any temporary order issued under this 109
899	899	subsection shall become effective upon service and, unless 110
900	900	set aside, limited or su spended by a court, shall remain in 111
901	901	effect and enforceable until the earlier of the completion 112
902	902	of the proceedings initiated under this section or the date 113
903	903	on which the director determines by examination or otherwise 114
904	904	that the corporation's books and rec ords are accurate and 115
905	905	reflect the financial condition of the corporation. 116
906	906	[7.] 8. Whenever it shall appear to the director that 117
907	907	the violation or threatened violation or the unsafe or 118 SCS HCS HB 725 29
908	908	unsound practice or practices specified in the notice of 119
909	909	charges served upon the corporation or any director, 120
910	910	officer, employee, agent, or other person participating in 121
911	911	the conduct of the affairs of such corporation pursuant to 122
912	912	subsection 4 of this section, or the continuation thereof, 123
913	913	is likely to cause insolvenc y or significant dissipation of 124
914	914	assets or earnings of the corporation, or is likely to 125
915	915	weaken the condition of the corporation or otherwise 126
916	916	prejudice the interests of its depositors prior to the 127
917	917	completion of the proceedings conducted pursuant to said 128
918	918	subsection, the director may issue a temporary order, 129
919	919	effective immediately, requiring the corporation or such 130
920	920	director, officer, employee, agent, or other person to cease 131
921	921	and desist from any such violation or practice and to take 132
922	922	affirmative action t o prevent such insolvency, dissipation, 133
923	923	condition, or prejudice pending completion of such 134
924	924	proceedings. Such order shall remain effective and 135
925	925	enforceable pending the completion of the administrative 136
926	926	proceedings pursuant to such notice and until such t ime as 137
927	927	the director shall dismiss the charges specified in such 138
928	928	notice or if a cease and desist order is issued against the 139
929	929	corporation or such director, officer, employee, agent, or 140
930	930	other person, until the effective date of such order. The 141
931	931	corporation, director, officer, employee, agent, or other 142
932	932	person may, within ten days after having been served with a 143
933	933	temporary cease and desist order, apply to the circuit court 144
934	934	of Cole County for an order setting aside, limiting, or 145
935	935	suspending the enforcement , operation, or effectiveness of 146
936	936	such order. 147
937	937	[8.] 9. If any corporation, or any director, officer, 148
938	938	employee, agent, or other person participating in the 149
939	939	conduct of the affairs of such corporation shall fail or 150 SCS HCS HB 725 30
940	940	refuse to comply with any duly issue d order provided for in 151
941	941	this chapter and chapter 362, the corporation or such 152
942	942	director, officer, employee, agent, or other person shall 153
943	943	pay a civil penalty of not more than one thousand dollars 154
944	944	per day for each day the failure or refusal shall continue . 155
945	945	The penalty shall be assessed and collected by the director 156
946	946	of the division. In determining the amount of the penalty, 157
947	947	the director shall take into account the appropriateness of 158
948	948	the penalty with respect to the size of the financial 159
949	949	resources and good faith of the corporation or person 160
950	950	charged, the gravity of the violation, the history of 161
951	951	previous violations, and such other matters as justice may 162
952	952	require. In addition to the penalty, the director may, in 163
953	953	his or her discretion, report the delinq uency to the 164
954	954	attorney general, with a request that [he] the attorney 165
955	955	general proceed as provided in section 361.270, and in the 166
956	956	event of such request, the attorney general shall proceed. 167
957	957	361.262. 1. Whenever it shall appear to the d irector, 1
958	958	from any examination or investigation made by [him] the 2
959	959	director or [his] the director's examiners, that: 3
960	960	(1) Any director, officer, or any other person 4
961	961	participating in the conduct of the affairs of a corporation 5
962	962	subject to this chapter has [committed any violation of ]: 6
963	963	(a) Violated a law or regulation [or of]; 7
964	964	(b) Violated a cease and desist order [, or has]; 8
965	965	(c) Violated any director-imposed written condition 9
966	966	[imposed in writing by the director ] in connection with the 10
967	967	grant of any application or other request by such 11
968	968	corporation [or]; 12
969	969	(d) Violated any written agreement between such 13
970	970	corporation and the director [, or has]; 14 SCS HCS HB 725 31
971	971	(e) Engaged or participated in any unsafe or unsound 15
972	972	practice in connection with th e corporation[,]; or [has] 16
973	973	(f) Committed or engaged in any act, omission, or 17
974	974	practice [which] that constitutes a breach of his or her 18
975	975	fiduciary duty to the corporation [,]; and 19
976	976	(2) The director determines that : 20
977	977	(a) The corporation has su ffered or will probably 21
978	978	suffer financial loss or other damage [or that]; 22
979	979	(b) The interests of its depositors , beneficiaries, or 23
980	980	other customers could be prejudiced by reason of such 24
981	981	violation or practice or breach of fiduciary duty [,]; or 25
982	982	[that] 26
983	983	(c) The director or officer or other person has 27
984	984	received financial gain by reason of such violation or 28
985	985	practice or breach of fiduciary duty [,]; and 29
986	986	(3) The director determines that such violation or 30
987	987	practice or breach of fiduciary duty is : 31
988	988	(a) One involving personal dishonesty on the part of 32
989	989	such director, officer or other person [,]; or 33
990	990	(b) One [which] that demonstrates a willful or 34
991	991	continuing disregard for the safety or soundness of the 35
992	992	corporation[,]; 36
993	993	the director may serve u pon such director, officer, or other 37
994	994	person a written notice of [his] the director's intention to 38
995	995	remove him or her from office. 39
996	996	2. When it shall appear from any examination or 40
997	997	investigation to the director [from any examination made by 41
998	998	him or his examiners] that any director or officer of a 42
999	999	corporation subject to this chapter, by conduct or practice 43
1000	1000	with respect to another such corporation or any business 44
1001	1001	[institution which] that: 45 SCS HCS HB 725 32
1002	1002	(1) Resulted in financial loss or other damage [, has]; 46
1003	1003	(2) Evidenced either: 47
1004	1004	(a) His or her personal dishonesty; or 48
1005	1005	(b) A willful or continuing disregard for its safety 49
1006	1006	and soundness; and[, in addition, has] 50
1007	1007	(3) Evidenced his or her unfitness to continue as a 51
1008	1008	director or officer, [and whenever it shall appear to the 52
1009	1009	director that any other person participating in the conduct 53
1010	1010	of the affairs of a corporation subject to this chapter, by 54
1011	1011	conduct or practice with respect to such corporation or 55
1012	1012	other corporation or other business instituti on which 56
1013	1013	resulted in financial loss or other damage, has evidenced 57
1014	1014	either his personal dishonesty or willful or continuing 58
1015	1015	disregard for its safety and soundness and, in addition, has 59
1016	1016	evidenced his unfitness to participate in the conduct of the 60
1017	1017	affairs of such corporation, ] 61
1018	1018	the director may serve upon such director [,] or officer[, or 62
1019	1019	other person] a written notice of intention to remove him or 63
1020	1020	her from office or to prohibit his or her further 64
1021	1021	participation in any manner in the conduct of the affairs of 65
1022	1022	the corporation or from any other banking, savings, or trust 66
1023	1023	institution supervised by the director. 67
1024	1024	3. When it shall appear from any examination or 68
1025	1025	investigation to the director that any person participating 69
1026	1026	in the conduct of the affairs of a corporation subject to 70
1027	1027	this chapter, by conduct or practice with respect to such 71
1028	1028	corporation or other corporation or other business 72
1029	1029	institution that: 73
1030	1030	(1) Resulted in financial loss or other damage, has 74
1031	1031	(2) Evidenced either: 75
1032	1032	(a) His or her personal dishonesty; or 76 SCS HCS HB 725 33
1033	1033	(b) A willful or continuing disregard for its safety 77
1034	1034	and soundness; and 78
1035	1035	(3) Evidenced his or her unfitness to participate in 79
1036	1036	the conduct of the affairs of such corporation, 80
1037	1037	the director may serve upon such person a written notice of 81
1038	1038	intention to remove him or her from office or to prohibit 82
1039	1039	his or her further participation in any manner in the 83
1040	1040	conduct of the affairs of the corporation or from any other 84
1041	1041	banking, savings, or trust institution supervised by the 85
1042	1042	director. 86
1043	1043	4. Whenever it shall appear to the director to be 87
1044	1044	necessary for the protection of any corporation or its 88
1045	1045	depositors, [he] beneficiaries, or other customers, the 89
1046	1046	director may, by written notice to such effect served upon 90
1047	1047	any director, officer, or other person referred to in 91
1048	1048	[subsection 1 or 2] subsections 1 to 3 of this section, 92
1049	1049	suspend him or her from office or prohibit him or her from 93
1050	1050	further participation in any manner in the conduct of the 94
1051	1051	affairs of the corporation. Such suspension or prohibition 95
1052	1052	shall become effective upon service of such notice and shall 96
1053	1053	remain in effect pending the completion of the 97
1054	1054	administrative proceedings pursuant to the notice served 98
1055	1055	under [subsection 1 or 2] subsections 1 to 3 of this section 99
1056	1056	and until such time as the director shall dismiss the 100
1057	1057	charges specified in such notice or, if an order of removal 101
1058	1058	or prohibition is issued against the director or officer or 102
1059	1059	other person, until the effective date of any such order. 103
1060	1060	Copies of any such notice shall also be served upon the 104
1061	1061	corporation of which he or she is a director or officer or 105
1062	1062	in the conduct of whose affairs he or she has participated. 106 SCS HCS HB 725 34
1063	1063	[4.] 5. Except as provided in subsection [5] 6 of this 107
1064	1064	section, any person who, pursuant to an ord er issued under 108
1065	1065	this section, has been removed or suspended from office in a 109
1066	1066	corporation or prohibited from participating in the conduct 110
1067	1067	of the affairs of a corporation may not, while such order is 111
1068	1068	in effect, continue or commence to hold any office in, or 112
1069	1069	participate in any manner in, the conduct of the affairs of 113
1070	1070	any other corporation subject to the provisions of this 114
1071	1071	chapter. 115
1072	1072	[5.] 6. If, on or after the date an order is issued 116
1073	1073	under this section [which] that removes or suspends from 117
1074	1074	office any person or prohibits such person from 118
1075	1075	participating in the conduct of the affairs of a 119
1076	1076	corporation, such party receives the written consent of the 120
1077	1077	director, subsection [4] 5 of this section shall, to the 121
1078	1078	extent of such consent, cease to apply to suc h person with 122
1079	1079	respect to the [corporation] terms and conditions described 123
1080	1080	in the written consent and the director shall publicly 124
1081	1081	disclose such consent. Any violation of subsection [4] 5 of 125
1082	1082	this section by any person who is subject to an order 126
1083	1083	described in such subsection shall be treated as a violation 127
1084	1084	of the order. 128
1085	1085	361.715. 1. Upon the filing of the application, the 1
1086	1086	filing of a certified audit, the payment of the 2
1087	1087	investigation fee and the approval by the director of the 3
1088	1088	necessary bond, the director shall cause, investigate, and 4
1089	1089	determine whether the character, responsibility, and general 5
1090	1090	fitness of the principals of the applicant or any affiliates 6
1091	1091	are such as to command confidence and warrant belief that 7
1092	1092	the business of the applicant will be conducted honestly and 8
1093	1093	efficiently and that the applicant is in compliance with all 9
1094	1094	other applicable state and federal laws. If satisfied, the 10 SCS HCS HB 725 35
1095	1095	director shall issue to the applicant a license pursuant to 11
1096	1096	the provisions of sections 3 61.700 to 361.727. In 12
1097	1097	processing a renewal license, the director shall require the 13
1098	1098	same information and follow the same procedures described in 14
1099	1099	this subsection. 15
1100	1100	2. Each licensee shall pay to the director before the 16
1101	1101	issuance of the license, and a nnually thereafter on or 17
1102	1102	before April fifteenth of each year, a license fee of 18
1103	1103	[three] four hundred dollars. 19
1104	1104	3. The director may assess a reasonable charge, not to 20
1105	1105	exceed [three] four hundred dollars, for any application to 21
1106	1106	amend and reissue an e xisting license. 22
1107	1107	362.034. 1. Any entity that operates as a facility 1
1108	1108	licensed or certified under Article XIV of the Constitution 2
1109	1109	of Missouri may request in writing that a state or local 3
1110	1110	licensing authority or agency, including, but n ot limited 4
1111	1111	to, the department of health and senior services or 5
1112	1112	department of revenue, share the entity's application, 6
1113	1113	license, or other regulatory and financial information with 7
1114	1114	a banking institution. A state or local licensing authority 8
1115	1115	or agency may also share such information with the banking 9
1116	1116	institution's state and federal supervisory agencies. 10
1117	1117	2. In order to ensure the state or local licensing 11
1118	1118	authority or agency is properly maintaining the 12
1119	1119	confidentiality of individualized data, informa tion, or 13
1120	1120	records, an entity shall include in the written request a 14
1121	1121	waiver giving authorization for the transfer of the 15
1122	1122	individualized data, information, or records and waiving any 16
1123	1123	confidentiality or privilege that applies to that 17
1124	1124	individualized data, information, or records. 18
1125	1125	3. This section shall only apply to the disclosure of 19
1126	1126	information by a state or local licensing authority or 20 SCS HCS HB 725 36
1127	1127	agency reasonably necessary to facilitate the provision of 21
1128	1128	financial services by a banking institution to the ent ity 22
1129	1129	making a request pursuant to this section. 23
1130	1130	4. The recipient of any information pursuant to this 24
1131	1131	section shall treat such information as confidential and use 25
1132	1132	it only for the purposes described in this section. 26
1133	1133	5. Nothing in this section s hall be construed to 27
1134	1134	authorize the disclosure of confidential or privileged 28
1135	1135	information, nor waive an entity's rights to assert 29
1136	1136	confidentiality or privilege, except as reasonably necessary 30
1137	1137	to facilitate the provision of financial services for the 31
1138	1138	entity making the request. 32
1139	1139	6. An entity that has provided a waiver pursuant to 33
1140	1140	this section may withdraw the waiver with thirty days' 34
1141	1141	notice in writing. 35
1142	1142	7. Nothing in this section shall be construed to 36
1143	1143	modify the requirements of chapter 610. 37
1144	1144	8. For purposes of this section, the following terms 38
1145	1145	mean: 39
1146	1146	(1) "Banking institution", the same meaning as in 40
1147	1147	Article IV, Section 15 of the Missouri Constitution; 41
1148	1148	(2) "Entity", the same meaning as in Article XIV of 42
1149	1149	the Missouri Constitutio n. 43
1150	1150	364.030. 1. No person shall engage in the business of 1
1151	1151	a financing institution in this state without a license 2
1152	1152	therefor as provided in this chapter; except, however, that 3
1153	1153	no bank, trust company, loan and investment company, 4
1154	1154	licensed sales finance company, registrant under the 5
1155	1155	provisions of sections 367.100 to 367.200, or person who 6
1156	1156	makes only occasional purchases of retail time contracts or 7
1157	1157	accounts under retail charge agreements and which purchases 8
1158	1158	are not being made in the c ourse of repeated or successive 9 SCS HCS HB 725 37
1159	1159	purchase of retail installment contracts from the same 10
1160	1160	seller, shall be required to obtain a license under this 11
1161	1161	chapter but shall comply with all the laws of this state 12
1162	1162	applicable to the conduct and operation of a financ ing 13
1163	1163	institution. 14
1164	1164	2. The application for the license shall be in 15
1165	1165	writing, under oath and in the form prescribed by the 16
1166	1166	director. The application shall contain the name of the 17
1167	1167	applicant; date of incorporation, if incorporated; the 18
1168	1168	address where the business is or is to be conducted and 19
1169	1169	similar information as to any branch office of the 20
1170	1170	applicant; the name and resident address of the owner or 21
1171	1171	partners or, if a corporation or association, of the 22
1172	1172	directors, trustees and principal officers, and ot her 23
1173	1173	pertinent information as the director may require. 24
1174	1174	3. The license fee for each calendar year or part 25
1175	1175	thereof shall be the sum of [five] six hundred dollars for 26
1176	1176	each place of business of the licensee in this state which 27
1177	1177	shall be paid into the general revenue fund. The director 28
1178	1178	may establish a biennial licensing arrangement but in no 29
1179	1179	case shall the fees be payable for more than one year at a 30
1180	1180	time. 31
1181	1181	4. Each license shall specify the location of the 32
1182	1182	office or branch and must be conspicuo usly displayed 33
1183	1183	therein. In case the location is changed, the director 34
1184	1184	shall either endorse the change of location of the license 35
1185	1185	or mail the licensee a certificate to that effect, without 36
1186	1186	charge. 37
1187	1187	5. Upon the filing of an application, and the pay ment 38
1188	1188	of the fee, the director shall issue a license to the 39
1189	1189	applicant to engage in the business of a financing 40
1190	1190	institution under and in accordance with the provisions of 41 SCS HCS HB 725 38
1191	1191	this chapter for a period which shall expire the last day of 42
1192	1192	December next followi ng the date of its issuance. The 43
1193	1193	license shall not be transferable or assignable. No 44
1194	1194	licensee shall transact any business provided for by this 45
1195	1195	chapter under any other name. 46
1196	1196	364.105. 1. No person shall engage in the business of 1
1197	1197	a premium finance company in this state without first 2
1198	1198	registering as a premium finance company with the director. 3
1199	1199	2. The annual registration fee shall be [five] six 4
1200	1200	hundred dollars payable to the director as of the first day 5
1201	1201	of July of each year. The director may establish a biennial 6
1202	1202	licensing arrangement but in no case shall the fees be 7
1203	1203	payable for more than one year at a time. 8
1204	1204	3. Registration shall be made on forms prepared by the 9
1205	1205	director and shall contain the following information: 10
1206	1206	(1) Name, business address and telephone number of the 11
1207	1207	premium finance company; 12
1208	1208	(2) Name and business address of corporate officers 13
1209	1209	and directors or principals or partners; 14
1210	1210	(3) A sworn statement by an appropriate officer, 15
1211	1211	principal or partner of the premium finance company that: 16
1212	1212	(a) The premium finance company is financially capable 17
1213	1213	to engage in the business of insurance premium financing; and 18
1214	1214	(b) If a corporation, that the corporation is 19
1215	1215	authorized to transact business in thi s state; 20
1216	1216	(4) If any material change occurs in the information 21
1217	1217	contained in the registration form, a revised statement 22
1218	1218	shall be submitted to the director accompanied by an 23
1219	1219	additional fee of three hundred dollars. 24
1220	1220	365.030. 1. No person shall engage in the business of 1
1221	1221	a sales finance company in this state without a license as 2
1222	1222	provided in this chapter; except, that no bank, trust 3 SCS HCS HB 725 39
1223	1223	company, savings and loan association, loan and investment 4
1224	1224	company or registrant under the provisio ns of sections 5
1225	1225	367.100 to 367.200 authorized to do business in this state 6
1226	1226	is required to obtain a license under this chapter but shall 7
1227	1227	comply with all of the other provisions of this chapter. 8
1228	1228	2. The application for the license shall be in 9
1229	1229	writing, under oath and in the form prescribed by the 10
1230	1230	director. The application shall contain the name of the 11
1231	1231	applicant; date of incorporation, if incorporated; the 12
1232	1232	address where the business is or is to be conducted and 13
1233	1233	similar information as to any branch office of the 14
1234	1234	applicant; the name and resident address of the owner or 15
1235	1235	partners or, if a corporation or association, of the 16
1236	1236	directors, trustees and principal officers, and such other 17
1237	1237	pertinent information as the director may require. 18
1238	1238	3. The license fee for each calendar year or part 19
1239	1239	thereof shall be the sum of [five] six hundred dollars for 20
1240	1240	each place of business of the licensee in this state. The 21
1241	1241	director may establish a biennial licensing arrangement but 22
1242	1242	in no case shall the fees be payable for more than one year 23
1243	1243	at a time. 24
1244	1244	4. Each license shall specify the location of the 25
1245	1245	office or branch and must be conspicuously displayed there. 26
1246	1246	In case the location is changed, the director shall either 27
1247	1247	endorse the change of location on the lic ense or mail the 28
1248	1248	licensee a certificate to that effect, without charge. 29
1249	1249	5. Upon the filing of the application, and the payment 30
1250	1250	of the fee, the director shall issue a license to the 31
1251	1251	applicant to engage in the business of a sales finance 32
1252	1252	company under and in accordance with the provisions of this 33
1253	1253	chapter for a period which shall expire the last day of 34
1254	1254	December next following the date of its issuance. The 35 SCS HCS HB 725 40
1255	1255	license shall not be transferable or assignable. No 36
1256	1256	licensee shall transact any business p rovided for by this 37
1257	1257	chapter under any other name. 38
1258	1258	367.140. 1. Every lender shall, at the time of filing 1
1259	1259	application for certificate of registration as provided in 2
1260	1260	section 367.120 hereof, pay the sum of [five] six hundred 3
1261	1261	dollars as an annual registration fee for the period ending 4
1262	1262	the thirtieth day of June next following the date of payment 5
1263	1263	and in full payment of all expenses for investigations, 6
1264	1264	examinations and for the administration of sections 367.100 7
1265	1265	to 367.200, except as pro vided in section 367.160, and 8
1266	1266	thereafter a like fee shall be paid on or before June 9
1267	1267	thirtieth of each year; provided, that if a lender is 10
1268	1268	supervised by the commissioner of finance under any other 11
1269	1269	law, the charges for examination and supervision require d to 12
1270	1270	be paid under said law shall be in lieu of the annual fee 13
1271	1271	for registration and examination required under this 14
1272	1272	section. The fee shall be made payable to the director of 15
1273	1273	revenue. If the initial registration fee for any 16
1274	1274	certificate of registratio n is for a period of less than 17
1275	1275	twelve months, the registration fee shall be prorated 18
1276	1276	according to the number of months that said period shall 19
1277	1277	run. The director may establish a biennial licensing 20
1278	1278	arrangement but in no case shall the fees be payable for 21
1279	1279	more than one year at a time. 22
1280	1280	2. Upon receipt of such fee and application for 23
1281	1281	registration, and provided the bond, if required by the 24
1282	1282	director, has been filed, the director shall issue to the 25
1283	1283	lender a certificate containing the lender's name and 26
1284	1284	address and reciting that such lender is duly and properly 27
1285	1285	registered to conduct the supervised business. The lender 28
1286	1286	shall keep this certificate of registration posted in a 29 SCS HCS HB 725 41
1287	1287	conspicuous place at the place of business recited in the 30
1288	1288	registration certificate. Where the lender engages in the 31
1289	1289	supervised business at or from more than one office or place 32
1290	1290	of business, such lender shall obtain a separate certificate 33
1291	1291	of registration for each such office or place of business. 34
1292	1292	3. Certificates of regist ration shall not be 35
1293	1293	assignable or transferable except that the lender named in 36
1294	1294	any such certificate may obtain a change of address of the 37
1295	1295	place of business therein set forth. Each certificate of 38
1296	1296	registration shall remain in full force and effect until 39
1297	1297	surrendered, revoked, or suspended as herein provided. 40
1298	1298	407.640. 1. A credit services organization shall file 1
1299	1299	a registration statement with the director of finance before 2
1300	1300	conducting business in this state. The registration 3
1301	1301	statement must contain: 4
1302	1302	(1) The name and address of the credit services 5
1303	1303	organization; and 6
1304	1304	(2) The name and address of any person who directly or 7
1305	1305	indirectly owns or controls ten percent or more of the 8
1306	1306	outstanding shares of stock in the credit servic es 9
1307	1307	organization. 10
1308	1308	2. The registration statement must also contain either: 11
1309	1309	(1) A full and complete disclosure of any litigation 12
1310	1310	or unresolved complaint filed by or with a governmental 13
1311	1311	authority of this state relating to the operation of the 14
1312	1312	credit services organization; or 15
1313	1313	(2) A notarized statement that states that there has 16
1314	1314	been no litigation or unresolved complaint filed by or with 17
1315	1315	a governmental authority of this state relating to the 18
1316	1316	operation of the credit services organization. 19
1317	1317	3. The credit services organization shall update the 20
1318	1318	statement not later than the ninetieth day after the date on 21 SCS HCS HB 725 42
1319	1319	which a change in the information required in the statement 22
1320	1320	occurs. 23
1321	1321	4. Each credit services organization registering under 24
1322	1322	this section shall maintain a copy of the registration 25
1323	1323	statement in the office of the credit services 26
1324	1324	organization. The credit services organization shall allow 27
1325	1325	a buyer to inspect the registration statement on request. 28
1326	1326	5. The director of finance may charge each credit 29
1327	1327	services organization that files a registration statement 30
1328	1328	with the director of finance a reasonable fee not to exceed 31
1329	1329	[three] four hundred dollars to cover the cost of filing. 32
1330	1330	The director of finance may not require a credit servic es 33
1331	1331	organization to provide information other than that provided 34
1332	1332	in the registration statement as part of the registration 35
1333	1333	process. 36
1334	1334	408.145. 1. To encourage competitive equality, 1
1335	1335	lenders issuing credit cards in this state pursuant t o the 2
1336	1336	authority of section 408.100 or 408.200, may [in addition to 3
1337	1337	lawful interest, contract for, charge and collect fees for ] 4
1338	1338	issue such credit cards under such terms and conditions 5
1339	1339	which any lender in any contiguous state is permitted to 6
1340	1340	[charge] utilize for credit cards issued in such contiguous 7
1341	1341	state by such state's statutes. State-chartered lenders 8
1342	1342	[charging such fees] issuing credit cards in reliance on 9
1343	1343	this subsection shall file a copy of the pertinent statutes 10
1344	1344	of one contiguous state autho rizing credit card [fees] terms 11
1345	1345	and conditions with the director of finance or such lender's 12
1346	1346	principal state regulator. The director of finance or other 13
1347	1347	principal state regulator shall, within thirty days after 14
1348	1348	receipt of the filing, approve or disapp rove of such [fees] 15
1349	1349	terms and conditions on the sole basis of whether the 16
1350	1350	statutes of such contiguous state permit such [fees] terms 17 SCS HCS HB 725 43
1351	1351	and conditions, and without regard to the restrictions 18
1352	1352	placed upon credit cards by subsection 2 of this section. 19
1353	1353	When the lender is chartered by the federal government, or 20
1354	1354	any agency thereunder, or is unregulated, such lender shall 21
1355	1355	file with and be approved by the Missouri attorney general 22
1356	1356	under the same provision as provided a state -chartered 23
1357	1357	lender. 24
1358	1358	2. "Credit card" as used in this section shall mean a 25
1359	1359	credit device defined as such in the federal Consumer Credit 26
1360	1360	Protection Act and regulations thereunder, except: 27
1361	1361	(1) The term shall be limited to credit devices which 28
1362	1362	permit the holder to purchase goods and service upon 29
1363	1363	presentation to third parties whether or not the credit card 30
1364	1364	also permits the holder to obtain loans of any other type; 31
1365	1365	and 32
1366	1366	(2) Such credit device shall only provide credit which 33
1367	1367	is not secured by real or personal property. 34
1368	1368	3. "Lender" as used in this section shall mean any 35
1369	1369	category of depository or nondepository creditor. 36
1370	1370	Notwithstanding the provisions of [section 408.140] sections 37
1371	1371	408.100 to 408.190 to the contrary , the lender shall declare 38
1372	1372	on each credit card contrac t whether the credit card [fees 39
1373	1373	are governed by section 408.140, or by ] is issued pursuant 40
1374	1374	to this section. 41
1375	1375	408.500. 1. Lenders, other than banks, trust 1
1376	1376	companies, credit unions, savings banks and savings and loan 2
1377	1377	companies, in the business of making unsecured loans of five 3
1378	1378	hundred dollars or less shall obtain a license from the 4
1379	1379	director of the division of finance. An annual license fee 5
1380	1380	of [five] six hundred dollars per location shall be 6
1381	1381	required. The license year shall commen ce on January first 7
1382	1382	each year and the license fee may be prorated for expired 8 SCS HCS HB 725 44
1383	1383	months. The director may establish a biennial licensing 9
1384	1384	arrangement but in no case shall the fees be payable for 10
1385	1385	more than one year at a time. The provisions of this 11
1386	1386	section shall not apply to pawnbroker loans, consumer credit 12
1387	1387	loans as authorized under chapter 367, nor to a check 13
1388	1388	accepted and deposited or cashed by the payee business on 14
1389	1389	the same or the following business day. The disclosures 15
1390	1390	required by the federal Tru th in Lending Act and regulation 16
1391	1391	Z shall be provided on any loan, renewal or extension made 17
1392	1392	pursuant to this section and the loan, renewal or extension 18
1393	1393	documents shall be signed by the borrower. 19
1394	1394	2. Entities making loans pursuant to this section 20
1395	1395	shall contract for and receive simple interest and fees in 21
1396	1396	accordance with sections 408.100 and 408.140. Any contract 22
1397	1397	evidencing any fee or charge of any kind whatsoever, except 23
1398	1398	for bona fide clerical errors, in violation of this section 24
1399	1399	shall be void. Any person, firm or corporation who receives 25
1400	1400	or imposes a fee or charge in violation of this section 26
1401	1401	shall be guilty of a class A misdemeanor. 27
1402	1402	3. Notwithstanding any other law to the contrary, cost 28
1403	1403	of collection expenses, which include court cos ts and 29
1404	1404	reasonable attorneys fees, awarded by the court in suit to 30
1405	1405	recover on a bad check or breach of contract shall not be 31
1406	1406	considered as a fee or charge for purposes of this section. 32
1407	1407	4. Lenders licensed pursuant to this section shall 33
1408	1408	conspicuously post in the lobby of the office, in at least 34
1409	1409	fourteen-point bold type, the maximum annual percentage 35
1410	1410	rates such licensee is currently charging and the statement: 36
1411	1411	NOTICE: 37
1412	1412	This lender offers short -term loans. Please 38
1413	1413	read and understand the terms of t he loan 39
1414	1414	agreement before signing. 40 SCS HCS HB 725 45
1415	1415	5. The lender shall provide the borrower with a notice 41
1416	1416	in substantially the following form set forth in at least 42
1417	1417	ten-point bold type, and receipt thereof shall be 43
1418	1418	acknowledged by signature of the borrower: 44
1419	1419	(1) This lender offers short -term loans. 45
1420	1420	Please read and understand the terms of the loan 46
1421	1421	agreement before signing. 47
1422	1422	(2) You may cancel this loan without costs by 48
1423	1423	returning the full principal balance to the 49
1424	1424	lender by the close of the lender's next full 50
1425	1425	business day. 51
1426	1426	6. The lender shall renew the loan upon the borrower's 52
1427	1427	written request and the payment of any interest and fees due 53
1428	1428	at the time of such renewal; however, upon the first renewal 54
1429	1429	of the loan agreement, and each subsequent renewal 55
1430	1430	thereafter, the borrower shall reduce the principal amount 56
1431	1431	of the loan by not less than five percent of the original 57
1432	1432	amount of the loan until such loan is paid in full. 58
1433	1433	However, no loan may be renewed more than six times. 59
1434	1434	7. When making or negotiating loans, a licensee shall 60
1435	1435	consider the financial ability of the borrower to reasonably 61
1436	1436	repay the loan in the time and manner specified in the loan 62
1437	1437	contract. All records shall be retained at least two years. 63
1438	1438	8. A licensee who ceases business pursuan t to this 64
1439	1439	section must notify the director to request an examination 65
1440	1440	of all records within ten business days prior to cessation. 66
1441	1441	All records must be retained at least two years. 67
1442	1442	9. Any lender licensed pursuant to this section who 68
1443	1443	fails, refuses or neglects to comply with the provisions of 69
1444	1444	this section, or any laws relating to consumer loans or 70
1445	1445	commits any criminal act may have its license suspended or 71
1446	1446	revoked by the director of finance after a hearing before 72 SCS HCS HB 725 46
1447	1447	the director on an order of the di rector to show cause why 73
1448	1448	such order of suspension or revocation should not be entered 74
1449	1449	specifying the grounds therefor which shall be served on the 75
1450	1450	licensee at least ten days prior to the hearing. 76
1451	1451	10. Whenever it shall appear to the director that a ny 77
1452	1452	lender licensed pursuant to this section is failing, 78
1453	1453	refusing or neglecting to make a good faith effort to comply 79
1454	1454	with the provisions of this section, or any laws relating to 80
1455	1455	consumer loans, the director may issue an order to cease and 81
1456	1456	desist which order may be enforceable by a civil penalty of 82
1457	1457	not more than one thousand dollars per day for each day that 83
1458	1458	the neglect, failure or refusal shall continue. The penalty 84
1459	1459	shall be assessed and collected by the director. In 85
1460	1460	determining the amount of the penalty, the director shall 86
1461	1461	take into account the appropriateness of the penalty with 87
1462	1462	respect to the gravity of the violation, the history of 88
1463	1463	previous violations, and such other matters as justice may 89
1464	1464	require. 90
1465	1465	436.550. Sections 436.550 to 436.570 shall be known 1
1466	1466	and may be cited as the "Consumer Legal Funding Act". 2
1467	1467	436.552. As used in sections 436.550 to 436.570, the 1
1468	1468	following terms mean: 2
1469	1469	(1) "Advertise", publishing or disseminating any 3
1470	1470	written, electronic, or printed communication or any 4
1471	1471	communication by means of recorded telephone messages or 5
1472	1472	transmitted on radio, television, the internet, or similar 6
1473	1473	communications media, including film strips, motion 7
1474	1474	pictures, and videos, published, disseminated, ci rculated, 8
1475	1475	or placed before the public, directly or indirectly, for the 9
1476	1476	purpose of inducing a consumer to enter into a consumer 10
1477	1477	legal funding contract; 11 SCS HCS HB 725 47
1478	1478	(2) "Charges", the amount of moneys to be paid to the 12
1479	1479	consumer legal funding company by or on b ehalf of the 13
1480	1480	consumer above the funded amount provided by or on behalf of 14
1481	1481	the company to a consumer under sections 436.550 to 15
1482	1482	436.570. Charges include all administrative, origination, 16
1483	1483	underwriting, or other fees, no matter how denominated; 17
1484	1484	(3) "Consumer", a natural person who has a legal claim 18
1485	1485	and resides or is domiciled in Missouri; 19
1486	1486	(4) "Consumer legal funding company" or "company", a 20
1487	1487	person or entity that enters into a consumer legal funding 21
1488	1488	contract with a consumer. The term shall not include: 22
1489	1489	(a) An immediate family member of the consumer; 23
1490	1490	(b) A bank, lender, financing entity, or other special 24
1491	1491	purpose entity: 25
1492	1492	a. That provides financing to a consumer legal funding 26
1493	1493	company; or 27
1494	1494	b. To which a consumer legal fund ing company grants a 28
1495	1495	security interest or transfers any rights or interest in a 29
1496	1496	consumer legal funding; or 30
1497	1497	(c) An attorney or accountant who provides services to 31
1498	1498	a consumer; 32
1499	1499	(5) "Consumer legal funding contract", a nonrecourse 33
1500	1500	contractual transaction in which a consumer legal funding 34
1501	1501	company purchases and a consumer assigns to the company a 35
1502	1502	contingent right to receive an amount of the potential 36
1503	1503	proceeds of a settlement, judgment, award, or verdict 37
1504	1504	obtained in the consumer's legal claim; 38
1505	1505	(6) "Director", the director of the division of 39
1506	1506	finance within the department of commerce and insurance; 40
1507	1507	(7) "Division", the division of finance within the 41
1508	1508	department of commerce and insurance; 42 SCS HCS HB 725 48
1509	1509	(8) "Funded amount", the amount of moneys provided to 43
1510	1510	or on behalf of the consumer in the consumer legal funding 44
1511	1511	contract. "Funded amount" shall not include charges; 45
1512	1512	(9) "Funding date", the date on which the funded 46
1513	1513	amount is transferred to the consumer by the consumer legal 47
1514	1514	funding company either by personal delivery, via wire, 48
1515	1515	automated clearing house transfer, or other electronic 49
1516	1516	means, or by insured, certified, or registered United States 50
1517	1517	mail; 51
1518	1518	(10) "Immediate family member", a parent; sibling; 52
1519	1519	child by blood, adoption, or m arriage; spouse; grandparent; 53
1520	1520	or grandchild; 54
1521	1521	(11) "Legal claim", a bona fide civil claim or cause 55
1522	1522	of action, any alternative dispute resolution proceeding, or 56
1523	1523	any administrative proceeding before any agency or 57
1524	1524	instrumentality of this state; 58
1525	1525	(12) "Medical provider", any person or business 59
1526	1526	providing medical services of any kind to a consumer 60
1527	1527	including, but not limited to, physicians, nurse 61
1528	1528	practitioners, hospitals, physical therapists, 62
1529	1529	chiropractors, or radiologists as well as any of their 63
1530	1530	employees or contractors or any practice groups, 64
1531	1531	partnerships, or incorporations of the same; 65
1532	1532	(13) "Resolution date", the date the amount funded to 66
1533	1533	the consumer, plus the agreed -upon charges, is delivered to 67
1534	1534	the consumer legal funding company. 68
1535	1535	436.554. 1. All consumer legal funding contracts 1
1536	1536	shall meet the following requirements: 2
1537	1537	(1) The contract shall be completely filled in when 3
1538	1538	presented to the consumer for signature; 4
1539	1539	(2) The contract shall contain, in bold and boxed 5
1540	1540	type, a right of rescission allowing the consumer to cancel 6 SCS HCS HB 725 49
1541	1541	the contract without penalty or further obligation if, 7
1542	1542	within five business days after the funding date, the 8
1543	1543	consumer either: 9
1544	1544	(a) Returns the full amount of the disbursed fund s to 10
1545	1545	the consumer legal funding company by delivering the 11
1546	1546	company's uncashed check to the company's office in person; 12
1547	1547	or 13
1548	1548	(b) Mails a notice of cancellation by insured, 14
1549	1549	certified, or registered United States mail to the address 15
1550	1550	specified in the contract and includes a return of the full 16
1551	1551	amount of disbursed funds in such mailing in the form of the 17
1552	1552	company's uncashed check or a registered or certified check 18
1553	1553	or money order; 19
1554	1554	(3) The contract shall contain the initials of the 20
1555	1555	consumer on each page; and 21
1556	1556	(4) The contract shall require the consumer to give 22
1557	1557	nonrevocable written direction to the consumer's attorney 23
1558	1558	requiring the attorney to notify the consumer legal funding 24
1559	1559	company when the legal claim has been resolved. Once the 25
1560	1560	consumer legal funding company confirms in writing the 26
1561	1561	amount due under the contract, the consumer's attorney shall 27
1562	1562	pay, from the proceeds of the resolution of the legal claim, 28
1563	1563	the consumer legal funding company the amount due within ten 29
1564	1564	business days. 30
1565	1565	2. The consumer legal funding company shall provide 31
1566	1566	the consumer's attorney with a written notification of the 32
1567	1567	consumer legal funding contract provided to the consumer 33
1568	1568	within three business days of the funding date by way of 34
1569	1569	postal mail, courier servic e, facsimile, or other means of 35
1570	1570	proof of delivery method. 36 SCS HCS HB 725 50
1571	1571	3. A consumer legal funding contract shall be entered 37
1572	1572	into only if the contract involves an existing legal claim 38
1573	1573	in which the consumer is represented by an attorney. 39
1574	1574	436.556. No consumer legal funding company shall: 1
1575	1575	(1) Pay or offer to pay commissions, referral fees, or 2
1576	1576	other forms of consideration to any attorney, law firm, 3
1577	1577	medical provider, chiropractor, or physical therapist or any 4
1578	1578	of their employees for refer ring a consumer to the company; 5
1579	1579	(2) Accept any commissions, referral fees, rebates, or 6
1580	1580	other forms of consideration from an attorney, law firm, 7
1581	1581	medical provider, chiropractor, or physical therapist or any 8
1582	1582	of their employees; 9
1583	1583	(3) Intentionally advertise materially false or 10
1584	1584	misleading information regarding its products or services; 11
1585	1585	(4) Refer, in furtherance of an initial legal funding, 12
1586	1586	a customer or potential customer to a specific attorney, law 13
1587	1587	firm, medical provider, chiropractor, or physical therapist 14
1588	1588	or any of their employees. However, the company may refer 15
1589	1589	the customer to a local or state bar association referral 16
1590	1590	service if a customer needs legal representation; 17
1591	1591	(5) Fail to promptly supply a copy of the executed 18
1592	1592	contract to the consumer's attorney; 19
1593	1593	(6) Knowingly provide funding to a consumer who has 20
1594	1594	previously assigned or sold a portion of the right to 21
1595	1595	proceeds from the consumer's legal claim unless the consumer 22
1596	1596	legal funding company pays or purchases the entire 23
1597	1597	unsatisfied funded amount and contracted charges from the 24
1598	1598	prior consumer legal funding company or the two companies 25
1599	1599	agree to a lesser amount in writing. However, multiple 26
1600	1600	companies may agree to contemporaneously provide funding to 27
1601	1601	a consumer, provided that the consumer and the consumer's 28
1602	1602	attorney consent to the arrangement in writing; 29 SCS HCS HB 725 51
1603	1603	(7) Receive any right to or make any decisions with 30
1604	1604	respect to the conduct of the underlying legal claim or any 31
1605	1605	settlement or resolution thereof. The right to make such 32
1606	1606	decisions shall remain solely with the consumer and the 33
1607	1607	attorney in the legal claim; or 34
1608	1608	(8) Knowingly pay or offer to pay for court costs, 35
1609	1609	filing fees, or attorney's fees either during or after the 36
1610	1610	resolution of the legal claim by using funds from the 37
1611	1611	consumer legal funding contract. The consumer legal funding 38
1612	1612	contract shall include a provision advising the consumer 39
1613	1613	that the funding shall not be used for such costs or fees. 40
1614	1614	436.558. 1. The contracted amount to be paid to the 1
1615	1615	consumer legal funding company shall be set as a 2
1616	1616	predetermined amount based upon intervals of time from the 3
1617	1617	funding date to the resolution date and shall not be 4
1618	1618	determined as a percentage of the recovery from the legal 5
1619	1619	claim. 6
1620	1620	2. No consumer legal funding contract shall be valid 7
1621	1621	if its terms exceed a period of forty -eight months. No 8
1622	1622	consumer legal funding contract shall be automatically 9
1623	1623	renewed. 10
1624	1624	436.560. All consumer legal funding contracts shall 1
1625	1625	contain the disclosures specified in this section, which 2
1626	1626	shall constitute material terms of the contract. Unless 3
1627	1627	otherwise specified, the disclosures shall be typed in at 4
1628	1628	least twelve-point bold-type font and be placed clearly and 5
1629	1629	conspicuously within the contract , as follows: 6
1630	1630	(1) On the front page under appropriate headings, 7
1631	1631	language specifying: 8
1632	1632	(a) The funded amount to be paid to the consumer by 9
1633	1633	the consumer legal funding company; 10
1634	1634	(b) An itemization of one -time charges; 11 SCS HCS HB 725 52
1635	1635	(c) The total amount to be assigned by the consumer to 12
1636	1636	the company, including the funded amount and all charges; and 13
1637	1637	(d) A payment schedule to include the funded amount 14
1638	1638	and charges, listing all dates and the amount due at the end 15
1639	1639	of each six-month period from the funding date until the 16
1640	1640	date the maximum amount due to the company by the consumer 17
1641	1641	to satisfy the amount due pursuant to the contract; 18
1642	1642	(2) Within the body of the contract, in accordance 19
1643	1643	with the provisions under subdivision (2) of subsection 1 of 20
1644	1644	section 436.554: "Consumer's Right to Cancellation": You may 21
1645	1645	cancel this contract without penalty or further obligation 22
1646	1646	within five business days after the funding date if you 23
1647	1647	either: 24
1648	1648	(a) Return the full amount of the disbursed funds to 25
1649	1649	the consumer legal funding company by delivering the 26
1650	1650	company's uncashed check to the company's office in person; 27
1651	1651	or 28
1652	1652	(b) Mail a notice of cancellation by insured, 29
1653	1653	certified, or registered United States mail to the company 30
1654	1654	at the address specified in the co ntract and include a 31
1655	1655	return of the full amount of disbursed funds in such mailing 32
1656	1656	in the form of the company's uncashed check or a registered 33
1657	1657	or certified check or money order; 34
1658	1658	(3) Within the body of the contract, language 35
1659	1659	specifying that the con sumer legal funding company shall 36
1660	1660	have no role in deciding whether, when, or for how much the 37
1661	1661	legal claim is settled and that the consumer or the 38
1662	1662	consumer's attorney shall notify the company of whether the 39
1663	1663	outcome of the legal claim will be by settleme nt or by 40
1664	1664	adjudication prior to the resolution date. The company may 41
1665	1665	seek updated information about the status of the legal claim 42
1666	1666	but in no event shall the company interfere with the 43 SCS HCS HB 725 53
1667	1667	independent professional judgment of the attorney in the 44
1668	1668	handling of the legal claim or any settlement thereof; 45
1669	1669	(4) Within the body of the contract, in all capital 46
1670	1670	letters and in at least twelve -point bold-type font 47
1671	1671	contained within a box: "THE FUNDED AMOUNT AND AGREED -UPON 48
1672	1672	CHARGES SHALL BE PAID ONLY FROM THE PROC EEDS OF YOUR LEGAL 49
1673	1673	CLAIM AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE 50
1674	1674	AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. IF THERE IS NO 51
1675	1675	RECOVERY OF ANY DAMAGES FROM YOUR LEGAL CLAIM OR IF THERE IS 52
1676	1676	NOT ENOUGH MONEY TO PAY BACK THE CONSUMER LEGAL FUNDING 53
1677	1677	COMPANY IN FULL, YOU WILL NOT BE OBLIGATED TO PAY THE 54
1678	1678	CONSUMER LEGAL FUNDING COMPANY ANYTHING IN EXCESS OF YOUR 55
1679	1679	RECOVERY UNLESS YOU HAVE VIOLATED THIS CONTRACT. YOU WILL 56
1680	1680	NOT OWE (INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY) 57
1681	1681	ANYTHING IF THERE AR E NO PROCEEDS FROM YOUR LEGAL CLAIM 58
1682	1682	UNLESS YOU OR YOUR ATTORNEY HAVE VIOLATED ANY MATERIAL TERM 59
1683	1683	OF THIS CONTRACT OR UNLESS YOU HAVE COMMITTED FRAUD AGAINST 60
1684	1684	THE CONSUMER LEGAL FUNDING COMPANY."; and 61
1685	1685	(5) Located immediately above the place on the 62
1686	1686	contract where the consumer's signature is required, in 63
1687	1687	twelve-point font: "Do not sign this contract before you 64
1688	1688	read it completely or if it contains any blank spaces. You 65
1689	1689	are entitled to a completely filled -in copy of the 66
1690	1690	contract. Before you sign this contract, you should obtain 67
1691	1691	the advice of an attorney. Depending on the circumstances, 68
1692	1692	you may want to consult a tax, public or private benefits 69
1693	1693	planning, or financial professional. You acknowledge that 70
1694	1694	your attorney in the legal claim has provide d no tax, public 71
1695	1695	or private benefit planning, or financial advice regarding 72
1696	1696	this transaction." 73
1697	1697	436.562. 1. Nothing in sections 436.550 to 436.570 1
1698	1698	shall be construed to restrict the exercise of powers or the 2 SCS HCS HB 725 54
1699	1699	performance of the dutie s of the state attorney general that 3
1700	1700	he or she is authorized to exercise or perform by law. 4
1701	1701	2. If a court of competent jurisdiction determines 5
1702	1702	that a consumer legal funding company has intentionally 6
1703	1703	violated the provisions of sections 436.550 to 4 36.570 in a 7
1704	1704	consumer legal funding contract, the consumer legal funding 8
1705	1705	contract shall be voided. 9
1706	1706	436.564. 1. The contingent right to receive an amount 1
1707	1707	of the potential proceeds of a legal claim is assignable. 2
1708	1708	2. Nothing contained in sections 436.550 to 436.570 3
1709	1709	shall be construed to cause any consumer legal funding 4
1710	1710	contract conforming to sections 436.550 to 436.570 to be 5
1711	1711	deemed a loan or to be subject to any of the provisions 6
1712	1712	governing loans. A consumer legal funding contr act that 7
1713	1713	complies with sections 436.550 to 436.570 is not subject to 8
1714	1714	any other statutory or regulatory provisions governing loans 9
1715	1715	or investment contracts. To the extent that sections 10
1716	1716	436.550 to 436.570 conflict with any other law, such 11
1717	1717	sections shall supersede the other law for the purposes of 12
1718	1718	regulating consumer legal funding in this state. 13
1719	1719	3. Only attorney's liens related to the legal claim, 14
1720	1720	Medicare, or other statutory liens related to the legal 15
1721	1721	claim shall take priority over claims to pro ceeds from the 16
1722	1722	consumer legal funding company. All other liens and claims 17
1723	1723	shall take priority by normal operation of law. 18
1724	1724	4. No consumer legal funding company shall report a 19
1725	1725	consumer to a credit reporting agency if insufficient funds 20
1726	1726	remain from the net proceeds to repay the company. 21
1727	1727	436.566. An attorney or law firm retained by the 1
1728	1728	consumer in the legal claim shall not have a financial 2
1729	1729	interest in the consumer legal funding company offering 3
1730	1730	consumer legal funding to that co nsumer. Additionally, any 4 SCS HCS HB 725 55
1731	1731	practicing attorney who has referred the consumer to his or 5
1732	1732	her retained attorney shall not have a financial interest in 6
1733	1733	the consumer legal funding company offering consumer legal 7
1734	1734	funding to that consumer. 8
1735	1735	436.568. No communication between the consumer's 1
1736	1736	attorney in the legal claim and the consumer legal funding 2
1737	1737	company as it pertains to the consumer legal funding 3
1738	1738	contract shall limit, waive, or abrogate the scope or nature 4
1739	1739	of any statutory or common -law privilege, including the work - 5
1740	1740	product doctrine and attorney -client privilege. 6
1741	1741	436.570. 1. A consumer legal funding company shall 1
1742	1742	not engage in the business of consumer legal funding in this 2
1743	1743	state, unless it has first obtained a li cense from the 3
1744	1744	division of finance. 4
1745	1745	2. A consumer legal funding company's initial or 5
1746	1746	renewal license application shall be in writing, made under 6
1747	1747	oath, and on a form provided by the director. 7
1748	1748	3. Every consumer legal funding company, at the ti me 8
1749	1749	of filing a license application, shall pay the sum of five 9
1750	1750	hundred dollars for a period ending the thirtieth day of 10
1751	1751	June next following the date of payment; and thereafter a 11
1752	1752	like fee shall be paid on or before June thirtieth of each 12
1753	1753	year and shall be credited to the division of finance fund. 13
1754	1754	4. A consumer legal funding license shall not be 14
1755	1755	issued unless the division of finance, upon investigation, 15
1756	1756	finds that the character and fitness of the applicant 16
1757	1757	company, and of the officers and directo rs thereof, are such 17
1758	1758	as to warrant belief that the business shall operate 18
1759	1759	honestly and fairly within the purposes of sections 436.550 19
1760	1760	to 436.570. 20
1761	1761	5. Every applicant shall also, at the time of filing 21
1762	1762	such application, file a bond satisfactory to t he division 22 SCS HCS HB 725 56
1763	1763	of finance in an amount not to exceed fifty thousand 23
1764	1764	dollars. The bond shall provide that the applicant shall 24
1765	1765	faithfully conform to and abide by the provisions of 25
1766	1766	sections 436.550 to 436.570, to all rules lawfully made by 26
1767	1767	the director under sections 436.550 to 436.570, and to any 27
1768	1768	such person or persons any and all amounts of moneys that 28
1769	1769	may become due or owing to the state or to such person or 29
1770	1770	persons from the applicant under and by virtue of sections 30
1771	1771	436.550 to 436.570, which shall co ver any actions that 31
1772	1772	occurred while the bond was in place for the applicable 32
1773	1773	period of limitations under statute and so long as the bond 33
1774	1774	is not exhausted by valid claims. 34
1775	1775	6. When an action is commenced on a licensee's bond, 35
1776	1776	the director may requi re the filling of a new bond. 36
1777	1777	Immediately upon any recovery on the bond, the licensee 37
1778	1778	shall file a new bond. 38
1779	1779	7. In order to ensure the effective supervision and 39
1780	1780	enforcement of sections 436.550 to 436.570, the director 40
1781	1781	may, after a contested hear ing under chapter 536: 41
1782	1782	(1) Deny, suspend, revoke, condition, or decline to 42
1783	1783	renew a license for a violation of sections 436.550 to 43
1784	1784	436.570, rules issued under sections 436.550 to 436.570, or 44
1785	1785	order or directive entered under sections 436.550 to 436. 570; 45
1786	1786	(2) Deny, suspend, revoke, condition, or decline to 46
1787	1787	renew a license if an applicant or licensee fails at any 47
1788	1788	time meet the requirements of sections 436.550 to 436.570, 48
1789	1789	or withholds information or makes a material misstatement in 49
1790	1790	an application for a license or renewal of a license; 50
1791	1791	(3) Order restitution against persons subject to 51
1792	1792	sections 436.550 to 436.570 for violations of sections 52
1793	1793	436.550 to 436.570; and 53 SCS HCS HB 725 57
1794	1794	(4) Order or direct such other affirmative action as 54
1795	1795	the director deems necessary. 55
1796	1796	8. Any letter issued by the director and declaring 56
1797	1797	grounds for denying or declining to grant or renew a license 57
1798	1798	may be appealed to the circuit court of Cole County. All 58
1799	1799	other matters presenting a contested case involving a 59
1800	1800	licensee may be heard by the director under chapter 536. 60
1801	1801	9. Notwithstanding the prior approval requirement of 61
1802	1802	subsection 1 of this section, a consumer legal funding 62
1803	1803	company that has applied with the division of finance 63
1804	1804	between the effective date of sections 436.550 to 436.570 64
1805	1805	and six months thereafter may engage in consumer legal 65
1806	1806	funding while the license application of the company or an 66
1807	1807	affiliate of the company is awaiting approval by the 67
1808	1808	division of finance. All funding contracts in effect prior 68
1809	1809	to the effective date of sections 436.550 to 436.570 are not 69
1810	1810	subject to the terms of sections 436.550 to 436.570. 70
1811	1811	10. Whenever it shall appear to the director that any 71
1812	1812	consumer legal funding company is failing, refusing or 72
1813	1813	neglecting to make a good fa ith effort to comply with the 73
1814	1814	provisions of sections 436.550 to 436.570, or any laws or 74
1815	1815	rules relating to consumer legal funding, the director may 75
1816	1816	issue an order to cease and desist which order may be 76
1817	1817	enforceable by a civil penalty of not more than one thousand 77
1818	1818	dollars per day for each day that the neglect, failure, or 78
1819	1819	refusal shall continue. The penalty shall be assessed and 79
1820	1820	collected by the director. In determining the amount of the 80
1821	1821	penalty, the director shall take into account the 81
1822	1822	appropriateness of the penalty of previous violations, and 82
1823	1823	such other matters as justice may require. 83
1824	1824	11. In the event any consumer legal funding company 84
1825	1825	fails, refuses, or neglects to comply with the provisions of 85 SCS HCS HB 725 58
1826	1826	sections 436.550 to 436.570, or of any laws or rules of the 86
1827	1827	state of Missouri relating to consumer legal funding, its 87
1828	1828	license may be suspended or revoked by order of the director 88
1829	1829	after a hearing before said director on any order to show 89
1830	1830	cause why such order of suspension or revocation should not 90
1831	1831	be entered specifying the grounds therefor which shall be 91
1832	1832	served on the particular consumer legal funding company at 92
1833	1833	least ten days prior to the hearing. Any order made and 93
1834	1834	entered by the director may be appealed to the circuit court 94
1835	1835	of Cole County. 95
1836	1836	12. The division shall conduct an examination of each 96
1837	1837	consumer funding company at least once every twenty -four 97
1838	1838	months and such other times as the director may determine. 98
1839	1839	(1) In connection with any such investigation or 99
1840	1840	examination, the dire ctor and his or her representatives 100
1841	1841	shall have free and immediate access to the place or places 101
1842	1842	of business and the books and records, and shall have the 102
1843	1843	authority to place under oath all persons whose testimony 103
1844	1844	may be required relative to the affairs and business of the 104
1845	1845	consumer legal funding company. 105
1846	1846	(2) The director may also make such special 106
1847	1847	investigations or examination as the director deems 107
1848	1848	necessary to determine whether any consumer legal funding 108
1849	1849	company has violated any of the provisio ns of sections 109
1850	1850	436.550 to 436.570 or rules promulgated thereunder; and may 110
1851	1851	assess the reasonable costs of any investigation or 111
1852	1852	examination incurred by the division to the company. 112
1853	1853	13. The division of finance shall have the authority 113
1854	1854	to promulgate rules to carry out the provisions of sections 114
1855	1855	436.550 to 436.570. Any rule or portion of a rule, as that 115
1856	1856	term is defined in section 536.010, that is created under 116
1857	1857	the authority delegated in this section shall become 117 SCS HCS HB 725 59
1858	1858	effective only if it complies with and is subject to all of 118
1859	1859	the provisions of chapter 536 and, if applicable, section 119
1860	1860	536.028. This section and chapter 536 are nonseverable, and 120
1861	1861	if any of the powers vested with the general assembly 121
1862	1862	pursuant to chapter 536 to review, to delay the effec tive 122
1863	1863	date, or to disapprove and annul a rule are subsequently 123
1864	1864	held unconstitutional, then the grant of rulemaking 124
1865	1865	authority and any rule proposed or adopted after August 28, 125
1866	1866	2023, shall be invalid and void. 126
1867	1867	436.571. Sections 436.571 to 436.580 shall be known 1
1868	1868	and may be cited as the "Consumer Litigation Financing 2
1869	1869	Act". As used in sections 436.571 to 436.580, the following 3
1870	1870	terms mean: 4
1871	1871	(1) "Consumer", any natural person who resides, is 5
1872	1872	present, or is domiciled in this state o r who is or may 6
1873	1873	become a plaintiff or complainant in a lawsuit or other 7
1874	1874	legal dispute in this state; 8
1875	1875	(2) "Legal claim", a bona fide civil claim or cause of 9
1876	1876	action, any alternative dispute resolution proceeding, or 10
1877	1877	any administrative proceeding be fore any agency or 11
1878	1878	instrumentality of this state; 12
1879	1879	(3) "Legal representative", an attorney, group of 13
1880	1880	attorneys, law firm, or other party who may represent a 14
1881	1881	person or persons in a legal dispute in this state; 15
1882	1882	(4) "Litigation activities", any legal work and advice 16
1883	1883	directly related to the prosecution of a legal claim 17
1884	1884	including filings, legal document preparation and drafting, 18
1885	1885	appeals, creation of a litigation strategy, drafting 19
1886	1886	testimony, and related litigation. Funds provided to a 20
1887	1887	consumer for his or her personal needs and use are not 21
1888	1888	litigation activities; 22 SCS HCS HB 725 60
1889	1889	(5) "Litigation financer", a person, group of persons, 23
1890	1890	or legal entity engaged in the business of litigation 24
1891	1891	financing or any other mechanism created with the intent of 25
1892	1892	so doing; 26
1893	1893	(6) "Litigation financing", the funding of litigation 27
1894	1894	activities by entities other than the parties themselves, 28
1895	1895	their counsel, or other entities with a preexisting 29
1896	1896	contractual relationship with one of the parties, such as an 30
1897	1897	indemnitor or a liability insurer; 31
1898	1898	(7) "Litigation financing transaction", a nonrecourse 32
1899	1899	transaction in which financing is provided to a consumer in 33
1900	1900	return for a consumer assigning to the litigation financer a 34
1901	1901	contingent right to receive an amount of the potential 35
1902	1902	proceeds of the consumer's judgment, award, settlement, or 36
1903	1903	verdict obtained with respect to the consumer's legal claim 37
1904	1904	or agreeing to pay the litigation financer interest or other 38
1905	1905	fees for the financing provided. "Litigation financing" 39
1906	1906	shall not include legal representation services provided to 40
1907	1907	a consumer on a contingency fee basis, or legal costs 41
1908	1908	advanced by a legal representative, if such services or 42
1909	1909	costs are provided to or on behalf of a consumer by an 43
1910	1910	attorney representing the consumer in th e dispute and in 44
1911	1911	accordance with rule 4 of the rules of the supreme court; 45
1912	1912	(8) "Medical provider", any person or business 46
1913	1913	providing medical services of any kind to a consumer 47
1914	1914	including, but not limited to, physicians, nurse 48
1915	1915	practitioners, hospita ls, physical therapists, 49
1916	1916	chiropractors, or radiologists as well as any of their 50
1917	1917	employees or contractors or any practice groups, 51
1918	1918	partnerships, or incorporations of the same. 52 SCS HCS HB 725 61
1919	1919	436.572. 1. A litigation financer shall not engage in 1
1920	1920	the business of litigation financing in this state, unless 2
1921	1921	it has first obtained a license from the division of finance. 3
1922	1922	2. A litigation financer's initial or renewal license 4
1923	1923	application shall be in writing, made under oath, and on a 5
1924	1924	form provided by the director. 6
1925	1925	3. Every litigation financer at the time of filing a 7
1926	1926	license application, shall pay the sum of five hundred fifty 8
1927	1927	dollars for the period ending the thirtieth day of June next 9
1928	1928	following the date of payment; and thereafter a like fee 10
1929	1929	shall be paid on or before June thirtieth of each year and 11
1930	1930	shall be credited to the division of finance fund. 12
1931	1931	4. A litigation financer license shall not be issued 13
1932	1932	unless the division of finance, upon investigation, finds 14
1933	1933	that the character and fi tness of the applicant company, and 15
1934	1934	of the officers and directors thereof, are such as to 16
1935	1935	warrant belief that the business shall operate honestly and 17
1936	1936	fairly within the purposes of sections 436.571 to 436.580. 18
1937	1937	5. Every applicant shall also, at the time of filing 19
1938	1938	such application, file a bond satisfactory to the division 20
1939	1939	of finance in an amount not to exceed fifty thousand 21
1940	1940	dollars. The bond shall provide that the applicant shall 22
1941	1941	faithfully conform to and abide by the provisions of 23
1942	1942	sections 436.571 to 436.580, to all rules lawfully made by 24
1943	1943	the director under sections 436.571 to 436.580, and to any 25
1944	1944	such person or persons any and all amounts of moneys that 26
1945	1945	may become due or owing to the state or to such person or 27
1946	1946	persons from the licensee under and by virtue of sections 28
1947	1947	436.571 to 436.580, which shall cover any actions that 29
1948	1948	occurred while the bond was in place for the applicable 30
1949	1949	period of limitations under statute and so long as the bond 31
1950	1950	is not exhausted by valid claims. 32 SCS HCS HB 725 62
1951	1951	6. When an action is commenced on a licensee's bond, 33
1952	1952	the director may require the filing of a new bond. 34
1953	1953	Immediately upon any recovery on the bond, the licensee 35
1954	1954	shall file a new bond. 36
1955	1955	7. In order to ensure the effective supervision and 37
1956	1956	enforcement of sections 436.571 to 436.580, the director 38
1957	1957	may, after a contested hearing under chapter 536: 39
1958	1958	(1) Deny, suspend, revoke, condition, or decline to 40
1959	1959	renew a license for a violation of sections 436.571 to 41
1960	1960	436.580, rules issued under sections 436.571 to 436.580, or 42
1961	1961	order or directive entered under sections 436.571 to 436.580; 43
1962	1962	(2) Deny, suspend, revoke, condition, or decline to 44
1963	1963	renew a license if an applicant or licensee fails at any 45
1964	1964	time to meet the requirements of sections 436.571 to 46
1965	1965	436.580, or withholds information or makes a material 47
1966	1966	misstatement in an application for a license or renewal of a 48
1967	1967	license; 49
1968	1968	(3) Order restitution against persons subject to 50
1969	1969	sections 436.571 to 436.580 for violations of sections 51
1970	1970	436.571 to 436.580; and 52
1971	1971	(4) Order or direct such other affirmative action as 53
1972	1972	the director deems necessary. 54
1973	1973	8. Any letter issued by the director and declaring 55
1974	1974	grounds for denying or declining to grant or renew a license 56
1975	1975	may be appealed to the circuit court of Cole County. All 57
1976	1976	other matters presenting a contested case involving a 58
1977	1977	licensee may be heard by the director under chapter 536. 59
1978	1978	9. Whenever it shall appear to the director that any 60
1979	1979	litigation financer is refusing or neglecting to make a good 61
1980	1980	faith effort to compl y with the provisions of sections 62
1981	1981	436.571 to 436.580, or any laws or rules relating to 63
1982	1982	litigation financing, the director may issue an order to 64 SCS HCS HB 725 63
1983	1983	cease and desist, which order may be enforceable by a civil 65
1984	1984	penalty of not more than one thousand dollars pe r day for 66
1985	1985	each day that the neglect, failure, or refusal shall 67
1986	1986	continue. The penalty shall be assessed and collected by 68
1987	1987	the director. In determining the amount of the penalty, the 69
1988	1988	director shall take into account the appropriateness of the 70
1989	1989	penalty with respect to the gravity of the violation, the 71
1990	1990	history of previous violations, and such other matters as 72
1991	1991	justice may require. 73
1992	1992	10. In the event any litigation financer fails, 74
1993	1993	refuses, or neglects to comply with the provisions of 75
1994	1994	sections 436.571 to 436.580, or of any laws or rules of the 76
1995	1995	state of Missouri relating to litigation financing, its 77
1996	1996	license may be suspended or revoked by order of the director 78
1997	1997	after a hearing before said director on any order to show 79
1998	1998	cause why such order of suspensio n or revocation should not 80
1999	1999	be entered specifying the grounds therefor which shall be 81
2000	2000	served on the particular litigation financer at least ten 82
2001	2001	days prior to the hearing. Any order made and entered by 83
2002	2002	the director may be appealed to the circuit court o f Cole 84
2003	2003	County. 85
2004	2004	11. The division shall conduct an examination of each 86
2005	2005	litigation financer at least once every twenty -four months 87
2006	2006	and such other times as the director may determine. 88
2007	2007	(1) In connection with any such investigation or 89
2008	2008	examination, the director and his or her representatives 90
2009	2009	shall have free and immediate access to the place or places 91
2010	2010	of business and the books and records, and shall have the 92
2011	2011	authority to place under oath all persons whose testimony 93
2012	2012	may be required relative to th e affairs and business of the 94
2013	2013	litigation financer. 95 SCS HCS HB 725 64
2014	2014	(2) The director may also make such special 96
2015	2015	investigations or examination as the director deems 97
2016	2016	necessary to determine whether any litigation financer has 98
2017	2017	violated any of the provisions of sectio ns 436.571 to 99
2018	2018	436.580 or rules promulgated thereunder; and may assess the 100
2019	2019	reasonable costs of any investigation or examination 101
2020	2020	incurred by the division to the company. 102
2021	2021	436.573. 1. A litigation financer shall not: 1
2022	2022	(1) Pay or offer commissions, referral fees, or other 2
2023	2023	forms of consideration to any legal representative, medical 3
2024	2024	provider, or any of their employees for referring a consumer 4
2025	2025	to a litigation financer; 5
2026	2026	(2) Accept any commissions, referral fees, rebates, or 6
2027	2027	other forms of consideration from a legal representative, 7
2028	2028	medical provider, or any of their employees; 8
2029	2029	(3) Knowingly advertise false or misleading 9
2030	2030	information regarding its products or services; 10
2031	2031	(4) Refer a consumer or potential consumer to a 11
2032	2032	specific legal representative, medical provider, or any of 12
2033	2033	their employees; 13
2034	2034	(5) Fail to promptly supply copies of any complete 14
2035	2035	litigation financing contracts to the consumer and the 15
2036	2036	consumer's legal representative; 16
2037	2037	(6) Attempt to secure a rem edy or obtain a waiver of 17
2038	2038	any remedy including, but not limited to, compensatory, 18
2039	2039	statutory, or punitive damages, that the consumer might 19
2040	2040	otherwise be or not be entitled to pursue; 20
2041	2041	(7) Attempt to effect arbitration or otherwise effect 21
2042	2042	the waiver of a consumer's right to trial by jury; 22
2043	2043	(8) Offer or provide legal advice to the consumer 23
2044	2044	regarding the litigation financing or the underlying dispute; 24 SCS HCS HB 725 65
2045	2045	(9) Assign, which includes securitizing, a litigation 25
2046	2046	financing contract in whole or part; 26
2047	2047	(10) Report a consumer to a credit reporting agency if 27
2048	2048	insufficient funds remain from the net proceeds to repay the 28
2049	2049	litigation financer; or 29
2050	2050	(11) Receive or exercise any right to direct, nor make 30
2051	2051	any decisions with respect to, the conduct of the consumer's 31
2052	2052	legal claim or any settlement or resolution thereof. The 32
2053	2053	right to make such decisions shall remain solely with the 33
2054	2054	consumer and his or her legal representative. 34
2055	2055	2. A legal representative retained by a consumer, a 35
2056	2056	medical provider for such consumer, or any employee thereof 36
2057	2057	shall not have a financial interest in litigation financing 37
2058	2058	and shall not receive a referral fee or other consideration 38
2059	2059	from any litigation financer, its employees, its owners, or 39
2060	2060	its affiliates. 40
2061	2061	436.574. 1. The terms of the litigation financing 1
2062	2062	agreement shall be set forth in a written contract that is 2
2063	2063	completely filled in. There shall be no incomplete sections 3
2064	2064	when the contract is offered or presented to the consumer. 4
2065	2065	2. Litigation financing contracts shall contain the 5
2066	2066	disclosures specified in this section, which shall 6
2067	2067	constitute material terms of the litigation financing 7
2068	2068	contract. 8
2069	2069	3. The disclosures shall be typed in at least fourteen - 9
2070	2070	point bold font and be placed cle arly and conspicuously 10
2071	2071	immediately above the consumer's signature line in the 11
2072	2072	litigation financing contract and shall be in substantially 12
2073	2073	the following form: 13
2074	2074	14
2075	2075	15
2076	2076	16
2077	2077	Consumer's Right to Cancellation : You may cancel
2078	2078	this contract without penalty or further
2079	2079	obligation within five (5) business days from the
2080	2080	SCS HCS HB 725 66
2081	2081	4. If the consumer is represented by a legal 50
2082	2082	representative in the dispute that is the subj ect of the 51
2083	2083	litigation financing contract, the legal representative 52
2084	2084	shall acknowledge in the contract that the legal 53
2085	2085	representative or its employer or employees have neither 54
2086	2086	17
2087	2087	18
2088	2088	19
2089	2089	20
2090	2090	21
2091	2091	22
2092	2092	23
2093	2093	24
2094	2094	25
2095	2095	26
2096	2096	date you signed this contract or received
2097	2097	financing from [insert name of the litigation
2098	2098	financer] by either returning the funds to [insert
2099	2099	name, office address and office hours of the
2100	2100	litigation financer] or by U.S. mail, [insert name
2101	2101	and mailing address of litigation financer]. For
2102	2102	return by U.S. mail, the postmark date on the
2103	2103	returned funds or, if mailed by registered or
2104	2104	certified mail, the date of the return receipt
2105	2105	requested shall be the date of return.
2106	2106	27
2107	2107	28
2108	2108	29
2109	2109	30
2110	2110	The fees charged pursuant to this agreement shall
2111	2111	not exceed [litigation financer to insert annual
2112	2112	interest percentage rate, percentage of award or
2113	2113	settlement proceeds, or dollar amount].
2114	2114
2115	2115	31
2116	2116	32
2117	2117	33
2118	2118	34
2119	2119	35
2120	2120	The litigation financer agrees that it has no
2121	2121	right to and will not make any decisions about the
2122	2122	conduct of your lawsuit or dispute and that the
2123	2123	right to make those decisions remains solely with
2124	2124	you and your legal representative.
2125	2125
2126	2126	36
2127	2127	37
2128	2128	38
2129	2129	39
2130	2130	40
2131	2131	If there is no recovery of any money from your
2132	2132	legal claim or if there is not enough money to
2133	2133	satisfy the portion assigned to [insert name of
2134	2134	the litigation financer] in full, you will not owe
2135	2135	anything in excess of your recovery.
2136	2136
2137	2137	41
2138	2138	42
2139	2139	43
2140	2140	44
2141	2141	45
2142	2142	46
2143	2143	47
2144	2144	48
2145	2145	49
2146	2146	Do not sign this contract before you read it
2147	2147	completely. If this contract contains any
2148	2148	incomplete sections, you are entitled to a
2149	2149	completely filled-in copy of the contract prior to
2150	2150	signing it. Before you sign this contract, you
2151	2151	should obtain the advice of an attorney.
2152	2152	Depending on the circumstances you may want to
2153	2153	consult a tax advisor, a financial professional,
2154	2154	or an accountant.
2155	2155	SCS HCS HB 725 67
2156	2156	received nor paid a referral fee or any other consideration 55
2157	2157	from or to the litigation financer, nor will in the future 56
2158	2158	do so. 57
2159	2159	5. If the consumer's legal representative is a party 58
2160	2160	to a litigation financing agreement related to the 59
2161	2161	consumer's legal proceeding, the legal representative shall 60
2162	2162	share with the consumer the agreem ent between the legal 61
2163	2163	representative and the litigation financer. The agreement 62
2164	2164	shall be accompanied by the disclosure required by this 63
2165	2165	section, and the consumer shall sign both an acknowledgment 64
2166	2166	that the agreement has been read and the required discl osure. 65
2167	2167	436.575. 1. Except as otherwise stipulated or ordered 1
2168	2168	by the court, a consumer or the consumer's legal 2
2169	2169	representative shall, without awaiting a discovery request, 3
2170	2170	provide to all parties to the litigation, including the 4
2171	2171	consumer's insurer if prior to litigation, any litigation 5
2172	2172	financing contract. 6
2173	2173	2. The existence of litigation financing and all 7
2174	2174	participants in such financing arrangements are permissible 8
2175	2175	subjects of discovery in all personal injury litigation or 9
2176	2176	matters arising out of personal injuries. 10
2177	2177	436.577. Sections 436.571 to 436.580 shall apply to 1
2178	2178	any class action. Putative class members and the court 2
2179	2179	shall be advised that the proposed class attorney has a 3
2180	2180	legal or financial relationshi p with a litigation financer. 4
2181	2181	436.578. Sections 436.571 to 436.580 shall not apply 1
2182	2182	to litigation financing provided to commercial enterprises 2
2183	2183	in support of litigation strictly between commercial 3
2184	2184	enterprises. This exemption does not apply to any personal 4
2185	2185	injury claim, situations arising from a personal injury 5
2186	2186	claim, or an aggregation of personal injury claims, whether 6
2187	2187	by subrogation, assignment, or any other basis. 7 SCS HCS HB 725 68
2188	2188	436.579. The practice of litigation financing s hall be 1
2189	2189	regulated by the division of finance. The commissioner of 2
2190	2190	the division of finance may promulgate all necessary rules 3
2191	2191	and regulations for the administration of this section. Any 4
2192	2192	rule or portion of a rule, as that term is defined in 5
2193	2193	section 536.010, that is created under the authority 6
2194	2194	delegated in this section shall become effective only if it 7
2195	2195	complies with and is subject to all of the provisions of 8
2196	2196	chapter 536 and, if applicable, section 536.028. This 9
2197	2197	section and chapter 536 are nonseverab le, and if any of the 10
2198	2198	powers vested with the general assembly pursuant to chapter 11
2199	2199	536 to review, to delay the effective date, or to disapprove 12
2200	2200	and annul a rule are subsequently held unconstitutional, 13
2201	2201	then the grant of rulemaking authority and any rule proposed 14
2202	2202	or adopted after August 28, 2023, shall be invalid and void. 15
2203	2203	436.580. Any violation of the provisions of sections 1
2204	2204	436.571 to 436.580 shall make the litigation financing 2
2205	2205	contract unenforceable by the litigation financer, the 3
2206	2206	consumer, or any successor -in-interest to the litigation 4
2207	2207	financing contract. 5
2208	2208	569.010. As used in this chapter the following terms 1
2209	2209	mean: 2
2210	2210	(1) "Cave or cavern", any naturally occurring 3
2211	2211	subterranean cavity enterable by a person in cluding, without 4
2212	2212	limitation, a pit, pothole, natural well, grotto, and 5
2213	2213	tunnel, whether or not the opening has a natural entrance; 6
2214	2214	(2) "Enter unlawfully or remain unlawfully", a person 7
2215	2215	enters or remains in or upon premises when he or she is not 8
2216	2216	licensed or privileged to do so. A person who, regardless 9
2217	2217	of his or her purpose, enters or remains in or upon premises 10
2218	2218	which are at the time open to the public does so with 11
2219	2219	license and privilege unless he or she defies a lawful order 12 SCS HCS HB 725 69
2220	2220	not to enter or remain, personally communicated to him or 13
2221	2221	her by the owner of such premises or by other authorized 14
2222	2222	person. A license or privilege to enter or remain in a 15
2223	2223	building which is only partly open to the public is not a 16
2224	2224	license or privilege to enter or remain in that part of the 17
2225	2225	building which is not open to the public; 18
2226	2226	(3) "Nuclear power plant", a power generating facility 19
2227	2227	that produces electricity by means of a nuclear reactor 20
2228	2228	owned by a utility or a consortium utility. Nuclear power 21
2229	2229	plant shall be limited to property within the structure or 22
2230	2230	fenced yard, as defined in section 563.011; 23
2231	2231	(4) "Teller machine", an automated teller machine 24
2232	2232	(ATM) or interactive teller machine (ITM) that is a remote 25
2233	2233	computer terminal or other device owned or controll ed by a 26
2234	2234	financial institution or a private business that allows 27
2235	2235	individuals to obtain financial services, including 28
2236	2236	obtaining cash, transferring or transmitting moneys or 29
2237	2237	digital currencies, payment of bills, or loading moneys or 30
2238	2238	digital currency to a payment card, without physical in - 31
2239	2239	person assistance from another person. "Teller machine" 32
2240	2240	does not include personally owned electronic devices used to 33
2241	2241	access financial services; 34
2242	2242	(5) "To tamper", to interfere with something 35
2243	2243	improperly, to meddle with it, displace it, make unwarranted 36
2244	2244	alterations in its existing condition, or to deprive, 37
2245	2245	temporarily, the owner or possessor of that thing; 38
2246	2246	[(5)] (6) "Utility", an enterprise which provides gas, 39
2247	2247	electric, steam, water, sewage disposal, or com munication, 40
2248	2248	video, internet, or voice over internet protocol services, 41
2249	2249	and any common carrier. It may be either publicly or 42
2250	2250	privately owned or operated. 43 SCS HCS HB 725 70
2251	2251	569.100. 1. A person commits the offense of property 1
2252	2252	damage in the first degr ee if such person: 2
2253	2253	(1) Knowingly damages property of another to an extent 3
2254	2254	exceeding seven hundred fifty dollars; or 4
2255	2255	(2) Damages property to an extent exceeding seven 5
2256	2256	hundred fifty dollars for the purpose of defrauding an 6
2257	2257	insurer; [or] 7
2258	2258	(3) Knowingly damages a motor vehicle of another and 8
2259	2259	the damage occurs while such person is making entry into the 9
2260	2260	motor vehicle for the purpose of committing the crime of 10
2261	2261	stealing therein or the damage occurs while such person is 11
2262	2262	committing the crime o f stealing within the motor vehicle ; or 12
2263	2263	(4) Knowingly damages, modifies, or destroys a teller 13
2264	2264	machine or otherwise makes it inoperable . 14
2265	2265	2. The offense of property damage in the first degree 15
2266	2266	committed under subdivision (1) or (2) of subsection 1 of 16
2267	2267	this section is a class E felony, unless the offense of 17
2268	2268	property damage in the first degree was committed under 18
2269	2269	subdivision (1) of subsection 1 of this section and the 19
2270	2270	victim was intentionally targeted as a law enforcement 20
2271	2271	officer, as defined in section 556.061, or the victim is 21
2272	2272	targeted because he or she is a relative within the second 22
2273	2273	degree of consanguinity or affinity to a law enforcement 23
2274	2274	officer, in which case it is a class D felony. The offense 24
2275	2275	of property damage in the first degree co mmitted under 25
2276	2276	subdivision (3) of subsection 1 of this section is a class D 26
2277	2277	felony unless committed as a second or subsequent violation 27
2278	2278	of subdivision (3) of subsection 1 of this section in which 28
2279	2279	case it is a class B felony. The offense of property dam age 29
2280	2280	in the first degree committed under subdivision (4) of 30
2281	2281	subsection 1 of this section is a class D felony unless 31
2282	2282	committed for the purpose of executing any scheme or 32 SCS HCS HB 725 71
2283	2283	artifice to defraud or obtain any property, the value of 33
2284	2284	which exceeds seven hundre d fifty dollars or the damage to 34
2285	2285	the teller machine exceeds seven hundred fifty dollars in 35
2286	2286	which case it is a class C felony; except that, if the 36
2287	2287	offense of property damage in the first degree committed 37
2288	2288	under subdivision (4) of subsection 1 of this sec tion is 38
2289	2289	committed to obtain the personal financial credentials of 39
2290	2290	another person or committed as a second or subsequent 40
2291	2291	violation of subdivision (4) of subsection 1 of this 41
2292	2292	section, the offense of property damage in the first degree 42
2293	2293	is a class B felony. 43
2294	2294	570.010. As used in this chapter, the following terms 1
2295	2295	mean: 2
2296	2296	(1) "Adulterated", varying from the standard of 3
2297	2297	composition or quality prescribed by statute or lawfully 4
2298	2298	promulgated administrative regulations of this state 5
2299	2299	lawfully filed, or if none, as set by commercial usage; 6
2300	2300	(2) "Appropriate", to take, obtain, use, transfer, 7
2301	2301	conceal, retain or dispose; 8
2302	2302	(3) "Check", a check or other similar sight order or 9
2303	2303	any other form of presentment involving the transmission of 10
2304	2304	account information for the payment of money; 11
2305	2305	(4) "Coercion", a threat, however communicated: 12
2306	2306	(a) To commit any offense; or 13
2307	2307	(b) To inflict physical injury in the future on the 14
2308	2308	person threatened or another; or 15
2309	2309	(c) To accuse any person of any offense; or 16
2310	2310	(d) To expose any person to hatred, contempt or 17
2311	2311	ridicule; or 18
2312	2312	(e) To harm the credit or business reputation of any 19
2313	2313	person; or 20 SCS HCS HB 725 72
2314	2314	(f) To take or withhold action as a public servant, or 21
2315	2315	to cause a public servant to ta ke or withhold action; or 22
2316	2316	(g) To inflict any other harm which would not benefit 23
2317	2317	the actor. A threat of accusation, lawsuit or other 24
2318	2318	invocation of official action is justified and not coercion 25
2319	2319	if the property sought to be obtained by virtue of suc h 26
2320	2320	threat was honestly claimed as restitution or 27
2321	2321	indemnification for harm done in the circumstances to which 28
2322	2322	the accusation, exposure, lawsuit or other official action 29
2323	2323	relates, or as compensation for property or lawful service. 30
2324	2324	The defendant shall hav e the burden of injecting the issue 31
2325	2325	of justification as to any threat; 32
2326	2326	(5) "Credit device", a writing, card, code, number or 33
2327	2327	other device purporting to evidence an undertaking to pay 34
2328	2328	for property or services delivered or rendered to or upon 35
2329	2329	the order of a designated person or bearer; 36
2330	2330	(6) "Dealer", a person in the business of buying and 37
2331	2331	selling goods; 38
2332	2332	(7) "Debit device", a writing, card, code, number or 39
2333	2333	other device, other than a check, draft or similar paper 40
2334	2334	instrument, by the use o f which a person may initiate an 41
2335	2335	electronic fund transfer, including but not limited to 42
2336	2336	devices that enable electronic transfers of benefits to 43
2337	2337	public assistance recipients; 44
2338	2338	(8) "Deceit or deceive", making a representation which 45
2339	2339	is false and which the actor does not believe to be true and 46
2340	2340	upon which the victim relies, as to a matter of fact, law, 47
2341	2341	value, intention or other state of mind, or concealing a 48
2342	2342	material fact as to the terms of a contract or agreement. 49
2343	2343	The term "deceit" does not, howev er, include falsity as to 50
2344	2344	matters having no pecuniary significance, or puffing by 51
2345	2345	statements unlikely to deceive ordinary persons in the group 52 SCS HCS HB 725 73
2346	2346	addressed. Deception as to the actor's intention to perform 53
2347	2347	a promise shall not be inferred from the fact al one that he 54
2348	2348	did not subsequently perform the promise; 55
2349	2349	(9) "Deprive": 56
2350	2350	(a) To withhold property from the owner permanently; or 57
2351	2351	(b) To restore property only upon payment of reward or 58
2352	2352	other compensation; or 59
2353	2353	(c) To use or dispose of pr operty in a manner that 60
2354	2354	makes recovery of the property by the owner unlikely; 61
2355	2355	(10) "Electronic benefits card" or "EBT card", a debit 62
2356	2356	card used to access food stamps or cash benefits issued by 63
2357	2357	the department of social services; 64
2358	2358	(11) "Financial institution", a bank, trust company, 65
2359	2359	savings and loan association, or credit union; 66
2360	2360	(12) "Food stamps", the nutrition assistance program 67
2361	2361	in Missouri that provides food and aid to low -income 68
2362	2362	individuals who are in need of benefits to purchase foo d 69
2363	2363	operated by the United States Department of Agriculture 70
2364	2364	(USDA) in conjunction with the department of social services; 71
2365	2365	(13) "Forcibly steals", a person, in the course of 72
2366	2366	stealing, uses or threatens the immediate use of physical 73
2367	2367	force upon another person for the purpose of: 74
2368	2368	(a) Preventing or overcoming resistance to the taking 75
2369	2369	of the property or to the retention thereof immediately 76
2370	2370	after the taking; or 77
2371	2371	(b) Compelling the owner of such property or another 78
2372	2372	person to deliver up the pro perty or to engage in other 79
2373	2373	conduct which aids in the commission of the theft; 80
2374	2374	(14) "Internet service", an interactive computer 81
2375	2375	service or system or an information service, system, or 82
2376	2376	access software provider that provides or enables computer 83
2377	2377	access by multiple users to a computer server, and includes, 84 SCS HCS HB 725 74
2378	2378	but is not limited to, an information service, system, or 85
2379	2379	access software provider that provides access to a network 86
2380	2380	system commonly known as the internet, or any comparable 87
2381	2381	system or service an d also includes, but is not limited to, 88
2382	2382	a world wide web page, newsgroup, message board, mailing 89
2383	2383	list, or chat area on any interactive computer service or 90
2384	2384	system or other online service; 91
2385	2385	(15) "Means of identification", anything used by a 92
2386	2386	person as a means to uniquely distinguish himself or herself; 93
2387	2387	(16) "Merchant", a person who deals in goods of the 94
2388	2388	kind or otherwise by his or her occupation holds oneself out 95
2389	2389	as having knowledge or skill peculiar to the practices or 96
2390	2390	goods involved in the transaction or to whom such knowledge 97
2391	2391	or skill may be attributed by his or her employment of an 98
2392	2392	agent or broker or other intermediary who by his or her 99
2393	2393	occupation holds oneself out as having such knowledge or 100
2394	2394	skill; 101
2395	2395	(17) "Mislabeled", varying fro m the standard of truth 102
2396	2396	or disclosure in labeling prescribed by statute or lawfully 103
2397	2397	promulgated administrative regulations of this state 104
2398	2398	lawfully filed, or if none, as set by commercial usage; or 105
2399	2399	represented as being another person's product, though 106
2400	2400	otherwise accurately labeled as to quality and quantity; 107
2401	2401	(18) "Pharmacy", any building, warehouse, physician's 108
2402	2402	office, hospital, pharmaceutical house or other structure 109
2403	2403	used in whole or in part for the sale, storage, or 110
2404	2404	dispensing of any controlled substance as defined in chapter 111
2405	2405	195; 112
2406	2406	(19) "Property", anything of value, whether real or 113
2407	2407	personal, tangible or intangible, in possession or in 114
2408	2408	action, and shall include but not be limited to the evidence 115 SCS HCS HB 725 75
2409	2409	of a debt actually executed but not deliv ered or issued as a 116
2410	2410	valid instrument; 117
2411	2411	(20) "Public assistance benefits", anything of value, 118
2412	2412	including money, food, EBT cards, food stamps, commodities, 119
2413	2413	clothing, utilities, utilities payments, shelter, drugs and 120
2414	2414	medicine, materials, goods, and an y service including 121
2415	2415	institutional care, medical care, dental care, child care, 122
2416	2416	psychiatric and psychological service, rehabilitation 123
2417	2417	instruction, training, transitional assistance, or 124
2418	2418	counseling, received by or paid on behalf of any person 125
2419	2419	under chapters 198, 205, 207, 208, 209, and 660, or 126
2420	2420	benefits, programs, and services provided or administered by 127
2421	2421	the Missouri department of social services or any of its 128
2422	2422	divisions; 129
2423	2423	(21) "Services" includes transportation, telephone, 130
2424	2424	electricity, gas, water, or other public service, cable 131
2425	2425	television service, video service, voice over internet 132
2426	2426	protocol service, or internet service, accommodation in 133
2427	2427	hotels, restaurants or elsewhere, admission to exhibitions 134
2428	2428	and use of vehicles; 135
2429	2429	(22) "Stealing-related offense", federal and state 136
2430	2430	violations of criminal statutes against stealing, robbery, 137
2431	2431	or buying or receiving stolen property and shall also 138
2432	2432	include municipal ordinances against the same if the 139
2433	2433	offender was either represented by counsel or knowingly 140
2434	2434	waived counsel in writing and the judge accepting the plea 141
2435	2435	or making the findings was a licensed attorney at the time 142
2436	2436	of the court proceedings; 143
2437	2437	(23) "Teller machine", an automated teller machine 144
2438	2438	(ATM) or interactive teller machine (ITM) that is a r emote 145
2439	2439	computer terminal or other device owned or controlled by a 146
2440	2440	financial institution or a private business that allows 147 SCS HCS HB 725 76
2441	2441	individuals to obtain financial services, including 148
2442	2442	obtaining cash, transferring or transmitting moneys or 149
2443	2443	digital currencies, pay ment of bills, or loading moneys or 150
2444	2444	digital currency to a payment card, without physical in - 151
2445	2445	person assistance from another person. "Teller machine" 152
2446	2446	does not include personally owned electronic devices used to 153
2447	2447	access financial services; 154
2448	2448	(24) "Video service", the provision of video 155
2449	2449	programming provided through wireline facilities located at 156
2450	2450	least in part in the public right -of-way without regard to 157
2451	2451	delivery technology, including internet protocol technology 158
2452	2452	whether provided as part of a tier, o n demand, or a per- 159
2453	2453	channel basis. This definition includes cable service as 160
2454	2454	defined by 47 U.S.C. Section 522(6), but does not include 161
2455	2455	any video programming provided by a commercial mobile 162
2456	2456	service provider as "commercial mobile service" is defined 163
2457	2457	in 47 U.S.C. Section 332(d), or any video programming 164
2458	2458	provided solely as part of and via a service that enables 165
2459	2459	users to access content, information, electronic mail, or 166
2460	2460	other services offered over the public internet, and 167
2461	2461	includes microwave television tr ansmission, from a 168
2462	2462	multipoint distribution service not capable of reception by 169
2463	2463	conventional television receivers without the use of special 170
2464	2464	equipment; 171
2465	2465	[(24)] (25) "Voice over internet protocol service", a 172
2466	2466	service that: 173
2467	2467	(a) Enables real-time, two-way voice communication; 174
2468	2468	(b) Requires a broadband connection from the user's 175
2469	2469	location; 176
2470	2470	(c) Requires internet protocol -compatible customer 177
2471	2471	premises equipment; and 178 SCS HCS HB 725 77
2472	2472	(d) Permits users generally to receive calls that 179
2473	2473	originate on the public switched telephone network and to 180
2474	2474	terminate calls to the public switched telephone network; 181
2475	2475	[(25)] (26) "Writing" includes printing, any other 182
2476	2476	method of recording information, money, coins, negotiable 183
2477	2477	instruments, tokens, stamps, seals, cre dit cards, badges, 184
2478	2478	trademarks and any other symbols of value, right, privilege 185
2479	2479	or identification. 186
2480	2480	570.030. 1. A person commits the offense of stealing 1
2481	2481	if he or she: 2
2482	2482	(1) Appropriates property or services of another with 3
2483	2483	the purpose to deprive him or her thereof, either without 4
2484	2484	his or her consent or by means of deceit or coercion; 5
2485	2485	(2) Attempts to appropriate anhydrous ammonia or 6
2486	2486	liquid nitrogen of another with the purpose to deprive him 7
2487	2487	or her thereof, either without hi s or her consent or by 8
2488	2488	means of deceit or coercion; or 9
2489	2489	(3) For the purpose of depriving the owner of a lawful 10
2490	2490	interest therein, receives, retains or disposes of property 11
2491	2491	of another knowing that it has been stolen, or believing 12
2492	2492	that it has been stolen. 13
2493	2493	2. The offense of stealing is a class A felony if the 14
2494	2494	property appropriated consists of any of the following 15
2495	2495	containing any amount of anhydrous ammonia: a tank truck, 16
2496	2496	tank trailer, rail tank car, bulk storage tank, field nurse, 17
2497	2497	field tank or field applicator. 18
2498	2498	3. The offense of stealing is a class B felony if: 19
2499	2499	(1) The property appropriated or attempted to be 20
2500	2500	appropriated consists of any amount of anhydrous ammonia or 21
2501	2501	liquid nitrogen; 22
2502	2502	(2) The property consists of any anima l considered 23
2503	2503	livestock as the term livestock is defined in section 24 SCS HCS HB 725 78
2504	2504	144.010, or any captive wildlife held under permit issued by 25
2505	2505	the conservation commission, and the value of the animal or 26
2506	2506	animals appropriated exceeds three thousand dollars and that 27
2507	2507	person has previously been found guilty of appropriating any 28
2508	2508	animal considered livestock or captive wildlife held under 29
2509	2509	permit issued by the conservation commission. 30
2510	2510	Notwithstanding any provision of law to the contrary, such 31
2511	2511	person shall serve a minimum prison term of not less than 32
2512	2512	eighty percent of his or her sentence before he or she is 33
2513	2513	eligible for probation, parole, conditional release, or 34
2514	2514	other early release by the department of corrections; 35
2515	2515	(3) A person appropriates property consisting of a 36
2516	2516	motor vehicle, watercraft, or aircraft, and that person has 37
2517	2517	previously been found guilty of two stealing -related 38
2518	2518	offenses committed on two separate occasions where such 39
2519	2519	offenses occurred within ten years of the date of occurrence 40
2520	2520	of the present offense; 41
2521	2521	(4) The property appropriated or attempted to be 42
2522	2522	appropriated consists of any animal considered livestock as 43
2523	2523	the term is defined in section 144.010 if the value of the 44
2524	2524	livestock exceeds ten thousand dollars; or 45
2525	2525	(5) The property appropri ated or attempted to be 46
2526	2526	appropriated is owned by or in the custody of a financial 47
2527	2527	institution and the property is taken or attempted to be 48
2528	2528	taken physically from an individual person to deprive the 49
2529	2529	owner or custodian of the property. 50
2530	2530	4. The offense of stealing is a class C felony if the 51
2531	2531	value of the property or services appropriated is twenty - 52
2532	2532	five thousand dollars or more or the property is a teller 53
2533	2533	machine or the contents of a teller machine, including cash, 54
2534	2534	regardless of the value or amount . 55
2535	2535	5. The offense of stealing is a class D felony if: 56 SCS HCS HB 725 79
2536	2536	(1) The value of the property or services appropriated 57
2537	2537	is seven hundred fifty dollars or more; 58
2538	2538	(2) The offender physically takes the property 59
2539	2539	appropriated from the person of the victim; or 60
2540	2540	(3) The property appropriated consists of: 61
2541	2541	(a) Any motor vehicle, watercraft or aircraft; 62
2542	2542	(b) Any will or unrecorded deed affecting real 63
2543	2543	property; 64
2544	2544	(c) Any credit device, debit device or letter of 65
2545	2545	credit; 66
2546	2546	(d) Any firearms; 67
2547	2547	(e) Any explosive weapon as defined in section 571.010; 68
2548	2548	(f) Any United States national flag designed, intended 69
2549	2549	and used for display on buildings or stationary flagstaffs 70
2550	2550	in the open; 71
2551	2551	(g) Any original copy of an act, bill or resolution , 72
2552	2552	introduced or acted upon by the legislature of the state of 73
2553	2553	Missouri; 74
2554	2554	(h) Any pleading, notice, judgment or any other record 75
2555	2555	or entry of any court of this state, any other state or of 76
2556	2556	the United States; 77
2557	2557	(i) Any book of registration or lis t of voters 78
2558	2558	required by chapter 115; 79
2559	2559	(j) Any animal considered livestock as that term is 80
2560	2560	defined in section 144.010; 81
2561	2561	(k) Any live fish raised for commercial sale with a 82
2562	2562	value of seventy-five dollars or more; 83
2563	2563	(l) Any captive wildlife he ld under permit issued by 84
2564	2564	the conservation commission; 85
2565	2565	(m) Any controlled substance as defined by section 86
2566	2566	195.010; 87
2567	2567	(n) Ammonium nitrate; 88 SCS HCS HB 725 80
2568	2568	(o) Any wire, electrical transformer, or metallic wire 89
2569	2569	associated with transmitting telecommunicat ions, video, 90
2570	2570	internet, or voice over internet protocol service, or any 91
2571	2571	other device or pipe that is associated with conducting 92
2572	2572	electricity or transporting natural gas or other combustible 93
2573	2573	fuels; or 94
2574	2574	(p) Any material appropriated with the intent to use 95
2575	2575	such material to manufacture, compound, produce, prepare, 96
2576	2576	test or analyze amphetamine or methamphetamine or any of 97
2577	2577	their analogues. 98
2578	2578	6. The offense of stealing is a class E felony if: 99
2579	2579	(1) The property appropriated is an animal; 100
2580	2580	(2) The property is a catalytic converter; or 101
2581	2581	(3) A person has previously been found guilty of three 102
2582	2582	stealing-related offenses committed on three separate 103
2583	2583	occasions where such offenses occurred within ten years of 104
2584	2584	the date of occurrence of the presen t offense. 105
2585	2585	7. The offense of stealing is a class D misdemeanor if 106
2586	2586	the property is not of a type listed in subsection 2, 3, 5, 107
2587	2587	or 6 of this section, the property appropriated has a value 108
2588	2588	of less than one hundred fifty dollars, and the person has 109
2589	2589	no previous findings of guilt for a stealing -related offense. 110
2590	2590	8. The offense of stealing is a class A misdemeanor if 111
2591	2591	no other penalty is specified in this section. 112
2592	2592	9. If a violation of this section is subject to 113
2593	2593	enhanced punishment based on pr ior findings of guilt, such 114
2594	2594	findings of guilt shall be pleaded and proven in the same 115
2595	2595	manner as required by section 558.021. 116
2596	2596	10. The appropriation of any property or services of a 117
2597	2597	type listed in subsection 2, 3, 5, or 6 of this section or 118
2598	2598	of a value of seven hundred fifty dollars or more may be 119 SCS HCS HB 725 81
2599	2599	considered a separate felony and may be charged in separate 120
2600	2600	counts. 121
2601	2601	11. The value of property or services appropriated 122
2602	2602	pursuant to one scheme or course of conduct, whether from 123
2603	2603	the same or several owners and whether at the same or 124
2604	2604	different times, constitutes a single criminal episode and 125
2605	2605	may be aggregated in determining the grade of the offense, 126
2606	2606	except as set forth in subsection 10 of this section. 127
2607	2607	