FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
SENATESUBSTITUTEFOR
SENATECOMMITTEESUBSTITUTEFOR
SENATEBILLNO.398
102NDGENERALASSEMBLY
1413H.07C DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections144.020,144.070,304.820,407.812,and407.828,RSMo,andtoenactin
lieuthereoffivenewsectionsrelatingtomotorvehicles,withpenaltyprovisions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections144.020,144.070,304.820,407.812,and407.828,RSMo,are
2repealedandfivenewsectionsenactedinlieuthereof,tobeknownassections144.020,
3144.070,304.822,407.812,and407.828,toreadasfollows:
144.020.1.Ataxisherebyleviedandimposedfortheprivilegeoftitlingnewand
2usedmotorvehicles,trailers,boats,andoutboardmotorspurchasedoracquiredforuseonthe
3highwaysorwatersofthisstatewhicharerequiredtobetitledunderthelawsofthestateof
4Missouriand,exceptasprovidedinsubdivision(9)ofthissubsection,uponallsellersforthe
5privilegeofengaginginthebusinessofsellingtangiblepersonalpropertyorrendering
6taxableserviceatretailinthisstate.Therateoftaxshallbeasfollows:
7 (1)Uponeveryretailsaleinthisstateoftangiblepersonalproperty,excludingmotor
8vehicles,trailers,motorcycles,mopeds,motortricycles,boatsandoutboardmotorsrequiredto
9betitledunderthelawsofthestateofMissouriandsubjecttotaxundersubdivision(9)ofthis
10subsection,ataxequivalenttofourpercentofthepurchasepricepaidorcharged,orincase
11suchsaleinvolvestheexchangeofproperty,ataxequivalenttofourpercentofthe
12considerationpaidorcharged,includingthefairmarketvalueofthepropertyexchangedat
13thetimeandplaceoftheexchange,exceptasotherwiseprovidedinsection144.025;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 14 (2)Ataxequivalenttofourpercentoftheamountpaidforadmissionandseating
15accommodations,orfeespaidto,orinanyplaceofamusement,entertainmentorrecreation,
16gamesandathleticevents,exceptamountspaidforanyinstructionalclass;
17 (3)Ataxequivalenttofourpercentofthebasicratepaidorchargedonallsalesof
18electricityorelectricalcurrent,waterandgas,naturalorartificial,todomestic,commercialor
19industrialconsumers;
20 (4)(a)Ataxequivalenttofourpercentonthebasicratepaidorchargedonallsales
21oflocalandlongdistancetelecommunicationsservicetotelecommunicationssubscribersand
22toothersthroughequipmentoftelecommunicationssubscribersforthetransmissionof
23messagesandconversationsanduponthesale,rentalorleasingofallequipmentorservices
24pertainingorincidentalthereto;exceptthat,thepaymentmadebytelecommunications
25subscribersorothers,pursuanttosection144.060,andanyamountspaidforaccesstothe
26internetorinteractivecomputerservicesshallnotbeconsideredasamountspaidfor
27telecommunicationsservices;
28 (b)Iflocalandlongdistancetelecommunicationsservicessubjecttotaxunderthis
29subdivisionareaggregatedwithandnotseparatelystatedfromchargesfor
30telecommunicationsserviceorotherservicesnotsubjecttotaxunderthissubdivision,
31including,butnotlimitedto,interstateorinternationaltelecommunicationsservices,thenthe
32chargesfornontaxableservicesmaybesubjecttotaxationunlessthetelecommunications
33providercanidentifybyreasonableandverifiablestandardssuchportionofthechargesnot
34subjecttosuchtaxfromitsbooksandrecordsthatarekeptintheregularcourseofbusiness,
35including,butnotlimitedto,financialstatement,generalledgers,invoiceandbillingsystems
36andreports,andreportsforregulatorytariffsandotherregulatorymatters;
37 (c)Atelecommunicationsprovidershallnotifythedirectorofrevenueofitsintention
38toutilizethestandardsdescribedinparagraph(b)ofthissubdivisiontodeterminethecharges
39thataresubjecttosalestaxunderthissubdivision.Suchnotificationshallbeinwritingand
40shallmeetstandardizedcriteriaestablishedbythedepartmentregardingtheformandformat
41ofsuchnotice;
42 (d)Thedirectorofrevenuemaypromulgateandenforcereasonablerulesand
43regulationsfortheadministrationandenforcementoftheprovisionsofthissubdivision.Any
44ruleorportionofarule,asthattermisdefinedinsection536.010,thatiscreatedunderthe
45authoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandis
46subjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissection
47andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
48pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannula
49rulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandany
50ruleproposedoradoptedafterAugust28,2019,shallbeinvalidandvoid;
HCSSSSCSSB398 2 51 (5)Ataxequivalenttofourpercentofthebasicratepaidorchargedforallsalesof
52servicesfortransmissionofmessagesoftelegraphcompanies;
53 (6)Ataxequivalenttofourpercentontheamountofsalesorchargesforallrooms,
54mealsanddrinksfurnishedatanyhotel,motel,tavern,inn,restaurant,eatinghouse,
55drugstore,diningcar,touristcabin,touristcamporotherplaceinwhichrooms,mealsor
56drinksareregularlyservedtothepublic.Thetaximposedunderthissubdivisionshallnot
57applytoanyautomaticmandatorygratuityforalargegroupimposedbyarestaurantwhen
58suchgratuityisreportedasemployeetipincomeandtherestaurantwithholdsincometax
59undersection143.191onsuchgratuity;
60 (7)Ataxequivalenttofourpercentoftheamountpaidorchargedforintrastate
61ticketsbyeverypersonoperatingarailroad,sleepingcar,diningcar,expresscar,boat,
62airplaneandsuchbusesandtrucksasarelicensedbythedivisionofmotorcarrierandrailroad
63safetyofthedepartmentofeconomicdevelopmentofMissouri,engagedinthetransportation
64ofpersonsforhire;
65 (8)Ataxequivalenttofourpercentoftheamountpaidorchargedforrentalorlease
66oftangiblepersonalproperty,providedthatifthelessororrenterofanytangiblepersonal
67propertyhadpreviouslypurchasedthepropertyundertheconditionsofsaleatretailorleased
68orrentedthepropertyandthetaxwaspaidatthetimeofpurchase,leaseorrental,thelessor,
69sublessor,renterorsubrentershallnotapplyorcollectthetaxonthesubsequentlease,
70sublease,rentalorsubrentalreceiptsfromthatproperty.Thepurchase,rentalorleaseof
71motorvehicles,trailers,motorcycles,mopeds,motortricycles,boats,andoutboardmotors
72shallbetaxedandthetaxpaidasprovidedinthissectionandsection144.070.Innoevent
73shalltherentalorleaseofboatsandoutboardmotorsbeconsideredasale,charge,orfeeto,
74fororinplacesofamusement,entertainmentorrecreationnorshallanysuchrentalorlease
75besubjecttoanytaximposedto,for,orinsuchplacesofamusement,entertainmentor
76recreation.Rentalandleasedboatsoroutboardmotorsshallbetaxedundertheprovisionsof
77thesalestaxlawsasprovidedundersuchlawsformotorvehiclesandtrailers.Tangible
78personalpropertywhichisexemptfromthesalesorusetaxundersection144.030uponasale
79thereofislikewiseexemptfromthesalesorusetaxupontheleaseorrentalthereof;
80 (9)Ataxequivalenttofourpercentofthepurchaseprice,asdefinedinsection
81144.070,ofnewandusedmotorvehicles,trailers,boats,andoutboardmotorspurchasedor
82acquiredforuseonthehighwaysorwatersofthisstatewhicharerequiredtoberegistered
83underthelawsofthestateofMissouri.Thistaxisimposedonthepersontitlingsuch
84property,andshallbepaidaccordingtotheproceduresinsection144.070or144.440.
85 2.Allticketssoldwhicharesoldundertheprovisionsofthischapterwhichare
86subjecttothesalestaxshallhaveprinted,stampedorotherwiseendorsedthereon,thewords
87"Thisticketissubjecttoasalestax.".
HCSSSSCSSB398 3 144.070.1.Atthetimetheownerofanyneworusedmotorvehicle,trailer,boat,or
2outboardmotorwhichwasacquiredinatransactionsubjecttosalestaxundertheMissouri
3salestaxlawmakesapplicationtothedirectorofrevenueforanofficialcertificateoftitleand
4theregistrationofthemotorvehicle,trailer,boat,oroutboardmotorasotherwiseprovidedby
5law,theownershallpresenttothedirectorofrevenueevidencesatisfactorytothedirectorof
6revenueshowingthepurchasepriceexclusiveofanychargeincidenttotheextensionofcredit
7paidbyorchargedtotheapplicantintheacquisitionofthemotorvehicle,trailer,boat,or
8outboardmotor,orthatnosalestaxwasincurredinitsacquisition,andifsalestaxwas
9incurredinitsacquisition,theapplicantshallpayorcausetobepaidtothedirectorofrevenue
10thesalestaxprovidedbytheMissourisalestaxlawinadditiontotheregistrationfeesnowor
11hereafterrequiredaccordingtolaw,andthedirectorofrevenueshallnotissueacertificateof
12titleforanyneworusedmotorvehicle,trailer,boat,oroutboardmotorsubjecttosalestaxas
13providedintheMissourisalestaxlawuntilthetaxleviedforthesaleofthesameunder
14sections144.010to144.510hasbeenpaidasprovidedinthissectionorisregisteredunder
15theprovisionsofsubsection5ofthissection.
16 2.Asusedinsubsection1ofthissection,theterm"purchaseprice"shallmeanthe
17totalamountofthecontractpriceagreeduponbetweenthesellerandtheapplicantinthe
18acquisitionofthemotorvehicle,trailer,boat,oroutboardmotor,regardlessofthemediumof
19paymenttherefor.
20 3.Intheeventthatthepurchasepriceisunknownorundisclosed,orthattheevidence
21thereofisnotsatisfactorytothedirectorofrevenue,thesameshallbefixedbyappraisement
22bythedirector.
23 4.Thedirectorofthedepartmentofrevenueshallendorseupontheofficialcertificate
24oftitleissuedbythedirectoruponsuchapplicationanentryshowingthatsuchsalestaxhas
25beenpaidorthatthemotorvehicle,trailer,boat,oroutboardmotorrepresentedbysuch
26certificateisexemptfromsalestaxandstatethegroundforsuchexemption.
27 5.Anyperson,company,orcorporationengagedinthebusinessofrentingorleasing
28motorvehicles,trailers,boats,oroutboardmotors,whicharetobeusedexclusivelyforrental
29orleasepurposes,andnotforresale,mayapplytothedirectorofrevenueforauthorityto
30operateasaleasingorrentalcompanyandpayanannualfeeoftwohundredfiftydollarsfor
31suchauthority.Anycompanyapprovedbythedirectorofrevenuemaypaythetaxdueon
32anymotorvehicle,trailer,boat,oroutboardmotorasrequiredinsection144.020atthetime
33ofregistrationthereoforinlieuthereofmaypayasalestaxasprovidedinsections144.010,
34144.020,144.070and144.440.Asalestaxshallbechargedtoandpaidbyaleasingcompany
35whichdoesnotexercisetheoptionofpayinginaccordancewithsection144.020,onthe
36amountchargedforeachrentalorleaseagreementwhilethemotorvehicle,trailer,boat,or
37outboardmotorisdomiciledinthisstate.Anymotorvehicle,trailer,boat,oroutboardmotor
HCSSSSCSSB398 4 38whichisleasedastheresultofacontractexecutedinthisstateshallbepresumedtobe
39domiciledinthisstate.
40 6.Everyapplicanttobearegisteredfleetownerasdescribedinsubsections6to10of
41section301.032shallfurnishwiththeapplicationtooperateasaregisteredfleetownera
42corporatesuretybondorirrevocableletterofcredit,asdefinedinsection400.5-102,issued
43byanystateorfederalfinancialinstitutioninthepenalsumofonehundredthousanddollars,
44onaformapprovedbythedepartment.Thebondorirrevocableletterofcreditshallbe
45conditionedupontheregisteredfleetownercomplyingwiththeprovisionsofanystatutes
46applicabletoregisteredfleetowners,andthebondshallbeanindemnityforanyloss
47sustainedbyreasonoftheactsofthepersonbondedwhensuchactsconstitutegroundsforthe
48suspensionorrevocationoftheregisteredfleetownerlicense.Thebondshallbeexecutedin
49thenameofthestateofMissouriforthebenefitofallaggrievedpartiesortheirrevocable
50letterofcreditshallnamethestateofMissouriasthebeneficiary;exceptthat,theaggregate
51liabilityofthesuretyorfinancialinstitutiontotheaggrievedpartiesshall,innoevent,exceed
52theamountofthebondorirrevocableletterofcredit.Theproceedsofthebondorirrevocable
53letterofcreditshallbepaiduponreceiptbythedepartmentofafinaljudgmentfroma
54Missouricourtofcompetentjurisdictionagainsttheprincipalandinfavorofanaggrieved
55party.
56 7.Anycorporationmayhaveoneormoreofitsdivisionsseparatelyapplytothe
57directorofrevenueforauthorizationtooperateasaleasingcompany,providedthatthe
58corporation:
59 (1)Hasfiledawrittenconsentwiththedirectorauthorizinganyofitsdivisionsto
60applyforsuchauthority;
61 (2)IsauthorizedtodobusinessinMissouri;
62 (3)Hasagreedtotreatanysaleofamotorvehicle,trailer,boat,oroutboardmotor
63fromoneofitsdivisionstoanotherofitsdivisionsasasaleatretail;
64 (4)Hasregisteredunderthefictitiousnameprovisionsofsections417.200to417.230
65eachofitsdivisionsdoingbusinessinMissouriasaleasingcompany;and
66 (5)Operateseachofitsdivisionsonabasisseparatefromeachofitsotherdivisions.
67However,whenthetransferofamotorvehicle,trailer,boatoroutboardmotoroccurswithina
68corporationwhichholdsalicensetooperateasamotorvehicleorboatdealerpursuantto
69sections301.550to301.573theprovisionsinsubdivision(3)ofthissubsectionshallnot
70apply.
71 8.Iftheownerofanymotorvehicle,trailer,boat,oroutboardmotordesirestocharge
72andcollectsalestaxasprovidedinthissection,theownershallmakeapplicationtothe
73directorofrevenueforapermittooperateasamotorvehicle,trailer,boat,oroutboardmotor
74leasingcompany.Thedirectorofrevenueshallpromulgaterulesandregulationsdetermining
HCSSSSCSSB398 5 75thequalificationsofsuchacompany,andthemethodofcollectionandreportingofsalestax
76chargedandcollected.Suchregulationsshallapplyonlytoownersofmotorvehicles,trailers,
77boats,oroutboardmotors,electingtoqualifyasmotorvehicle,trailer,boat,oroutboard
78motorleasingcompaniesundertheprovisionsofsubsection5ofthissection,andnomotor
79vehiclerentingorleasing,trailerrentingorleasing,orboatoroutboardmotorrentingor
80leasingcompanycancomeundersections144.010,144.020,144.070and144.440unlessall
81motorvehicles,trailers,boats,andoutboardmotorsheldforrentingandleasingareincluded.
82 9.Anyperson,company,orcorporationengagedinthebusinessofrentingorleasing
83threethousandfivehundredormoremotorvehicleswhicharetobeusedexclusivelyfor
84rentalorleasingpurposesandnotforresale,andthathasappliedtothedirectorofrevenuefor
85authoritytooperateasaleasingcompanymayalsooperateasaregisteredfleetowneras
86prescribedinsection301.032.
87 10.BeginningJuly1,2010,anymotorvehicledealerlicensedundersection301.560
88engagedinthebusinessofsellingmotorvehiclesortrailers[may] shallapplytothedirector
89ofrevenueforauthoritytocollectandremitthesalestaxrequiredunderthissectiononall
90motorvehiclessoldbythemotorvehicledealer.Amotorvehicledealerreceivingauthorityto
91collectandremitthetaxissubjecttoallprovisionsundersections144.010to144.525.Any
92motorvehicledealerauthorizedtocollectandremitsalestaxesonmotorvehiclesunderthis
93subsectionshallbeentitledtodeductandretainanamountequaltotwopercentofthemotor
94vehiclesalestaxpursuanttosection144.140.Anyamountofthetaxcollectedunderthis
95subsectionthatisretainedbyamotorvehicledealerpursuanttosection144.140shallnot
96constitutestaterevenue.Innoeventshallrevenuesfromthegeneralrevenuefundorany
97otherstatefundbeutilizedtocompensatemotorvehicledealersfortheirroleincollectingand
98remittingsalestaxesonmotorvehicles.Intheeventthissubsectionoranyportionthereofis
99heldtoviolateArticleIV,Section30(b)oftheMissouriConstitution,nomotorvehicledealer
100shallbeauthorizedtocollectandremitsalestaxesonmotorvehiclesunderthissection.No
101motorvehicledealershallseekcompensationfromthestateofMissourioritsagenciesifa
102courtofcompetentjurisdictiondeclaresthattheretentionoftwopercentofthemotorvehicle
103salestaxisunconstitutionalandordersthereturnofsuchrevenues.
104 11.(1)Everymotorvehicledealerlicensedundersection301.560,assoonas
105technologicallypossiblefollowingthedevelopmentandmaintenanceofamodernized,
106integratedsystemforthetitlingofvehicles,issuanceandrenewalofvehicle
107registrations,issuanceandrenewalofdriver'slicensesandidentificationcards,and
108perfectionandreleaseofliensandencumbrancesonvehicles,tobefundedbythemotor
109vehicleadministrationtechnologyfundascreatedinsection301.558,shallcollectand
110remitthesalestaxrequiredunderthissectiononallmotorvehiclesthatsuchdealer
HCSSSSCSSB398 6 111sells.Incollectingandremittingthissalestax,motorvehicledealersshallbesubjectto
112allapplicableprovisionsundersections144.010to144.527.
113 (2)Thedirectorofrevenuemaypromulgateallnecessaryrulesandregulations
114fortheadministrationofthissubsection.Anyruleorportionofarule,asthattermis
115definedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
116subsectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
117provisionsofchapter536and,ifapplicable,section536.028.Thissubsectionand
118chapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
119pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
120arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
121andanyruleproposedoradoptedafterAugust28,2023,shallbeinvalidandvoid.
304.822.1.Thissectionshallbeknownasthe"SiddensBeningHandsFree
2Law".
3 2.Asusedinthissection,thefollowingtermsshallmean:
4 (1)"Commercialmotorvehicle",thesamemeaningasisascribedtosuchterm
5insection302.700;
6 (2)"Electroniccommunicationdevice",aportabledevicethatisusedtoinitiate,
7receive,store,orviewcommunication,information,images,ordataelectronically;
8 (a)Suchtermshallincludebutnotbelimitedto:cellulartelephones;portable
9telephones;text-messagingdevices;personaldigitalassistants;pagers;broadband
10personalcommunicationdevices;electronicdeviceswithmobiledataaccess;computers,
11includingbutnotlimitedtotablets,laptops,notebookcomputers,andelectronicor
12videogamesystems;devicescapableoftransmitting,retrieving,ordisplayingavideo,
13movie,broadcasttelevisionimage,orvisualimage;andanysubstantiallysimilardevice
14thatisusedtoinitiateorreceivecommunicationorstoreandreviewinformation,videos,
15images,ordata;
16 (b)Suchtermshallnotinclude:radios;citizensbandradios;commercialtwo-
17wayradiocommunicationdevicesortheirfunctionalequivalent;subscription-based
18emergencycommunicationdevices;prescribedmedicaldevices;amateurorhamradio
19devices;orglobalpositioningsystemreceivers,security,navigation,communication,or
20remotediagnosticssystemspermanentlyaffixedtothevehicle;
21 (3)"Highway",thesamemeaningasisascribedtosuchterminsection302.010;
22 (4)"Noncommercialmotorvehicle",thesamemeaningasisascribedtosuch
23terminsection302.700;
24 (5)"Operating",theactualphysicalcontrolofavehicle;
25 (6)"Operator",apersonwhoisinactualphysicalcontrol;
HCSSSSCSSB398 7 26 (7)"Schoolbus",thesamemeaningasisascribedtosuchterminsection
27302.700;
28 (8)"Voice-operatedorhands-freefeatureorfunction",afeatureorfunction,
29whetherinternallyinstalledorexternallyattachedorconnectedtoanelectronic
30communicationdevice,thatallowsapersontouseanelectroniccommunicationdevice
31withouttheuseofeitherhand,excepttoactivate,deactivate,orinitiatethefeatureor
32functionwithasingletouchorsingleswipe.
33 3.Exceptasotherwiseprovidedinthissection,whileoperatinganoncommercial
34motorvehicleorcommercialmotorvehicleonanyhighwayorpropertyopentothe
35publicforvehiculartrafficinthisstate,nooperatorshall:
36 (1)Physicallyholdorsupport,withanypartofhisorherbody,anelectronic
37communicationdevice;
38 (2)Write,send,orreadanytext-basedcommunication,includingbutnotlimited
39toatextmessage,instantmessage,email,orsocialmediainteractiononanelectronic
40communicationdevice.Thissubdivisionshallnotapplytooperatorsofa
41noncommercialmotorvehicleusingavoice-operatedorhands-freefeatureor
42functionthatconvertsthemessagetobesentasamessageinawrittenform,
43providedthattheoperatordoesnotdiverthisorherattentionfromlawfuloperationof
44thevehicle;
45 (3)Makeanycommunicationonanelectroniccommunicationdevice,including
46aphonecall,voicemessage,orone-wayvoicecommunication;providedhowever,that
47thisprohibitionshallnotapplytouseofavoice-operatedorhands-freefeatureor
48function;
49 (4)Engageinanyformofelectronicdataretrievalorelectronicdata
50communicationonanelectroniccommunicationdevice;
51 (5)Manuallyenterletters,numbers,orsymbolsintoanywebsite,searchengine,
52orapplicationonanelectroniccommunicationdevice;
53 (6)Watchavideoormovieonanelectroniccommunicationdevice,otherthan
54watchingdatarelatedtothenavigationofthevehicle;or
55 (7)Record,post,send,orbroadcastvideo,includingavideoconference,onan
56electroniccommunicationdevice,providedthatthisprohibitionshallnotapplyto
57electronicdevicesusedforthesolepurposeofcontinuallymonitoringoperatorbehavior
58byrecordingorbroadcastingvideowithinoroutsidethevehicle.
59 4.Theoperatorofaschoolbusshallnotuseoroperateanelectronic
60communicationdevicewhiletheschoolbusisinmotionunlessthedeviceisbeingusedin
61asimilarmannerasatwo-wayradiotoallowlivecommunicationbetweentheoperator
62andschoolofficialsorpublicsafetyofficials.Theoperatorofaschoolbusshallnotuse
HCSSSSCSSB398 8 63oroperateanelectroniccommunicationdeviceoratwo-wayradiowhileloadingor
64unloadingpassengers.
65 5.Thissectionshallnotapplyto:
66 (1)Lawenforcementofficersoroperatorsofemergencyvehicles,assuchtermis
67definedinsection304.022,whoarebothusingtheelectroniccommunicationdeviceand
68operatingtheemergencyvehicleintheperformanceoftheirofficialduties;
69 (2)Operatorsusinganelectroniccommunicationdeviceforthesolepurposeof
70reportinganemergencysituationandcontinuingcommunicationwithemergency
71personnelduringtheemergencysituation;
72 (3)Operatorsofnoncommercialmotorvehiclesusinganelectronic
73communicationdevicesolelythroughavoice-operatedorhands-freefeatureor
74function;
75 (4)Operatorsofcommercialmotorvehiclesusingavoice-operatedorhands-free
76featureorfunction,aslongastheoperatorremainsseatedandisrestrainedbyaseat
77beltasrequiredbylaw;
78 (5)Operatorsofcommercialmotorvehiclesreadingamessagedisplayedona
79permanentlyinstalledcommunicationdevicedesignedforacommercialmotorvehicle
80withascreenthatdoesnotexceedteninchestallbytenincheswideinsize;
81 (6)Operatorsusingelectroniccommunicationdeviceswhilethevehicleis
82lawfullystoppedorparked;
83 (7)Commercialmotorvehiclesthatarerespondingtoarequestforroadside
84assistance,whensuchresponseisconductedbyamotorclubasdefinedinsection
85385.450oratowingcompanyasdefinedinsection304.001;
86 (8)Theuseofanelectroniccommunicationdevicetorelayinformationbetween
87atransitorfor-hirevehicleoperatorandthatoperator'sdispatcher,providedthedevice
88ismountedoraffixedtothevehicle;
89 (9)Theuseofanelectroniccommunicationdevicetoaccessorviewamapfor
90navigationalpurposes;
91 (10)Theuseofanelectroniccommunicationdevicetoaccessorlistentoanaudio
92broadcastordigitalaudiorecording;or
93 (11)Theuseofanelectroniccommunicationdevicetorelayinformationthrough
94atransportationnetworkcompany'sdigitalnetworktoatransportationnetwork
95companydriver,providedthedeviceismountedoraffixedtothevehicle.
96 6.Exceptasotherwiseprovidedinthissubsection,violationofthissectionshall
97beaninfraction.Penaltiesforviolationsofthissectionshallbeasprovidedinthis
98subsection.Priorconvictionsshallbepleadedandproveninthesamemanneras
99requiredundersection558.021.
HCSSSSCSSB398 9 100 (1)Foraconvictionunderthissectionwherethereisnopriorconvictionunder
101thissectionwithintheprecedingtwenty-fourmonths,thecourtshallimposeafineofup
102toonehundredfiftydollars.
103 (2)Foraconvictionunderthissectionwherethereisonepriorconvictionunder
104thissectionwithintheprecedingtwenty-fourmonths,thecourtshallimposeafineofup
105totwohundredfiftydollars.
106 (3)Foraconvictionunderthissectionwheretherearetwoormoreprior
107convictionsunderthissectionintheprecedingtwenty-fourmonths,thecourtshall
108imposeafineofuptofivehundreddollars.
109 (4)Foraconvictionunderthissectionwheretheviolationoccurredinawork
110zonewhenworkersarepresent,assuchtermsaredefinedinsection304.580,orfora
111convictionunderthissectionwheretheviolationoccurredinanareadesignatedasa
112schoolzoneandmarkedinanywaythatwouldalertareasonablyprudentoperatorto
113thepresenceoftheschoolzone,thecourtshallimposeafineofuptofivehundred
114dollars.
115 (5)Aviolationofthissectionthatistheproximatecauseofdamagetoproperty
116inexcessoffivethousanddollarsshallbeaclassDmisdemeanor.
117 (6)Aviolationofthissectionthatistheproximatecauseofseriousphysical
118injurytoanotherpersonshallbeaclassBmisdemeanor.
119 (7)Aviolationofthissectionthatistheproximatecauseofthedeathofanother
120personshallbeaclassDfelony.
121 (8)Aviolationofthissectionwhileoperatingacommercialmotorvehicleshall
122bedeemedaserioustrafficviolation,assuchtermisdefinedinsection302.700,for
123purposesofcommercialdriver'slicensedisqualificationundersection302.755.
124 7.Alawenforcementofficerwhostopsanoncommercialmotorvehiclefora
125violationofthissectionshallinformtheoperatoroftheoperator'srighttodeclinea
126searchoftheirelectroniccommunicationdeviceandshallnotaccesstheelectronic
127communicationdevicewithoutawarrant,norconfiscatethedevicewhileawaiting
128issuanceofawarrant.
129 8.Aviolationofthissectionshallnotbeusedtoestablishprobablecauseforany
130otherviolation.
131 9.Theprovisionsofthissectionshallbesubjecttothereportingrequirements
132setforthinsection590.650.
133 10.Thestatepreemptsthefieldofregulatingtheuseofelectronic
134communicationdevicesbytheoperatorsofcommercialandnoncommercialmotor
135vehicles.Theprovisionsofthissectionshallsupercedeanylocallaws,ordinances,
136orders,rules,orregulationsenactedbyacounty,municipality,orotherpolitical
HCSSSSCSSB398 10 137subdivisiontoregulatetheuseofelectroniccommunicationdevicesbytheoperatorofa
138commercialornoncommercialmotorvehicle.
139 11.PriortoJanuary1,2025,alawenforcementofficerwhostopsa
140noncommercialmotorvehicleforaviolationofthissectionshallnotissueacitation
141foraviolationofthissectionandshallonlyissueawarning.
142 12.Nopersonshallbestopped,inspected,ordetainedsolelyforaviolationof
143thissection.
407.812.1.AnyfranchisorobtainingorrenewingitslicenseafterAugust28,2010,
2shallbeboundbytheprovisionsoftheMVFPactandshallcomplywithit,andnofranchise
3agreementmade,entered,modified,orrenewedafterAugust28,2010,shallavoidthe
4requirementsoftheMVFPact,orviolateitsprovisions,andnofranchiseagreementshallbe
5performedafterthedatethefranchisor'slicenseisissuedorrenewedinsuchamannerthatthe
6franchisoravoidsorotherwisedoesnotconformorcomplywiththerequirementsofthe
7MVFPact.Notwithstandingtheeffectivedateofanyfranchiseagreement,allfranchisor
8licensesandrenewalsthereofareissuedsubjecttoallprovisionsoftheMVFPactandchapter
9301andanyregulationsineffectuponthedateofissuance,aswellasallfutureprovisionsof
10theMVFPactandchapter301andanyregulationswhichmaybecomeeffectiveduringthe
11termofthelicense.
12 2.TheprovisionsoftheMVFPactshallapplytoeachfranchisethatafranchisor,
13manufacturer,importer,ordistributorhaswithafranchiseeandallagreementsbetweena
14franchiseeandacommonentityoranypersonthatiscontrolledbyafranchisor.
15 3.Nodealerormanufacturerlicensedinthisstateundersections301.550to
16301.573shallallowanysubsidiaryorrelatedentitytoengageinthebusinessofselling
17motorvehicles,asdefinedinsection301.010,toretailconsumersinthisstate,exceptas
18otherwisepermittedbylaw.Anydealerormanufacturerlicensedinthisstateshallhave
19standingtoenforcetheprovisionsofthissubsectionprovidedthatafranchise
20relationshipexistsbetweentheparties.
21 4.Noentitycontrolling,controlledby,orsharingacommonparententityor
22siblingentitywithalicenseddealerormanufacturershallengageinthebusinessof
23sellingmotorvehiclestoretailconsumersinthisstate,exceptaspermittedbysections
24301.550to301.575andtheMVFPact.Anydealerormanufacturerlicensedinthisstate
25shallhavestandingtoenforcetheprovisionsofthissubsection.
26 5.Nodealerormanufacturernotlicensedinthisstateundersections301.550to
27301.575shallengageinthebusinessofsellingmotorvehiclestoretailconsumersinthis
28state,exceptaspermittedbysections301.550to301.575andtheMVFPact.Anydealer
29ormanufacturerinthisstateshallhavestandingtoenforcetheprovisionsofthis
30subsection,providedthatafranchiserelationshipexistsbetweentheparties.
HCSSSSCSSB398 11 31 6.Amanufacturer,importer,ordistributormayengageinthebusinessofselling
32motorvehiclestoretailconsumersinthisstatefromadealershipifthemanufacturer,
33importer,ordistributorownedthedealershipandfirstappliesforalicenseforthe
34dealershiponorbeforeAugust28,2023,providedthatthelicenseissubsequently
35granted,andtheownershiporcontrollinginterestofsuchdealershipisnottransferred,
36sold,orconveyedtoanotherpersonorentityrequiredtobelicensedunderthischapter.
407.828.1.Notwithstandinganyprovisioninafranchisetothecontrary,each
2franchisorshallspecifyinwritingtoeachofitsfranchiseesinthisstatethefranchisee's
3obligationsforpreparation,delivery,andwarrantyserviceonitsproducts.Thefranchisor
4shallfairlyandreasonablycompensatethefranchiseeforpreparation,delivery,andwarranty
5servicerequiredofthefranchiseebythefranchisor.Thefranchisorshallprovidethe
6franchiseewiththescheduleofcompensationtobepaidtothefranchiseeforparts,labor,and
7service,andthetimeallowancefortheperformanceofthelaborandserviceforthe
8franchisee'sobligationsforpreparation,delivery,andwarrantyservice.
9 2.Thescheduleofcompensationshallincludereasonablecompensationfor
10diagnosticwork,aswellasrepairserviceandlaborforthefranchiseetomeetitsobligations
11forpreparation,delivery,andwarrantyservice.Thescheduleshallalsoincludereasonable
12andadequatetimeallowancesforthediagnosisandperformanceofpreparation,delivery,and
13warrantyservicetobeperformedinacarefulandprofessionalmanner.Inthedetermination
14ofwhatconstitutesreasonablecompensationforlaborandservicepursuanttothissection,the
15principalfactortobegivenconsiderationshallbetheprevailingwageratesbeingchargedfor
16similarlaborandserviceby[franchiseesinthemarketinwhichthefranchiseeisdoing
17business,andinnoeventshallthecompensationofafranchiseeforlaborandservicebeless
18thantherateschargedby]thefranchiseeforsimilarlaborandservicetoretailcustomersfor
19nonwarrantylaborandservice[, providedthatsuchratesarereasonable]. Theprimaryfactor
20indetermining[afairand]reasonablecompensationforpartsunderthissectionshallbethe
21[prevailingamountchargedforsimilarpartsbyothersameline-makefranchiseesinthe
22marketinwhichthefranchiseeisdoingbusinessandthefairandreasonablecompensationfor
23partsshallnotbelessthanthe]amountchargedbythefranchiseeforsimilarpartstoretail
24customersfornonwarrantyparts[, providedthatsuchratesarereasonable.Ifanothersame
25line-makefranchiseeisnotavailablewithinthemarket,thentheprevailingamountcharged
26forsimilarpartsbyotherfranchiseesinthemarketshallbeusedastheprimaryfactor].
27 3.Afranchisorshallperformallwarrantyobligations,includingrecallnotices;
28includeinwrittennoticesoffranchisorrecallstonewmotorvehicleownersandfranchisees
29theexpecteddatebywhichnecessarypartsandequipmentwillbeavailabletofranchiseesfor
30thecorrectionofthedefects;and[reasonably] compensateanyofthefranchiseesinthisstate
HCSSSSCSSB398 12 31forrepairsrequiredbytherecall.[Reasonable] Compensationforparts[,] andlabor[, and
32service] forrecallrepairsshallbedeterminedundersubsection2ofthissection.
33 4.Nofranchisorshallrequireafranchiseetosubmitaclaimauthorizedunderthis
34sectionsoonerthanthirtydaysafterthefranchiseecompletesthepreparation,delivery,or
35warrantyserviceauthorizingtheclaimforpreparation,delivery,orwarrantyservice.All
36claimsmadebyafranchiseeunderthissectionshallbepaidwithinthirtydaysaftertheir
37approval.Allclaimsshallbeeitherapprovedordisapprovedbythefranchisorwithinthirty
38daysaftertheirreceiptonaproperformgenerallyusedbythefranchisorandcontainingthe
39usuallyrequiredinformationtherein.Anyclaimsnotspecificallydisapprovedinwriting
40withinthirtydaysafterthereceiptoftheformshallbeconsideredtobeapprovedand
41paymentshallbemadewithinfifteendaysthereafter.Afranchiseeshallnotberequiredto
42maintaindefectivepartsformorethanthirtydaysaftersubmissionofaclaim.
43 5.Afranchisorshallcompensatethefranchiseeforfranchisor-sponsoredsalesor
44servicepromotionevents,includingbutnotlimitedto,rebates,programs,oractivitiesin
45accordancewithestablishedwrittenguidelinesforsuchevents,programs,oractivities,which
46guidelinesshallbeprovidedtoeachfranchisee.
47 6.Nofranchisorshallrequireafranchiseetosubmitaclaimauthorizedunder
48subsection5ofthissectionsoonerthanthirtydaysafterthefranchiseebecomeseligibleto
49submittheclaim.Allclaimsmadebyafranchiseepursuanttosubsection5ofthissectionfor
50promotionevents,includingbutnotlimitedtorebates,programs,oractivitiesshallbepaid
51withintendaysaftertheirapproval.Allclaimsshallbeeitherapprovedordisapprovedbythe
52franchisorwithinthirtydaysaftertheirreceiptonaproperformgenerallyusedbythe
53franchisorandcontainingtheusuallyrequiredinformationtherein.Anyclaimnot
54specificallydisapprovedinwritingwithinthirtydaysafterthereceiptofthisformshallbe
55consideredtobeapprovedandpaymentshallbemadewithin[ten]fifteendays.
56 7.Incalculatingtheretailratecustomarilychargedbythefranchiseeforparts,
57service,andlabor,thefollowingworkshallnotbeincludedinthecalculation:
58 (1)Repairsforfranchisor,manufacturer,ordistributorspecialevents,specials,or
59promotionaldiscountsforretailcustomerrepairs;
60 (2)Partssoldatwholesale;
61 (3)Engineassembliesandtransmissionassemblies;
62 (4)Routinemaintenancenotcoveredunderanyretailcustomerwarranty,suchas
63fluids,filters,andbeltsnotprovidedinthecourseofrepairs;
64 (5)Nuts,bolts,fasteners,andsimilaritemsthatdonothaveanindividualpart
65number;
66 (6)Tires;and
67 (7)Vehiclereconditioning.
HCSSSSCSSB398 13 68 8.Ifafranchisor,manufacturer,importer,ordistributorfurnishesapartorcomponent
69toafranchisee,atnocost,touseinperformingrepairsunderarecall,campaignservice
70action,orwarrantyrepair,thefranchisorshallcompensatethefranchiseeforthepartor
71componentinthesamemanneraswarrantypartscompensationunderthissectionby
72compensatingthefranchiseeattheaveragemarkuponthecostforthepartorcomponentas
73listedinthepricescheduleofthefranchisor,manufacturer,importer,ordistributor,lessthe
74costforthepartorcomponent.Thissubsectionshallnotapplytoentireengine
75assemblies,propulsionengineassemblies,includingelectricvehiclebatteries,orentire
76transmissionassemblies.
77 9.Afranchisorshallnotrequireafranchiseetoestablishtheretailratecustomarily
78chargedbythefranchiseeforparts,service,orlaborbyanundulyburdensomeortime-
79consumingmethodorbyrequiringinformationthatisundulyburdensomeortimeconsuming
80toprovide,including,butnotlimitedto,part-by-partortransaction-by-transaction
81calculations.Afranchiseeshallnotrequestafranchisortoapproveadifferentlaborrate
82orpartsratemorethantwiceinonecalendaryear.
83 10.Ifafranchiseesubmitsanyclaimunderthissectiontoafranchisorthatis
84incomplete,inaccurate,orlackinganyinformationusuallyrequiredbythefranchisor,thenthe
85franchisorshallpromptlynotifythefranchisee,andthetimelimittosubmittheclaimshallbe
86extendedforareasonablelengthoftime,notlessthanfivebusinessdaysfollowingnoticeby
87thefranchisortothefranchisee,forthefranchiseetoprovidethecomplete,accurate,or
88lackinginformationtothefranchisor.
89 11.(1)Afranchisormayonlyauditwarranty,sales,orincentiveclaimsandcharge-
90backtothefranchiseeunsubstantiatedclaimsforaperiodoftwelvemonthsfollowing
91payment,subjecttoalloftheprovisionsofthissection.Furthermore,ifthefranchisorhas
92goodcausetobelievethatafranchiseehassubmittedfraudulentclaims,thenthefranchisor
93mayonlyauditsuspectedfraudulentwarranty,sales,orincentiveclaimsandcharge-backto
94thefranchiseefraudulentclaimsforaperiodoftwoyearsfollowingpayment,subjecttoall
95provisionsofthissection.
96 (2)Afranchisorshallnotrequiredocumentationforwarranty,sales,orincentive
97claimsmorethantwelvemonthsaftertheclaimwaspaid.
98 (3)Priortorequiringanycharge-back,reimbursement,orcreditagainstafuture
99transactionarisingoutofanaudit,thefranchisorshallsubmitwrittennoticetothefranchisee
100alongwithacopyofitsauditandthedetailedreasonforeachintendedcharge-back,
101reimbursement,orcredit.
102 12.Afranchiseemayfileacomplaintwiththeadministrativehearingcommission
103pursuanttosection407.822within[thirty] sixtydaysafterreceiptofany[such] written
104notice[challengingsuchaction] byafranchisorofanyadversedecisiononanyclaimfor
HCSSSSCSSB398 14 105reimbursementsubmittedpursuanttothissection,including,butnotlimitedto,specific
106claimsforreimbursementinindividualwarrantyrepairtransactions,andrequestsfor
107anincreaseinlabororpartsrate.Ifacomplaintisfiledwithinthe[thirty] sixtydays,then
108the[charge-back,reimbursement,orcredit] denialorreductionofreimbursement,denial
109ofarequestforanincreaseinlabororpartsrate,charge-back,orotherdetermination
110byafranchisorwhichisadversetoafranchiseeshallbestayedpendingahearingand
111determinationofthematterundersection407.822.Thefranchisorshallfileananswerto
112thecomplaintwithinthirtydaysafterserviceofthecomplaint.If,followingahearing
113whichshallbeheldwithinsixtydaysfollowingserviceofthefranchisor'sanswer,the
114administrativehearingcommissiondeterminesthat[anyportionofthecharge-back,
115reimbursement,orcreditisimproper,thenthatportionofthecharge-back,reimbursement,
116orcreditshallbevoidandnotallowed] afranchisorhasviolatedanyrequirementsofthis
117section,thenthedenialorreductionofreimbursement,denialofarequestforan
118increaseinlabororpartsrate,orcharge-backshallbevoidandthefranchisorshall,
119withinfifteendaysofthecommission'sorder,fairlycompensatethefranchiseeas
120requiredbytheprovisionsofthissection.Section407.835shallapplytoproceedings
121pursuanttothissection.
[304.820.1.Exceptasotherwiseprovidedinthissection,noperson
2 twenty-oneyearsofageoryoungeroperatingamovingmotorvehicleupon
3 thehighwaysofthisstateshall,bymeansofahand-heldelectronicwireless
4 communicationsdevice,send,read,orwriteatextmessageorelectronic
5 message.
6 2.Exceptasotherwiseprovidedinthissection,nopersonshalloperate
7 acommercialmotorvehiclewhileusingahand-heldmobiletelephone.
8 3.Exceptasotherwiseprovidedinthissection,nopersonshalloperate
9 acommercialmotorvehiclewhileusingawirelesscommunicationsdeviceto
10 send,read,orwriteatextmessageorelectronicmessage.
11 4.Theprovisionsofsubsection1throughsubsection3ofthissection
12 shallnotapplytoapersonoperating:
13 (1)Anauthorizedemergencyvehicle;or
14 (2)Amovingmotorvehiclewhileusingahand-heldelectronic
15 wirelesscommunicationsdeviceto:
16 (a)Reportillegalactivity;
17 (b)Summonmedicalorotheremergencyhelp;
18 (c)Preventinjurytoapersonorproperty;or
19 (d)Relayinformationbetweenatransitorfor-hireoperatorandthat
20 operator'sdispatcher,inwhichthedeviceispermanentlyaffixedtothevehicle.
21 5.Nothinginthissectionshallbeconstruedorinterpretedas
22 prohibitingapersonfrommakingortakingpartinatelephonecall,bymeans
23 ofahand-heldelectronicwirelesscommunicationsdevice,whileoperatinga
24 noncommercialmotorvehicleuponthehighwaysofthisstate.
HCSSSSCSSB398 15 25 6.Asusedinthissection,"electronicmessage"meansaself-contained
26 pieceofdigitalcommunicationthatisdesignedorintendedtobetransmitted
27 betweenhand-heldelectronicwirelesscommunicationdevices."Electronic
28 message"includes,butisnotlimitedto,electronicmail,atextmessage,an
29 instantmessage,oracommandorrequesttoaccessaninternetsite.
30 7.Asusedinthissection,"hand-heldelectronicwireless
31 communicationsdevice"includesanyhand-heldcellularphone,palmpilot,
32 blackberry,orothermobileelectronicdeviceusedtocommunicateverballyor
33 bytextorelectronicmessaging,butshallnotapplytoanydevicethatis
34 permanentlyembeddedintothearchitectureanddesignofthemotorvehicle.
35 8.Asusedinthissection,"makingortakingpartinatelephonecall"
36 meanslisteningtoorengaginginverbalcommunicationthroughahand-held
37 electronicwirelesscommunicationdevice.
38 9.Asusedinthissection,"send,read,orwriteatextmessageor
39 electronicmessage"meansusingahand-heldelectronicwireless
40 telecommunicationsdevicetomanuallycommunicatewithanypersonby
41 usinganelectronicmessage.Sending,reading,orwritingatextmessageor
42 electronicmessagedoesnotincludereading,selecting,orenteringaphone
43 numberornameintoahand-heldelectronicwirelesscommunicationsdevice
44 forthepurposeofmakingatelephonecall.
45 10.Aviolationofthissectionshallbedeemedaninfractionandshall
46 bedeemedamovingviolationforpurposesofpointassessmentundersection
47 302.302.
48 11.Thestatepreemptsthefieldofregulatingtheuseofhand-held
49 electronicwirelesscommunicationsdevicesinmotorvehicles,andthe
50 provisionsofthissectionshallsupercedeanylocallaws,ordinances,orders,
51 rules,orregulationsenactedbyacounty,municipality,orotherpolitical
52 subdivisiontoregulatetheuseofhand-heldelectronicwireless
53 communicationdevicesbytheoperatorofamotorvehicle.
54 12.Theprovisionsofthissectionshallnotapplyto:
55 (1)Theoperatorofavehiclethatislawfullyparkedorstopped;
56 (2)Anyofthefollowingwhileintheperformanceoftheirofficial
57 duties:alawenforcementofficer;amemberofafiredepartment;orthe
58 operatorofapublicorprivateambulance;
59 (3)Theuseoffactory-installedoraftermarketglobalpositioning
60 systems(GPS)orwirelesscommunicationsdevicesusedtotransmitorreceive
61 dataaspartofadigitaldispatchsystem;
62 (4)Theuseofvoice-operatedtechnology;
63 (5)Theuseoftwo-wayradiotransmittersorreceiversbyalicenseeof
64 theFederalCommunicationsCommissionintheAmateurRadioService.]
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HCSSSSCSSB398 16