EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 725
102ND GENERAL ASSEMBLY
1244S.03C KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 30.753, 303.039, 361.020, 361.098, 361.160, 361.260, 361.262, 361.715,
364.030, 364.105, 365.030, 367.140, 407.640, 408.145, 408.500, 569.010, 569.100,
570.010, and 570.030, RSMo, and section 303.041 as enacted by senate bill no. 267,
ninety-first general assembly, first regular session, and section 303.041 as enacted by
house bill no. 2168, one hundred first general assembly, second regular session, and to
enact in lieu thereof forty-seven new sections relating to financial services, with penalty
provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 30.753, 303.039, 361.020, 361.098, 1
361.160, 361.260, 361.262, 361.715, 364.030, 364.105, 365.030, 2
367.140, 407.640, 408.145, 408.500, 569.010, 569.100, 570.010, 3
and 570.030, RSMo, and section 303.041 as en acted by senate 4
bill no. 267, ninety -first general assembly, first regular 5
session, and section 303.041 as enacted by house bill no. 2168, 6
one hundred first general assembly, second regular session, are 7
repealed and forty-seven new sections enacted in lieu thereof, 8
to be known as sections 30.753, 303.039, 303.041, 303.420, 9
303.422, 303.425, 303.430, 303.440, 361.020, 361.098, 361.106, 10
361.160, 361.260, 361.262, 361.715, 362.034, 364.030, 364.105, 11
365.030, 367.140, 407.640, 408.145, 408.500, 436.550, 436.552 , 12
436.554, 436.556, 436.558, 436.560, 436.562, 436.564, 436.566, 13
436.568, 436.570, 436.571, 436.572, 436.573, 436.574, 436.575, 14 SCS HCS HB 725 2
436.577, 436.578, 436.579, 436.580, 569.010, 569.100, 570.010, 15
and 570.030, to read as follows:16
30.753. 1. The state treasurer may invest in linked 1
deposits; however, the total amount so deposited at any one 2
time shall not exceed, in the aggregate, [eight hundred 3
million] one billion dollars. [No more than three hundred 4
thirty million dollars of ] The aggregate deposit shall be 5
used for linked deposits to eligible farming operations, 6
eligible locally owned businesses, eligible agribusinesses, 7
eligible beginning farmers, eligible livestock operations, 8
[and] eligible facility borrowers, [no more than one 9
hundred ninety million of the aggregate deposit shall be 10
used for linked deposits to ] and eligible small 11
businesses[,]. No more than [twenty million dollars ] five 12
percent shall be used for linked deposits to eligible 13
multitenant development enterprises, and no mo re than 14
[twenty million dollars ] five percent of the aggregate 15
deposit shall be used for linked deposits to eligible 16
residential property developers and eligible residential 17
property owners, and no more than [two hundred twenty 18
million dollars] twenty percent of the aggregate deposit 19
shall be used for linked deposits to eligible job 20
enhancement businesses , and no more than [twenty million 21
dollars] five percent of the aggregate deposit shall be used 22
for linked deposit loans to eligible water systems . Linked 23
deposit loans may be made to eligible student borrowers, 24
eligible alternative energy operations, eligible alternative 25
energy consumers, and eligible governmental entities from 26
the aggregate deposit. If demand for a particular type of 27
linked deposit exceeds the initial allocation, and funds 28
initially allocated to another type are available and not in 29 SCS HCS HB 725 3
demand, the state treasurer may commingle allocations among 30
the types of linked deposits. 31
2. The minimum deposit to be made by the stat e 32
treasurer to an eligible lending institution for eligible 33
job enhancement business loans shall be ninety thousand 34
dollars. Linked deposit loans for eligible job enhancement 35
businesses may be made for the purposes of assisting with 36
relocation expenses, working capital, interim construction, 37
inventory, site development, machinery and equipment, or 38
other expenses necessary to create or retain jobs in the 39
recipient firm. 40
303.039. The repeal and reenactment of [sections] 1
section 303.025 [and 303.041] shall take effect on January 2
1, 2024. 3
[303.041. 1. If the director determines 1
that as a result of a verification sample or 2
accident report that the owner of a motor 3
vehicle has not maintained financial 4
responsibility, or if the director determines as 5
a result of an order of supervision that the 6
operator of a motor vehicle has not maintained 7
the financial responsibility as required in this 8
chapter, the director shall thirty -three days 9
after mailing notice, suspend the driving 10
privilege of the owner or operator and/or the 11
registration of the vehicle failing to meet such 12
requirement. The notice of suspension shall be 13
mailed to the person at the last known address 14
shown on the department's records. The notice 15
of suspension is deemed received three days 16
after mailing. The notice of suspension shall 17
clearly specify the reason and statutory grounds 18
for the suspension and the effective date of the 19
suspension, the right of the person to request a 20
hearing, the procedure for requesting a hearing, 21
and the date by which that request for a hearing 22
must be made. If the request for a hearing is 23
received by the department prior to the 24
effective date of the suspension, the effective 25
date of the suspension w ill be stayed until a 26
final order is issued following the hearing. 27
2. Neither the fact that subsequent to the 28
date of verification or conviction, the owner 29
acquired the required liability insurance policy 30
nor the fact that the owner terminated ow nership 31
of the motor vehicle, shall have any bearing 32 SCS HCS HB 725 4
upon the director's decision to suspend. Until 33
it is terminated, the suspension shall remain in 34
force after the registration is renewed or a new 35
registration is acquired for the motor vehicle. 36
The suspension also shall apply to any motor 37
vehicle to which the owner transfers the 38
registration. Effective January 1, 2000, the 39
department shall not extend any suspension for 40
failure to pay a delinquent late surrender fee 41
pursuant to this subsection .] 42
303.041. 1. Except as otherwise provided in 1
subsection 7 of section 303.425, if the director determines 2
that the owner or operator of a motor vehicle has not 3
maintained the financial responsibility as required in this 4
chapter, the director shall thirty -three days after mailing 5
notice, suspend the driving privilege of the owner or 6
operator and/or the registration of the vehicle failing to 7
meet such requirement. The notice of suspension shall be 8
mailed to the person at the las t known address shown on the 9
department's records. The notice of suspension is deemed 10
received three days after mailing. The notice of suspension 11
shall clearly specify the reason and statutory grounds for 12
the suspension and the effective date of the suspension, the 13
right of the person to request a hearing, the procedure for 14
requesting a hearing, and the date by which that request for 15
a hearing must be made. If the request for a hearing is 16
received by the department prior to the effective date of 17
the suspension, the effective date of the suspension will be 18
stayed until a final order is issued following the hearing. 19
2. Except as otherwise provided by law, neither the 20
fact that subsequent to the date of verification or 21
conviction, the owner acquired the required liability 22
insurance policy nor the fact that the owner terminated 23
ownership of the motor vehicle, shall have any bearing upon 24
the director's decision to suspend. Until it is terminated, 25
the suspension shall remain in force after the registration 26 SCS HCS HB 725 5
is renewed or a new registration is acquired for the motor 27
vehicle. The suspension also shall apply to any motor 28
vehicle to which the owner transfers the registration. 29
Effective January 1, 2000, the department shall not extend 30
any suspension for failure to pay a delinquent late 31
surrender fee pursuant to this subsection. 32
303.420. As used in sections 303.420 to 303.440, 1
unless the context requires otherwise, the following terms 2
shall mean: 3
(1) "Program", the motor vehicle financial 4
responsibility enforcement and compliance incentive program 5
established under section 303.425; 6
(2) "Qualified agency", the department of revenue, the 7
Missouri state highway patrol, the prosecuting attorney or 8
sheriff's office of any county or city not within a county, 9
the chiefs of police of any city or municipality, or any 10
other authorized law enforcement agency recognized by the 11
state; 12
(3) "System" or "verification system", the web -based 13
resource established under section 303.430 for online 14
verification of motor vehicle financial responsibility. 15
303.422. 1. There is hereby created in the state 1
treasury the "Motor Vehicle Financial Responsibility 2
Verification and Enforcement Fund", which shall consist of 3
money received by the department of revenue under sections 4
303.420 to 303.440. The state treasurer shall be custodian 5
of the fund. In accordance with sections 30.170 and 30.180, 6
the state treasurer may approve disbursements. The fund 7
shall be a dedicated fund and money in the fund shall be 8
used solely by the department of revenue for the 9
administration of sections 303.420 to 303.440. 10 SCS HCS HB 725 6
2. Notwithstanding the provisions of section 33.080 to 11
the contrary, any moneys remaining in the fund at the end of 12
the biennium shall not revert to the credit of the general 13
revenue fund. 14
3. The state treasurer shall invest moneys in the fund 15
in the same manner as other funds are invested. Any 16
interest and moneys earned on such inve stments shall be 17
credited to the fund. 18
303.425. 1. (1) There is hereby created within the 1
department of revenue the motor vehicle financial 2
responsibility enforcement and compliance incentive 3
program. The department of revenue ma y enter into 4
contractual agreements with third -party vendors to 5
facilitate the necessary technology and equipment, 6
maintenance thereof, and associated program management 7
services, and may enter into contractual agreements with the 8
Missouri office of p rosecution services as provided in 9
sections 303.420 to 303.440. Where sections 303.420 to 10
303.440 authorize the department of revenue to enter into 11
contracts with a third -party vendor or the Missouri office 12
of prosecution services at its option, the d epartment of 13
revenue shall contract with the Missouri office of 14
prosecution services unless the Missouri office of 15
prosecution services declines to enter into the contract. 16
(2) The department of revenue or a third -party vendor 17
shall utilize technology to compare vehicle registration 18
information with the financial responsibility information 19
accessible through the system. The department of revenue 20
shall utilize this information to identify motorists who are 21
in violation of the motor vehicle fin ancial responsibility 22
law. The department of revenue may offer offenders under 23
this program the option of pretrial diversion as an 24 SCS HCS HB 725 7
alternative to statutory fines or reinstatement fees 25
prescribed under the motor vehicle financial responsibility 26
law as a method of encouraging compliance and discouraging 27
recidivism. 28
(3) All fees paid to or collected by third -party 29
vendors or the Missouri office of prosecution services under 30
sections 303.420 to 303.440 may come from violator diversion 31
fees generated by the pretrial diversion option established 32
under this section. A contractual agreement between the 33
department of revenue and the Missouri office of prosecution 34
services under sections 303.420 to 303.440 may provide for 35
retention by the Missouri office of prosecution services of 36
part or all of the violator diversion fees as consideration 37
for the contract. 38
2. The department of revenue may authorize law 39
enforcement agencies or third -party vendors to use 40
technology to collect data for the investigation, detection, 41
analysis, and enforcement of the motor vehicle financial 42
responsibility law. 43
3. The department of revenue may authorize traffic 44
enforcement officers, third -party vendors, or the Missouri 45
office of prosecution services to administer the processing 46
and issuance of notices of violation, the collection of fees 47
for a violation of the motor vehicle financial 48
responsibility law, or the referral of cases for 49
prosecution, under the program. 50
4. Access to the system shall be restricted to 51
qualified agencies and the third -party vendors with which 52
the department of revenue contracts for purposes of the 53
program, provided that any third -party vendor with which a 54
contract is executed to provide necessary technology, 55
equipment, or maintenance for the program shall be 56 SCS HCS HB 725 8
authorized as necessary to collaborate for required updates 57
and maintenance of system software. 58
5. For purposes of the program, any data collected and 59
matched to a corresponding vehicle insurance record as 60
verified through the system, and any Missouri vehicle 61
registration database, may be used to identify violations of 62
the motor vehicle financial responsibility law. Such 63
corresponding data shall constitute evidence of the 64
violations. 65
6. Except as otherwise provided in this section, the 66
department of revenue shall suspend, in accordance with 67
section 303.041, the registration of any motor vehicle that 68
is determined under the program to be in violation of the 69
motor vehicle financial responsibi lity law. 70
7. The department of revenue shall send to an owner 71
whose vehicle is identified under the program as being in 72
violation of the motor vehicle financial responsibility law 73
a notice that the vehicle's registration may be suspended 74
unless the owner, within thirty days, provides proof of 75
financial responsibility for the vehicle or proof, in a form 76
specified by the department of revenue, that the owner has a 77
pending criminal charge for a violation of the motor vehicle 78
financial responsibil ity law. The notice shall include 79
information on steps an individual may take to obtain proof 80
of financial responsibility and a web address to a page on 81
the department of revenue's website where information on 82
obtaining proof of financial responsibili ty shall be 83
provided. If proof of financial responsibility or a pending 84
criminal charge is not provided within the time allotted, 85
the department of revenue shall provide a notice of 86
suspension and suspend the vehicle's registration in 87
accordance with section 303.041, or shall send a notice of 88 SCS HCS HB 725 9
vehicle registration suspension, clearly specifying the 89
reason and statutory grounds for the suspension and the 90
effective date of the suspension, the right of the vehicle 91
owner to request a hearing, the proce dure for requesting a 92
hearing, and the date by which that request for a hearing 93
must be made, as well as informing the owner that the matter 94
will be referred for prosecution if a satisfactory response 95
is not received in the time allotted, informing the owner 96
that the minimum penalty for the violation is three hundred 97
dollars and four license points, and offering the owner 98
participation in a pretrial diversion option to preclude 99
referral for prosecution and registration suspension under 100
sections 303.420 to 303.440. The notice of vehicle 101
registration suspension shall give a period of thirty -three 102
days from mailing for the vehicle owner to respond, and 103
shall be deemed received three days after mailing. If no 104
request for a hearing or agreement to participate in the 105
diversion option is received by the department of revenue 106
prior to the date provided on the notice of vehicle 107
registration suspension, the director shall suspend the 108
vehicle's registration, effective immediately, and refer the 109
case to the appropriate prosecuting attorney. If an 110
agreement by the vehicle owner to participate in the 111
diversion option is received by the department of revenue 112
prior to the effective date provided on the notice of 113
vehicle registration suspension, then u pon payment of a 114
diversion participation fee not to exceed two hundred 115
dollars, agreement to secure proof of financial 116
responsibility within the time provided on the notice of 117
suspension, and agreement that such financial responsibility 118
shall be maintained for a minimum of two years, no points 119
shall be assessed to the vehicle owner's driver's license 120 SCS HCS HB 725 10
under section 302.302 and the department of revenue shall 121
not take further action against the vehicle owner under 122
sections 303.420 to 303.440, subject to compliance with the 123
terms of the pretrial diversion option. The department of 124
revenue shall suspend the vehicle registration of, and shall 125
refer the case to the appropriate prosecuting attorney for 126
prosecution of, participating vehicle owners who violate the 127
terms of the pretrial diversion option. If a request for 128
hearing is received by the department of revenue prior to 129
the effective date provided on the notice of vehicle 130
registration suspension, then for all purposes other than 131
eligibility for participation in the diversion option, the 132
effective date of the suspension shall be stayed until a 133
final order is issued following the hearing. The department 134
of revenue shall suspend the registration of vehicles 135
determined under the final order to have violated the motor 136
vehicle financial responsibility law, and shall refer the 137
case to the appropriate prosecuting attorney for 138
prosecution. Notices under this subsection shall be mailed 139
to the vehicle owner at the last known address shown on th e 140
department of revenue's records. The department of revenue 141
or its third-party vendor or the Missouri office of 142
prosecution services shall issue receipts for the collection 143
of diversion participation fees. Except as otherwise 144
provided in subsection 1 of this section, all such fees 145
shall be deposited into the motor vehicle financial 146
responsibility verification and enforcement fund established 147
in section 303.422. A vehicle owner whose registration has 148
been suspended under sections 303.420 to 303. 440 may obtain 149
reinstatement of the registration upon providing proof of 150
financial responsibility and payment to the department of 151
revenue of a nonrefundable reinstatement fee equal to the 152 SCS HCS HB 725 11
fee that would be applicable under subsection 2 of section 153
303.042 if the registration had been suspended under section 154
303.041. 155
8. Data collected or retained under the program shall 156
not be used by any entity for purposes other than 157
enforcement of the motor vehicle financial responsibility 158
law. Data collected and stored by law enforcement under the 159
program shall be considered evidence if noncompliance with 160
the motor vehicle financial responsibility law is 161
confirmed. The evidence, and an affidavit stating that the 162
evidence and system have identified a p articular vehicle as 163
being in violation of the motor vehicle financial 164
responsibility law, shall constitute probable cause for 165
prosecution and shall be forwarded in accordance with 166
subsection 7 of this section to the appropriate prosecuting 167
attorney. 168
9. Owners of vehicles identified under the program as 169
being in violation of the motor vehicle financial 170
responsibility law shall be provided with options for 171
disputing such claims which do not require appearance at any 172
state or local court of law , or administrative facility. 173
Any person who presents timely proof that he or she was in 174
compliance with the motor vehicle financial responsibility 175
law at the time of the alleged violation shall be entitled 176
to dismissal of the charge with no assessmen t of fees or 177
fines. Proof provided by a vehicle owner to the department 178
of revenue that the vehicle was in compliance at the time of 179
the suspected violation of the motor vehicle financial 180
responsibility law shall be recorded in the system 181
established by the department of revenue under section 182
303.430. 183 SCS HCS HB 725 12
10. The collection of data or use of any technology 184
pursuant to this section shall be done in a manner that 185
prohibits any bias towards a specific community, race, 186
gender, or socioeconomic statu s of vehicle owner. 187
11. Law enforcement agencies, third -party vendors, or 188
other entities authorized to operate under the program shall 189
not sell data collected or retained under the program for 190
any purpose or share it for any purpose not expressly 191
authorized in this section. All data shall be secured and 192
any third-party vendor or other entity authorized to operate 193
under the program may be liable for any data security breach. 194
12. The department of revenue shall not take action 195
under sections 303.420 to 303.440 against vehicles 196
registered as fleet vehicles under section 301.032, or 197
against vehicles known to the department of revenue to be 198
insured under a policy of commercial auto coverage, as such 199
term is defined in subdivision (10) of s ubsection 2 of 200
section 303.430. 201
13. Following one year after the implementation of the 202
program, and every year thereafter, the department of 203
revenue shall provide a report to the president pro tempore 204
of the senate, the speaker of the house of re presentatives, 205
the chairs of the house and senate committees with 206
jurisdictions over insurance or transportation matters, and 207
the chairs of the house budget and senate appropriations 208
committees. The report shall include an evaluation of 209
program operations, information as to the costs of the 210
program incurred by the department of revenue, insurers, and 211
the public, information as to the effectiveness of the 212
program in reducing the number of uninsured motor vehicles, 213
and anonymized demographic informa tion including the race 214
and zip code of vehicle owners identified under the program 215 SCS HCS HB 725 13
as being in violation of the motor vehicle financial 216
responsibility law, and may include any additional 217
information and recommendations for improvement of the 218
program deemed appropriate by the department of revenue. 219
The department of revenue may, by rule, require the state, 220
counties, and municipalities to provide information in order 221
to complete the report. 222
14. The Missouri office of prosecution services in 223
consultation with the department of revenue may promulgate 224
rules as necessary for the implementation of this section. 225
Any rule or portion of a rule, as that term is defined in 226
section 536.010, that is created under the authority 227
delegated in this secti on shall become effective only if it 228
complies with and is subject to all of the provisions of 229
chapter 536 and, if applicable, section 536.028. This 230
section and chapter 536 are nonseverable and if any of the 231
powers vested with the general assembly purs uant to chapter 232
536 to review, to delay the effective date, or to disapprove 233
and annul a rule are subsequently held unconstitutional, 234
then the grant of rulemaking authority and any rule proposed 235
or adopted after August 28, 2023, shall be invalid and vo id. 236
303.430. 1. The department of revenue shall establish 1
and maintain a web-based system for the verification of 2
motor vehicle financial responsibility, shall provide access 3
to insurance reporting data and vehicle registration and 4
financial responsibility data, and shall require motor 5
vehicle insurers to establish functionality for the 6
verification system, as provided in sections 303.420 to 7
303.440. The verification system, including any exceptions 8
as provided for in sections 303.420 to 303.440 or in the 9
implementation guide developed to support the program, shall 10
supersede any existing verification system, and shall be the 11 SCS HCS HB 725 14
sole system used for the purpose of verifying financial 12
responsibility required under this chapter. 13
2. The system established pursuant to subsection 1 of 14
this section shall be subject to the following: 15
(1) The verification system shall transmit requests to 16
insurers for verification of motor vehicle insurance 17
coverage via web services establ ished by the insurers 18
through the internet in compliance with the specifications 19
and standards of the Insurance Industry Committee on Motor 20
Vehicle Administration, or "IICMVA". Insurance company 21
systems shall respond to each request with a prescribed 22
response upon evaluation of the data provided in the 23
request. The system shall include appropriate protections 24
to secure its data against unauthorized access, and the 25
department of revenue shall maintain a historical record of 26
the system data for a p eriod of no more than twelve months 27
from the date of all requests and responses. The system 28
shall be used for verification of the financial 29
responsibility required under this chapter. The system 30
shall be accessible to authorized personnel of the 31
department of revenue, the courts, law enforcement 32
personnel, and other entities authorized by the state as 33
permitted by state or federal privacy laws, and it shall be 34
interfaced, wherever appropriate, with existing state 35
systems. The system shall includ e information enabling the 36
department of revenue to submit inquiries to insurers 37
regarding motor vehicle insurance which are consistent with 38
insurance industry and IICMVA recommendations, 39
specifications, and standards by using the following data 40
elements for greater matching accuracy: insurer National 41
Association of Insurance Commissioners, or "NAIC", company 42
code; vehicle identification number; policy number; 43 SCS HCS HB 725 15
verification date; or as otherwise described in the 44
specifications and standards of the IICMVA. The department 45
of revenue shall promulgate rules to offer insurers who 46
insure one thousand or fewer vehicles within this state an 47
alternative method for verifying motor vehicle insurance 48
coverage in lieu of web services, and to provide for the 49
verification of financial responsibility when financial 50
responsibility is proven to the department to be maintained 51
by means other than a policy of motor vehicle insurance. 52
Insurers shall not be required to verify insurance coverage 53
for vehicles registered in other jurisdictions; 54
(2) The verification system shall respond to each 55
request within a time period established by the department 56
of revenue. An insurer's system shall respond within the 57
time period prescribed by the IICMVA's specifica tions and 58
standards. Insurer systems shall be permitted reasonable 59
system downtime for maintenance and other work with advance 60
notice to the department of revenue. Insurers shall not be 61
subject to enforcement fees or other sanctions under such 62
circumstances, or when systems are not available because of 63
emergency, outside attack, or other unexpected outages not 64
planned by the insurer and reasonably outside its control; 65
(3) The system shall assist in identifying violations 66
of the motor vehicle financial responsibility law in the 67
most effective way possible. Responses to individual 68
insurance verification requests shall have no bearing on 69
whether insurance coverage is determined to be in force at 70
the time of a claim. Claims shall be individ ually 71
investigated to determine the existence of coverage. 72
Nothing in sections 303.420 to 303.440 shall prohibit the 73
department of revenue from contracting with a third -party 74
vendor or vendors who have successfully implemented similar 75 SCS HCS HB 725 16
systems in other states to assist in establishing and 76
maintaining this verification system; 77
(4) The department of revenue shall consult with 78
representatives of the insurance industry and may consult 79
with third-party vendors to determine the objectives, 80
details, and deadlines related to the system by 81
establishment of an advisory council. The advisory council 82
shall consist of voting members comprised of: 83
(a) The director of the department of commerce and 84
insurance, or his or her designee, who shall serve as chair; 85
(b) Two representatives of the department of revenue, 86
to be appointed by the director of the department of revenue; 87
(c) One representative of the department of commerce 88
and insurance, to be appointed by the director of the 89
department of commerce and insurance; 90
(d) Three representatives of insurance companies, to 91
be appointed by the director of the department of commerce 92
and insurance; 93
(e) One representative from the Missouri Insurance 94
Coalition; 95
(f) One representative chosen by the National 96
Association of Mutual Insurance Companies; 97
(g) One representative chosen by the American Property 98
and Casualty Insurance Association; 99
(h) One representative chosen by the Missouri 100
Independent Agents Association ; and 101
(i) Such other representatives as may be appointed by 102
the director of the department of commerce and insurance; 103
(5) The department of revenue shall publish for 104
comment, and then issue, a detailed implementation guide for 105
its online verification system; 106 SCS HCS HB 725 17
(6) The department of revenue and its third -party 107
vendors, if any, shall each maintain a contact person for 108
insurers during the establishment, implementation, and 109
operation of the system; 110
(7) If the department of revenue ha s reason to believe 111
a vehicle owner does not maintain financial responsibility 112
as required under this chapter, it may also request an 113
insurer to verify the existence of such financial 114
responsibility in a form approved by the department of 115
revenue. In addition, insurers shall cooperate with the 116
department of revenue in establishing and maintaining the 117
verification system established under this section, and 118
shall provide motor vehicle insurance policy status 119
information as provided in the rules prom ulgated by the 120
department of revenue; 121
(8) Every property and casualty insurance company 122
licensed to issue motor vehicle insurance or authorized to 123
do business in this state shall comply with sections 303.420 124
to 303.440, and corresponding rules pr omulgated by the 125
department of revenue, for the verification of such 126
insurance for every vehicle insured by that company in this 127
state; 128
(9) Insurers shall maintain a historical record of 129
insurance data for a minimum period of six months from the 130
date of policy inception or policy change for the purpose of 131
historical verification inquiries; 132
(10) For the purposes of this section, "commercial 133
auto coverage" shall mean any coverage provided to an 134
insured, regardless of number of vehicles or entities 135
covered, under a commercial coverage form and rated from a 136
commercial manual approved by the department of commerce and 137
insurance. Sections 303.420 to 303.440 shall not apply to 138 SCS HCS HB 725 18
vehicles insured under commercial auto coverage; however, 139
insurers of such vehicles may participate on a voluntary 140
basis, and vehicle owners may provide proof at or subsequent 141
to the time of vehicle registration that a vehicle is 142
insured under commercial auto coverage, which the department 143
of revenue shall record in the system; 144
(11) Insurers shall provide commercial or fleet 145
automobile customers with evidence reflecting that the 146
vehicle is insured under a commercial or fleet automobile 147
liability policy. Sufficient evidence shall include an 148
insurance identification card clearly marked with a suitable 149
identifier such as "commercial auto insurance identification 150
card", "fleet auto insurance identification card", or other 151
clear identification that the vehicle is insured under a 152
fleet or commercial policy; 153
(12) Notwithstanding any provision of sections 303.420 154
to 303.440, insurers shall be immune from civil and 155
administrative liability for good faith efforts to comply 156
with the terms of sections 303.420 to 303.440; 157
(13) Nothing in this section shall prohibit an insurer 158
from using the services of a third -party vendor for 159
facilitating the verification system required under sections 160
303.420 to 303.440. 161
3. The department of revenue shall promulgate rules as 162
necessary for the implementatio n of sections 303.420 to 163
303.440. Any rule or portion of a rule, as that term is 164
defined in section 536.010, that is created under the 165
authority delegated in this section shall become effective 166
only if it complies with and is subject to all of the 167
provisions of chapter 536 and, if applicable, section 168
536.028. This section and chapter 536 are nonseverable and 169
if any of the powers vested with the general assembly 170 SCS HCS HB 725 19
pursuant to chapter 536 to review, to delay the effective 171
date, or to disapprove and a nnul a rule are subsequently 172
held unconstitutional, then the grant of rulemaking 173
authority and any rule proposed or adopted after August 28, 174
2023, shall be invalid and void. 175
303.440. The verification system established under 1
section 303.430 shall be installed and fully operational on 2
January 1, 2025, following an appropriate testing or pilot 3
period of not less than nine months. Until the successful 4
completion of the testing or pilot period in the judgment of 5
the director of the department of revenue, no enforcement 6
action shall be taken based on the system, including but not 7
limited to action taken under the program established under 8
section 303.425. 9
361.020. 1. The division of finance shall have charge 1
of the execution of the laws relating to banks, trust 2
companies, and the banking business of this state; [credit 3
unions; and] of the laws relating to persons [, 4
copartnerships and corporations ] and entities engaged in the 5
small loan or consumer credit business in this state ; of the 6
laws relating to persons and entities engaged in the 7
mortgage loan business in this state; and of the laws 8
relating to persons and entities engaged in any other 9
financial services related business over which the division 10
of finance is granted express authority . 11
2. The director of finance may institute, in the name 12
of the state of Missouri, and defend suits in the courts of 13
this state and the United States. 14
361.098. 1. The members of the state ba nking and 1
savings and loan board shall receive as compensation for 2
their services the sum of one hundred dollars per day while 3
discharging their duties, and shall be entitled to receive 4 SCS HCS HB 725 20
their necessary traveling and other expenses incurred while 5
actually engaged in the performance of their duties as such 6
members, which shall be paid out of the division of finance 7
fund. 8
2. [A majority of the members ] Any three members of 9
the board shall constitute a quorum for the transaction of 10
any business, for the performance of any duty or for the 11
exercise of any power of the board. 12
3. The board may meet and exercise its powers in any 13
place in this state and shall meet at any time upon the call 14
of its chairman or of the director of the division of 15
finance or of any two members of the board. 16
4. The board shall have an official seal bearing the 17
inscription, "State Banking and Savings and Loan Board of 18
the State of Missouri", which shall be judicially noticed. 19
5. The division of finance may provide administrative 20
services to the board to assist the board with fulfilling 21
its statutory responsibilities. 22
361.106. 1. For purposes of this section, the 1
following terms mean: 2
(1) "Bulletin", an informal written commu nication to 3
inform or educate individuals or entities licensed, 4
chartered, or regulated by the division of finance and the 5
general public about a regulatory topic or issue. A 6
bulletin is informational in nature and is not an evaluation 7
of specific facts and circumstances; 8
(2) "Industry letter", a written communication from 9
the director of finance in response to a specific individual 10
or entity chartered, licensed, or regulated by the division 11
of finance, and that provides the division of finan ce's 12
position on a particular regulatory topic or issue with 13
respect to a specific set of facts and circumstances. 14 SCS HCS HB 725 21
2. Notwithstanding any other provision of law to the 15
contrary, the director of finance may at his or her 16
discretion issue bulletins addressing the business of the 17
individuals and entities licensed, chartered, or regulated 18
by the division in this state. Bulletins do not have the 19
force or effect of law and shall not be considered 20
statements of general applicability that would requi re 21
promulgation by rule. 22
3. Notwithstanding any other provision of law to the 23
contrary, the director of finance may at his or her 24
discretion issue industry letters in response to a written 25
request from an individual or entity licensed, chartered, or 26
regulated by the division, and that seeks the division's 27
position on an application of law. In addition to any 28
materials or information requested by the division, the 29
written request shall include: 30
(1) A brief summary of the applicable laws and rules 31
that pertain to the request; 32
(2) A detailed factual representation concerning every 33
relevant aspect of the proposed business activity or 34
activities, transaction, event, or circumstance; 35
(3) A discussion of current statutes, rules, and legal 36
principles relevant to the facts set forth; 37
(4) A statement by the person requesting the industry 38
letter of the person's own opinion in the matter and the 39
basis for such opinion; and 40
(5) A representation that the proposed business or 41
transaction in question have not commenced or, if they have 42
commenced, the present status of the proposed business or 43
transaction. 44
4. With respect to the requesting party, an industry 45
letter is binding on the division, and the requesting party 46 SCS HCS HB 725 22
shall not be subject to any administrative proceeding or 47
penalty for any acts or omissions done in reliance on an 48
industry letter, so long as there is no change in any 49
material fact or law or the discovery of a material 50
misrepresentation or omission made by the requesting party. 51
5. An industry letter request and response shall be 52
confidential, but a resulting industry letter, if published 53
by the director, may contain non -identifying facts and 54
information derived from the request. 55
6. After redacting all identifying information, the 56
director may publish industry letters for informational 57
purposes. Because the division may have a different 58
position in response to similar but non -identical facts and 59
circumstances, published industry let ters do not have the 60
force or effect of law, are not binding on the division, and 61
shall not be considered statements of general applicability 62
that would require promulgation by rule. 63
7. Industry letters issued under this section are 64
distinct from letters issued by the director under 65
subdivision (5) of section 362.106, which shall be governed 66
by that section. 67
361.160. 1. The director of finance at least once 1
each year, either personally or by a deputy or examiner 2
appointed by the director, shall visit and examine every 3
bank and trust company organized and doing business under 4
the laws of this state, and every other corporation which is 5
by law required to report to the director; except, for banks 6
or trust companies receiv ing a Camel/MOECA 1 or Camel/MOECA 7
2 rating from the division of finance, the director of 8
finance at least once each eighteen calendar months, or for 9
a private trust company at least once each thirty -six 10
months, either personally or by a deputy or exam iner 11 SCS HCS HB 725 23
appointed by the director, shall visit and examine such bank 12
or trust company, and the director of finance, at the 13
director's discretion, may conduct the director's 14
examination, or any part thereof, on the basis of 15
information contained in examin ation reports of other 16
states, the Federal Deposit Insurance Corporation or the 17
Federal Reserve Board or in audits performed by certified 18
public accountants. For purposes of this subsection, a 19
private trust company is one that does not engage in trust 20
company business with the general public or otherwise hold 21
itself out as a trustee or fiduciary for hire by 22
advertising, solicitation, or other means and instead 23
operates for the primary benefit of a family, relative of 24
same family, or single family lineage, regardless of whether 25
compensation is received or anticipated. The director shall 26
be afforded prompt and free access to any workpapers upon 27
which a certified public accountant bases an audit. A 28
certified public accountant shall retain workpa pers for a 29
minimum of three years after the date of issuance of the 30
certified public accountant's report to the bank or trust 31
company. The director or the director's agent may 32
concentrate the examinations on institutions which the 33
director believes have safety or soundness concerns. 34
2. The director, or the deputy or examiners designated 35
by the director for that purpose, shall have power to 36
examine any such corporation whenever, in the director's 37
judgment, it may be deemed necessary or expedie nt, and shall 38
have power to examine every agency located in this state of 39
any foreign banking corporation and every branch in this 40
state of any out-of-state bank, for the purpose of 41
ascertaining whether it has violated any law of this state, 42 SCS HCS HB 725 24
and for such other purposes and as to such other matters as 43
the director may prescribe. 44
3. The director and the director's deputy and 45
examiners shall have power to administer oaths to any person 46
whose testimony may be required in such examination or 47
investigation of any such corporation or agency, and to 48
compel the appearance and attendance of any person for the 49
purpose of any such examination or investigation. 50
4. On every such examination inquiry shall be made as 51
to the condition and resources of such corporation, the mode 52
of conducting and managing its affairs, the actions of its 53
directors or trustees, the investment of its funds, the 54
safety and prudence of its management, the security afforded 55
to its creditors, and whether the requirements o f its 56
charter and of law have been complied with in the 57
administration of its affairs, and as to such other matters 58
as the director may prescribe. 59
5. The director may also make such special 60
investigations as the director deems necessary to determ ine 61
whether any individual or corporation has violated any of 62
the provisions of this law. 63
6. Such examination may be made and such inquiry 64
instituted or continued in the discretion of the director 65
after the director has taken possession of the pr operty and 66
business of any such corporation, until it shall resume 67
business or its affairs shall be finally liquidated in 68
accordance with the provisions of this chapter. 69
7. The result of each examination shall be certified 70
by the director or the examiner upon the records of the 71
corporation examined [and the result of all examinations 72
during the biennial period shall be embodied in the report 73 SCS HCS HB 725 25
to be made by the director of the department of commerce and 74
insurance to the legislature ]. 75
8. The director may contract with regulators in other 76
states to provide for the examination of Missouri branches 77
of out-of-state banks and branches of banks whose home state 78
is Missouri. The agreements may provide for the payment by 79
the home state of the c ost of examinations conducted by the 80
host state at the request of the home state regulators. 81
361.260. 1. Whenever the director shall have reason 1
to believe that the capital stock of any corporation subject 2
to the provisions of this chapter is reduced by impairment 3
or otherwise, below the amount required by law, or by its 4
certificates or articles of agreement, [he] the director 5
shall issue a notice of charges in respect thereof. 6
2. Whenever [it shall appear to the director, ] the 7
director has reason to believe from any examination or 8
investigation made by [him] the director or his or her 9
examiners, that any corporation subject to the provisions of 10
this chapter, or any director, officer, employee, agent, or 11
other person participating in the conduct of the affairs of 12
such corporation, or any foreign corporation licensed by the 13
director to do business under this chapter or chapter 362 is 14
engaging in [or], has engaged in, or [there is reasonable 15
cause to believe that the co rporation or any director, 16
officer, employee, agent, or other person participating in 17
the conduct of the affairs of such corporation is about to 18
engage in,] is about to engage in: 19
(1) An unsafe or unsound practice in conducting the 20
business of such corporation [or is violating or has 21
violated, or there is reasonable cause to believe that the 22
corporation or any director, officer, employee, agent, or 23 SCS HCS HB 725 26
other person participating in the conduct of the affairs of 24
such corporation is about to violate ]; 25
(2) A violation of law, rule, or director-imposed 26
written condition [imposed, in writing, by the director in 27
connection with the granting of any application or other 28
request by the corporation or ]; 29
(3) A violation of any written agreement entered into 30
with the director[,]; or 31
(4) A violation of the corporation's charter, 32
the director may issue and serve upon the corporation or 33
such director, officer, employee, agent, or other person a 34
notice of charges in respect thereof. 35
3. Whenever it shall appear to the director that any 36
corporation subject to the provisions of this chapter does 37
not keep its books and accounts in such manner as to enable 38
him or her readily to ascertain its true condition or that 39
wrong entries or unlawf ul uses of the funds of the 40
corporation have been made, the director may issue and serve 41
upon the corporation or any appropriate director, officer, 42
employee, agent, or other person a notice of charges in 43
respect thereof. 44
4. The notice of charges shall contain a statement of 45
the facts constituting the deficiencies, [the] alleged 46
violation or violations, improper use of funds, or [the] 47
unsafe or unsound practice or practices, and shall fix a 48
time and place at which a contested hearing will be held to 49
determine whether an order to cease and desist therefrom 50
should [issue] be issued against the corporation or the 51
director, officer, employee, agent, or other person 52
participating in the conduct of the affairs of such 53
corporation. 54 SCS HCS HB 725 27
5. In the event the party or parties so served shall 55
fail to appear at the hearing, or shall consent to the cease 56
and desist order, or in the event the director shall find 57
that the fact of any deficiency, violation, unsafe or 58
unsound practice, inadequate record keeping, or improper use 59
of funds specified has been established, the director may 60
issue and serve upon the corporation or the director, 61
officer, employee, agent, or other person participating in 62
the conduct of the affairs of the corporation an order t o 63
cease and desist from the actions, violations, or practices 64
charged. 65
6. The cease and desist order: 66
(1) May require the corporation or its directors, 67
officers, employees, agents, and other persons participating 68
in the conduct of the affai rs of such corporation to cease 69
and desist from [same and,] such actions, violations, or 70
practices; 71
(2) [Further,] May require the corporation or its 72
directors, officers, employees, agents, or other persons 73
participating in the conduct of the affa irs of such 74
corporation to take affirmative action to correct the 75
conditions resulting from any such actions, violations, or 76
practices[. If the director determines that the capital of 77
the corporation is impaired, ]; 78
(3) [The order] Shall require that, if the director 79
determines that the capital of the corporation is impaired, 80
the corporation make good the deficiency forthwith or within 81
a time specified in the order [.]; 82
(4) May, if the director determines that the 83
corporation does not keep adequate records, [the order may] 84
determine and prescribe such books of account as the 85
director, in his discretion, shall require of the 86 SCS HCS HB 725 28
corporation for the purpose of keeping accurate and 87
convenient records of the transactions and accounts [.]; and 88
(5) Shall, if the director [shall determine] 89
determines that wrong entries or unlawful uses of the funds 90
of the corporation have been made, [he shall] order that the 91
entries shall be corrected, and the sums unlawfully paid out 92
restored by the perso n or persons responsible for the 93
wrongful or illegal payment thereof. 94
[6.] 7. If a notice of charges served under this 95
section specifies, on the basis of particular facts and 96
circumstances, that a corporation's books and records are so 97
incomplete or inaccurate that the director is unable, 98
through the normal supervisory process, to determine the 99
financial condition of that corporation or the details or 100
purpose of any transaction or transactions that may have a 101
material effect on the financial c ondition of that 102
corporation, the director may issue a temporary order 103
requiring the cessation of any activity or practice which 104
gave rise, whether in whole or in part, to the incomplete or 105
inaccurate state of the books or records, or affirmative 106
action to restore such books or records to a complete and 107
accurate state, until the completion of the proceedings 108
under this section. Any temporary order issued under this 109
subsection shall become effective upon service and, unless 110
set aside, limited or su spended by a court, shall remain in 111
effect and enforceable until the earlier of the completion 112
of the proceedings initiated under this section or the date 113
on which the director determines by examination or otherwise 114
that the corporation's books and rec ords are accurate and 115
reflect the financial condition of the corporation. 116
[7.] 8. Whenever it shall appear to the director that 117
the violation or threatened violation or the unsafe or 118 SCS HCS HB 725 29
unsound practice or practices specified in the notice of 119
charges served upon the corporation or any director, 120
officer, employee, agent, or other person participating in 121
the conduct of the affairs of such corporation pursuant to 122
subsection 4 of this section, or the continuation thereof, 123
is likely to cause insolvenc y or significant dissipation of 124
assets or earnings of the corporation, or is likely to 125
weaken the condition of the corporation or otherwise 126
prejudice the interests of its depositors prior to the 127
completion of the proceedings conducted pursuant to said 128
subsection, the director may issue a temporary order, 129
effective immediately, requiring the corporation or such 130
director, officer, employee, agent, or other person to cease 131
and desist from any such violation or practice and to take 132
affirmative action t o prevent such insolvency, dissipation, 133
condition, or prejudice pending completion of such 134
proceedings. Such order shall remain effective and 135
enforceable pending the completion of the administrative 136
proceedings pursuant to such notice and until such t ime as 137
the director shall dismiss the charges specified in such 138
notice or if a cease and desist order is issued against the 139
corporation or such director, officer, employee, agent, or 140
other person, until the effective date of such order. The 141
corporation, director, officer, employee, agent, or other 142
person may, within ten days after having been served with a 143
temporary cease and desist order, apply to the circuit court 144
of Cole County for an order setting aside, limiting, or 145
suspending the enforcement , operation, or effectiveness of 146
such order. 147
[8.] 9. If any corporation, or any director, officer, 148
employee, agent, or other person participating in the 149
conduct of the affairs of such corporation shall fail or 150 SCS HCS HB 725 30
refuse to comply with any duly issue d order provided for in 151
this chapter and chapter 362, the corporation or such 152
director, officer, employee, agent, or other person shall 153
pay a civil penalty of not more than one thousand dollars 154
per day for each day the failure or refusal shall continue . 155
The penalty shall be assessed and collected by the director 156
of the division. In determining the amount of the penalty, 157
the director shall take into account the appropriateness of 158
the penalty with respect to the size of the financial 159
resources and good faith of the corporation or person 160
charged, the gravity of the violation, the history of 161
previous violations, and such other matters as justice may 162
require. In addition to the penalty, the director may, in 163
his or her discretion, report the delinq uency to the 164
attorney general, with a request that [he] the attorney 165
general proceed as provided in section 361.270, and in the 166
event of such request, the attorney general shall proceed. 167
361.262. 1. Whenever it shall appear to the d irector, 1
from any examination or investigation made by [him] the 2
director or [his] the director's examiners, that: 3
(1) Any director, officer, or any other person 4
participating in the conduct of the affairs of a corporation 5
subject to this chapter has [committed any violation of ]: 6
(a) Violated a law or regulation [or of]; 7
(b) Violated a cease and desist order [, or has]; 8
(c) Violated any director-imposed written condition 9
[imposed in writing by the director ] in connection with the 10
grant of any application or other request by such 11
corporation [or]; 12
(d) Violated any written agreement between such 13
corporation and the director [, or has]; 14 SCS HCS HB 725 31
(e) Engaged or participated in any unsafe or unsound 15
practice in connection with th e corporation[,]; or [has] 16
(f) Committed or engaged in any act, omission, or 17
practice [which] that constitutes a breach of his or her 18
fiduciary duty to the corporation [,]; and 19
(2) The director determines that : 20
(a) The corporation has su ffered or will probably 21
suffer financial loss or other damage [or that]; 22
(b) The interests of its depositors , beneficiaries, or 23
other customers could be prejudiced by reason of such 24
violation or practice or breach of fiduciary duty [,]; or 25
[that] 26
(c) The director or officer or other person has 27
received financial gain by reason of such violation or 28
practice or breach of fiduciary duty [,]; and 29
(3) The director determines that such violation or 30
practice or breach of fiduciary duty is : 31
(a) One involving personal dishonesty on the part of 32
such director, officer or other person [,]; or 33
(b) One [which] that demonstrates a willful or 34
continuing disregard for the safety or soundness of the 35
corporation[,]; 36
the director may serve u pon such director, officer, or other 37
person a written notice of [his] the director's intention to 38
remove him or her from office. 39
2. When it shall appear from any examination or 40
investigation to the director [from any examination made by 41
him or his examiners] that any director or officer of a 42
corporation subject to this chapter, by conduct or practice 43
with respect to another such corporation or any business 44
[institution which] that: 45 SCS HCS HB 725 32
(1) Resulted in financial loss or other damage [, has]; 46
(2) Evidenced either: 47
(a) His or her personal dishonesty; or 48
(b) A willful or continuing disregard for its safety 49
and soundness; and[, in addition, has] 50
(3) Evidenced his or her unfitness to continue as a 51
director or officer, [and whenever it shall appear to the 52
director that any other person participating in the conduct 53
of the affairs of a corporation subject to this chapter, by 54
conduct or practice with respect to such corporation or 55
other corporation or other business instituti on which 56
resulted in financial loss or other damage, has evidenced 57
either his personal dishonesty or willful or continuing 58
disregard for its safety and soundness and, in addition, has 59
evidenced his unfitness to participate in the conduct of the 60
affairs of such corporation, ] 61
the director may serve upon such director [,] or officer[, or 62
other person] a written notice of intention to remove him or 63
her from office or to prohibit his or her further 64
participation in any manner in the conduct of the affairs of 65
the corporation or from any other banking, savings, or trust 66
institution supervised by the director. 67
3. When it shall appear from any examination or 68
investigation to the director that any person participating 69
in the conduct of the affairs of a corporation subject to 70
this chapter, by conduct or practice with respect to such 71
corporation or other corporation or other business 72
institution that: 73
(1) Resulted in financial loss or other damage, has 74
(2) Evidenced either: 75
(a) His or her personal dishonesty; or 76 SCS HCS HB 725 33
(b) A willful or continuing disregard for its safety 77
and soundness; and 78
(3) Evidenced his or her unfitness to participate in 79
the conduct of the affairs of such corporation, 80
the director may serve upon such person a written notice of 81
intention to remove him or her from office or to prohibit 82
his or her further participation in any manner in the 83
conduct of the affairs of the corporation or from any other 84
banking, savings, or trust institution supervised by the 85
director. 86
4. Whenever it shall appear to the director to be 87
necessary for the protection of any corporation or its 88
depositors, [he] beneficiaries, or other customers, the 89
director may, by written notice to such effect served upon 90
any director, officer, or other person referred to in 91
[subsection 1 or 2] subsections 1 to 3 of this section, 92
suspend him or her from office or prohibit him or her from 93
further participation in any manner in the conduct of the 94
affairs of the corporation. Such suspension or prohibition 95
shall become effective upon service of such notice and shall 96
remain in effect pending the completion of the 97
administrative proceedings pursuant to the notice served 98
under [subsection 1 or 2] subsections 1 to 3 of this section 99
and until such time as the director shall dismiss the 100
charges specified in such notice or, if an order of removal 101
or prohibition is issued against the director or officer or 102
other person, until the effective date of any such order. 103
Copies of any such notice shall also be served upon the 104
corporation of which he or she is a director or officer or 105
in the conduct of whose affairs he or she has participated. 106 SCS HCS HB 725 34
[4.] 5. Except as provided in subsection [5] 6 of this 107
section, any person who, pursuant to an ord er issued under 108
this section, has been removed or suspended from office in a 109
corporation or prohibited from participating in the conduct 110
of the affairs of a corporation may not, while such order is 111
in effect, continue or commence to hold any office in, or 112
participate in any manner in, the conduct of the affairs of 113
any other corporation subject to the provisions of this 114
chapter. 115
[5.] 6. If, on or after the date an order is issued 116
under this section [which] that removes or suspends from 117
office any person or prohibits such person from 118
participating in the conduct of the affairs of a 119
corporation, such party receives the written consent of the 120
director, subsection [4] 5 of this section shall, to the 121
extent of such consent, cease to apply to suc h person with 122
respect to the [corporation] terms and conditions described 123
in the written consent and the director shall publicly 124
disclose such consent. Any violation of subsection [4] 5 of 125
this section by any person who is subject to an order 126
described in such subsection shall be treated as a violation 127
of the order. 128
361.715. 1. Upon the filing of the application, the 1
filing of a certified audit, the payment of the 2
investigation fee and the approval by the director of the 3
necessary bond, the director shall cause, investigate, and 4
determine whether the character, responsibility, and general 5
fitness of the principals of the applicant or any affiliates 6
are such as to command confidence and warrant belief that 7
the business of the applicant will be conducted honestly and 8
efficiently and that the applicant is in compliance with all 9
other applicable state and federal laws. If satisfied, the 10 SCS HCS HB 725 35
director shall issue to the applicant a license pursuant to 11
the provisions of sections 3 61.700 to 361.727. In 12
processing a renewal license, the director shall require the 13
same information and follow the same procedures described in 14
this subsection. 15
2. Each licensee shall pay to the director before the 16
issuance of the license, and a nnually thereafter on or 17
before April fifteenth of each year, a license fee of 18
[three] four hundred dollars. 19
3. The director may assess a reasonable charge, not to 20
exceed [three] four hundred dollars, for any application to 21
amend and reissue an e xisting license. 22
362.034. 1. Any entity that operates as a facility 1
licensed or certified under Article XIV of the Constitution 2
of Missouri may request in writing that a state or local 3
licensing authority or agency, including, but n ot limited 4
to, the department of health and senior services or 5
department of revenue, share the entity's application, 6
license, or other regulatory and financial information with 7
a banking institution. A state or local licensing authority 8
or agency may also share such information with the banking 9
institution's state and federal supervisory agencies. 10
2. In order to ensure the state or local licensing 11
authority or agency is properly maintaining the 12
confidentiality of individualized data, informa tion, or 13
records, an entity shall include in the written request a 14
waiver giving authorization for the transfer of the 15
individualized data, information, or records and waiving any 16
confidentiality or privilege that applies to that 17
individualized data, information, or records. 18
3. This section shall only apply to the disclosure of 19
information by a state or local licensing authority or 20 SCS HCS HB 725 36
agency reasonably necessary to facilitate the provision of 21
financial services by a banking institution to the ent ity 22
making a request pursuant to this section. 23
4. The recipient of any information pursuant to this 24
section shall treat such information as confidential and use 25
it only for the purposes described in this section. 26
5. Nothing in this section s hall be construed to 27
authorize the disclosure of confidential or privileged 28
information, nor waive an entity's rights to assert 29
confidentiality or privilege, except as reasonably necessary 30
to facilitate the provision of financial services for the 31
entity making the request. 32
6. An entity that has provided a waiver pursuant to 33
this section may withdraw the waiver with thirty days' 34
notice in writing. 35
7. Nothing in this section shall be construed to 36
modify the requirements of chapter 610. 37
8. For purposes of this section, the following terms 38
mean: 39
(1) "Banking institution", the same meaning as in 40
Article IV, Section 15 of the Missouri Constitution; 41
(2) "Entity", the same meaning as in Article XIV of 42
the Missouri Constitutio n. 43
364.030. 1. No person shall engage in the business of 1
a financing institution in this state without a license 2
therefor as provided in this chapter; except, however, that 3
no bank, trust company, loan and investment company, 4
licensed sales finance company, registrant under the 5
provisions of sections 367.100 to 367.200, or person who 6
makes only occasional purchases of retail time contracts or 7
accounts under retail charge agreements and which purchases 8
are not being made in the c ourse of repeated or successive 9 SCS HCS HB 725 37
purchase of retail installment contracts from the same 10
seller, shall be required to obtain a license under this 11
chapter but shall comply with all the laws of this state 12
applicable to the conduct and operation of a financ ing 13
institution. 14
2. The application for the license shall be in 15
writing, under oath and in the form prescribed by the 16
director. The application shall contain the name of the 17
applicant; date of incorporation, if incorporated; the 18
address where the business is or is to be conducted and 19
similar information as to any branch office of the 20
applicant; the name and resident address of the owner or 21
partners or, if a corporation or association, of the 22
directors, trustees and principal officers, and ot her 23
pertinent information as the director may require. 24
3. The license fee for each calendar year or part 25
thereof shall be the sum of [five] six hundred dollars for 26
each place of business of the licensee in this state which 27
shall be paid into the general revenue fund. The director 28
may establish a biennial licensing arrangement but in no 29
case shall the fees be payable for more than one year at a 30
time. 31
4. Each license shall specify the location of the 32
office or branch and must be conspicuo usly displayed 33
therein. In case the location is changed, the director 34
shall either endorse the change of location of the license 35
or mail the licensee a certificate to that effect, without 36
charge. 37
5. Upon the filing of an application, and the pay ment 38
of the fee, the director shall issue a license to the 39
applicant to engage in the business of a financing 40
institution under and in accordance with the provisions of 41 SCS HCS HB 725 38
this chapter for a period which shall expire the last day of 42
December next followi ng the date of its issuance. The 43
license shall not be transferable or assignable. No 44
licensee shall transact any business provided for by this 45
chapter under any other name. 46
364.105. 1. No person shall engage in the business of 1
a premium finance company in this state without first 2
registering as a premium finance company with the director. 3
2. The annual registration fee shall be [five] six 4
hundred dollars payable to the director as of the first day 5
of July of each year. The director may establish a biennial 6
licensing arrangement but in no case shall the fees be 7
payable for more than one year at a time. 8
3. Registration shall be made on forms prepared by the 9
director and shall contain the following information: 10
(1) Name, business address and telephone number of the 11
premium finance company; 12
(2) Name and business address of corporate officers 13
and directors or principals or partners; 14
(3) A sworn statement by an appropriate officer, 15
principal or partner of the premium finance company that: 16
(a) The premium finance company is financially capable 17
to engage in the business of insurance premium financing; and 18
(b) If a corporation, that the corporation is 19
authorized to transact business in thi s state; 20
(4) If any material change occurs in the information 21
contained in the registration form, a revised statement 22
shall be submitted to the director accompanied by an 23
additional fee of three hundred dollars. 24
365.030. 1. No person shall engage in the business of 1
a sales finance company in this state without a license as 2
provided in this chapter; except, that no bank, trust 3 SCS HCS HB 725 39
company, savings and loan association, loan and investment 4
company or registrant under the provisio ns of sections 5
367.100 to 367.200 authorized to do business in this state 6
is required to obtain a license under this chapter but shall 7
comply with all of the other provisions of this chapter. 8
2. The application for the license shall be in 9
writing, under oath and in the form prescribed by the 10
director. The application shall contain the name of the 11
applicant; date of incorporation, if incorporated; the 12
address where the business is or is to be conducted and 13
similar information as to any branch office of the 14
applicant; the name and resident address of the owner or 15
partners or, if a corporation or association, of the 16
directors, trustees and principal officers, and such other 17
pertinent information as the director may require. 18
3. The license fee for each calendar year or part 19
thereof shall be the sum of [five] six hundred dollars for 20
each place of business of the licensee in this state. The 21
director may establish a biennial licensing arrangement but 22
in no case shall the fees be payable for more than one year 23
at a time. 24
4. Each license shall specify the location of the 25
office or branch and must be conspicuously displayed there. 26
In case the location is changed, the director shall either 27
endorse the change of location on the lic ense or mail the 28
licensee a certificate to that effect, without charge. 29
5. Upon the filing of the application, and the payment 30
of the fee, the director shall issue a license to the 31
applicant to engage in the business of a sales finance 32
company under and in accordance with the provisions of this 33
chapter for a period which shall expire the last day of 34
December next following the date of its issuance. The 35 SCS HCS HB 725 40
license shall not be transferable or assignable. No 36
licensee shall transact any business p rovided for by this 37
chapter under any other name. 38
367.140. 1. Every lender shall, at the time of filing 1
application for certificate of registration as provided in 2
section 367.120 hereof, pay the sum of [five] six hundred 3
dollars as an annual registration fee for the period ending 4
the thirtieth day of June next following the date of payment 5
and in full payment of all expenses for investigations, 6
examinations and for the administration of sections 367.100 7
to 367.200, except as pro vided in section 367.160, and 8
thereafter a like fee shall be paid on or before June 9
thirtieth of each year; provided, that if a lender is 10
supervised by the commissioner of finance under any other 11
law, the charges for examination and supervision require d to 12
be paid under said law shall be in lieu of the annual fee 13
for registration and examination required under this 14
section. The fee shall be made payable to the director of 15
revenue. If the initial registration fee for any 16
certificate of registratio n is for a period of less than 17
twelve months, the registration fee shall be prorated 18
according to the number of months that said period shall 19
run. The director may establish a biennial licensing 20
arrangement but in no case shall the fees be payable for 21
more than one year at a time. 22
2. Upon receipt of such fee and application for 23
registration, and provided the bond, if required by the 24
director, has been filed, the director shall issue to the 25
lender a certificate containing the lender's name and 26
address and reciting that such lender is duly and properly 27
registered to conduct the supervised business. The lender 28
shall keep this certificate of registration posted in a 29 SCS HCS HB 725 41
conspicuous place at the place of business recited in the 30
registration certificate. Where the lender engages in the 31
supervised business at or from more than one office or place 32
of business, such lender shall obtain a separate certificate 33
of registration for each such office or place of business. 34
3. Certificates of regist ration shall not be 35
assignable or transferable except that the lender named in 36
any such certificate may obtain a change of address of the 37
place of business therein set forth. Each certificate of 38
registration shall remain in full force and effect until 39
surrendered, revoked, or suspended as herein provided. 40
407.640. 1. A credit services organization shall file 1
a registration statement with the director of finance before 2
conducting business in this state. The registration 3
statement must contain: 4
(1) The name and address of the credit services 5
organization; and 6
(2) The name and address of any person who directly or 7
indirectly owns or controls ten percent or more of the 8
outstanding shares of stock in the credit servic es 9
organization. 10
2. The registration statement must also contain either: 11
(1) A full and complete disclosure of any litigation 12
or unresolved complaint filed by or with a governmental 13
authority of this state relating to the operation of the 14
credit services organization; or 15
(2) A notarized statement that states that there has 16
been no litigation or unresolved complaint filed by or with 17
a governmental authority of this state relating to the 18
operation of the credit services organization. 19
3. The credit services organization shall update the 20
statement not later than the ninetieth day after the date on 21 SCS HCS HB 725 42
which a change in the information required in the statement 22
occurs. 23
4. Each credit services organization registering under 24
this section shall maintain a copy of the registration 25
statement in the office of the credit services 26
organization. The credit services organization shall allow 27
a buyer to inspect the registration statement on request. 28
5. The director of finance may charge each credit 29
services organization that files a registration statement 30
with the director of finance a reasonable fee not to exceed 31
[three] four hundred dollars to cover the cost of filing. 32
The director of finance may not require a credit servic es 33
organization to provide information other than that provided 34
in the registration statement as part of the registration 35
process. 36
408.145. 1. To encourage competitive equality, 1
lenders issuing credit cards in this state pursuant t o the 2
authority of section 408.100 or 408.200, may [in addition to 3
lawful interest, contract for, charge and collect fees for ] 4
issue such credit cards under such terms and conditions 5
which any lender in any contiguous state is permitted to 6
[charge] utilize for credit cards issued in such contiguous 7
state by such state's statutes. State-chartered lenders 8
[charging such fees] issuing credit cards in reliance on 9
this subsection shall file a copy of the pertinent statutes 10
of one contiguous state autho rizing credit card [fees] terms 11
and conditions with the director of finance or such lender's 12
principal state regulator. The director of finance or other 13
principal state regulator shall, within thirty days after 14
receipt of the filing, approve or disapp rove of such [fees] 15
terms and conditions on the sole basis of whether the 16
statutes of such contiguous state permit such [fees] terms 17 SCS HCS HB 725 43
and conditions, and without regard to the restrictions 18
placed upon credit cards by subsection 2 of this section. 19
When the lender is chartered by the federal government, or 20
any agency thereunder, or is unregulated, such lender shall 21
file with and be approved by the Missouri attorney general 22
under the same provision as provided a state -chartered 23
lender. 24
2. "Credit card" as used in this section shall mean a 25
credit device defined as such in the federal Consumer Credit 26
Protection Act and regulations thereunder, except: 27
(1) The term shall be limited to credit devices which 28
permit the holder to purchase goods and service upon 29
presentation to third parties whether or not the credit card 30
also permits the holder to obtain loans of any other type; 31
and 32
(2) Such credit device shall only provide credit which 33
is not secured by real or personal property. 34
3. "Lender" as used in this section shall mean any 35
category of depository or nondepository creditor. 36
Notwithstanding the provisions of [section 408.140] sections 37
408.100 to 408.190 to the contrary , the lender shall declare 38
on each credit card contrac t whether the credit card [fees 39
are governed by section 408.140, or by ] is issued pursuant 40
to this section. 41
408.500. 1. Lenders, other than banks, trust 1
companies, credit unions, savings banks and savings and loan 2
companies, in the business of making unsecured loans of five 3
hundred dollars or less shall obtain a license from the 4
director of the division of finance. An annual license fee 5
of [five] six hundred dollars per location shall be 6
required. The license year shall commen ce on January first 7
each year and the license fee may be prorated for expired 8 SCS HCS HB 725 44
months. The director may establish a biennial licensing 9
arrangement but in no case shall the fees be payable for 10
more than one year at a time. The provisions of this 11
section shall not apply to pawnbroker loans, consumer credit 12
loans as authorized under chapter 367, nor to a check 13
accepted and deposited or cashed by the payee business on 14
the same or the following business day. The disclosures 15
required by the federal Tru th in Lending Act and regulation 16
Z shall be provided on any loan, renewal or extension made 17
pursuant to this section and the loan, renewal or extension 18
documents shall be signed by the borrower. 19
2. Entities making loans pursuant to this section 20
shall contract for and receive simple interest and fees in 21
accordance with sections 408.100 and 408.140. Any contract 22
evidencing any fee or charge of any kind whatsoever, except 23
for bona fide clerical errors, in violation of this section 24
shall be void. Any person, firm or corporation who receives 25
or imposes a fee or charge in violation of this section 26
shall be guilty of a class A misdemeanor. 27
3. Notwithstanding any other law to the contrary, cost 28
of collection expenses, which include court cos ts and 29
reasonable attorneys fees, awarded by the court in suit to 30
recover on a bad check or breach of contract shall not be 31
considered as a fee or charge for purposes of this section. 32
4. Lenders licensed pursuant to this section shall 33
conspicuously post in the lobby of the office, in at least 34
fourteen-point bold type, the maximum annual percentage 35
rates such licensee is currently charging and the statement: 36
NOTICE: 37
This lender offers short -term loans. Please 38
read and understand the terms of t he loan 39
agreement before signing. 40 SCS HCS HB 725 45
5. The lender shall provide the borrower with a notice 41
in substantially the following form set forth in at least 42
ten-point bold type, and receipt thereof shall be 43
acknowledged by signature of the borrower: 44
(1) This lender offers short -term loans. 45
Please read and understand the terms of the loan 46
agreement before signing. 47
(2) You may cancel this loan without costs by 48
returning the full principal balance to the 49
lender by the close of the lender's next full 50
business day. 51
6. The lender shall renew the loan upon the borrower's 52
written request and the payment of any interest and fees due 53
at the time of such renewal; however, upon the first renewal 54
of the loan agreement, and each subsequent renewal 55
thereafter, the borrower shall reduce the principal amount 56
of the loan by not less than five percent of the original 57
amount of the loan until such loan is paid in full. 58
However, no loan may be renewed more than six times. 59
7. When making or negotiating loans, a licensee shall 60
consider the financial ability of the borrower to reasonably 61
repay the loan in the time and manner specified in the loan 62
contract. All records shall be retained at least two years. 63
8. A licensee who ceases business pursuan t to this 64
section must notify the director to request an examination 65
of all records within ten business days prior to cessation. 66
All records must be retained at least two years. 67
9. Any lender licensed pursuant to this section who 68
fails, refuses or neglects to comply with the provisions of 69
this section, or any laws relating to consumer loans or 70
commits any criminal act may have its license suspended or 71
revoked by the director of finance after a hearing before 72 SCS HCS HB 725 46
the director on an order of the di rector to show cause why 73
such order of suspension or revocation should not be entered 74
specifying the grounds therefor which shall be served on the 75
licensee at least ten days prior to the hearing. 76
10. Whenever it shall appear to the director that a ny 77
lender licensed pursuant to this section is failing, 78
refusing or neglecting to make a good faith effort to comply 79
with the provisions of this section, or any laws relating to 80
consumer loans, the director may issue an order to cease and 81
desist which order may be enforceable by a civil penalty of 82
not more than one thousand dollars per day for each day that 83
the neglect, failure or refusal shall continue. The penalty 84
shall be assessed and collected by the director. In 85
determining the amount of the penalty, the director shall 86
take into account the appropriateness of the penalty with 87
respect to the gravity of the violation, the history of 88
previous violations, and such other matters as justice may 89
require. 90
436.550. Sections 436.550 to 436.570 shall be known 1
and may be cited as the "Consumer Legal Funding Act". 2
436.552. As used in sections 436.550 to 436.570, the 1
following terms mean: 2
(1) "Advertise", publishing or disseminating any 3
written, electronic, or printed communication or any 4
communication by means of recorded telephone messages or 5
transmitted on radio, television, the internet, or similar 6
communications media, including film strips, motion 7
pictures, and videos, published, disseminated, ci rculated, 8
or placed before the public, directly or indirectly, for the 9
purpose of inducing a consumer to enter into a consumer 10
legal funding contract; 11 SCS HCS HB 725 47
(2) "Charges", the amount of moneys to be paid to the 12
consumer legal funding company by or on b ehalf of the 13
consumer above the funded amount provided by or on behalf of 14
the company to a consumer under sections 436.550 to 15
436.570. Charges include all administrative, origination, 16
underwriting, or other fees, no matter how denominated; 17
(3) "Consumer", a natural person who has a legal claim 18
and resides or is domiciled in Missouri; 19
(4) "Consumer legal funding company" or "company", a 20
person or entity that enters into a consumer legal funding 21
contract with a consumer. The term shall not include: 22
(a) An immediate family member of the consumer; 23
(b) A bank, lender, financing entity, or other special 24
purpose entity: 25
a. That provides financing to a consumer legal funding 26
company; or 27
b. To which a consumer legal fund ing company grants a 28
security interest or transfers any rights or interest in a 29
consumer legal funding; or 30
(c) An attorney or accountant who provides services to 31
a consumer; 32
(5) "Consumer legal funding contract", a nonrecourse 33
contractual transaction in which a consumer legal funding 34
company purchases and a consumer assigns to the company a 35
contingent right to receive an amount of the potential 36
proceeds of a settlement, judgment, award, or verdict 37
obtained in the consumer's legal claim; 38
(6) "Director", the director of the division of 39
finance within the department of commerce and insurance; 40
(7) "Division", the division of finance within the 41
department of commerce and insurance; 42 SCS HCS HB 725 48
(8) "Funded amount", the amount of moneys provided to 43
or on behalf of the consumer in the consumer legal funding 44
contract. "Funded amount" shall not include charges; 45
(9) "Funding date", the date on which the funded 46
amount is transferred to the consumer by the consumer legal 47
funding company either by personal delivery, via wire, 48
automated clearing house transfer, or other electronic 49
means, or by insured, certified, or registered United States 50
mail; 51
(10) "Immediate family member", a parent; sibling; 52
child by blood, adoption, or m arriage; spouse; grandparent; 53
or grandchild; 54
(11) "Legal claim", a bona fide civil claim or cause 55
of action, any alternative dispute resolution proceeding, or 56
any administrative proceeding before any agency or 57
instrumentality of this state; 58
(12) "Medical provider", any person or business 59
providing medical services of any kind to a consumer 60
including, but not limited to, physicians, nurse 61
practitioners, hospitals, physical therapists, 62
chiropractors, or radiologists as well as any of their 63
employees or contractors or any practice groups, 64
partnerships, or incorporations of the same; 65
(13) "Resolution date", the date the amount funded to 66
the consumer, plus the agreed -upon charges, is delivered to 67
the consumer legal funding company. 68
436.554. 1. All consumer legal funding contracts 1
shall meet the following requirements: 2
(1) The contract shall be completely filled in when 3
presented to the consumer for signature; 4
(2) The contract shall contain, in bold and boxed 5
type, a right of rescission allowing the consumer to cancel 6 SCS HCS HB 725 49
the contract without penalty or further obligation if, 7
within five business days after the funding date, the 8
consumer either: 9
(a) Returns the full amount of the disbursed fund s to 10
the consumer legal funding company by delivering the 11
company's uncashed check to the company's office in person; 12
or 13
(b) Mails a notice of cancellation by insured, 14
certified, or registered United States mail to the address 15
specified in the contract and includes a return of the full 16
amount of disbursed funds in such mailing in the form of the 17
company's uncashed check or a registered or certified check 18
or money order; 19
(3) The contract shall contain the initials of the 20
consumer on each page; and 21
(4) The contract shall require the consumer to give 22
nonrevocable written direction to the consumer's attorney 23
requiring the attorney to notify the consumer legal funding 24
company when the legal claim has been resolved. Once the 25
consumer legal funding company confirms in writing the 26
amount due under the contract, the consumer's attorney shall 27
pay, from the proceeds of the resolution of the legal claim, 28
the consumer legal funding company the amount due within ten 29
business days. 30
2. The consumer legal funding company shall provide 31
the consumer's attorney with a written notification of the 32
consumer legal funding contract provided to the consumer 33
within three business days of the funding date by way of 34
postal mail, courier servic e, facsimile, or other means of 35
proof of delivery method. 36 SCS HCS HB 725 50
3. A consumer legal funding contract shall be entered 37
into only if the contract involves an existing legal claim 38
in which the consumer is represented by an attorney. 39
436.556. No consumer legal funding company shall: 1
(1) Pay or offer to pay commissions, referral fees, or 2
other forms of consideration to any attorney, law firm, 3
medical provider, chiropractor, or physical therapist or any 4
of their employees for refer ring a consumer to the company; 5
(2) Accept any commissions, referral fees, rebates, or 6
other forms of consideration from an attorney, law firm, 7
medical provider, chiropractor, or physical therapist or any 8
of their employees; 9
(3) Intentionally advertise materially false or 10
misleading information regarding its products or services; 11
(4) Refer, in furtherance of an initial legal funding, 12
a customer or potential customer to a specific attorney, law 13
firm, medical provider, chiropractor, or physical therapist 14
or any of their employees. However, the company may refer 15
the customer to a local or state bar association referral 16
service if a customer needs legal representation; 17
(5) Fail to promptly supply a copy of the executed 18
contract to the consumer's attorney; 19
(6) Knowingly provide funding to a consumer who has 20
previously assigned or sold a portion of the right to 21
proceeds from the consumer's legal claim unless the consumer 22
legal funding company pays or purchases the entire 23
unsatisfied funded amount and contracted charges from the 24
prior consumer legal funding company or the two companies 25
agree to a lesser amount in writing. However, multiple 26
companies may agree to contemporaneously provide funding to 27
a consumer, provided that the consumer and the consumer's 28
attorney consent to the arrangement in writing; 29 SCS HCS HB 725 51
(7) Receive any right to or make any decisions with 30
respect to the conduct of the underlying legal claim or any 31
settlement or resolution thereof. The right to make such 32
decisions shall remain solely with the consumer and the 33
attorney in the legal claim; or 34
(8) Knowingly pay or offer to pay for court costs, 35
filing fees, or attorney's fees either during or after the 36
resolution of the legal claim by using funds from the 37
consumer legal funding contract. The consumer legal funding 38
contract shall include a provision advising the consumer 39
that the funding shall not be used for such costs or fees. 40
436.558. 1. The contracted amount to be paid to the 1
consumer legal funding company shall be set as a 2
predetermined amount based upon intervals of time from the 3
funding date to the resolution date and shall not be 4
determined as a percentage of the recovery from the legal 5
claim. 6
2. No consumer legal funding contract shall be valid 7
if its terms exceed a period of forty -eight months. No 8
consumer legal funding contract shall be automatically 9
renewed. 10
436.560. All consumer legal funding contracts shall 1
contain the disclosures specified in this section, which 2
shall constitute material terms of the contract. Unless 3
otherwise specified, the disclosures shall be typed in at 4
least twelve-point bold-type font and be placed clearly and 5
conspicuously within the contract , as follows: 6
(1) On the front page under appropriate headings, 7
language specifying: 8
(a) The funded amount to be paid to the consumer by 9
the consumer legal funding company; 10
(b) An itemization of one -time charges; 11 SCS HCS HB 725 52
(c) The total amount to be assigned by the consumer to 12
the company, including the funded amount and all charges; and 13
(d) A payment schedule to include the funded amount 14
and charges, listing all dates and the amount due at the end 15
of each six-month period from the funding date until the 16
date the maximum amount due to the company by the consumer 17
to satisfy the amount due pursuant to the contract; 18
(2) Within the body of the contract, in accordance 19
with the provisions under subdivision (2) of subsection 1 of 20
section 436.554: "Consumer's Right to Cancellation": You may 21
cancel this contract without penalty or further obligation 22
within five business days after the funding date if you 23
either: 24
(a) Return the full amount of the disbursed funds to 25
the consumer legal funding company by delivering the 26
company's uncashed check to the company's office in person; 27
or 28
(b) Mail a notice of cancellation by insured, 29
certified, or registered United States mail to the company 30
at the address specified in the co ntract and include a 31
return of the full amount of disbursed funds in such mailing 32
in the form of the company's uncashed check or a registered 33
or certified check or money order; 34
(3) Within the body of the contract, language 35
specifying that the con sumer legal funding company shall 36
have no role in deciding whether, when, or for how much the 37
legal claim is settled and that the consumer or the 38
consumer's attorney shall notify the company of whether the 39
outcome of the legal claim will be by settleme nt or by 40
adjudication prior to the resolution date. The company may 41
seek updated information about the status of the legal claim 42
but in no event shall the company interfere with the 43 SCS HCS HB 725 53
independent professional judgment of the attorney in the 44
handling of the legal claim or any settlement thereof; 45
(4) Within the body of the contract, in all capital 46
letters and in at least twelve -point bold-type font 47
contained within a box: "THE FUNDED AMOUNT AND AGREED -UPON 48
CHARGES SHALL BE PAID ONLY FROM THE PROC EEDS OF YOUR LEGAL 49
CLAIM AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE 50
AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. IF THERE IS NO 51
RECOVERY OF ANY DAMAGES FROM YOUR LEGAL CLAIM OR IF THERE IS 52
NOT ENOUGH MONEY TO PAY BACK THE CONSUMER LEGAL FUNDING 53
COMPANY IN FULL, YOU WILL NOT BE OBLIGATED TO PAY THE 54
CONSUMER LEGAL FUNDING COMPANY ANYTHING IN EXCESS OF YOUR 55
RECOVERY UNLESS YOU HAVE VIOLATED THIS CONTRACT. YOU WILL 56
NOT OWE (INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY) 57
ANYTHING IF THERE AR E NO PROCEEDS FROM YOUR LEGAL CLAIM 58
UNLESS YOU OR YOUR ATTORNEY HAVE VIOLATED ANY MATERIAL TERM 59
OF THIS CONTRACT OR UNLESS YOU HAVE COMMITTED FRAUD AGAINST 60
THE CONSUMER LEGAL FUNDING COMPANY."; and 61
(5) Located immediately above the place on the 62
contract where the consumer's signature is required, in 63
twelve-point font: "Do not sign this contract before you 64
read it completely or if it contains any blank spaces. You 65
are entitled to a completely filled -in copy of the 66
contract. Before you sign this contract, you should obtain 67
the advice of an attorney. Depending on the circumstances, 68
you may want to consult a tax, public or private benefits 69
planning, or financial professional. You acknowledge that 70
your attorney in the legal claim has provide d no tax, public 71
or private benefit planning, or financial advice regarding 72
this transaction." 73
436.562. 1. Nothing in sections 436.550 to 436.570 1
shall be construed to restrict the exercise of powers or the 2 SCS HCS HB 725 54
performance of the dutie s of the state attorney general that 3
he or she is authorized to exercise or perform by law. 4
2. If a court of competent jurisdiction determines 5
that a consumer legal funding company has intentionally 6
violated the provisions of sections 436.550 to 4 36.570 in a 7
consumer legal funding contract, the consumer legal funding 8
contract shall be voided. 9
436.564. 1. The contingent right to receive an amount 1
of the potential proceeds of a legal claim is assignable. 2
2. Nothing contained in sections 436.550 to 436.570 3
shall be construed to cause any consumer legal funding 4
contract conforming to sections 436.550 to 436.570 to be 5
deemed a loan or to be subject to any of the provisions 6
governing loans. A consumer legal funding contr act that 7
complies with sections 436.550 to 436.570 is not subject to 8
any other statutory or regulatory provisions governing loans 9
or investment contracts. To the extent that sections 10
436.550 to 436.570 conflict with any other law, such 11
sections shall supersede the other law for the purposes of 12
regulating consumer legal funding in this state. 13
3. Only attorney's liens related to the legal claim, 14
Medicare, or other statutory liens related to the legal 15
claim shall take priority over claims to pro ceeds from the 16
consumer legal funding company. All other liens and claims 17
shall take priority by normal operation of law. 18
4. No consumer legal funding company shall report a 19
consumer to a credit reporting agency if insufficient funds 20
remain from the net proceeds to repay the company. 21
436.566. An attorney or law firm retained by the 1
consumer in the legal claim shall not have a financial 2
interest in the consumer legal funding company offering 3
consumer legal funding to that co nsumer. Additionally, any 4 SCS HCS HB 725 55
practicing attorney who has referred the consumer to his or 5
her retained attorney shall not have a financial interest in 6
the consumer legal funding company offering consumer legal 7
funding to that consumer. 8
436.568. No communication between the consumer's 1
attorney in the legal claim and the consumer legal funding 2
company as it pertains to the consumer legal funding 3
contract shall limit, waive, or abrogate the scope or nature 4
of any statutory or common -law privilege, including the work - 5
product doctrine and attorney -client privilege. 6
436.570. 1. A consumer legal funding company shall 1
not engage in the business of consumer legal funding in this 2
state, unless it has first obtained a li cense from the 3
division of finance. 4
2. A consumer legal funding company's initial or 5
renewal license application shall be in writing, made under 6
oath, and on a form provided by the director. 7
3. Every consumer legal funding company, at the ti me 8
of filing a license application, shall pay the sum of five 9
hundred dollars for a period ending the thirtieth day of 10
June next following the date of payment; and thereafter a 11
like fee shall be paid on or before June thirtieth of each 12
year and shall be credited to the division of finance fund. 13
4. A consumer legal funding license shall not be 14
issued unless the division of finance, upon investigation, 15
finds that the character and fitness of the applicant 16
company, and of the officers and directo rs thereof, are such 17
as to warrant belief that the business shall operate 18
honestly and fairly within the purposes of sections 436.550 19
to 436.570. 20
5. Every applicant shall also, at the time of filing 21
such application, file a bond satisfactory to t he division 22 SCS HCS HB 725 56
of finance in an amount not to exceed fifty thousand 23
dollars. The bond shall provide that the applicant shall 24
faithfully conform to and abide by the provisions of 25
sections 436.550 to 436.570, to all rules lawfully made by 26
the director under sections 436.550 to 436.570, and to any 27
such person or persons any and all amounts of moneys that 28
may become due or owing to the state or to such person or 29
persons from the applicant under and by virtue of sections 30
436.550 to 436.570, which shall co ver any actions that 31
occurred while the bond was in place for the applicable 32
period of limitations under statute and so long as the bond 33
is not exhausted by valid claims. 34
6. When an action is commenced on a licensee's bond, 35
the director may requi re the filling of a new bond. 36
Immediately upon any recovery on the bond, the licensee 37
shall file a new bond. 38
7. In order to ensure the effective supervision and 39
enforcement of sections 436.550 to 436.570, the director 40
may, after a contested hear ing under chapter 536: 41
(1) Deny, suspend, revoke, condition, or decline to 42
renew a license for a violation of sections 436.550 to 43
436.570, rules issued under sections 436.550 to 436.570, or 44
order or directive entered under sections 436.550 to 436. 570; 45
(2) Deny, suspend, revoke, condition, or decline to 46
renew a license if an applicant or licensee fails at any 47
time meet the requirements of sections 436.550 to 436.570, 48
or withholds information or makes a material misstatement in 49
an application for a license or renewal of a license; 50
(3) Order restitution against persons subject to 51
sections 436.550 to 436.570 for violations of sections 52
436.550 to 436.570; and 53 SCS HCS HB 725 57
(4) Order or direct such other affirmative action as 54
the director deems necessary. 55
8. Any letter issued by the director and declaring 56
grounds for denying or declining to grant or renew a license 57
may be appealed to the circuit court of Cole County. All 58
other matters presenting a contested case involving a 59
licensee may be heard by the director under chapter 536. 60
9. Notwithstanding the prior approval requirement of 61
subsection 1 of this section, a consumer legal funding 62
company that has applied with the division of finance 63
between the effective date of sections 436.550 to 436.570 64
and six months thereafter may engage in consumer legal 65
funding while the license application of the company or an 66
affiliate of the company is awaiting approval by the 67
division of finance. All funding contracts in effect prior 68
to the effective date of sections 436.550 to 436.570 are not 69
subject to the terms of sections 436.550 to 436.570. 70
10. Whenever it shall appear to the director that any 71
consumer legal funding company is failing, refusing or 72
neglecting to make a good fa ith effort to comply with the 73
provisions of sections 436.550 to 436.570, or any laws or 74
rules relating to consumer legal funding, the director may 75
issue an order to cease and desist which order may be 76
enforceable by a civil penalty of not more than one thousand 77
dollars per day for each day that the neglect, failure, or 78
refusal shall continue. The penalty shall be assessed and 79
collected by the director. In determining the amount of the 80
penalty, the director shall take into account the 81
appropriateness of the penalty of previous violations, and 82
such other matters as justice may require. 83
11. In the event any consumer legal funding company 84
fails, refuses, or neglects to comply with the provisions of 85 SCS HCS HB 725 58
sections 436.550 to 436.570, or of any laws or rules of the 86
state of Missouri relating to consumer legal funding, its 87
license may be suspended or revoked by order of the director 88
after a hearing before said director on any order to show 89
cause why such order of suspension or revocation should not 90
be entered specifying the grounds therefor which shall be 91
served on the particular consumer legal funding company at 92
least ten days prior to the hearing. Any order made and 93
entered by the director may be appealed to the circuit court 94
of Cole County. 95
12. The division shall conduct an examination of each 96
consumer funding company at least once every twenty -four 97
months and such other times as the director may determine. 98
(1) In connection with any such investigation or 99
examination, the dire ctor and his or her representatives 100
shall have free and immediate access to the place or places 101
of business and the books and records, and shall have the 102
authority to place under oath all persons whose testimony 103
may be required relative to the affairs and business of the 104
consumer legal funding company. 105
(2) The director may also make such special 106
investigations or examination as the director deems 107
necessary to determine whether any consumer legal funding 108
company has violated any of the provisio ns of sections 109
436.550 to 436.570 or rules promulgated thereunder; and may 110
assess the reasonable costs of any investigation or 111
examination incurred by the division to the company. 112
13. The division of finance shall have the authority 113
to promulgate rules to carry out the provisions of sections 114
436.550 to 436.570. Any rule or portion of a rule, as that 115
term is defined in section 536.010, that is created under 116
the authority delegated in this section shall become 117 SCS HCS HB 725 59
effective only if it complies with and is subject to all of 118
the provisions of chapter 536 and, if applicable, section 119
536.028. This section and chapter 536 are nonseverable, and 120
if any of the powers vested with the general assembly 121
pursuant to chapter 536 to review, to delay the effec tive 122
date, or to disapprove and annul a rule are subsequently 123
held unconstitutional, then the grant of rulemaking 124
authority and any rule proposed or adopted after August 28, 125
2023, shall be invalid and void. 126
436.571. Sections 436.571 to 436.580 shall be known 1
and may be cited as the "Consumer Litigation Financing 2
Act". As used in sections 436.571 to 436.580, the following 3
terms mean: 4
(1) "Consumer", any natural person who resides, is 5
present, or is domiciled in this state o r who is or may 6
become a plaintiff or complainant in a lawsuit or other 7
legal dispute in this state; 8
(2) "Legal claim", a bona fide civil claim or cause of 9
action, any alternative dispute resolution proceeding, or 10
any administrative proceeding be fore any agency or 11
instrumentality of this state; 12
(3) "Legal representative", an attorney, group of 13
attorneys, law firm, or other party who may represent a 14
person or persons in a legal dispute in this state; 15
(4) "Litigation activities", any legal work and advice 16
directly related to the prosecution of a legal claim 17
including filings, legal document preparation and drafting, 18
appeals, creation of a litigation strategy, drafting 19
testimony, and related litigation. Funds provided to a 20
consumer for his or her personal needs and use are not 21
litigation activities; 22 SCS HCS HB 725 60
(5) "Litigation financer", a person, group of persons, 23
or legal entity engaged in the business of litigation 24
financing or any other mechanism created with the intent of 25
so doing; 26
(6) "Litigation financing", the funding of litigation 27
activities by entities other than the parties themselves, 28
their counsel, or other entities with a preexisting 29
contractual relationship with one of the parties, such as an 30
indemnitor or a liability insurer; 31
(7) "Litigation financing transaction", a nonrecourse 32
transaction in which financing is provided to a consumer in 33
return for a consumer assigning to the litigation financer a 34
contingent right to receive an amount of the potential 35
proceeds of the consumer's judgment, award, settlement, or 36
verdict obtained with respect to the consumer's legal claim 37
or agreeing to pay the litigation financer interest or other 38
fees for the financing provided. "Litigation financing" 39
shall not include legal representation services provided to 40
a consumer on a contingency fee basis, or legal costs 41
advanced by a legal representative, if such services or 42
costs are provided to or on behalf of a consumer by an 43
attorney representing the consumer in th e dispute and in 44
accordance with rule 4 of the rules of the supreme court; 45
(8) "Medical provider", any person or business 46
providing medical services of any kind to a consumer 47
including, but not limited to, physicians, nurse 48
practitioners, hospita ls, physical therapists, 49
chiropractors, or radiologists as well as any of their 50
employees or contractors or any practice groups, 51
partnerships, or incorporations of the same. 52 SCS HCS HB 725 61
436.572. 1. A litigation financer shall not engage in 1
the business of litigation financing in this state, unless 2
it has first obtained a license from the division of finance. 3
2. A litigation financer's initial or renewal license 4
application shall be in writing, made under oath, and on a 5
form provided by the director. 6
3. Every litigation financer at the time of filing a 7
license application, shall pay the sum of five hundred fifty 8
dollars for the period ending the thirtieth day of June next 9
following the date of payment; and thereafter a like fee 10
shall be paid on or before June thirtieth of each year and 11
shall be credited to the division of finance fund. 12
4. A litigation financer license shall not be issued 13
unless the division of finance, upon investigation, finds 14
that the character and fi tness of the applicant company, and 15
of the officers and directors thereof, are such as to 16
warrant belief that the business shall operate honestly and 17
fairly within the purposes of sections 436.571 to 436.580. 18
5. Every applicant shall also, at the time of filing 19
such application, file a bond satisfactory to the division 20
of finance in an amount not to exceed fifty thousand 21
dollars. The bond shall provide that the applicant shall 22
faithfully conform to and abide by the provisions of 23
sections 436.571 to 436.580, to all rules lawfully made by 24
the director under sections 436.571 to 436.580, and to any 25
such person or persons any and all amounts of moneys that 26
may become due or owing to the state or to such person or 27
persons from the licensee under and by virtue of sections 28
436.571 to 436.580, which shall cover any actions that 29
occurred while the bond was in place for the applicable 30
period of limitations under statute and so long as the bond 31
is not exhausted by valid claims. 32 SCS HCS HB 725 62
6. When an action is commenced on a licensee's bond, 33
the director may require the filing of a new bond. 34
Immediately upon any recovery on the bond, the licensee 35
shall file a new bond. 36
7. In order to ensure the effective supervision and 37
enforcement of sections 436.571 to 436.580, the director 38
may, after a contested hearing under chapter 536: 39
(1) Deny, suspend, revoke, condition, or decline to 40
renew a license for a violation of sections 436.571 to 41
436.580, rules issued under sections 436.571 to 436.580, or 42
order or directive entered under sections 436.571 to 436.580; 43
(2) Deny, suspend, revoke, condition, or decline to 44
renew a license if an applicant or licensee fails at any 45
time to meet the requirements of sections 436.571 to 46
436.580, or withholds information or makes a material 47
misstatement in an application for a license or renewal of a 48
license; 49
(3) Order restitution against persons subject to 50
sections 436.571 to 436.580 for violations of sections 51
436.571 to 436.580; and 52
(4) Order or direct such other affirmative action as 53
the director deems necessary. 54
8. Any letter issued by the director and declaring 55
grounds for denying or declining to grant or renew a license 56
may be appealed to the circuit court of Cole County. All 57
other matters presenting a contested case involving a 58
licensee may be heard by the director under chapter 536. 59
9. Whenever it shall appear to the director that any 60
litigation financer is refusing or neglecting to make a good 61
faith effort to compl y with the provisions of sections 62
436.571 to 436.580, or any laws or rules relating to 63
litigation financing, the director may issue an order to 64 SCS HCS HB 725 63
cease and desist, which order may be enforceable by a civil 65
penalty of not more than one thousand dollars pe r day for 66
each day that the neglect, failure, or refusal shall 67
continue. The penalty shall be assessed and collected by 68
the director. In determining the amount of the penalty, the 69
director shall take into account the appropriateness of the 70
penalty with respect to the gravity of the violation, the 71
history of previous violations, and such other matters as 72
justice may require. 73
10. In the event any litigation financer fails, 74
refuses, or neglects to comply with the provisions of 75
sections 436.571 to 436.580, or of any laws or rules of the 76
state of Missouri relating to litigation financing, its 77
license may be suspended or revoked by order of the director 78
after a hearing before said director on any order to show 79
cause why such order of suspensio n or revocation should not 80
be entered specifying the grounds therefor which shall be 81
served on the particular litigation financer at least ten 82
days prior to the hearing. Any order made and entered by 83
the director may be appealed to the circuit court o f Cole 84
County. 85
11. The division shall conduct an examination of each 86
litigation financer at least once every twenty -four months 87
and such other times as the director may determine. 88
(1) In connection with any such investigation or 89
examination, the director and his or her representatives 90
shall have free and immediate access to the place or places 91
of business and the books and records, and shall have the 92
authority to place under oath all persons whose testimony 93
may be required relative to th e affairs and business of the 94
litigation financer. 95 SCS HCS HB 725 64
(2) The director may also make such special 96
investigations or examination as the director deems 97
necessary to determine whether any litigation financer has 98
violated any of the provisions of sectio ns 436.571 to 99
436.580 or rules promulgated thereunder; and may assess the 100
reasonable costs of any investigation or examination 101
incurred by the division to the company. 102
436.573. 1. A litigation financer shall not: 1
(1) Pay or offer commissions, referral fees, or other 2
forms of consideration to any legal representative, medical 3
provider, or any of their employees for referring a consumer 4
to a litigation financer; 5
(2) Accept any commissions, referral fees, rebates, or 6
other forms of consideration from a legal representative, 7
medical provider, or any of their employees; 8
(3) Knowingly advertise false or misleading 9
information regarding its products or services; 10
(4) Refer a consumer or potential consumer to a 11
specific legal representative, medical provider, or any of 12
their employees; 13
(5) Fail to promptly supply copies of any complete 14
litigation financing contracts to the consumer and the 15
consumer's legal representative; 16
(6) Attempt to secure a rem edy or obtain a waiver of 17
any remedy including, but not limited to, compensatory, 18
statutory, or punitive damages, that the consumer might 19
otherwise be or not be entitled to pursue; 20
(7) Attempt to effect arbitration or otherwise effect 21
the waiver of a consumer's right to trial by jury; 22
(8) Offer or provide legal advice to the consumer 23
regarding the litigation financing or the underlying dispute; 24 SCS HCS HB 725 65
(9) Assign, which includes securitizing, a litigation 25
financing contract in whole or part; 26
(10) Report a consumer to a credit reporting agency if 27
insufficient funds remain from the net proceeds to repay the 28
litigation financer; or 29
(11) Receive or exercise any right to direct, nor make 30
any decisions with respect to, the conduct of the consumer's 31
legal claim or any settlement or resolution thereof. The 32
right to make such decisions shall remain solely with the 33
consumer and his or her legal representative. 34
2. A legal representative retained by a consumer, a 35
medical provider for such consumer, or any employee thereof 36
shall not have a financial interest in litigation financing 37
and shall not receive a referral fee or other consideration 38
from any litigation financer, its employees, its owners, or 39
its affiliates. 40
436.574. 1. The terms of the litigation financing 1
agreement shall be set forth in a written contract that is 2
completely filled in. There shall be no incomplete sections 3
when the contract is offered or presented to the consumer. 4
2. Litigation financing contracts shall contain the 5
disclosures specified in this section, which shall 6
constitute material terms of the litigation financing 7
contract. 8
3. The disclosures shall be typed in at least fourteen - 9
point bold font and be placed cle arly and conspicuously 10
immediately above the consumer's signature line in the 11
litigation financing contract and shall be in substantially 12
the following form: 13
14
15
16
Consumer's Right to Cancellation : You may cancel
this contract without penalty or further
obligation within five (5) business days from the
SCS HCS HB 725 66
4. If the consumer is represented by a legal 50
representative in the dispute that is the subj ect of the 51
litigation financing contract, the legal representative 52
shall acknowledge in the contract that the legal 53
representative or its employer or employees have neither 54
17
18
19
20
21
22
23
24
25
26
date you signed this contract or received
financing from [insert name of the litigation
financer] by either returning the funds to [insert
name, office address and office hours of the
litigation financer] or by U.S. mail, [insert name
and mailing address of litigation financer]. For
return by U.S. mail, the postmark date on the
returned funds or, if mailed by registered or
certified mail, the date of the return receipt
requested shall be the date of return.
27
28
29
30
The fees charged pursuant to this agreement shall
not exceed [litigation financer to insert annual
interest percentage rate, percentage of award or
settlement proceeds, or dollar amount].
31
32
33
34
35
The litigation financer agrees that it has no
right to and will not make any decisions about the
conduct of your lawsuit or dispute and that the
right to make those decisions remains solely with
you and your legal representative.
36
37
38
39
40
If there is no recovery of any money from your
legal claim or if there is not enough money to
satisfy the portion assigned to [insert name of
the litigation financer] in full, you will not owe
anything in excess of your recovery.
41
42
43
44
45
46
47
48
49
Do not sign this contract before you read it
completely. If this contract contains any
incomplete sections, you are entitled to a
completely filled-in copy of the contract prior to
signing it. Before you sign this contract, you
should obtain the advice of an attorney.
Depending on the circumstances you may want to
consult a tax advisor, a financial professional,
or an accountant.
SCS HCS HB 725 67
received nor paid a referral fee or any other consideration 55
from or to the litigation financer, nor will in the future 56
do so. 57
5. If the consumer's legal representative is a party 58
to a litigation financing agreement related to the 59
consumer's legal proceeding, the legal representative shall 60
share with the consumer the agreem ent between the legal 61
representative and the litigation financer. The agreement 62
shall be accompanied by the disclosure required by this 63
section, and the consumer shall sign both an acknowledgment 64
that the agreement has been read and the required discl osure. 65
436.575. 1. Except as otherwise stipulated or ordered 1
by the court, a consumer or the consumer's legal 2
representative shall, without awaiting a discovery request, 3
provide to all parties to the litigation, including the 4
consumer's insurer if prior to litigation, any litigation 5
financing contract. 6
2. The existence of litigation financing and all 7
participants in such financing arrangements are permissible 8
subjects of discovery in all personal injury litigation or 9
matters arising out of personal injuries. 10
436.577. Sections 436.571 to 436.580 shall apply to 1
any class action. Putative class members and the court 2
shall be advised that the proposed class attorney has a 3
legal or financial relationshi p with a litigation financer. 4
436.578. Sections 436.571 to 436.580 shall not apply 1
to litigation financing provided to commercial enterprises 2
in support of litigation strictly between commercial 3
enterprises. This exemption does not apply to any personal 4
injury claim, situations arising from a personal injury 5
claim, or an aggregation of personal injury claims, whether 6
by subrogation, assignment, or any other basis. 7 SCS HCS HB 725 68
436.579. The practice of litigation financing s hall be 1
regulated by the division of finance. The commissioner of 2
the division of finance may promulgate all necessary rules 3
and regulations for the administration of this section. Any 4
rule or portion of a rule, as that term is defined in 5
section 536.010, that is created under the authority 6
delegated in this section shall become effective only if it 7
complies with and is subject to all of the provisions of 8
chapter 536 and, if applicable, section 536.028. This 9
section and chapter 536 are nonseverab le, and if any of the 10
powers vested with the general assembly pursuant to chapter 11
536 to review, to delay the effective date, or to disapprove 12
and annul a rule are subsequently held unconstitutional, 13
then the grant of rulemaking authority and any rule proposed 14
or adopted after August 28, 2023, shall be invalid and void. 15
436.580. Any violation of the provisions of sections 1
436.571 to 436.580 shall make the litigation financing 2
contract unenforceable by the litigation financer, the 3
consumer, or any successor -in-interest to the litigation 4
financing contract. 5
569.010. As used in this chapter the following terms 1
mean: 2
(1) "Cave or cavern", any naturally occurring 3
subterranean cavity enterable by a person in cluding, without 4
limitation, a pit, pothole, natural well, grotto, and 5
tunnel, whether or not the opening has a natural entrance; 6
(2) "Enter unlawfully or remain unlawfully", a person 7
enters or remains in or upon premises when he or she is not 8
licensed or privileged to do so. A person who, regardless 9
of his or her purpose, enters or remains in or upon premises 10
which are at the time open to the public does so with 11
license and privilege unless he or she defies a lawful order 12 SCS HCS HB 725 69
not to enter or remain, personally communicated to him or 13
her by the owner of such premises or by other authorized 14
person. A license or privilege to enter or remain in a 15
building which is only partly open to the public is not a 16
license or privilege to enter or remain in that part of the 17
building which is not open to the public; 18
(3) "Nuclear power plant", a power generating facility 19
that produces electricity by means of a nuclear reactor 20
owned by a utility or a consortium utility. Nuclear power 21
plant shall be limited to property within the structure or 22
fenced yard, as defined in section 563.011; 23
(4) "Teller machine", an automated teller machine 24
(ATM) or interactive teller machine (ITM) that is a remote 25
computer terminal or other device owned or controll ed by a 26
financial institution or a private business that allows 27
individuals to obtain financial services, including 28
obtaining cash, transferring or transmitting moneys or 29
digital currencies, payment of bills, or loading moneys or 30
digital currency to a payment card, without physical in - 31
person assistance from another person. "Teller machine" 32
does not include personally owned electronic devices used to 33
access financial services; 34
(5) "To tamper", to interfere with something 35
improperly, to meddle with it, displace it, make unwarranted 36
alterations in its existing condition, or to deprive, 37
temporarily, the owner or possessor of that thing; 38
[(5)] (6) "Utility", an enterprise which provides gas, 39
electric, steam, water, sewage disposal, or com munication, 40
video, internet, or voice over internet protocol services, 41
and any common carrier. It may be either publicly or 42
privately owned or operated. 43 SCS HCS HB 725 70
569.100. 1. A person commits the offense of property 1
damage in the first degr ee if such person: 2
(1) Knowingly damages property of another to an extent 3
exceeding seven hundred fifty dollars; or 4
(2) Damages property to an extent exceeding seven 5
hundred fifty dollars for the purpose of defrauding an 6
insurer; [or] 7
(3) Knowingly damages a motor vehicle of another and 8
the damage occurs while such person is making entry into the 9
motor vehicle for the purpose of committing the crime of 10
stealing therein or the damage occurs while such person is 11
committing the crime o f stealing within the motor vehicle ; or 12
(4) Knowingly damages, modifies, or destroys a teller 13
machine or otherwise makes it inoperable . 14
2. The offense of property damage in the first degree 15
committed under subdivision (1) or (2) of subsection 1 of 16
this section is a class E felony, unless the offense of 17
property damage in the first degree was committed under 18
subdivision (1) of subsection 1 of this section and the 19
victim was intentionally targeted as a law enforcement 20
officer, as defined in section 556.061, or the victim is 21
targeted because he or she is a relative within the second 22
degree of consanguinity or affinity to a law enforcement 23
officer, in which case it is a class D felony. The offense 24
of property damage in the first degree co mmitted under 25
subdivision (3) of subsection 1 of this section is a class D 26
felony unless committed as a second or subsequent violation 27
of subdivision (3) of subsection 1 of this section in which 28
case it is a class B felony. The offense of property dam age 29
in the first degree committed under subdivision (4) of 30
subsection 1 of this section is a class D felony unless 31
committed for the purpose of executing any scheme or 32 SCS HCS HB 725 71
artifice to defraud or obtain any property, the value of 33
which exceeds seven hundre d fifty dollars or the damage to 34
the teller machine exceeds seven hundred fifty dollars in 35
which case it is a class C felony; except that, if the 36
offense of property damage in the first degree committed 37
under subdivision (4) of subsection 1 of this sec tion is 38
committed to obtain the personal financial credentials of 39
another person or committed as a second or subsequent 40
violation of subdivision (4) of subsection 1 of this 41
section, the offense of property damage in the first degree 42
is a class B felony. 43
570.010. As used in this chapter, the following terms 1
mean: 2
(1) "Adulterated", varying from the standard of 3
composition or quality prescribed by statute or lawfully 4
promulgated administrative regulations of this state 5
lawfully filed, or if none, as set by commercial usage; 6
(2) "Appropriate", to take, obtain, use, transfer, 7
conceal, retain or dispose; 8
(3) "Check", a check or other similar sight order or 9
any other form of presentment involving the transmission of 10
account information for the payment of money; 11
(4) "Coercion", a threat, however communicated: 12
(a) To commit any offense; or 13
(b) To inflict physical injury in the future on the 14
person threatened or another; or 15
(c) To accuse any person of any offense; or 16
(d) To expose any person to hatred, contempt or 17
ridicule; or 18
(e) To harm the credit or business reputation of any 19
person; or 20 SCS HCS HB 725 72
(f) To take or withhold action as a public servant, or 21
to cause a public servant to ta ke or withhold action; or 22
(g) To inflict any other harm which would not benefit 23
the actor. A threat of accusation, lawsuit or other 24
invocation of official action is justified and not coercion 25
if the property sought to be obtained by virtue of suc h 26
threat was honestly claimed as restitution or 27
indemnification for harm done in the circumstances to which 28
the accusation, exposure, lawsuit or other official action 29
relates, or as compensation for property or lawful service. 30
The defendant shall hav e the burden of injecting the issue 31
of justification as to any threat; 32
(5) "Credit device", a writing, card, code, number or 33
other device purporting to evidence an undertaking to pay 34
for property or services delivered or rendered to or upon 35
the order of a designated person or bearer; 36
(6) "Dealer", a person in the business of buying and 37
selling goods; 38
(7) "Debit device", a writing, card, code, number or 39
other device, other than a check, draft or similar paper 40
instrument, by the use o f which a person may initiate an 41
electronic fund transfer, including but not limited to 42
devices that enable electronic transfers of benefits to 43
public assistance recipients; 44
(8) "Deceit or deceive", making a representation which 45
is false and which the actor does not believe to be true and 46
upon which the victim relies, as to a matter of fact, law, 47
value, intention or other state of mind, or concealing a 48
material fact as to the terms of a contract or agreement. 49
The term "deceit" does not, howev er, include falsity as to 50
matters having no pecuniary significance, or puffing by 51
statements unlikely to deceive ordinary persons in the group 52 SCS HCS HB 725 73
addressed. Deception as to the actor's intention to perform 53
a promise shall not be inferred from the fact al one that he 54
did not subsequently perform the promise; 55
(9) "Deprive": 56
(a) To withhold property from the owner permanently; or 57
(b) To restore property only upon payment of reward or 58
other compensation; or 59
(c) To use or dispose of pr operty in a manner that 60
makes recovery of the property by the owner unlikely; 61
(10) "Electronic benefits card" or "EBT card", a debit 62
card used to access food stamps or cash benefits issued by 63
the department of social services; 64
(11) "Financial institution", a bank, trust company, 65
savings and loan association, or credit union; 66
(12) "Food stamps", the nutrition assistance program 67
in Missouri that provides food and aid to low -income 68
individuals who are in need of benefits to purchase foo d 69
operated by the United States Department of Agriculture 70
(USDA) in conjunction with the department of social services; 71
(13) "Forcibly steals", a person, in the course of 72
stealing, uses or threatens the immediate use of physical 73
force upon another person for the purpose of: 74
(a) Preventing or overcoming resistance to the taking 75
of the property or to the retention thereof immediately 76
after the taking; or 77
(b) Compelling the owner of such property or another 78
person to deliver up the pro perty or to engage in other 79
conduct which aids in the commission of the theft; 80
(14) "Internet service", an interactive computer 81
service or system or an information service, system, or 82
access software provider that provides or enables computer 83
access by multiple users to a computer server, and includes, 84 SCS HCS HB 725 74
but is not limited to, an information service, system, or 85
access software provider that provides access to a network 86
system commonly known as the internet, or any comparable 87
system or service an d also includes, but is not limited to, 88
a world wide web page, newsgroup, message board, mailing 89
list, or chat area on any interactive computer service or 90
system or other online service; 91
(15) "Means of identification", anything used by a 92
person as a means to uniquely distinguish himself or herself; 93
(16) "Merchant", a person who deals in goods of the 94
kind or otherwise by his or her occupation holds oneself out 95
as having knowledge or skill peculiar to the practices or 96
goods involved in the transaction or to whom such knowledge 97
or skill may be attributed by his or her employment of an 98
agent or broker or other intermediary who by his or her 99
occupation holds oneself out as having such knowledge or 100
skill; 101
(17) "Mislabeled", varying fro m the standard of truth 102
or disclosure in labeling prescribed by statute or lawfully 103
promulgated administrative regulations of this state 104
lawfully filed, or if none, as set by commercial usage; or 105
represented as being another person's product, though 106
otherwise accurately labeled as to quality and quantity; 107
(18) "Pharmacy", any building, warehouse, physician's 108
office, hospital, pharmaceutical house or other structure 109
used in whole or in part for the sale, storage, or 110
dispensing of any controlled substance as defined in chapter 111
195; 112
(19) "Property", anything of value, whether real or 113
personal, tangible or intangible, in possession or in 114
action, and shall include but not be limited to the evidence 115 SCS HCS HB 725 75
of a debt actually executed but not deliv ered or issued as a 116
valid instrument; 117
(20) "Public assistance benefits", anything of value, 118
including money, food, EBT cards, food stamps, commodities, 119
clothing, utilities, utilities payments, shelter, drugs and 120
medicine, materials, goods, and an y service including 121
institutional care, medical care, dental care, child care, 122
psychiatric and psychological service, rehabilitation 123
instruction, training, transitional assistance, or 124
counseling, received by or paid on behalf of any person 125
under chapters 198, 205, 207, 208, 209, and 660, or 126
benefits, programs, and services provided or administered by 127
the Missouri department of social services or any of its 128
divisions; 129
(21) "Services" includes transportation, telephone, 130
electricity, gas, water, or other public service, cable 131
television service, video service, voice over internet 132
protocol service, or internet service, accommodation in 133
hotels, restaurants or elsewhere, admission to exhibitions 134
and use of vehicles; 135
(22) "Stealing-related offense", federal and state 136
violations of criminal statutes against stealing, robbery, 137
or buying or receiving stolen property and shall also 138
include municipal ordinances against the same if the 139
offender was either represented by counsel or knowingly 140
waived counsel in writing and the judge accepting the plea 141
or making the findings was a licensed attorney at the time 142
of the court proceedings; 143
(23) "Teller machine", an automated teller machine 144
(ATM) or interactive teller machine (ITM) that is a r emote 145
computer terminal or other device owned or controlled by a 146
financial institution or a private business that allows 147 SCS HCS HB 725 76
individuals to obtain financial services, including 148
obtaining cash, transferring or transmitting moneys or 149
digital currencies, pay ment of bills, or loading moneys or 150
digital currency to a payment card, without physical in - 151
person assistance from another person. "Teller machine" 152
does not include personally owned electronic devices used to 153
access financial services; 154
(24) "Video service", the provision of video 155
programming provided through wireline facilities located at 156
least in part in the public right -of-way without regard to 157
delivery technology, including internet protocol technology 158
whether provided as part of a tier, o n demand, or a per- 159
channel basis. This definition includes cable service as 160
defined by 47 U.S.C. Section 522(6), but does not include 161
any video programming provided by a commercial mobile 162
service provider as "commercial mobile service" is defined 163
in 47 U.S.C. Section 332(d), or any video programming 164
provided solely as part of and via a service that enables 165
users to access content, information, electronic mail, or 166
other services offered over the public internet, and 167
includes microwave television tr ansmission, from a 168
multipoint distribution service not capable of reception by 169
conventional television receivers without the use of special 170
equipment; 171
[(24)] (25) "Voice over internet protocol service", a 172
service that: 173
(a) Enables real-time, two-way voice communication; 174
(b) Requires a broadband connection from the user's 175
location; 176
(c) Requires internet protocol -compatible customer 177
premises equipment; and 178 SCS HCS HB 725 77
(d) Permits users generally to receive calls that 179
originate on the public switched telephone network and to 180
terminate calls to the public switched telephone network; 181
[(25)] (26) "Writing" includes printing, any other 182
method of recording information, money, coins, negotiable 183
instruments, tokens, stamps, seals, cre dit cards, badges, 184
trademarks and any other symbols of value, right, privilege 185
or identification. 186
570.030. 1. A person commits the offense of stealing 1
if he or she: 2
(1) Appropriates property or services of another with 3
the purpose to deprive him or her thereof, either without 4
his or her consent or by means of deceit or coercion; 5
(2) Attempts to appropriate anhydrous ammonia or 6
liquid nitrogen of another with the purpose to deprive him 7
or her thereof, either without hi s or her consent or by 8
means of deceit or coercion; or 9
(3) For the purpose of depriving the owner of a lawful 10
interest therein, receives, retains or disposes of property 11
of another knowing that it has been stolen, or believing 12
that it has been stolen. 13
2. The offense of stealing is a class A felony if the 14
property appropriated consists of any of the following 15
containing any amount of anhydrous ammonia: a tank truck, 16
tank trailer, rail tank car, bulk storage tank, field nurse, 17
field tank or field applicator. 18
3. The offense of stealing is a class B felony if: 19
(1) The property appropriated or attempted to be 20
appropriated consists of any amount of anhydrous ammonia or 21
liquid nitrogen; 22
(2) The property consists of any anima l considered 23
livestock as the term livestock is defined in section 24 SCS HCS HB 725 78
144.010, or any captive wildlife held under permit issued by 25
the conservation commission, and the value of the animal or 26
animals appropriated exceeds three thousand dollars and that 27
person has previously been found guilty of appropriating any 28
animal considered livestock or captive wildlife held under 29
permit issued by the conservation commission. 30
Notwithstanding any provision of law to the contrary, such 31
person shall serve a minimum prison term of not less than 32
eighty percent of his or her sentence before he or she is 33
eligible for probation, parole, conditional release, or 34
other early release by the department of corrections; 35
(3) A person appropriates property consisting of a 36
motor vehicle, watercraft, or aircraft, and that person has 37
previously been found guilty of two stealing -related 38
offenses committed on two separate occasions where such 39
offenses occurred within ten years of the date of occurrence 40
of the present offense; 41
(4) The property appropriated or attempted to be 42
appropriated consists of any animal considered livestock as 43
the term is defined in section 144.010 if the value of the 44
livestock exceeds ten thousand dollars; or 45
(5) The property appropri ated or attempted to be 46
appropriated is owned by or in the custody of a financial 47
institution and the property is taken or attempted to be 48
taken physically from an individual person to deprive the 49
owner or custodian of the property. 50
4. The offense of stealing is a class C felony if the 51
value of the property or services appropriated is twenty - 52
five thousand dollars or more or the property is a teller 53
machine or the contents of a teller machine, including cash, 54
regardless of the value or amount . 55
5. The offense of stealing is a class D felony if: 56 SCS HCS HB 725 79
(1) The value of the property or services appropriated 57
is seven hundred fifty dollars or more; 58
(2) The offender physically takes the property 59
appropriated from the person of the victim; or 60
(3) The property appropriated consists of: 61
(a) Any motor vehicle, watercraft or aircraft; 62
(b) Any will or unrecorded deed affecting real 63
property; 64
(c) Any credit device, debit device or letter of 65
credit; 66
(d) Any firearms; 67
(e) Any explosive weapon as defined in section 571.010; 68
(f) Any United States national flag designed, intended 69
and used for display on buildings or stationary flagstaffs 70
in the open; 71
(g) Any original copy of an act, bill or resolution , 72
introduced or acted upon by the legislature of the state of 73
Missouri; 74
(h) Any pleading, notice, judgment or any other record 75
or entry of any court of this state, any other state or of 76
the United States; 77
(i) Any book of registration or lis t of voters 78
required by chapter 115; 79
(j) Any animal considered livestock as that term is 80
defined in section 144.010; 81
(k) Any live fish raised for commercial sale with a 82
value of seventy-five dollars or more; 83
(l) Any captive wildlife he ld under permit issued by 84
the conservation commission; 85
(m) Any controlled substance as defined by section 86
195.010; 87
(n) Ammonium nitrate; 88 SCS HCS HB 725 80
(o) Any wire, electrical transformer, or metallic wire 89
associated with transmitting telecommunicat ions, video, 90
internet, or voice over internet protocol service, or any 91
other device or pipe that is associated with conducting 92
electricity or transporting natural gas or other combustible 93
fuels; or 94
(p) Any material appropriated with the intent to use 95
such material to manufacture, compound, produce, prepare, 96
test or analyze amphetamine or methamphetamine or any of 97
their analogues. 98
6. The offense of stealing is a class E felony if: 99
(1) The property appropriated is an animal; 100
(2) The property is a catalytic converter; or 101
(3) A person has previously been found guilty of three 102
stealing-related offenses committed on three separate 103
occasions where such offenses occurred within ten years of 104
the date of occurrence of the presen t offense. 105
7. The offense of stealing is a class D misdemeanor if 106
the property is not of a type listed in subsection 2, 3, 5, 107
or 6 of this section, the property appropriated has a value 108
of less than one hundred fifty dollars, and the person has 109
no previous findings of guilt for a stealing -related offense. 110
8. The offense of stealing is a class A misdemeanor if 111
no other penalty is specified in this section. 112
9. If a violation of this section is subject to 113
enhanced punishment based on pr ior findings of guilt, such 114
findings of guilt shall be pleaded and proven in the same 115
manner as required by section 558.021. 116
10. The appropriation of any property or services of a 117
type listed in subsection 2, 3, 5, or 6 of this section or 118
of a value of seven hundred fifty dollars or more may be 119 SCS HCS HB 725 81
considered a separate felony and may be charged in separate 120
counts. 121
11. The value of property or services appropriated 122
pursuant to one scheme or course of conduct, whether from 123
the same or several owners and whether at the same or 124
different times, constitutes a single criminal episode and 125
may be aggregated in determining the grade of the offense, 126
except as set forth in subsection 10 of this section. 127
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