Missouri 2023 Regular Session

Missouri Senate Bill SB398 Compare Versions

OldNewDifferences
1-
2-EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3-and is intended to be omitted in the law.
41 FIRSTREGULARSESSION
5-[TRULY AGREED TO AND FINALLY PASSED ]
62 HOUSECOMMITTEESUBSTITUTEFOR
73 SENATESUBSTITUTEFOR
84 SENATECOMMITTEESUBSTITUTEFOR
95 SENATEBILLNO.398
106 102NDGENERALASSEMBLY
11-2023
12-1413H.07T
7+1413H.07C DANARADEMANMILLER,ChiefClerk
138 ANACT
14-To repeal sections 144.020, 144.070, 304.820, 407.812, and 407.828, RSMo, and to enact in lieu
15-thereof twenty-five new sections relating to motor vehicles, with penalty provisions.
16-
9+Torepealsections144.020,144.070,304.820,407.812,and407.828,RSMo,andtoenactin
10+lieuthereoffivenewsectionsrelatingtomotorvehicles,withpenaltyprovisions.
1711 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
18- Section A. Sections 14 4.020, 144.070, 304.820, 407.812, 1
19-and 407.828, RSMo, are repealed and twenty -five new sections 2
20-enacted in lieu thereof, to be known as sections 144.020, 3
21-144.070, 303.420, 303.422, 303.425, 303.430, 303.440, 304.822, 4
22-407.812, 407.828, 407.2020, 407.2025, 40 7.2030, 407.2035, 5
23-407.2040, 407.2045, 407.2050, 407.2055, 407.2060, 407.2065, 6
24-407.2070, 407.2075, 407.2080, 407.2085, and 407.2090, to read 7
25-as follows:8
26- 144.020. 1. A tax is hereby levied and imposed for 1
27-the privilege of titling new and used motor vehicles, 2
28-trailers, boats, and outboard motors purchased or acquired 3
29-for use on the highways or waters of this state which are 4
30-required to be titled under the laws of the state of 5
31-Missouri and, except as provided in subdivision (9) of this 6
32-subsection, upon all sellers for the privilege of engaging 7
33-in the business of selling tangible personal property or 8 HCS SS SCS SB 398 2
34-rendering taxable service at retail in this state. The rate 9
35-of tax shall be as follows: 10
36- (1) Upon every retail sale in this state of tangible 11
37-personal property, excluding motor vehicles, trailers, 12
38-motorcycles, mopeds, motortricycles, boats and outboard 13
39-motors required to be titled under the laws of the state of 14
40-Missouri and subject to tax under subdivision (9) of this 15
41-subsection, a tax equi valent to four percent of the purchase 16
42-price paid or charged, or in case such sale involves the 17
43-exchange of property, a tax equivalent to four percent of 18
44-the consideration paid or charged, including the fair market 19
45-value of the property exchanged at th e time and place of the 20
46-exchange, except as otherwise provided in section 144.025; 21
47- (2) A tax equivalent to four percent of the amount 22
48-paid for admission and seating accommodations, or fees paid 23
49-to, or in any place of amusement, entertainment or 24
50-recreation, games and athletic events, except amounts paid 25
51-for any instructional class; 26
52- (3) A tax equivalent to four percent of the basic rate 27
53-paid or charged on all sales of electricity or electrical 28
54-current, water and gas, natural or artificial, to domestic, 29
55-commercial or industrial consumers; 30
56- (4) (a) A tax equivalent to four percent on the basic 31
57-rate paid or charged on all sales of local and long distance 32
58-telecommunications service to telecommunications subscribers 33
59-and to others throug h equipment of telecommunications 34
60-subscribers for the transmission of messages and 35
61-conversations and upon the sale, rental or leasing of all 36
62-equipment or services pertaining or incidental thereto; 37
63-except that, the payment made by telecommunications 38
64-subscribers or others, pursuant to section 144.060, and any 39
65-amounts paid for access to the internet or interactive 40 HCS SS SCS SB 398 3
66-computer services shall not be considered as amounts paid 41
67-for telecommunications services; 42
68- (b) If local and long distance telecommunic ations 43
69-services subject to tax under this subdivision are 44
70-aggregated with and not separately stated from charges for 45
71-telecommunications service or other services not subject to 46
72-tax under this subdivision, including, but not limited to, 47
73-interstate or international telecommunications services, 48
74-then the charges for nontaxable services may be subject to 49
75-taxation unless the telecommunications provider can identify 50
76-by reasonable and verifiable standards such portion of the 51
77-charges not subject to such tax from its books and records 52
78-that are kept in the regular course of business, including, 53
79-but not limited to, financial statement, general ledgers, 54
80-invoice and billing systems and reports, and reports for 55
81-regulatory tariffs and other regulatory matters; 56
82- (c) A telecommunications provider shall notify the 57
83-director of revenue of its intention to utilize the 58
84-standards described in paragraph (b) of this subdivision to 59
85-determine the charges that are subject to sales tax under 60
86-this subdivision. Such notification shall be in writing and 61
87-shall meet standardized criteria established by the 62
88-department regarding the form and format of such notice; 63
89- (d) The director of revenue may promulgate and enforce 64
90-reasonable rules and regulations for the admini stration and 65
91-enforcement of the provisions of this subdivision. Any rule 66
92-or portion of a rule, as that term is defined in section 67
93-536.010, that is created under the authority delegated in 68
94-this section shall become effective only if it complies with 69
95-and is subject to all of the provisions of chapter 536 and, 70
96-if applicable, section 536.028. This section and chapter 71
97-536 are nonseverable and if any of the powers vested with 72 HCS SS SCS SB 398 4
98-the general assembly pursuant to chapter 536 to review, to 73
99-delay the effective date, or to disapprove and annul a rule 74
100-are subsequently held unconstitutional, then the grant of 75
101-rulemaking authority and any rule proposed or adopted after 76
102-August 28, 2019, shall be invalid and void; 77
103- (5) A tax equivalent to four percent of the basic rate 78
104-paid or charged for all sales of services for transmission 79
105-of messages of telegraph companies; 80
106- (6) A tax equivalent to four percent on the amount of 81
107-sales or charges for all rooms, meals and drinks furnished 82
108-at any hotel, motel, taver n, inn, restaurant, eating house, 83
109-drugstore, dining car, tourist cabin, tourist camp or other 84
110-place in which rooms, meals or drinks are regularly served 85
111-to the public. The tax imposed under this subdivision shall 86
112-not apply to any automatic mandatory g ratuity for a large 87
113-group imposed by a restaurant when such gratuity is reported 88
114-as employee tip income and the restaurant withholds income 89
115-tax under section 143.191 on such gratuity; 90
116- (7) A tax equivalent to four percent of the amount 91
117-paid or charged for intrastate tickets by every person 92
118-operating a railroad, sleeping car, dining car, express car, 93
119-boat, airplane and such buses and trucks as are licensed by 94
120-the division of motor carrier and railroad safety of the 95
121-department of economic develop ment of Missouri, engaged in 96
122-the transportation of persons for hire; 97
123- (8) A tax equivalent to four percent of the amount 98
124-paid or charged for rental or lease of tangible personal 99
125-property, provided that if the lessor or renter of any 100
126-tangible personal property had previously purchased the 101
127-property under the conditions of sale at retail or leased or 102
128-rented the property and the tax was paid at the time of 103
129-purchase, lease or rental, the lessor, sublessor, renter or 104 HCS SS SCS SB 398 5
130-subrenter shall not apply or coll ect the tax on the 105
131-subsequent lease, sublease, rental or subrental receipts 106
132-from that property. The purchase, rental or lease of motor 107
133-vehicles, trailers, motorcycles, mopeds, motortricycles, 108
134-boats, and outboard motors shall be taxed and the tax paid 109
135-as provided in this section and section 144.070. In no 110
136-event shall the rental or lease of boats and outboard motors 111
137-be considered a sale, charge, or fee to, for or in places of 112
138-amusement, entertainment or recreation nor shall any such 113
139-rental or lease be subject to any tax imposed to, for, or in 114
140-such places of amusement, entertainment or recreation. 115
141-Rental and leased boats or outboard motors shall be taxed 116
142-under the provisions of the sales tax laws as provided under 117
143-such laws for motor vehicles an d trailers. Tangible 118
144-personal property which is exempt from the sales or use tax 119
145-under section 144.030 upon a sale thereof is likewise exempt 120
146-from the sales or use tax upon the lease or rental thereof; 121
147- (9) A tax equivalent to four percent of the purchase 122
148-price, as defined in section 144.070, of new and used motor 123
149-vehicles, trailers, boats, and outboard motors purchased or 124
150-acquired for use on the highways or waters of this state 125
151-which are required to be registered under the laws of the 126
152-state of Missouri. This tax is imposed on the person 127
153-titling such property, and shall be paid according to the 128
154-procedures in section 144.070 or 144.440. 129
155- 2. All tickets sold which are sold under the 130
156-provisions of this chapter which are subject to the sal es 131
157-tax shall have printed, stamped or otherwise endorsed 132
158-thereon, the words "This ticket is subject to a sales tax.". 133
159- 144.070. 1. At the time the owner of any new or used 1
160-motor vehicle, trailer, boat, or outboard motor which was 2
161-acquired in a transaction subject to sales tax under the 3 HCS SS SCS SB 398 6
162-Missouri sales tax law makes application to the director of 4
163-revenue for an official certificate of title and the 5
164-registration of the motor vehicle, trailer, boat, or 6
165-outboard motor as otherwise pro vided by law, the owner shall 7
166-present to the director of revenue evidence satisfactory to 8
167-the director of revenue showing the purchase price exclusive 9
168-of any charge incident to the extension of credit paid by or 10
169-charged to the applicant in the acquisit ion of the motor 11
170-vehicle, trailer, boat, or outboard motor, or that no sales 12
171-tax was incurred in its acquisition, and if sales tax was 13
172-incurred in its acquisition, the applicant shall pay or 14
173-cause to be paid to the director of revenue the sales tax 15
174-provided by the Missouri sales tax law in addition to the 16
175-registration fees now or hereafter required according to 17
176-law, and the director of revenue shall not issue a 18
177-certificate of title for any new or used motor vehicle, 19
178-trailer, boat, or outboard motor subject to sales tax as 20
179-provided in the Missouri sales tax law until the tax levied 21
180-for the sale of the same under sections 144.010 to 144.510 22
181-has been paid as provided in this section or is registered 23
182-under the provisions of subsection 5 of this sect ion. 24
183- 2. As used in subsection 1 of this section, the term 25
184-"purchase price" shall mean the total amount of the contract 26
185-price agreed upon between the seller and the applicant in 27
186-the acquisition of the motor vehicle, trailer, boat, or 28
187-outboard motor, regardless of the medium of payment therefor. 29
188- 3. In the event that the purchase price is unknown or 30
189-undisclosed, or that the evidence thereof is not 31
190-satisfactory to the director of revenue, the same shall be 32
191-fixed by appraisement by the directo r. 33
192- 4. The director of the department of revenue shall 34
193-endorse upon the official certificate of title issued by the 35 HCS SS SCS SB 398 7
194-director upon such application an entry showing that such 36
195-sales tax has been paid or that the motor vehicle, trailer, 37
196-boat, or outboard motor represented by such certificate is 38
197-exempt from sales tax and state the ground for such 39
198-exemption. 40
199- 5. Any person, company, or corporation engaged in the 41
200-business of renting or leasing motor vehicles, trailers, 42
201-boats, or outboard motors, which are to be used exclusively 43
202-for rental or lease purposes, and not for resale, may apply 44
203-to the director of revenue for authority to operate as a 45
204-leasing or rental company and pay an annual fee of two 46
205-hundred fifty dollars for such authority. Any company 47
206-approved by the director of revenue may pay the tax due on 48
207-any motor vehicle, trailer, boat, or outboard motor as 49
208-required in section 144.020 at the time of registration 50
209-thereof or in lieu thereof may pay a sales tax as provided 51
210-in sections 144.010, 144.020, 144.070 and 144.440. A sales 52
211-tax shall be charged to and paid by a leasing company which 53
212-does not exercise the option of paying in accordance with 54
213-section 144.020, on the amount charged for each rental or 55
214-lease agreement while the mot or vehicle, trailer, boat, or 56
215-outboard motor is domiciled in this state. Any motor 57
216-vehicle, trailer, boat, or outboard motor which is leased as 58
217-the result of a contract executed in this state shall be 59
218-presumed to be domiciled in this state. 60
219- 6. Every applicant to be a registered fleet owner as 61
220-described in subsections 6 to 10 of section 301.032 shall 62
221-furnish with the application to operate as a registered 63
222-fleet owner a corporate surety bond or irrevocable letter of 64
223-credit, as defined in sectio n 400.5-102, issued by any state 65
224-or federal financial institution in the penal sum of one 66
225-hundred thousand dollars, on a form approved by the 67 HCS SS SCS SB 398 8
226-department. The bond or irrevocable letter of credit shall 68
227-be conditioned upon the registered fleet owner com plying 69
228-with the provisions of any statutes applicable to registered 70
229-fleet owners, and the bond shall be an indemnity for any 71
230-loss sustained by reason of the acts of the person bonded 72
231-when such acts constitute grounds for the suspension or 73
232-revocation of the registered fleet owner license. The bond 74
233-shall be executed in the name of the state of Missouri for 75
234-the benefit of all aggrieved parties or the irrevocable 76
235-letter of credit shall name the state of Missouri as the 77
236-beneficiary; except that, the ag gregate liability of the 78
237-surety or financial institution to the aggrieved parties 79
238-shall, in no event, exceed the amount of the bond or 80
239-irrevocable letter of credit. The proceeds of the bond or 81
240-irrevocable letter of credit shall be paid upon receipt by 82
241-the department of a final judgment from a Missouri court of 83
242-competent jurisdiction against the principal and in favor of 84
243-an aggrieved party. 85
244- 7. Any corporation may have one or more of its 86
245-divisions separately apply to the director of revenue for 87
246-authorization to operate as a leasing company, provided that 88
247-the corporation: 89
248- (1) Has filed a written consent with the director 90
249-authorizing any of its divisions to apply for such authority; 91
250- (2) Is authorized to do business in Missouri; 92
251- (3) Has agreed to treat any sale of a motor vehicle, 93
252-trailer, boat, or outboard motor from one of its divisions 94
253-to another of its divisions as a sale at retail; 95
254- (4) Has registered under the fictitious name 96
255-provisions of sections 417.200 to 417.2 30 each of its 97
256-divisions doing business in Missouri as a leasing company; 98
257-and 99 HCS SS SCS SB 398 9
258- (5) Operates each of its divisions on a basis separate 100
259-from each of its other divisions. However, when the 101
260-transfer of a motor vehicle, trailer, boat or outboard motor 102
261-occurs within a corporation which holds a license to operate 103
262-as a motor vehicle or boat dealer pursuant to sections 104
263-301.550 to 301.573 the provisions in subdivision (3) of this 105
264-subsection shall not apply. 106
265- 8. If the owner of any motor vehicle, tr ailer, boat, 107
266-or outboard motor desires to charge and collect sales tax as 108
267-provided in this section, the owner shall make application 109
268-to the director of revenue for a permit to operate as a 110
269-motor vehicle, trailer, boat, or outboard motor leasing 111
270-company. The director of revenue shall promulgate rules and 112
271-regulations determining the qualifications of such a 113
272-company, and the method of collection and reporting of sales 114
273-tax charged and collected. Such regulations shall apply 115
274-only to owners of motor ve hicles, trailers, boats, or 116
275-outboard motors, electing to qualify as motor vehicle, 117
276-trailer, boat, or outboard motor leasing companies under the 118
277-provisions of subsection 5 of this section, and no motor 119
278-vehicle renting or leasing, trailer renting or leas ing, or 120
279-boat or outboard motor renting or leasing company can come 121
280-under sections 144.010, 144.020, 144.070 and 144.440 unless 122
281-all motor vehicles, trailers, boats, and outboard motors 123
282-held for renting and leasing are included. 124
283- 9. Any person, company, or corporation engaged in the 125
284-business of renting or leasing three thousand five hundred 126
285-or more motor vehicles which are to be used exclusively for 127
286-rental or leasing purposes and not for resale, and that has 128
287-applied to the director of revenue for authority to operate 129
288-as a leasing company may also operate as a registered fleet 130
289-owner as prescribed in section 301.032. 131 HCS SS SCS SB 398 10
290- 10. Beginning July 1, 2010, any motor vehicle dealer 132
291-licensed under section 301.560 engaged in the business of 133
292-selling motor vehicles or trailers [may] shall apply to the 134
293-director of revenue for authority to collect and remit the 135
294-sales tax required under this section on all motor vehicles 136
295-sold by the motor vehicle dealer. A motor vehicle dealer 137
296-receiving authority to collec t and remit the tax is subject 138
297-to all provisions under sections 144.010 to 144.525. Any 139
298-motor vehicle dealer authorized to collect and remit sales 140
299-taxes on motor vehicles under this subsection shall be 141
300-entitled to deduct and retain an amount equal to two percent 142
301-of the motor vehicle sales tax pursuant to section 144.140. 143
302-Any amount of the tax collected under this subsection that 144
303-is retained by a motor vehicle dealer pursuant to section 145
304-144.140 shall not constitute state revenue. In no event 146
305-shall revenues from the general revenue fund or any other 147
306-state fund be utilized to compensate motor vehicle dealers 148
307-for their role in collecting and remitting sales taxes on 149
308-motor vehicles. In the event this subsection or any portion 150
309-thereof is held to v iolate Article IV, Section 30(b) of the 151
310-Missouri Constitution, no motor vehicle dealer shall be 152
311-authorized to collect and remit sales taxes on motor 153
312-vehicles under this section. No motor vehicle dealer shall 154
313-seek compensation from the state of Missour i or its agencies 155
314-if a court of competent jurisdiction declares that the 156
315-retention of two percent of the motor vehicle sales tax is 157
316-unconstitutional and orders the return of such revenues. 158
317- 11. (1) Every motor vehicle dealer licensed under 159
318-section 301.560, as soon as technologically possible 160
319-following the development and maintenance of a modernized, 161
320-integrated system for the titling of vehicles, issuance and 162
321-renewal of vehicle registrations, issuance and renewal of 163 HCS SS SCS SB 398 11
322-driver's licenses and identi fication cards, and perfection 164
323-and release of liens and encumbrances on vehicles, to be 165
324-funded by the motor vehicle administration technology fund 166
325-as created in section 301.558, shall collect and remit the 167
326-sales tax required under this section on all m otor vehicles 168
327-that such dealer sells. In collecting and remitting this 169
328-sales tax, motor vehicle dealers shall be subject to all 170
329-applicable provisions under sections 144.010 to 144.527. 171
330- (2) The director of revenue may promulgate all 172
331-necessary rules and regulations for the administration of 173
332-this subsection. Any rule or portion of a rule, as that 174
333-term is defined in section 536.010, that is created under 175
334-the authority delegated in this subsection shall become 176
335-effective only if it complies with a nd is subject to all of 177
336-the provisions of chapter 536 and, if applicable, section 178
337-536.028. This subsection and chapter 536 are nonseverable 179
338-and if any of the powers vested with the general assembly 180
339-pursuant to chapter 536 to review, to delay the effec tive 181
340-date, or to disapprove and annul a rule are subsequently 182
341-held unconstitutional, then the grant of rulemaking 183
342-authority and any rule proposed or adopted after August 28, 184
343-2023, shall be invalid and void. 185
344- 303.420. As used in sections 303.420 to 303.440, 1
345-unless the context requires otherwise, the following terms 2
346-shall mean: 3
347- (1) "Program", the motor vehicle financial 4
348-responsibility enforcement and compliance incentive program 5
349-established under section 303.425; 6
350- (2) "Qualified agency", the department of revenue, the 7
351-Missouri state highway patrol, the prosecuting attorney or 8
352-sheriff's office of any county or city not within a county, 9
353-the chiefs of police of any city or municipality, or any 10 HCS SS SCS SB 398 12
354-other authorized law enforce ment agency recognized by the 11
355-state; 12
356- (3) "System" or "verification system", the web -based 13
357-resource established under section 303.430 for online 14
358-verification of motor vehicle financial responsibility. 15
359- 303.422. 1. There is hereby created in the state 1
360-treasury the "Motor Vehicle Financial Responsibility 2
361-Verification and Enforcement Fund", which shall consist of 3
362-money received by the department of revenue under sections 4
363-303.420 to 303.440. The state treasurer shall be custodia n 5
364-of the fund. In accordance with sections 30.170 and 30.180, 6
365-the state treasurer may approve disbursements. The fund 7
366-shall be a dedicated fund and money in the fund shall be 8
367-used solely by the department of revenue for the 9
368-administration of section s 303.420 to 303.440. 10
369- 2. Notwithstanding the provisions of section 33.080 to 11
370-the contrary, any moneys remaining in the fund at the end of 12
371-the biennium shall not revert to the credit of the general 13
372-revenue fund. 14
373- 3. The state treasurer shall i nvest moneys in the fund 15
374-in the same manner as other funds are invested. Any 16
375-interest and moneys earned on such investments shall be 17
376-credited to the fund. 18
377- 303.425. 1. (1) There is hereby created within the 1
378-department of revenue t he motor vehicle financial 2
379-responsibility enforcement and compliance incentive 3
380-program. The department of revenue may enter into 4
381-contractual agreements with third -party vendors to 5
382-facilitate the necessary technology and equipment, 6
383-maintenance thereof, and associated program management 7
384-services. 8 HCS SS SCS SB 398 13
385- (2) The department of revenue or a third -party vendor 9
386-shall utilize technology to compare vehicle registration 10
387-information with the financial responsibility information 11
388-accessible through the system. The department of revenue 12
389-shall utilize this information to identify motorists who are 13
390-in violation of the motor vehicle financial responsibility 14
391-law. The department of revenue may offer offenders under 15
392-this program the option of pretrial diversion a s an 16
393-alternative to statutory fines or reinstatement fees 17
394-prescribed under the motor vehicle financial responsibility 18
395-law as a method of encouraging compliance and discouraging 19
396-recidivism. 20
397- (3) The department of revenue or third -party vendors 21
398-shall not use any data collected from or technology 22
399-associated with any automated motor vehicle financial 23
400-responsibility enforcement system. For purposes of this 24
401-subdivision, "motor vehicle financial responsibility 25
402-enforcement system" means a device cons isting of a camera or 26
403-cameras and vehicle sensor or sensors installed to record 27
404-motor vehicle financial responsibility violations. 28
405- (4) All fees paid to or collected by third -party 29
406-vendors under sections 303.420 to 303.440 may come from 30
407-violator diversion fees generated by the pretrial diversion 31
408-option established under this section. 32
409- 2. The department of revenue may authorize law 33
410-enforcement agencies or third -party vendors to use 34
411-technology to collect data for the investigation, detection, 35
412-analysis, and enforcement of the motor vehicle financial 36
413-responsibility law. 37
414- 3. The department of revenue may authorize traffic 38
415-enforcement officers, or third -party vendors to administer 39
416-the processing and issuance of notices of violation, the 40 HCS SS SCS SB 398 14
417-collection of fees for a violation of the motor vehicle 41
418-financial responsibility law, or the referral of cases for 42
419-prosecution, under the program. 43
420- 4. Access to the system shall be restricted to 44
421-qualified agencies and the third -party vendors with w hich 45
422-the department of revenue contracts for purposes of the 46
423-program, provided that any third -party vendor with which a 47
424-contract is executed to provide necessary technology, 48
425-equipment, or maintenance for the program shall be 49
426-authorized as necessary to collaborate for required updates 50
427-and maintenance of system software. 51
428- 5. For purposes of the program, any data collected and 52
429-matched to a corresponding vehicle insurance record as 53
430-verified through the system, and any Missouri vehicle 54
431-registration database, may be used to identify violations of 55
432-the motor vehicle financial responsibility law. Such 56
433-corresponding data shall constitute evidence of the 57
434-violations. 58
435- 6. Except as otherwise provided in this section, the 59
436-department of revenue shal l suspend, in accordance with 60
437-section 303.041, the registration of any motor vehicle that 61
438-is determined under the program to be in violation of the 62
439-motor vehicle financial responsibility law. 63
440- 7. The department of revenue shall send to an owner 64
441-whose vehicle is identified under the program as being in 65
442-violation of the motor vehicle financial responsibility law 66
443-a notice that the vehicle's registration may be suspended 67
444-unless the owner, within thirty days, provides proof of 68
445-financial responsibili ty for the vehicle or proof, in a form 69
446-specified by the department of revenue, that the owner has a 70
447-pending criminal charge for a violation of the motor vehicle 71
448-financial responsibility law. The notice shall include 72 HCS SS SCS SB 398 15
449-information on steps an individual may take to obtain proof 73
450-of financial responsibility and a web address to a page on 74
451-the department of revenue's website where information on 75
452-obtaining proof of financial responsibility shall be 76
453-provided. If proof of financial responsibility or a pendi ng 77
454-criminal charge is not provided within the time allotted, 78
455-the department of revenue shall provide a notice of 79
456-suspension and suspend the vehicle's registration in 80
457-accordance with section 303.041, or shall send a notice of 81
458-vehicle registration suspe nsion, clearly specifying the 82
459-reason and statutory grounds for the suspension and the 83
460-effective date of the suspension, the right of the vehicle 84
461-owner to request a hearing, the procedure for requesting a 85
462-hearing, and the date by which that request for a hearing 86
463-must be made, as well as informing the owner that the matter 87
464-will be referred for prosecution if a satisfactory response 88
465-is not received in the time allotted, informing the owner 89
466-that the minimum penalty for the violation is three hundred 90
467-dollars and four license points, and offering the owner 91
468-participation in a pretrial diversion option to preclude 92
469-referral for prosecution and registration suspension under 93
470-sections 303.420 to 303.440. The notice of vehicle 94
471-registration suspension shall give a period of thirty -three 95
472-days from mailing for the vehicle owner to respond, and 96
473-shall be deemed received three days after mailing. If no 97
474-request for a hearing or agreement to participate in the 98
475-diversion option is received by the department of r evenue 99
476-prior to the date provided on the notice of vehicle 100
477-registration suspension, the director shall suspend the 101
478-vehicle's registration, effective immediately, and refer the 102
479-case to the appropriate prosecuting attorney. If an 103
480-agreement by the vehic le owner to participate in the 104 HCS SS SCS SB 398 16
481-diversion option is received by the department of revenue 105
482-prior to the effective date provided on the notice of 106
483-vehicle registration suspension, then upon payment of a 107
484-diversion participation fee not to exceed two hundred 108
485-dollars, agreement to secure proof of financial 109
486-responsibility within the time provided on the notice of 110
487-suspension, and agreement that such financial responsibility 111
488-shall be maintained for a minimum of two years, no points 112
489-shall be assessed to the v ehicle owner's driver's license 113
490-under section 302.302 and the department of revenue shall 114
491-not take further action against the vehicle owner under 115
492-sections 303.420 to 303.440, subject to compliance with the 116
493-terms of the pretrial diversion option. The department of 117
494-revenue shall suspend the vehicle registration of, and shall 118
495-refer the case to the appropriate prosecuting attorney for 119
496-prosecution of, participating vehicle owners who violate the 120
497-terms of the pretrial diversion option. If a request for 121
498-hearing is received by the department of revenue prior to 122
499-the effective date provided on the notice of vehicle 123
500-registration suspension, then for all purposes other than 124
501-eligibility for participation in the diversion option, the 125
502-effective date of the s uspension shall be stayed until a 126
503-final order is issued following the hearing. The department 127
504-of revenue shall suspend the registration of vehicles 128
505-determined under the final order to have violated the motor 129
506-vehicle financial responsibility law, and s hall refer the 130
507-case to the appropriate prosecuting attorney for 131
508-prosecution. Notices under this subsection shall be mailed 132
509-to the vehicle owner at the last known address shown on the 133
510-department of revenue's records. The department of revenue 134
511-or its third-party vendor shall issue receipts for the 135
512-collection of diversion participation fees. Except as 136 HCS SS SCS SB 398 17
513-otherwise provided in subsection 1 of this section, all such 137
514-fees shall be deposited into the motor vehicle financial 138
515-responsibility verification and enforcement fund established 139
516-in section 303.422. A vehicle owner whose registration has 140
517-been suspended under sections 303.420 to 303.440 may obtain 141
518-reinstatement of the registration upon providing proof of 142
519-financial responsibility and payment to the department of 143
520-revenue of a nonrefundable reinstatement fee equal to the 144
521-fee that would be applicable under subsection 2 of section 145
522-303.042 if the registration had been suspended under section 146
523-303.041. 147
524- 8. Data collected or retained under the progr am shall 148
525-not be used by any entity for purposes other than 149
526-enforcement of the motor vehicle financial responsibility 150
527-law. Data collected and stored by law enforcement under the 151
528-program shall be considered evidence if noncompliance with 152
529-the motor vehicle financial responsibility law is 153
530-confirmed. The evidence, and an affidavit stating that the 154
531-evidence and system have identified a particular vehicle as 155
532-being in violation of the motor vehicle financial 156
533-responsibility law, shall constitute probable cause for 157
534-prosecution and shall be forwarded in accordance with 158
535-subsection 7 of this section to the appropriate prosecuting 159
536-attorney. 160
537- 9. Owners of vehicles identified under the program as 161
538-being in violation of the motor vehicle financial 162
539-responsibility law shall be provided with options for 163
540-disputing such claims which do not require appearance at any 164
541-state or local court of law, or administrative facility. 165
542-Any person who presents timely proof that he or she was in 166
543-compliance with the motor v ehicle financial responsibility 167
544-law at the time of the alleged violation shall be entitled 168 HCS SS SCS SB 398 18
545-to dismissal of the charge with no assessment of fees or 169
546-fines. Proof provided by a vehicle owner to the department 170
547-of revenue that the vehicle was in complianc e at the time of 171
548-the suspected violation of the motor vehicle financial 172
549-responsibility law shall be recorded in the system 173
550-established by the department of revenue under section 174
551-303.430. 175
552- 10. The collection of data pursuant to this section 176
553-shall be done in a manner that prohibits any bias towards a 177
554-specific community, race, gender, or socioeconomic status of 178
555-vehicle owner. 179
556- 11. Law enforcement agencies, third -party vendors, or 180
557-other entities authorized to operate under the program shall 181
558-not sell data collected or retained under the program for 182
559-any purpose or share it for any purpose not expressly 183
560-authorized in this section. All data shall be secured and 184
561-any third-party vendor or other entity authorized to operate 185
562-under the program may be liable for any data security breach. 186
563- 12. The department of revenue shall not take action 187
564-under sections 303.420 to 303.440 against vehicles 188
565-registered as fleet vehicles under section 301.032, or 189
566-against vehicles known to the department of reve nue to be 190
567-insured under a policy of commercial auto coverage, as such 191
568-term is defined in subdivision (10) of subsection 2 of 192
569-section 303.430. 193
570- 13. Following one year after the implementation of the 194
571-program, and every year thereafter, the departmen t of 195
572-revenue shall provide a report to the president pro tempore 196
573-of the senate, the speaker of the house of representatives, 197
574-the chairs of the house and senate committees with 198
575-jurisdictions over insurance or transportation matters, and 199
576-the chairs of the house budget and senate appropriations 200 HCS SS SCS SB 398 19
577-committees. The report shall include an evaluation of 201
578-program operations, information as to the costs of the 202
579-program incurred by the department of revenue, insurers, and 203
580-the public, information as to the effec tiveness of the 204
581-program in reducing the number of uninsured motor vehicles, 205
582-and anonymized demographic information including the race 206
583-and zip code of vehicle owners identified under the program 207
584-as being in violation of the motor vehicle financial 208
585-responsibility law, and may include any additional 209
586-information and recommendations for improvement of the 210
587-program deemed appropriate by the department of revenue. 211
588-The department of revenue may, by rule, require the state, 212
589-counties, and municipalities to p rovide information in order 213
590-to complete the report. 214
591- 14. The department of revenue may promulgate rules as 215
592-necessary for the implementation of this section. Any rule 216
593-or portion of a rule, as that term is defined in section 217
594-536.010, that is create d under the authority delegated in 218
595-this section shall become effective only if it complies with 219
596-and is subject to all of the provisions of chapter 536 and, 220
597-if applicable, section 536.028. This section and chapter 221
598-536 are nonseverable and if any of the powers vested with 222
599-the general assembly pursuant to chapter 536 to review, to 223
600-delay the effective date, or to disapprove and annul a rule 224
601-are subsequently held unconstitutional, then the grant of 225
602-rulemaking authority and any rule proposed or adopted a fter 226
603-August 28, 2023, shall be invalid and void. 227
604- 303.430. 1. The department of revenue shall establish 1
605-and maintain a web-based system for the verification of 2
606-motor vehicle financial responsibility, shall provide access 3
607-to insurance reporting data and vehicle registration and 4
608-financial responsibility data, and shall require motor 5 HCS SS SCS SB 398 20
609-vehicle insurers to establish functionality for the 6
610-verification system, as provided in sections 303.420 to 7
611-303.440. The verification system, includin g any exceptions 8
612-as provided for in sections 303.420 to 303.440 or in the 9
613-implementation guide developed to support the program, shall 10
614-supersede any existing verification system, and shall be the 11
615-sole system used for the purpose of verifying financial 12
616-responsibility required under this chapter. 13
617- 2. The system established pursuant to subsection 1 of 14
618-this section shall be subject to the following: 15
619- (1) The verification system shall transmit requests to 16
620-insurers for verification of motor vehic le insurance 17
621-coverage via web services established by the insurers 18
622-through the internet in compliance with the specifications 19
623-and standards of the Insurance Industry Committee on Motor 20
624-Vehicle Administration, or "IICMVA". Insurance company 21
625-systems shall respond to each request with a prescribed 22
626-response upon evaluation of the data provided in the 23
627-request. The system shall include appropriate protections 24
628-to secure its data against unauthorized access, and the 25
629-department of revenue shall maintain a historical record of 26
630-the system data for a period of no more than twelve months 27
631-from the date of all requests and responses. The system 28
632-shall be used for verification of the financial 29
633-responsibility required under this chapter. The system 30
634-shall be accessible to authorized personnel of the 31
635-department of revenue, the courts, law enforcement 32
636-personnel, and other entities authorized by the state as 33
637-permitted by state or federal privacy laws, and it shall be 34
638-interfaced, wherever appropriate, with exi sting state 35
639-systems. The system shall include information enabling the 36
640-department of revenue to submit inquiries to insurers 37 HCS SS SCS SB 398 21
641-regarding motor vehicle insurance which are consistent with 38
642-insurance industry and IICMVA recommendations, 39
643-specifications, and standards by using the following data 40
644-elements for greater matching accuracy: insurer National 41
645-Association of Insurance Commissioners, or "NAIC", company 42
646-code; vehicle identification number; policy number; 43
647-verification date; or as otherwise describe d in the 44
648-specifications and standards of the IICMVA. The department 45
649-of revenue shall promulgate rules to offer insurers who 46
650-insure one thousand or fewer vehicles within this state an 47
651-alternative method for verifying motor vehicle insurance 48
652-coverage in lieu of web services, and to provide for the 49
653-verification of financial responsibility when financial 50
654-responsibility is proven to the department to be maintained 51
655-by means other than a policy of motor vehicle insurance. 52
656-Insurers shall not be required to verify insurance coverage 53
657-for vehicles registered in other jurisdictions; 54
658- (2) The verification system shall respond to each 55
659-request within a time period established by the department 56
660-of revenue. An insurer's system shall respond within the 57
661-time period prescribed by the IICMVA's specifications and 58
662-standards. Insurer systems shall be permitted reasonable 59
663-system downtime for maintenance and other work with advance 60
664-notice to the department of revenue. Insurers shall not be 61
665-subject to enforcement fees or other sanctions under such 62
666-circumstances, or when systems are not available because of 63
667-emergency, outside attack, or other unexpected outages not 64
668-planned by the insurer and reasonably outside its control; 65
669- (3) The system shall assist i n identifying violations 66
670-of the motor vehicle financial responsibility law in the 67
671-most effective way possible. Responses to individual 68
672-insurance verification requests shall have no bearing on 69 HCS SS SCS SB 398 22
673-whether insurance coverage is determined to be in force at 70
674-the time of a claim. Claims shall be individually 71
675-investigated to determine the existence of coverage. 72
676-Nothing in sections 303.420 to 303.440 shall prohibit the 73
677-department of revenue from contracting with a third -party 74
678-vendor or vendors who have suc cessfully implemented similar 75
679-systems in other states to assist in establishing and 76
680-maintaining this verification system; 77
681- (4) The department of revenue shall consult with 78
682-representatives of the insurance industry and may consult 79
683-with third-party vendors to determine the objectives, 80
684-details, and deadlines related to the system by 81
685-establishment of an advisory council. The advisory council 82
686-shall consist of voting members comprised of: 83
687- (a) The director of the department of commerce and 84
688-insurance, or his or her designee, who shall serve as chair; 85
689- (b) Two representatives of the department of revenue, 86
690-to be appointed by the director of the department of revenue; 87
691- (c) One representative of the department of commerce 88
692-and insurance, to be appointed by the director of the 89
693-department of commerce and insurance; 90
694- (d) Three representatives of insurance companies, to 91
695-be appointed by the director of the department of commerce 92
696-and insurance; 93
697- (e) One representative from the Missou ri Insurance 94
698-Coalition; 95
699- (f) One representative chosen by the National 96
700-Association of Mutual Insurance Companies; 97
701- (g) One representative chosen by the American Property 98
702-and Casualty Insurance Association; 99
703- (h) One representative chosen b y the Missouri 100
704-Independent Agents Association; and 101 HCS SS SCS SB 398 23
705- (i) Such other representatives as may be appointed by 102
706-the director of the department of commerce and insurance; 103
707- (5) The department of revenue shall publish for 104
708-comment, and then issue, a det ailed implementation guide for 105
709-its online verification system; 106
710- (6) The department of revenue and its third -party 107
711-vendors, if any, shall each maintain a contact person for 108
712-insurers during the establishment, implementation, and 109
713-operation of the sys tem; 110
714- (7) If the department of revenue has reason to believe 111
715-a vehicle owner does not maintain financial responsibility 112
716-as required under this chapter, it may also request an 113
717-insurer to verify the existence of such financial 114
718-responsibility in a fo rm approved by the department of 115
719-revenue. In addition, insurers shall cooperate with the 116
720-department of revenue in establishing and maintaining the 117
721-verification system established under this section, and 118
722-shall provide motor vehicle insurance policy sta tus 119
723-information as provided in the rules promulgated by the 120
724-department of revenue; 121
725- (8) Every property and casualty insurance company 122
726-licensed to issue motor vehicle insurance or authorized to 123
727-do business in this state shall comply with sections 3 03.420 124
728-to 303.440, and corresponding rules promulgated by the 125
729-department of revenue, for the verification of such 126
730-insurance for every vehicle insured by that company in this 127
731-state; 128
732- (9) Insurers shall maintain a historical record of 129
733-insurance data for a minimum period of six months from the 130
734-date of policy inception or policy change for the purpose of 131
735-historical verification inquiries; 132 HCS SS SCS SB 398 24
736- (10) For the purposes of this section, "commercial 133
737-auto coverage" shall mean any coverage provided to an 134
738-insured, regardless of number of vehicles or entities 135
739-covered, under a commercial coverage form and rated from a 136
740-commercial manual approved by the department of commerce and 137
741-insurance. Sections 303.420 to 303.440 shall not apply to 138
742-vehicles insured under commercial auto coverage; however, 139
743-insurers of such vehicles may participate on a voluntary 140
744-basis, and vehicle owners may provide proof at or subsequent 141
745-to the time of vehicle registration that a vehicle is 142
746-insured under commercial auto coverage, which the department 143
747-of revenue shall record in the system; 144
748- (11) Insurers shall provide commercial or fleet 145
749-automobile customers with evidence reflecting that the 146
750-vehicle is insured under a commercial or fleet automobile 147
751-liability policy. Sufficient evidence shall include an 148
752-insurance identification card clearly marked with a suitable 149
753-identifier such as "commercial auto insurance identification 150
754-card", "fleet auto insurance identification card", or other 151
755-clear identification that the vehicle i s insured under a 152
756-fleet or commercial policy; 153
757- (12) Notwithstanding any provision of sections 303.420 154
758-to 303.440, insurers shall be immune from civil and 155
759-administrative liability for good faith efforts to comply 156
760-with the terms of sections 303.420 to 303.440; 157
761- (13) Nothing in this section shall prohibit an insurer 158
762-from using the services of a third -party vendor for 159
763-facilitating the verification system required under sections 160
764-303.420 to 303.440. 161
765- 3. The department of revenue shall promul gate rules as 162
766-necessary for the implementation of sections 303.420 to 163
767-303.440. Any rule or portion of a rule, as that term is 164 HCS SS SCS SB 398 25
768-defined in section 536.010, that is created under the 165
769-authority delegated in this section shall become effective 166
770-only if it complies with and is subject to all of the 167
771-provisions of chapter 536 and, if applicable, section 168
772-536.028. This section and chapter 536 are nonseverable and 169
773-if any of the powers vested with the general assembly 170
774-pursuant to chapter 536 to review, to del ay the effective 171
775-date, or to disapprove and annul a rule are subsequently 172
776-held unconstitutional, then the grant of rulemaking 173
777-authority and any rule proposed or adopted after August 28, 174
778-2023, shall be invalid and void. 175
779- 303.440. The verification system established under 1
780-section 303.430 shall be installed and fully operational on 2
781-January 1, 2025, following an appropriate testing or pilot 3
782-period of not less than nine months. Until the successful 4
783-completion of the testing or pilot p eriod in the judgment of 5
784-the director of the department of revenue, no enforcement 6
785-action shall be taken based on the system, including but not 7
786-limited to action taken under the program established under 8
787-section 303.425. 9
788- 304.822. 1. This section shall be known as the 1
789-"Siddens Bening Hands Free Law". 2
790- 2. As used in this section, the following terms shall 3
791-mean: 4
792- (1) "Commercial motor vehicle", the same meaning as is 5
793-ascribed to such term in section 302.700; 6
794- (2) "Electronic communication device", a portable 7
795-device that is used to initiate, receive, store, or view 8
796-communication, information, images, or data electronically; 9
797- (a) Such term shall include but not be limited to: 10
798-cellular telephones; portable telepho nes; text-messaging 11
799-devices; personal digital assistants; pagers; broadband 12 HCS SS SCS SB 398 26
800-personal communication devices; electronic devices with 13
801-mobile data access; computers, including but not limited to 14
802-tablets, laptops, notebook computers, and electronic or 15
803-video game systems; devices capable of transmitting, 16
804-retrieving, or displaying a video, movie, broadcast 17
805-television image, or visual image; and any substantially 18
806-similar device that is used to initiate or receive 19
807-communication or store and review informat ion, videos, 20
808-images, or data; 21
809- (b) Such term shall not include: radios; citizens band 22
810-radios; commercial two -way radio communication devices or 23
811-their functional equivalent; subscription -based emergency 24
812-communication devices; prescribed medical dev ices; amateur 25
813-or ham radio devices; or global positioning system 26
814-receivers, security, navigation, communication, or remote 27
815-diagnostics systems permanently affixed to the vehicle; 28
816- (3) "Highway", the same meaning as is ascribed to such 29
817-term in section 302.010; 30
818- (4) "Noncommercial motor vehicle", the same meaning as 31
819-is ascribed to such term in section 302.700; 32
820- (5) "Operating", the actual physical control of a 33
821-vehicle; 34
822- (6) "Operator", a person who is in actual physical 35
823-control; 36
824- (7) "School bus", the same meaning as is ascribed to 37
825-such term in section 302.700; 38
826- (8) "Voice-operated or hands-free feature or 39
827-function", a feature or function, whether internally 40
828-installed or externally attached or connected to an 41
829-electronic communication device, that allows a person to use 42
830-an electronic communication device without the use of either 43 HCS SS SCS SB 398 27
831-hand, except to activate, deactivate, or initiate the 44
832-feature or function with a single touch or single swipe. 45
833- 3. Except as otherwise p rovided in this section, while 46
834-operating a noncommercial motor vehicle or commercial motor 47
835-vehicle on any highway or property open to the public for 48
836-vehicular traffic in this state, no operator shall: 49
837- (1) Physically hold or support, with any part of his 50
838-or her body, an electronic communication device; 51
839- (2) Write, send, or read any text -based communication, 52
840-including but not limited to a text message, instant 53
841-message, email, or social media interaction on an electronic 54
842-communication device. This subdivision shall not apply to 55
843-operators of a noncommercial motor vehicle using a voice - 56
844-operated or hands-free feature or function that converts the 57
845-message to be sent as a message in a written form, provided 58
846-that the operator does not divert hi s or her attention from 59
847-lawful operation of the vehicle; 60
848- (3) Make any communication on an electronic 61
849-communication device, including a phone call, voice message, 62
850-or one-way voice communication; provided however, that this 63
851-prohibition shall not ap ply to use of a voice -operated or 64
852-hands-free feature or function; 65
853- (4) Engage in any form of electronic data retrieval or 66
854-electronic data communication on an electronic communication 67
855-device; 68
856- (5) Manually enter letters, numbers, or symbols int o 69
857-any website, search engine, or application on an electronic 70
858-communication device; 71
859- (6) Watch a video or movie on an electronic 72
860-communication device, other than watching data related to 73
861-the navigation of the vehicle; or 74 HCS SS SCS SB 398 28
862- (7) Record, post, send, or broadcast video, including 75
863-a video conference, on an electronic communication device, 76
864-provided that this prohibition shall not apply to electronic 77
865-devices used for the sole purpose of continually monitoring 78
866-operator behavior by recording or broa dcasting video within 79
867-or outside the vehicle. 80
868- 4. The operator of a school bus shall not use or 81
869-operate an electronic communication device while the school 82
870-bus is in motion unless the device is being used in a 83
871-similar manner as a two -way radio to allow live 84
872-communication between the operator and school officials or 85
873-public safety officials. The operator of a school bus shall 86
874-not use or operate an electronic communication device or a 87
875-two-way radio while loading or unloading passengers. 88
876- 5. This section shall not apply to: 89
877- (1) Law enforcement officers or operators of emergency 90
878-vehicles, as such term is defined in section 304.022, who 91
879-are both using the electronic communication device and 92
880-operating the emergency vehicle in the perform ance of their 93
881-official duties; 94
882- (2) Operators using an electronic communication device 95
883-for the sole purpose of reporting an emergency situation and 96
884-continuing communication with emergency personnel during the 97
885-emergency situation; 98
886- (3) Operators of noncommercial motor vehicles using an 99
887-electronic communication device solely through a voice - 100
888-operated or hands-free feature or function; 101
889- (4) Operators of commercial motor vehicles using a 102
890-voice-operated or hands-free feature or function, as long as 103
891-the operator remains seated and is restrained by a seat belt 104
892-as required by law; 105 HCS SS SCS SB 398 29
893- (5) Operators of commercial motor vehicles reading a 106
894-message displayed on a permanently installed communication 107
895-device designed for a commercial motor vehicl e with a screen 108
896-that does not exceed ten inches tall by ten inches wide in 109
897-size; 110
898- (6) Operators using electronic communication devices 111
899-while the vehicle is lawfully stopped or parked; 112
900- (7) Commercial motor vehicles that are responding to a 113
901-request for roadside assistance, when such response is 114
902-conducted by a motor club as defined in section 385.450 or a 115
903-towing company as defined in section 304.001; 116
904- (8) The use of an electronic communication device to 117
905-relay information between a transi t or for-hire vehicle 118
906-operator and that operator's dispatcher, provided the device 119
907-is mounted or affixed to the vehicle; 120
908- (9) The use of an electronic communication device to 121
909-access or view a map for navigational purposes; 122
910- (10) The use of an electronic communication device to 123
911-access or listen to an audio broadcast or digital audio 124
912-recording; or 125
913- (11) The use of an electronic communication device to 126
914-relay information through a transportation network company's 127
915-digital network to a trans portation network company driver, 128
916-provided the device is mounted or affixed to the vehicle. 129
917- 6. Except as otherwise provided in this subsection, 130
918-violation of this section shall be an infraction. Penalties 131
919-for violations of this section shall be as provided in this 132
920-subsection. Prior convictions shall be pleaded and proven 133
921-in the same manner as required under section 558.021. 134
922- (1) For a conviction under this section where there is 135
923-no prior conviction under this section within the preceding 136 HCS SS SCS SB 398 30
924-twenty-four months, the court shall impose a fine of up to 137
925-one hundred fifty dollars. 138
926- (2) For a conviction under this section where there is 139
927-one prior conviction under this section within the preceding 140
928-twenty-four months, the court shall impose a fine of up to 141
929-two hundred fifty dollars. 142
930- (3) For a conviction under this section where there 143
931-are two or more prior convictions under this section in the 144
932-preceding twenty-four months, the court shall impose a fine 145
933-of up to five hundred dollars. 146
934- (4) For a conviction under this section where the 147
935-violation occurred in a work zone when workers are present, 148
936-as such terms are defined in section 304.580, or for a 149
937-conviction under this section where the violation occurred 150
938-in an area designated as a school zone and marked in any way 151
939-that would alert a reasonably prudent operator to the 152
940-presence of the school zone, the court shall impose a fine 153
941-of up to five hundred dollars. 154
942- (5) A violation of this section that is the proximate 155
943-cause of damage to property in excess of five thousand 156
944-dollars shall be a class D misdemeanor. 157
945- (6) A violation of this section that is the proximate 158
946-cause of serious physical injury to another person shall be 159
947-a class B misdemeanor. 160
948- (7) A violation of this section that is the proximate 161
949-cause of the death of another person shall be a class D 162
950-felony. 163
951- (8) A violation of this section while operating a 164
952-commercial motor vehicle shall be deemed a serious traffic 165
953-violation, as such term is defined in s ection 302.700, for 166
954-purposes of commercial driver's license disqualification 167
955-under section 302.755. 168 HCS SS SCS SB 398 31
956- 7. A law enforcement officer who stops a noncommercial 169
957-motor vehicle for a violation of this section shall inform 170
958-the operator of the operator's r ight to decline a search of 171
959-their electronic communication device. No warrant shall be 172
960-issued to confiscate or access an electronic communication 173
961-device based on a violation of this section unless the 174
962-violation results in serious bodily injury or deat h. 175
963- 8. A violation of this section shall not be used to 176
964-establish probable cause for any other violation. 177
965- 9. The provisions of this section shall be subject to 178
966-the reporting requirements set forth in section 590.650. 179
967- 10. The state preempts the field of regulating the use 180
968-of electronic communication devices by the operators of 181
969-commercial and noncommercial motor vehicles. The provisions 182
970-of this section shall supercede any local laws, ordinances, 183
971-orders, rules, or regulations enacted by a county, 184
972-municipality, or other political subdivision to regulate the 185
973-use of electronic communication devices by the operator of a 186
974-commercial or noncommercial motor vehicle. 187
975- 11. Prior to January 1, 2025, a law enforcement 188
976-officer who stops a no ncommercial motor vehicle for a 189
977-violation of this section shall not issue a citation for a 190
978-violation of this section and shall only issue a warning. 191
979- 12. No person shall be stopped, inspected, or detained 192
980-solely for a violation of this section. 193
981- 407.812. 1. Any franchisor obtaining or renewing its 1
982-license after August 28, 2010, shall be bound by the 2
983-provisions of the MVFP act and shall comply with it, and no 3
984-franchise agreement made, entered, modified, or renewed 4
985-after August 28, 2010, shall avoid the requirements of the 5
986-MVFP act, or violate its provisions, and no franchise 6
987-agreement shall be performed after the date the franchisor's 7 HCS SS SCS SB 398 32
988-license is issued or renewed in such a manner that the 8
989-franchisor avoids or otherwise does not conform or comply 9
990-with the requirements of the MVFP act. Notwithstanding the 10
991-effective date of any franchise agreement, all franchisor 11
992-licenses and renewals thereof are issued subject to all 12
993-provisions of the MVFP act and chapter 301 and any 13
994-regulations in effect upon the date of issuance, as well as 14
995-all future provisions of the MVFP act and chapter 301 and 15
996-any regulations which may become effective during the term 16
997-of the license. 17
998- 2. The provisions of the MVFP act shall apply to each 18
999-franchise that a franchisor, manufacturer, importer, or 19
1000-distributor has with a franchisee and all agreements between 20
1001-a franchisee and a common entity or any person that is 21
1002-controlled by a franchisor. 22
1003- 3. No dealer or manufacturer licensed in this state 23
1004-under sections 301.550 to 301.573 shall allow any subsidiary 24
1005-or related entity to engage in the business of selling motor 25
1006-vehicles, as defined in section 301.010, to retail consumers 26
1007-in this state, except as otherwise permitted by law. Any 27
1008-dealer or manufacturer licensed in this state shall have 28
1009-standing to enforce the provisions of this subsection 29
1010-provided that a franchise relationship exists between the 30
1011-parties. 31
1012- 4. No entity controlling, controlled by, or sharing a 32
1013-common parent entity or sibling entity with a licensed 33
1014-dealer or manufacturer shall engage in the business of 34
1015-selling motor vehicles to retail consumers in this state, 35
1016-except as permitted by sections 301.550 to 301.575 and the 36
1017-MVFP act. Any dealer or manufacturer lice nsed in this state 37
1018-shall have standing to enforce the provisions of this 38
1019-subsection. 39 HCS SS SCS SB 398 33
1020- 5. No dealer or manufacturer not licensed in this 40
1021-state under sections 301.550 to 301.575 shall engage in the 41
1022-business of selling motor vehicles to retail consum ers in 42
1023-this state, except as permitted by sections 301.550 to 43
1024-301.575 and the MVFP act. Any dealer or manufacturer in 44
1025-this state shall have standing to enforce the provisions of 45
1026-this subsection, provided that a franchise relationship 46
1027-exists between the parties. 47
1028- 6. Notwithstanding any provision of sections 301.550 48
1029-to 301.575 to the contrary, a manufacturer, importer, or 49
1030-distributor may engage in the business of selling motor 50
1031-vehicles to retail consumers in this state from a dealership 51
1032-if the manufacturer, importer, or distributor owned the 52
1033-dealership and initially submitted a dealer license 53
1034-application to the Missouri department of revenue on or 54
1035-before August 28, 2023, provided that the license is 55
1036-subsequently granted, and the ownership or controlling 56
1037-interest of such dealership is not transferred, sold, or 57
1038-conveyed to another person or entity required to be licensed 58
1039-under this chapter. 59
1040- 407.828. 1. Notwithstanding any provision in a 1
1041-franchise to the contrary, each f ranchisor shall specify in 2
1042-writing to each of its franchisees in this state the 3
1043-franchisee's obligations for preparation, delivery, and 4
1044-warranty service on its products. The franchisor shall 5
1045-fairly and reasonably compensate the franchisee for 6
1046-preparation, delivery, and warranty service required of the 7
1047-franchisee by the franchisor. The franchisor shall provide 8
1048-the franchisee with the schedule of compensation to be paid 9
1049-to the franchisee for parts, labor, and service, and the 10
1050-time allowance for the performance of the labor and service 11 HCS SS SCS SB 398 34
1051-for the franchisee's obligations for preparation, delivery, 12
1052-and warranty service. 13
1053- 2. The schedule of compensation shall include 14
1054-reasonable compensation for diagnostic work, as well as 15
1055-repair service and labor for the franchisee to meet its 16
1056-obligations for preparation, delivery, and warranty service. 17
1057- The schedule shall also include reasonable and adequate 18
1058-time allowances for the diagnosis and performance of 19
1059-preparation, delivery, and warranty service to be performed 20
1060-in a careful and professional manner. In the determination 21
1061-of what constitutes reasonable compensation for labor and 22
1062-service pursuant to this section, the principal factor to be 23
1063-given consideration shall be the prevailing wage rates being 24
1064-charged for similar labor and service by [franchisees in the 25
1065-market in which the franchisee is doing business, and in no 26
1066-event shall the compensation of a franchisee for labor and 27
1067-service be less than the rates charged by ] the franchisee 28
1068-for similar labor and service to retail customers for 29
1069-nonwarranty labor and service [, provided that such rates are 30
1070-reasonable]. The primary factor in determining [a fair and] 31
1071-reasonable compensation for parts under this section shall 32
1072-be the [prevailing amount charg ed for similar parts by other 33
1073-same line-make franchisees in the market in which the 34
1074-franchisee is doing business and the fair and reasonable 35
1075-compensation for parts shall not be less than the ] amount 36
1076-charged by the franchisee for similar parts to retail 37
1077-customers for nonwarranty parts [, provided that such rates 38
1078-are reasonable. If another same line -make franchisee is not 39
1079-available within the market, then the prevailing amount 40
1080-charged for similar parts by other franchisees in the market 41
1081-shall be used as the primary factor ]. 42 HCS SS SCS SB 398 35
1082- 3. A franchisor shall perform all warranty 43
1083-obligations, including recall notices; include in written 44
1084-notices of franchisor recalls to new motor vehicle owners 45
1085-and franchisees the expected date by which necessary parts 46
1086-and equipment will be available to franchisees for the 47
1087-correction of the defects; and [reasonably] compensate any 48
1088-of the franchisees in this state for repairs required by the 49
1089-recall. [Reasonable] Compensation for parts [,] and labor[, 50
1090-and service] for recall repairs shall be determined under 51
1091-subsection 2 of this section. 52
1092- 4. No franchisor shall require a franchisee to submit 53
1093-a claim authorized under this section sooner than thirty 54
1094-days after the franchisee completes the preparation, 55
1095-delivery, or warranty service authorizing the claim for 56
1096-preparation, delivery, or warranty service. All claims made 57
1097-by a franchisee under this section shall be paid within 58
1098-thirty days after their approval. All claims shall be 59
1099-either approved or disapproved by the franchisor within 60
1100-thirty days after their receipt on a proper form generally 61
1101-used by the franchisor and containing the usually required 62
1102-information therein. Any claims not specifically 63
1103-disapproved in writing within thirty days after the receipt 64
1104-of the form shall be considered to be approved and payment 65
1105-shall be made within fifteen days thereafter. A franchisee 66
1106-shall not be required to maintain defective parts for more 67
1107-than thirty days after submission of a claim. 68
1108- 5. A franchisor shall compen sate the franchisee for 69
1109-franchisor-sponsored sales or service promotion events, 70
1110-including but not limited to, rebates, programs, or 71
1111-activities in accordance with established written guidelines 72
1112-for such events, programs, or activities, which guidelines 73
1113-shall be provided to each franchisee. 74 HCS SS SCS SB 398 36
1114- 6. No franchisor shall require a franchisee to submit 75
1115-a claim authorized under subsection 5 of this section sooner 76
1116-than thirty days after the franchisee becomes eligible to 77
1117-submit the claim. All claims made by a franchisee pursuant 78
1118-to subsection 5 of this section for promotion events, 79
1119-including but not limited to rebates, programs, or 80
1120-activities shall be paid within ten days after their 81
1121-approval. All claims shall be either approved or 82
1122-disapproved by the franchisor within thirty days after their 83
1123-receipt on a proper form generally used by the franchisor 84
1124-and containing the usually required information therein. 85
1125-Any claim not specifically disapproved in writing within 86
1126-thirty days after the receipt of thi s form shall be 87
1127-considered to be approved and payment shall be made within 88
1128-[ten] fifteen days. 89
1129- 7. In calculating the retail rate customarily charged 90
1130-by the franchisee for parts, service, and labor, the 91
1131-following work shall not be included in the calculation: 92
1132- (1) Repairs for franchisor, manufacturer, or 93
1133-distributor special events, specials, or promotional 94
1134-discounts for retail customer repairs; 95
1135- (2) Parts sold at wholesale; 96
1136- (3) Engine assemblies and transmission assemblies; 97
1137- (4) Routine maintenance not covered under any retail 98
1138-customer warranty, such as fluids, filters, and belts not 99
1139-provided in the course of repairs; 100
1140- (5) Nuts, bolts, fasteners, and similar items that do 101
1141-not have an individual part number; 102
1142- (6) Tires; and 103
1143- (7) Vehicle reconditioning. 104
1144- 8. If a franchisor, manufacturer, importer, or 105
1145-distributor furnishes a part or component to a franchisee, 106 HCS SS SCS SB 398 37
1146-at no cost, to use in performing repairs under a recall, 107
1147-campaign service action, or warranty rep air, the franchisor 108
1148-shall compensate the franchisee for the part or component in 109
1149-the same manner as warranty parts compensation under this 110
1150-section by compensating the franchisee at the average markup 111
1151-on the cost for the part or component as listed in t he price 112
1152-schedule of the franchisor, manufacturer, importer, or 113
1153-distributor, less the cost for the part or component. This 114
1154-subsection shall not apply to entire engine assemblies, 115
1155-propulsion engine assemblies, including electric vehicle 116
1156-batteries, or entire transmission assemblies. 117
1157- 9. A franchisor shall not require a franchisee to 118
1158-establish the retail rate customarily charged by the 119
1159-franchisee for parts, service, or labor by an unduly 120
1160-burdensome or time-consuming method or by requiring 121
1161-information that is unduly burdensome or time consuming to 122
1162-provide, including, but not limited to, part -by-part or 123
1163-transaction-by-transaction calculations. A franchisee shall 124
1164-not request a franchisor to approve a different labor rate 125
1165-or parts rate more than twice in one calendar year. 126
1166- 10. If a franchisee submits any claim under this 127
1167-section to a franchisor that is incomplete, inaccurate, or 128
1168-lacking any information usually required by the franchisor, 129
1169-then the franchisor shall promptly notify the fran chisee, 130
1170-and the time limit to submit the claim shall be extended for 131
1171-a reasonable length of time, not less than five business 132
1172-days following notice by the franchisor to the franchisee, 133
1173-for the franchisee to provide the complete, accurate, or 134
1174-lacking information to the franchisor. 135
1175- 11. (1) A franchisor may only audit warranty, sales, 136
1176-or incentive claims and charge -back to the franchisee 137
1177-unsubstantiated claims for a period of twelve months 138 HCS SS SCS SB 398 38
1178-following payment, subject to all of the provisions of t his 139
1179-section. Furthermore, if the franchisor has good cause to 140
1180-believe that a franchisee has submitted fraudulent claims, 141
1181-then the franchisor may only audit suspected fraudulent 142
1182-warranty, sales, or incentive claims and charge -back to the 143
1183-franchisee fraudulent claims for a period of two years 144
1184-following payment, subject to all provisions of this section. 145
1185- (2) A franchisor shall not require documentation for 146
1186-warranty, sales, or incentive claims more than twelve months 147
1187-after the claim was paid. 148
1188- (3) Prior to requiring any charge -back, reimbursement, 149
1189-or credit against a future transaction arising out of an 150
1190-audit, the franchisor shall submit written notice to the 151
1191-franchisee along with a copy of its audit and the detailed 152
1192-reason for each inten ded charge-back, reimbursement, or 153
1193-credit. 154
1194- 12. A franchisee may file a complaint with the 155
1195-administrative hearing commission pursuant to section 156
1196-407.822 within [thirty] sixty days after receipt of any 157
1197-[such] written notice [challenging such acti on] by a 158
1198-franchisor of any adverse decision on any claim for 159
1199-reimbursement submitted pursuant to this section, including, 160
1200-but not limited to, specific claims for reimbursement in 161
1201-individual warranty repair transactions, and requests for an 162
1202-increase in labor or parts rate. If a complaint is filed 163
1203-within the [thirty] sixty days, then the [charge-back, 164
1204-reimbursement, or credit ] denial or reduction of 165
1205-reimbursement, denial of a request for an increase in labor 166
1206-or parts rate, charge -back, or other determination by a 167
1207-franchisor which is adverse to a franchisee shall be stayed 168
1208-pending a hearing and determination of the matter under 169
1209-section 407.822. The franchisor shall file an answer to the 170 HCS SS SCS SB 398 39
1210-complaint within thirty days after service of the 171
1211-complaint. If, following a hearing which shall be held 172
1212-within sixty days following service of the franchisor's 173
1213-answer, the administrative hearing commission determines 174
1214-that [any portion of the charge -back, reimbursement, or 175
1215-credit is improper, then that portio n of the charge-back, 176
1216-reimbursement, or credit shall be void and not allowed ] a 177
1217-franchisor has violated any requirements of this section, 178
1218-then the denial or reduction of reimbursement, denial of a 179
1219-request for an increase in labor or parts rate, or char ge- 180
1220-back shall be void and the franchisor shall, within fifteen 181
1221-days of the commission's order, fairly compensate the 182
1222-franchisee as required by the provisions of this section. 183
1223-Section 407.835 shall apply to proceedings pursuant to this 184
1224-section. 185
1225- 407.2020. For purposes of sections 407.2020 to 1
1226-407.2090, the following terms mean: 2
1227- (1) "Commercial transaction", a transaction involving 3
1228-a motor vehicle in which the motor vehicle will primarily be 4
1229-used for business purposes r ather than personal purposes; 5
1230- (2) "Consumer", an individual purchaser of a motor 6
1231-vehicle or a borrower under a finance agreement. The term 7
1232-"consumer" includes any borrower, as defined in section 8
1233-407.2030, or contract holder, as defined in section 9
1234-407.2060, as applicable; 10
1235- (3) "Finance agreement", a loan, retail installment 11
1236-sales contract, or lease for the purchase, refinancing, or 12
1237-lease of a motor vehicle; 13
1238- (4) "Free-look period", a period of time from the 14
1239-effective date of the motor vehicle financial protection 15
1240-product until the date the motor vehicle financial 16
1241-protection product may be cancelled without penalty, fees, 17 HCS SS SCS SB 398 40
1242-or costs. This period of time shall not be shorter than 18
1243-thirty days; 19
1244- (5) "Insurer", an insurance company licensed, 20
1245-registered, or otherwise authorized to issue contractual 21
1246-liability insurance under the insurance laws of this state; 22
1247- (6) "Motor vehicle", any self -propelled or towed 23
1248-vehicle designed for personal or commercial use including, 24
1249-but not limited to, automobiles, trucks, motorcycles, 25
1250-recreational vehicles, all -terrain vehicles, snowmobiles, 26
1251-campers, boats, personal watercraft, and related trailers; 27
1252- (7) "Motor vehicle financial protection product", an 28
1253-agreement that protects a consumer 's financial interest in 29
1254-his or her current or future motor vehicle. The term "motor 30
1255-vehicle financial protection product" includes any debt 31
1256-waiver, as defined in section 407.2030, and any vehicle 32
1257-value protection agreement, as defined in section 407. 2060; 33
1258- (8) "Person", an individual, company, association, 34
1259-organization, partnership, business trust, or corporation, 35
1260-and every form of legal entity. 36
1261- 407.2025. 1. Motor vehicle financial protection 1
1262-products may be offered, sold, or given to consumers in this 2
1263-state in compliance with sections 407.2020 to 407.2090. 3
1264- 2. Any amount charged or financed for a motor vehicle 4
1265-financial protection product shall be separately stated and 5
1266-shall not be considered a finance charge or in terest. 6
1267- 3. Any extension of credit, terms of credit, or terms 7
1268-of the related motor vehicle sale or lease shall not be 8
1269-conditioned upon the consumer's payment for or financing of 9
1270-any charge for a motor vehicle financial protection product, 10
1271-except that motor vehicle financial protection products may 11
1272-be discounted or given at no charge in connection with the 12
1273-purchase of other non -credit-related goods or services. 13 HCS SS SCS SB 398 41
1274- 407.2030. For purposes of sections 407.2030 to 1
1275-407.2055, the following terms mean: 2
1276- (1) "Administrator", any person, other than an insurer 3
1277-or creditor, who performs administrative or operational 4
1278-functions for debt waiver programs; 5
1279- (2) "Borrower", a debtor or retail buyer or lessee 6
1280-under a finance agreement ; 7
1281- (3) "Creditor": 8
1282- (a) The lender in a loan or credit transaction; 9
1283- (b) The lessor in a lease transaction; 10
1284- (c) Any retail seller of motor vehicles; 11
1285- (d) The seller in commercial retail installment 12
1286-transactions; or 13
1287- (e) The assignee of any person described in paragraphs 14
1288-(a) to (d) of this subdivision to whom the credit obligation 15
1289-is payable; 16
1290- (4) "Debt waiver", any guaranteed asset protection 17
1291-waiver or excess wear and use waiver; 18
1292- (5) "Excess wear and use waiver" , a contractual 19
1293-agreement in which a creditor agrees, with or without a 20
1294-separate charge, to cancel or waive all or part of amounts 21
1295-that may become due under a borrower's lease agreement as a 22
1296-result of excessive wear and use of a motor vehicle, which 23
1297-agreement shall be part of, or a separate addendum to, the 24
1298-lease agreement. Excess wear and use waivers may also 25
1299-cancel or waive amounts due for excess mileage; 26
1300- (6) "Guaranteed asset protection waiver", a 27
1301-contractual agreement in which a creditor agrees, with or 28
1302-without a separate charge, to cancel or waive all or part of 29
1303-amounts due on a borrower's finance agreement in the event 30
1304-of a total physical damage loss or unrecovered theft of the 31
1305-motor vehicle, which agreement shall be part of, or a 32 HCS SS SCS SB 398 42
1306-separate addendum to, the finance agreement. A guaranteed 33
1307-asset protection waiver may also provide, with or without a 34
1308-separate charge, a benefit that waives an amount, or 35
1309-provides a borrower with a credit, toward the purchase of a 36
1310-replacement motor veh icle. 37
1311- 407.2035. 1. (1) A retail seller shall insure its 1
1312-debt waiver obligations under a contractual liability or 2
1313-other insurance policy issued by an insurer. A creditor, 3
1314-other than a retail seller, may insure its debt waiver 4
1315-obligations under a contractual liability policy or other 5
1316-such policy issued by an insurer. Any such insurance policy 6
1317-may be directly obtained by a creditor or retail seller or 7
1318-may be procured by an administrator to cover a creditor's or 8
1319-retail seller's obligations. 9
1320- (2) Notwithstanding the provisions of subdivision (1) 10
1321-of this subsection, retail sellers who are lessors on motor 11
1322-vehicles shall not be required to insure obligations related 12
1323-to debt waivers on such leased motor vehicles. 13
1324- 2. The debt waiver remains a part of the finance 14
1325-agreement upon the assignment, sale, or transfer of such 15
1326-finance agreement by the creditor. 16
1327- 3. Any creditor who offers a debt waiver shall report 17
1328-the sale of, and forward funds due to, the designated party 18
1329-or parties. 19
1330- 4. Funds received or held by a creditor or 20
1331-administrator and belonging to an insurer, creditor, or 21
1332-administrator shall be held by such creditor or 22
1333-administrator in a fiduciary capacity. 23
1334- 407.2040. 1. Contractual liability or other insurance 1
1335-policies insuring debt waivers shall state the obligation of 2
1336-the insurer to reimburse or pay to the creditor any sums the 3
1337-creditor is legally obligated to waive under a debt waiver. 4 HCS SS SCS SB 398 43
1338- 2. Coverage under a contractual liabi lity or other 5
1339-insurance policy insuring a debt waiver shall also cover any 6
1340-subsequent assignee upon the assignment, sale, or transfer 7
1341-of the finance agreement. 8
1342- 3. Coverage under a contractual liability or other 9
1343-insurance policy insuring a debt wa iver shall remain in 10
1344-effect unless cancelled or terminated in compliance with 11
1345-applicable insurance laws of this state. 12
1346- 4. The cancellation or termination of a contractual 13
1347-liability or other insurance policy shall not reduce the 14
1348-insurer's responsibility for debt waivers issued by the 15
1349-creditor before the date of cancellation or termination and 16
1350-for which premium has been received by the insurer. 17
1351- 407.2045. Debt waivers shall disclose in writing and 1
1352-in clear, understandable langu age that is easy to read the 2
1353-following: 3
1354- (1) The name and address of the initial creditor and 4
1355-the borrower at the time of sale, and the identity of any 5
1356-administrator if different from the creditor; 6
1357- (2) The purchase price, if any, and the term s of the 7
1358-debt waiver including, but not limited to, the requirements 8
1359-for protection, conditions, or exclusions associated with 9
1360-the debt waiver; 10
1361- (3) A statement that the borrower may cancel the debt 11
1362-waiver within a free -look period as specified in the debt 12
1363-waiver and, if so cancelled, shall be entitled to a full 13
1364-refund of the purchase price paid by the borrower, if any, 14
1365-so long as no benefits have been provided; 15
1366- (4) The procedure the borrower is required to follow, 16
1367-if any, to obtain debt waiver benefits under the terms and 17
1368-conditions of the debt waiver, including, if applicable, a 18 HCS SS SCS SB 398 44
1369-telephone number or website and address where the borrower 19
1370-may apply for debt waiver benefits; 20
1371- (5) The terms and conditions governing cancellation 21
1372-consistent with all applicable Missouri laws; and 22
1373- (6) A statement that any extension of credit, terms of 23
1374-the credit, or terms of the related motor vehicle sale or 24
1375-lease shall not be conditioned upon the borrower's purchase 25
1376-of a debt waiver. 26
1377- 407.2050. 1. Debt waivers shall provide that if a 1
1378-borrower cancels a debt waiver within the free -look period, 2
1379-the borrower shall be entitled to a full refund of the 3
1380-amount the borrower paid, if any, so long as no benefits 4
1381-have been provided. 5
1382- 2. If, after the debt waiver has been in effect beyond 6
1383-the free-look period, the borrower cancels the debt waiver 7
1384-or there is an early termination of the finance agreement, 8
1385-the borrower may be entitled to a refund of the amount the 9
1386-borrower paid of the unearned portion of the purchase price, 10
1387-if any, less a cancellation fee up to seventy -five dollars, 11
1388-if no benefit has been or will be provided. 12
1389- 3. If the cancellation of a debt waiver occurs as a 13
1390-result of a default under the fi nance agreement, the 14
1391-repossession of the motor vehicle associated with the 15
1392-finance agreement, or any other termination of the finance 16
1393-agreement, any refund due may be paid directly to the 17
1394-creditor or administrator and applied as a reduction of the 18
1395-amount owed under the finance agreement unless the borrower 19
1396-can show that the finance agreement has been paid in full. 20
1397- 407.2055. 1. Debt waivers offered by state or federal 1
1398-banks or credit unions in compliance with applicable state 2
1399-or federal law shall be exempt from the provisions of 3
1400-sections 407.2020 to 407.2090. 4 HCS SS SCS SB 398 45
1401- 2. The provisions of sections 407.2045 and 407.2080 5
1402-shall not apply to debt waivers offered in connection with 6
1403-commercial transactions. 7
1404- 407.2060. For purposes of sections 407.2060 to 1
1405-407.2075, the following terms mean: 2
1406- (1) "Administrator", any person who is responsible for 3
1407-the administrative or operational functions of vehicle value 4
1408-protection agreements including, but not limited to, the 5
1409-adjudication of claims or benefit requests by contract 6
1410-holders; 7
1411- (2) "Contract holder", a person who is the purchaser 8
1412-or holder of a vehicle value protection agreement; 9
1413- (3) "Provider", a person who is obligated to provide a 10
1414-benefit under a vehicle value protection agreement. A 11
1415-provider may perform as an administrator or retain the 12
1416-services of a third-party administrator; 13
1417- (4) "Vehicle value protection agreement", a 14
1418-contractual agreement that: 15
1419- (a) Provides a benefit toward the r eduction of some or 16
1420-all of the contract holder's current finance agreement 17
1421-deficiency balance or toward the purchase or lease of a 18
1422-replacement motor vehicle or motor vehicle services upon the 19
1423-occurrence of an adverse event to the motor vehicle 20
1424-including, but not limited to, loss, theft, damage, 21
1425-obsolescence, diminished value, or depreciation; 22
1426- (b) Does not include debt waivers; and 23
1427- (c) May include agreements such as, but not limited 24
1428-to, trade-in-credit agreements, diminished value agreemen ts, 25
1429-depreciation benefit agreements, or other similarly named 26
1430-agreements. 27
1431- 407.2065. 1. A provider may, but is not required to, 1
1432-use an administrator or other designee to be responsible for 2 HCS SS SCS SB 398 46
1433-any and all of the administration of vehicl e value 3
1434-protection agreements in compliance with the provisions of 4
1435-sections 407.2020 to 407.2090. 5
1436- 2. Vehicle value protection agreements shall not be 6
1437-sold unless the contract holder has been or will be provided 7
1438-access to a copy of the vehicle val ue protection agreement 8
1439-within a reasonable time. 9
1440- 3. In order to assure the faithful performance of the 10
1441-provider's obligations to its contract holders, each 11
1442-provider shall comply with subdivision (1) or (2) of this 12
1443-subsection, as follows: 13
1444- (1) In order to satisfy the requirements of this 14
1445-subsection under this subdivision, the provider shall insure 15
1446-all its vehicle value protection agreements under an 16
1447-insurance policy that pays or reimburses in the event the 17
1448-provider fails to perform its ob ligations under the vehicle 18
1449-value protection agreement and that is issued by an insurer 19
1450-who is licensed, registered, or otherwise authorized to do 20
1451-business in this state and who: 21
1452- (a) Maintains surplus as to policyholders and paid -in 22
1453-capital of at least fifteen million dollars; or 23
1454- (b) Maintains: 24
1455- a. Surplus as to policyholders and paid -in capital of 25
1456-less than fifteen million dollars but at least equal to ten 26
1457-million dollars; and 27
1458- b. A ratio of net written premiums, wherever writte n, 28
1459-to surplus as to policyholders and paid -in capital of not 29
1460-greater than three to one; or 30
1461- (2) In order to satisfy the requirements of this 31
1462-subsection under this subdivision, the provider shall: 32 HCS SS SCS SB 398 47
1463- (a) Maintain, or together with its parent comp any 33
1464-maintain, a net worth or stockholders' equity of one hundred 34
1465-million dollars; and 35
1466- (b) Upon request, provide the attorney general with a 36
1467-copy of the provider's or the provider's parent company's 37
1468-most recent Form 10-K or Form 20-F filed with the Securities 38
1469-and Exchange Commission (SEC) within the last calendar year 39
1470-or, if the company does not file with the SEC, a copy of the 40
1471-company's audited financial statements, which show a net 41
1472-worth of the provider or its parent company of at least one 42
1473-hundred million dollars. If the provider's parent company's 43
1474-Form 10-K, Form 20-F, or financial statements are filed to 44
1475-meet the provider's financial security requirement, the 45
1476-parent company shall agree to guarantee the obligations of 46
1477-the provider relating to vehicle value protection agreements 47
1478-sold by the provider in this state. 48
1479- 4. Except for the requirements specified in subsection 49
1480-3 of this section, no other financial security requirements 50
1481-shall be required for vehicle value protection agree ment 51
1482-providers. 52
1483- 407.2070. Vehicle value protection agreements shall 1
1484-disclose in writing and in clear, understandable language 2
1485-that is easy to read the following: 3
1486- (1) The name and address of the provider, contract 4
1487-holder, and administrator, if any; 5
1488- (2) The terms of the vehicle value protection 6
1489-agreement including, but not limited to, the purchase price 7
1490-to be paid by the contract holder, if any, the requirements 8
1491-for eligibility, the conditions of coverage, and any 9
1492-exclusions; 10
1493- (3) A statement that the vehicle value protection 11
1494-agreement may be cancelled by the contract holder within a 12 HCS SS SCS SB 398 48
1495-free-look period as specified in the vehicle value 13
1496-protection agreement and that in such event the contract 14
1497-holder shall be entitl ed to a full refund of the purchase 15
1498-price paid by the contract holder, if any, so long as no 16
1499-benefits have been provided; 17
1500- (4) The procedure the contract holder shall follow, if 18
1501-any, to obtain a benefit under the terms and conditions of 19
1502-the vehicle value protection agreement, including, if 20
1503-applicable, a telephone number or website and address where 21
1504-the contract holder may apply for a benefit; 22
1505- (5) A statement that indicates whether the vehicle 23
1506-value protection agreement may be cancelled aft er the free- 24
1507-look period and the conditions under which it may be 25
1508-cancelled, including the procedures for requesting any 26
1509-refund of the unearned purchase price paid by the contract 27
1510-holder; 28
1511- (6) If the vehicle value protection agreement is 29
1512-cancellable after the free-look period, a statement that any 30
1513-refund of the unearned purchase price of the vehicle value 31
1514-protection agreement shall be calculated on a pro rata basis; 32
1515- (7) A statement that any extension of credit, terms of 33
1516-the credit, or terms of the related motor vehicle sale or 34
1517-lease shall not be conditioned upon the purchase of the 35
1518-vehicle value protection agreement; 36
1519- (8) The terms, restrictions, or conditions governing 37
1520-cancellation of the vehicle value protection agreement 38
1521-before the termination or expiration date of the vehicle 39
1522-value protection agreement by either the provider or the 40
1523-contract holder. The provider of the vehicle value 41
1524-protection agreement shall mail a written notice to the 42
1525-contract holder at the last known add ress of the contract 43
1526-holder contained in the records of the provider at least 44 HCS SS SCS SB 398 49
1527-five days before cancellation by the provider. Prior notice 45
1528-shall not be required if the reason for cancellation is 46
1529-nonpayment of the provider fee, a material misrepresentat ion 47
1530-by the contract holder to the provider or administrator, or 48
1531-a substantial breach of duties by the contract holder 49
1532-relating to the covered product or its use. The notice 50
1533-shall state the effective date of the cancellation and the 51
1534-reason for the cancellation. If a vehicle value protection 52
1535-agreement is cancelled by the provider for a reason other 53
1536-than nonpayment of the provider fee, the provider shall 54
1537-refund to the contract holder one hundred percent of the 55
1538-unearned pro rata provider fee paid by the contract holder, 56
1539-if any. If coverage under the vehicle value protection 57
1540-agreement continues after a claim, any refund may deduct 58
1541-claims paid. A reasonable administrative fee may be charged 59
1542-by the provider up to seventy -five dollars; and 60
1543- (9) A statement that the agreement is not an insurance 61
1544-contract. 62
1545- 407.2075. The provisions of sections 407.2070 and 1
1546-407.2080 shall not apply to vehicle value protection 2
1547-agreements offered in connection with a commercial 3
1548-transaction. 4
1549- 407.2080. The attorney general may take action that is 1
1550-necessary or appropriate to enforce the provisions of 2
1551-sections 407.2020 to 407.2090 and to protect motor vehicle 3
1552-financial protection product consumers in this state. After 4
1553-proper notice and opportunity for hearing, the attorney 5
1554-general may: 6
1555- (1) Order the creditor, provider, administrator, or 7
1556-any other person not in compliance with the provisions of 8
1557-sections 407.2020 to 407.2090 to cease and desist from 9 HCS SS SCS SB 398 50
1558-product-related operations that are in violation of the 10
1559-provisions of sections 407.2020 to 407.2090; and 11
1560- (2) Impose a penalty of not more than five hundred 12
1561-dollars for each violation of the provisions of sections 13
1562-407.2020 to 407.2090 and not more than ten thous and dollars 14
1563-in the aggregate for all violations of a similar nature. A 15
1564-violation shall be considered of a similar nature to another 16
1565-violation if the violation consists of the same or similar 17
1566-course of conduct, action, or practice, irrespective of the 18
1567-number of times the action, conduct, or practice that is 19
1568-determined to be a violation of the provisions of sections 20
1569-407.2020 to 407.2090 occurred. 21
1570- 407.2085. Notwithstanding the provisions of section 1
1571-407.2090, all motor vehicle finan cial protection products 2
1572-issued before and on and after August 28, 2023, shall not be 3
1573-considered insurance. 4
1574- 407.2090. The provisions of sections 407.2020 to 1
1575-407.2090 shall apply to all motor vehicle financial 2
1576-protection products tha t become effective after February 23, 3
1577-2024. 4
1578- [304.820. 1. Except as otherwise provided 1
1579-in this section, no person twenty -one years of 2
1580-age or younger operating a moving motor vehicle 3
1581-upon the highways of this state shall, by means 4
1582-of a hand-held electronic wireless 5
1583-communications device, send, read, or write a 6
1584-text message or electronic message. 7
1585- 2. Except as otherwise provided in this 8
1586-section, no person shall operate a commercial 9
1587-motor vehicle while using a hand -held mobile 10
1588-telephone. 11
1589- 3. Except as otherwise provided in this 12
1590-section, no person shall operate a commercial 13
1591-motor vehicle while using a wireless 14
1592-communications device to send, read, or write a 15
1593-text message or electronic message. 16
1594- 4. The provisions of subsection 1 through 17
1595-subsection 3 of this section shall not apply to 18
1596-a person operating: 19
1597- (1) An authorized emergency vehicle; or 20 HCS SS SCS SB 398 51
1598- (2) A moving motor vehicle while using a 21
1599-hand-held electronic wireless communications 22
1600-device to: 23
1601- (a) Report illegal activity; 24
1602- (b) Summon medical or other emergency help; 25
1603- (c) Prevent injury to a person or 26
1604-property; or 27
1605- (d) Relay information between a transit or 28
1606-for-hire operator and that operator's 29
1607-dispatcher, in which the device is perman ently 30
1608-affixed to the vehicle. 31
1609- 5. Nothing in this section shall be 32
1610-construed or interpreted as prohibiting a person 33
1611-from making or taking part in a telephone call, 34
1612-by means of a hand-held electronic wireless 35
1613-communications device, while operating a 36
1614-noncommercial motor vehicle upon the highways of 37
1615-this state. 38
1616- 6. As used in this section, "electronic 39
1617-message" means a self -contained piece of digital 40
1618-communication that is designed or intended to be 41
1619-transmitted between hand -held electronic 42
1620-wireless communication devices. "Electronic 43
1621-message" includes, but is not limited to, 44
1622-electronic mail, a text message, an instant 45
1623-message, or a command or request to access an 46
1624-internet site. 47
1625- 7. As used in this section, "hand -held 48
1626-electronic wireless communications device" 49
1627-includes any hand-held cellular phone, palm 50
1628-pilot, blackberry, or other mobile electronic 51
1629-device used to communicate verbally or by text 52
1630-or electronic messaging, but shall not apply to 53
1631-any device that is permanently embedde d into the 54
1632-architecture and design of the motor vehicle. 55
1633- 8. As used in this section, "making or 56
1634-taking part in a telephone call" means listening 57
1635-to or engaging in verbal communication through a 58
1636-hand-held electronic wireless communication 59
1637-device. 60
1638- 9. As used in this section, "send, read, 61
1639-or write a text message or electronic message" 62
1640-means using a hand-held electronic wireless 63
1641-telecommunications device to manually 64
1642-communicate with any person by using an 65
1643-electronic message. Sending, reading, or 66
1644-writing a text message or electronic message 67
1645-does not include reading, selecting, or entering 68
1646-a phone number or name into a hand -held 69
1647-electronic wireless communications device for 70
1648-the purpose of making a telephone call. 71
1649- 10. A violation of this section shall be 72
1650-deemed an infraction and shall be deemed a 73
1651-moving violation for purposes of point 74
1652-assessment under section 302.302. 75
1653- 11. The state preempts the field of 76
1654-regulating the use of hand -held electronic 77 HCS SS SCS SB 398 52
1655-wireless communications de vices in motor 78
1656-vehicles, and the provisions of this section 79
1657-shall supercede any local laws, ordinances, 80
1658-orders, rules, or regulations enacted by a 81
1659-county, municipality, or other political 82
1660-subdivision to regulate the use of hand -held 83
1661-electronic wireless communication devices by the 84
1662-operator of a motor vehicle. 85
1663- 12. The provisions of this section shall 86
1664-not apply to: 87
1665- (1) The operator of a vehicle that is 88
1666-lawfully parked or stopped; 89
1667- (2) Any of the following while in the 90
1668-performance of their official duties: a law 91
1669-enforcement officer; a member of a fire 92
1670-department; or the operator of a public or 93
1671-private ambulance; 94
1672- (3) The use of factory-installed or 95
1673-aftermarket global positioning systems (GPS) or 96
1674-wireless communications devi ces used to transmit 97
1675-or receive data as part of a digital dispatch 98
1676-system; 99
1677- (4) The use of voice-operated technology; 100
1678- (5) The use of two-way radio transmitters 101
1679-or receivers by a licensee of the Federal 102
1680-Communications Commission in the Amateu r Radio 103
1681-Service.] 104
1682-
12+SectionA.Sections144.020,144.070,304.820,407.812,and407.828,RSMo,are
13+2repealedandfivenewsectionsenactedinlieuthereof,tobeknownassections144.020,
14+3144.070,304.822,407.812,and407.828,toreadasfollows:
15+144.020.1.Ataxisherebyleviedandimposedfortheprivilegeoftitlingnewand
16+2usedmotorvehicles,trailers,boats,andoutboardmotorspurchasedoracquiredforuseonthe
17+3highwaysorwatersofthisstatewhicharerequiredtobetitledunderthelawsofthestateof
18+4Missouriand,exceptasprovidedinsubdivision(9)ofthissubsection,uponallsellersforthe
19+5privilegeofengaginginthebusinessofsellingtangiblepersonalpropertyorrendering
20+6taxableserviceatretailinthisstate.Therateoftaxshallbeasfollows:
21+7 (1)Uponeveryretailsaleinthisstateoftangiblepersonalproperty,excludingmotor
22+8vehicles,trailers,motorcycles,mopeds,motortricycles,boatsandoutboardmotorsrequiredto
23+9betitledunderthelawsofthestateofMissouriandsubjecttotaxundersubdivision(9)ofthis
24+10subsection,ataxequivalenttofourpercentofthepurchasepricepaidorcharged,orincase
25+11suchsaleinvolvestheexchangeofproperty,ataxequivalenttofourpercentofthe
26+12considerationpaidorcharged,includingthefairmarketvalueofthepropertyexchangedat
27+13thetimeandplaceoftheexchange,exceptasotherwiseprovidedinsection144.025;
28+EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
29+intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 14 (2)Ataxequivalenttofourpercentoftheamountpaidforadmissionandseating
30+15accommodations,orfeespaidto,orinanyplaceofamusement,entertainmentorrecreation,
31+16gamesandathleticevents,exceptamountspaidforanyinstructionalclass;
32+17 (3)Ataxequivalenttofourpercentofthebasicratepaidorchargedonallsalesof
33+18electricityorelectricalcurrent,waterandgas,naturalorartificial,todomestic,commercialor
34+19industrialconsumers;
35+20 (4)(a)Ataxequivalenttofourpercentonthebasicratepaidorchargedonallsales
36+21oflocalandlongdistancetelecommunicationsservicetotelecommunicationssubscribersand
37+22toothersthroughequipmentoftelecommunicationssubscribersforthetransmissionof
38+23messagesandconversationsanduponthesale,rentalorleasingofallequipmentorservices
39+24pertainingorincidentalthereto;exceptthat,thepaymentmadebytelecommunications
40+25subscribersorothers,pursuanttosection144.060,andanyamountspaidforaccesstothe
41+26internetorinteractivecomputerservicesshallnotbeconsideredasamountspaidfor
42+27telecommunicationsservices;
43+28 (b)Iflocalandlongdistancetelecommunicationsservicessubjecttotaxunderthis
44+29subdivisionareaggregatedwithandnotseparatelystatedfromchargesfor
45+30telecommunicationsserviceorotherservicesnotsubjecttotaxunderthissubdivision,
46+31including,butnotlimitedto,interstateorinternationaltelecommunicationsservices,thenthe
47+32chargesfornontaxableservicesmaybesubjecttotaxationunlessthetelecommunications
48+33providercanidentifybyreasonableandverifiablestandardssuchportionofthechargesnot
49+34subjecttosuchtaxfromitsbooksandrecordsthatarekeptintheregularcourseofbusiness,
50+35including,butnotlimitedto,financialstatement,generalledgers,invoiceandbillingsystems
51+36andreports,andreportsforregulatorytariffsandotherregulatorymatters;
52+37 (c)Atelecommunicationsprovidershallnotifythedirectorofrevenueofitsintention
53+38toutilizethestandardsdescribedinparagraph(b)ofthissubdivisiontodeterminethecharges
54+39thataresubjecttosalestaxunderthissubdivision.Suchnotificationshallbeinwritingand
55+40shallmeetstandardizedcriteriaestablishedbythedepartmentregardingtheformandformat
56+41ofsuchnotice;
57+42 (d)Thedirectorofrevenuemaypromulgateandenforcereasonablerulesand
58+43regulationsfortheadministrationandenforcementoftheprovisionsofthissubdivision.Any
59+44ruleorportionofarule,asthattermisdefinedinsection536.010,thatiscreatedunderthe
60+45authoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandis
61+46subjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissection
62+47andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
63+48pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannula
64+49rulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandany
65+50ruleproposedoradoptedafterAugust28,2019,shallbeinvalidandvoid;
66+HCSSSSCSSB398 2 51 (5)Ataxequivalenttofourpercentofthebasicratepaidorchargedforallsalesof
67+52servicesfortransmissionofmessagesoftelegraphcompanies;
68+53 (6)Ataxequivalenttofourpercentontheamountofsalesorchargesforallrooms,
69+54mealsanddrinksfurnishedatanyhotel,motel,tavern,inn,restaurant,eatinghouse,
70+55drugstore,diningcar,touristcabin,touristcamporotherplaceinwhichrooms,mealsor
71+56drinksareregularlyservedtothepublic.Thetaximposedunderthissubdivisionshallnot
72+57applytoanyautomaticmandatorygratuityforalargegroupimposedbyarestaurantwhen
73+58suchgratuityisreportedasemployeetipincomeandtherestaurantwithholdsincometax
74+59undersection143.191onsuchgratuity;
75+60 (7)Ataxequivalenttofourpercentoftheamountpaidorchargedforintrastate
76+61ticketsbyeverypersonoperatingarailroad,sleepingcar,diningcar,expresscar,boat,
77+62airplaneandsuchbusesandtrucksasarelicensedbythedivisionofmotorcarrierandrailroad
78+63safetyofthedepartmentofeconomicdevelopmentofMissouri,engagedinthetransportation
79+64ofpersonsforhire;
80+65 (8)Ataxequivalenttofourpercentoftheamountpaidorchargedforrentalorlease
81+66oftangiblepersonalproperty,providedthatifthelessororrenterofanytangiblepersonal
82+67propertyhadpreviouslypurchasedthepropertyundertheconditionsofsaleatretailorleased
83+68orrentedthepropertyandthetaxwaspaidatthetimeofpurchase,leaseorrental,thelessor,
84+69sublessor,renterorsubrentershallnotapplyorcollectthetaxonthesubsequentlease,
85+70sublease,rentalorsubrentalreceiptsfromthatproperty.Thepurchase,rentalorleaseof
86+71motorvehicles,trailers,motorcycles,mopeds,motortricycles,boats,andoutboardmotors
87+72shallbetaxedandthetaxpaidasprovidedinthissectionandsection144.070.Innoevent
88+73shalltherentalorleaseofboatsandoutboardmotorsbeconsideredasale,charge,orfeeto,
89+74fororinplacesofamusement,entertainmentorrecreationnorshallanysuchrentalorlease
90+75besubjecttoanytaximposedto,for,orinsuchplacesofamusement,entertainmentor
91+76recreation.Rentalandleasedboatsoroutboardmotorsshallbetaxedundertheprovisionsof
92+77thesalestaxlawsasprovidedundersuchlawsformotorvehiclesandtrailers.Tangible
93+78personalpropertywhichisexemptfromthesalesorusetaxundersection144.030uponasale
94+79thereofislikewiseexemptfromthesalesorusetaxupontheleaseorrentalthereof;
95+80 (9)Ataxequivalenttofourpercentofthepurchaseprice,asdefinedinsection
96+81144.070,ofnewandusedmotorvehicles,trailers,boats,andoutboardmotorspurchasedor
97+82acquiredforuseonthehighwaysorwatersofthisstatewhicharerequiredtoberegistered
98+83underthelawsofthestateofMissouri.Thistaxisimposedonthepersontitlingsuch
99+84property,andshallbepaidaccordingtotheproceduresinsection144.070or144.440.
100+85 2.Allticketssoldwhicharesoldundertheprovisionsofthischapterwhichare
101+86subjecttothesalestaxshallhaveprinted,stampedorotherwiseendorsedthereon,thewords
102+87"Thisticketissubjecttoasalestax.".
103+HCSSSSCSSB398 3 144.070.1.Atthetimetheownerofanyneworusedmotorvehicle,trailer,boat,or
104+2outboardmotorwhichwasacquiredinatransactionsubjecttosalestaxundertheMissouri
105+3salestaxlawmakesapplicationtothedirectorofrevenueforanofficialcertificateoftitleand
106+4theregistrationofthemotorvehicle,trailer,boat,oroutboardmotorasotherwiseprovidedby
107+5law,theownershallpresenttothedirectorofrevenueevidencesatisfactorytothedirectorof
108+6revenueshowingthepurchasepriceexclusiveofanychargeincidenttotheextensionofcredit
109+7paidbyorchargedtotheapplicantintheacquisitionofthemotorvehicle,trailer,boat,or
110+8outboardmotor,orthatnosalestaxwasincurredinitsacquisition,andifsalestaxwas
111+9incurredinitsacquisition,theapplicantshallpayorcausetobepaidtothedirectorofrevenue
112+10thesalestaxprovidedbytheMissourisalestaxlawinadditiontotheregistrationfeesnowor
113+11hereafterrequiredaccordingtolaw,andthedirectorofrevenueshallnotissueacertificateof
114+12titleforanyneworusedmotorvehicle,trailer,boat,oroutboardmotorsubjecttosalestaxas
115+13providedintheMissourisalestaxlawuntilthetaxleviedforthesaleofthesameunder
116+14sections144.010to144.510hasbeenpaidasprovidedinthissectionorisregisteredunder
117+15theprovisionsofsubsection5ofthissection.
118+16 2.Asusedinsubsection1ofthissection,theterm"purchaseprice"shallmeanthe
119+17totalamountofthecontractpriceagreeduponbetweenthesellerandtheapplicantinthe
120+18acquisitionofthemotorvehicle,trailer,boat,oroutboardmotor,regardlessofthemediumof
121+19paymenttherefor.
122+20 3.Intheeventthatthepurchasepriceisunknownorundisclosed,orthattheevidence
123+21thereofisnotsatisfactorytothedirectorofrevenue,thesameshallbefixedbyappraisement
124+22bythedirector.
125+23 4.Thedirectorofthedepartmentofrevenueshallendorseupontheofficialcertificate
126+24oftitleissuedbythedirectoruponsuchapplicationanentryshowingthatsuchsalestaxhas
127+25beenpaidorthatthemotorvehicle,trailer,boat,oroutboardmotorrepresentedbysuch
128+26certificateisexemptfromsalestaxandstatethegroundforsuchexemption.
129+27 5.Anyperson,company,orcorporationengagedinthebusinessofrentingorleasing
130+28motorvehicles,trailers,boats,oroutboardmotors,whicharetobeusedexclusivelyforrental
131+29orleasepurposes,andnotforresale,mayapplytothedirectorofrevenueforauthorityto
132+30operateasaleasingorrentalcompanyandpayanannualfeeoftwohundredfiftydollarsfor
133+31suchauthority.Anycompanyapprovedbythedirectorofrevenuemaypaythetaxdueon
134+32anymotorvehicle,trailer,boat,oroutboardmotorasrequiredinsection144.020atthetime
135+33ofregistrationthereoforinlieuthereofmaypayasalestaxasprovidedinsections144.010,
136+34144.020,144.070and144.440.Asalestaxshallbechargedtoandpaidbyaleasingcompany
137+35whichdoesnotexercisetheoptionofpayinginaccordancewithsection144.020,onthe
138+36amountchargedforeachrentalorleaseagreementwhilethemotorvehicle,trailer,boat,or
139+37outboardmotorisdomiciledinthisstate.Anymotorvehicle,trailer,boat,oroutboardmotor
140+HCSSSSCSSB398 4 38whichisleasedastheresultofacontractexecutedinthisstateshallbepresumedtobe
141+39domiciledinthisstate.
142+40 6.Everyapplicanttobearegisteredfleetownerasdescribedinsubsections6to10of
143+41section301.032shallfurnishwiththeapplicationtooperateasaregisteredfleetownera
144+42corporatesuretybondorirrevocableletterofcredit,asdefinedinsection400.5-102,issued
145+43byanystateorfederalfinancialinstitutioninthepenalsumofonehundredthousanddollars,
146+44onaformapprovedbythedepartment.Thebondorirrevocableletterofcreditshallbe
147+45conditionedupontheregisteredfleetownercomplyingwiththeprovisionsofanystatutes
148+46applicabletoregisteredfleetowners,andthebondshallbeanindemnityforanyloss
149+47sustainedbyreasonoftheactsofthepersonbondedwhensuchactsconstitutegroundsforthe
150+48suspensionorrevocationoftheregisteredfleetownerlicense.Thebondshallbeexecutedin
151+49thenameofthestateofMissouriforthebenefitofallaggrievedpartiesortheirrevocable
152+50letterofcreditshallnamethestateofMissouriasthebeneficiary;exceptthat,theaggregate
153+51liabilityofthesuretyorfinancialinstitutiontotheaggrievedpartiesshall,innoevent,exceed
154+52theamountofthebondorirrevocableletterofcredit.Theproceedsofthebondorirrevocable
155+53letterofcreditshallbepaiduponreceiptbythedepartmentofafinaljudgmentfroma
156+54Missouricourtofcompetentjurisdictionagainsttheprincipalandinfavorofanaggrieved
157+55party.
158+56 7.Anycorporationmayhaveoneormoreofitsdivisionsseparatelyapplytothe
159+57directorofrevenueforauthorizationtooperateasaleasingcompany,providedthatthe
160+58corporation:
161+59 (1)Hasfiledawrittenconsentwiththedirectorauthorizinganyofitsdivisionsto
162+60applyforsuchauthority;
163+61 (2)IsauthorizedtodobusinessinMissouri;
164+62 (3)Hasagreedtotreatanysaleofamotorvehicle,trailer,boat,oroutboardmotor
165+63fromoneofitsdivisionstoanotherofitsdivisionsasasaleatretail;
166+64 (4)Hasregisteredunderthefictitiousnameprovisionsofsections417.200to417.230
167+65eachofitsdivisionsdoingbusinessinMissouriasaleasingcompany;and
168+66 (5)Operateseachofitsdivisionsonabasisseparatefromeachofitsotherdivisions.
169+67However,whenthetransferofamotorvehicle,trailer,boatoroutboardmotoroccurswithina
170+68corporationwhichholdsalicensetooperateasamotorvehicleorboatdealerpursuantto
171+69sections301.550to301.573theprovisionsinsubdivision(3)ofthissubsectionshallnot
172+70apply.
173+71 8.Iftheownerofanymotorvehicle,trailer,boat,oroutboardmotordesirestocharge
174+72andcollectsalestaxasprovidedinthissection,theownershallmakeapplicationtothe
175+73directorofrevenueforapermittooperateasamotorvehicle,trailer,boat,oroutboardmotor
176+74leasingcompany.Thedirectorofrevenueshallpromulgaterulesandregulationsdetermining
177+HCSSSSCSSB398 5 75thequalificationsofsuchacompany,andthemethodofcollectionandreportingofsalestax
178+76chargedandcollected.Suchregulationsshallapplyonlytoownersofmotorvehicles,trailers,
179+77boats,oroutboardmotors,electingtoqualifyasmotorvehicle,trailer,boat,oroutboard
180+78motorleasingcompaniesundertheprovisionsofsubsection5ofthissection,andnomotor
181+79vehiclerentingorleasing,trailerrentingorleasing,orboatoroutboardmotorrentingor
182+80leasingcompanycancomeundersections144.010,144.020,144.070and144.440unlessall
183+81motorvehicles,trailers,boats,andoutboardmotorsheldforrentingandleasingareincluded.
184+82 9.Anyperson,company,orcorporationengagedinthebusinessofrentingorleasing
185+83threethousandfivehundredormoremotorvehicleswhicharetobeusedexclusivelyfor
186+84rentalorleasingpurposesandnotforresale,andthathasappliedtothedirectorofrevenuefor
187+85authoritytooperateasaleasingcompanymayalsooperateasaregisteredfleetowneras
188+86prescribedinsection301.032.
189+87 10.BeginningJuly1,2010,anymotorvehicledealerlicensedundersection301.560
190+88engagedinthebusinessofsellingmotorvehiclesortrailers[may] shallapplytothedirector
191+89ofrevenueforauthoritytocollectandremitthesalestaxrequiredunderthissectiononall
192+90motorvehiclessoldbythemotorvehicledealer.Amotorvehicledealerreceivingauthorityto
193+91collectandremitthetaxissubjecttoallprovisionsundersections144.010to144.525.Any
194+92motorvehicledealerauthorizedtocollectandremitsalestaxesonmotorvehiclesunderthis
195+93subsectionshallbeentitledtodeductandretainanamountequaltotwopercentofthemotor
196+94vehiclesalestaxpursuanttosection144.140.Anyamountofthetaxcollectedunderthis
197+95subsectionthatisretainedbyamotorvehicledealerpursuanttosection144.140shallnot
198+96constitutestaterevenue.Innoeventshallrevenuesfromthegeneralrevenuefundorany
199+97otherstatefundbeutilizedtocompensatemotorvehicledealersfortheirroleincollectingand
200+98remittingsalestaxesonmotorvehicles.Intheeventthissubsectionoranyportionthereofis
201+99heldtoviolateArticleIV,Section30(b)oftheMissouriConstitution,nomotorvehicledealer
202+100shallbeauthorizedtocollectandremitsalestaxesonmotorvehiclesunderthissection.No
203+101motorvehicledealershallseekcompensationfromthestateofMissourioritsagenciesifa
204+102courtofcompetentjurisdictiondeclaresthattheretentionoftwopercentofthemotorvehicle
205+103salestaxisunconstitutionalandordersthereturnofsuchrevenues.
206+104 11.(1)Everymotorvehicledealerlicensedundersection301.560,assoonas
207+105technologicallypossiblefollowingthedevelopmentandmaintenanceofamodernized,
208+106integratedsystemforthetitlingofvehicles,issuanceandrenewalofvehicle
209+107registrations,issuanceandrenewalofdriver'slicensesandidentificationcards,and
210+108perfectionandreleaseofliensandencumbrancesonvehicles,tobefundedbythemotor
211+109vehicleadministrationtechnologyfundascreatedinsection301.558,shallcollectand
212+110remitthesalestaxrequiredunderthissectiononallmotorvehiclesthatsuchdealer
213+HCSSSSCSSB398 6 111sells.Incollectingandremittingthissalestax,motorvehicledealersshallbesubjectto
214+112allapplicableprovisionsundersections144.010to144.527.
215+113 (2)Thedirectorofrevenuemaypromulgateallnecessaryrulesandregulations
216+114fortheadministrationofthissubsection.Anyruleorportionofarule,asthattermis
217+115definedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
218+116subsectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
219+117provisionsofchapter536and,ifapplicable,section536.028.Thissubsectionand
220+118chapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
221+119pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
222+120arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
223+121andanyruleproposedoradoptedafterAugust28,2023,shallbeinvalidandvoid.
224+304.822.1.Thissectionshallbeknownasthe"SiddensBeningHandsFree
225+2Law".
226+3 2.Asusedinthissection,thefollowingtermsshallmean:
227+4 (1)"Commercialmotorvehicle",thesamemeaningasisascribedtosuchterm
228+5insection302.700;
229+6 (2)"Electroniccommunicationdevice",aportabledevicethatisusedtoinitiate,
230+7receive,store,orviewcommunication,information,images,ordataelectronically;
231+8 (a)Suchtermshallincludebutnotbelimitedto:cellulartelephones;portable
232+9telephones;text-messagingdevices;personaldigitalassistants;pagers;broadband
233+10personalcommunicationdevices;electronicdeviceswithmobiledataaccess;computers,
234+11includingbutnotlimitedtotablets,laptops,notebookcomputers,andelectronicor
235+12videogamesystems;devicescapableoftransmitting,retrieving,ordisplayingavideo,
236+13movie,broadcasttelevisionimage,orvisualimage;andanysubstantiallysimilardevice
237+14thatisusedtoinitiateorreceivecommunicationorstoreandreviewinformation,videos,
238+15images,ordata;
239+16 (b)Suchtermshallnotinclude:radios;citizensbandradios;commercialtwo-
240+17wayradiocommunicationdevicesortheirfunctionalequivalent;subscription-based
241+18emergencycommunicationdevices;prescribedmedicaldevices;amateurorhamradio
242+19devices;orglobalpositioningsystemreceivers,security,navigation,communication,or
243+20remotediagnosticssystemspermanentlyaffixedtothevehicle;
244+21 (3)"Highway",thesamemeaningasisascribedtosuchterminsection302.010;
245+22 (4)"Noncommercialmotorvehicle",thesamemeaningasisascribedtosuch
246+23terminsection302.700;
247+24 (5)"Operating",theactualphysicalcontrolofavehicle;
248+25 (6)"Operator",apersonwhoisinactualphysicalcontrol;
249+HCSSSSCSSB398 7 26 (7)"Schoolbus",thesamemeaningasisascribedtosuchterminsection
250+27302.700;
251+28 (8)"Voice-operatedorhands-freefeatureorfunction",afeatureorfunction,
252+29whetherinternallyinstalledorexternallyattachedorconnectedtoanelectronic
253+30communicationdevice,thatallowsapersontouseanelectroniccommunicationdevice
254+31withouttheuseofeitherhand,excepttoactivate,deactivate,orinitiatethefeatureor
255+32functionwithasingletouchorsingleswipe.
256+33 3.Exceptasotherwiseprovidedinthissection,whileoperatinganoncommercial
257+34motorvehicleorcommercialmotorvehicleonanyhighwayorpropertyopentothe
258+35publicforvehiculartrafficinthisstate,nooperatorshall:
259+36 (1)Physicallyholdorsupport,withanypartofhisorherbody,anelectronic
260+37communicationdevice;
261+38 (2)Write,send,orreadanytext-basedcommunication,includingbutnotlimited
262+39toatextmessage,instantmessage,email,orsocialmediainteractiononanelectronic
263+40communicationdevice.Thissubdivisionshallnotapplytooperatorsofa
264+41noncommercialmotorvehicleusingavoice-operatedorhands-freefeatureor
265+42functionthatconvertsthemessagetobesentasamessageinawrittenform,
266+43providedthattheoperatordoesnotdiverthisorherattentionfromlawfuloperationof
267+44thevehicle;
268+45 (3)Makeanycommunicationonanelectroniccommunicationdevice,including
269+46aphonecall,voicemessage,orone-wayvoicecommunication;providedhowever,that
270+47thisprohibitionshallnotapplytouseofavoice-operatedorhands-freefeatureor
271+48function;
272+49 (4)Engageinanyformofelectronicdataretrievalorelectronicdata
273+50communicationonanelectroniccommunicationdevice;
274+51 (5)Manuallyenterletters,numbers,orsymbolsintoanywebsite,searchengine,
275+52orapplicationonanelectroniccommunicationdevice;
276+53 (6)Watchavideoormovieonanelectroniccommunicationdevice,otherthan
277+54watchingdatarelatedtothenavigationofthevehicle;or
278+55 (7)Record,post,send,orbroadcastvideo,includingavideoconference,onan
279+56electroniccommunicationdevice,providedthatthisprohibitionshallnotapplyto
280+57electronicdevicesusedforthesolepurposeofcontinuallymonitoringoperatorbehavior
281+58byrecordingorbroadcastingvideowithinoroutsidethevehicle.
282+59 4.Theoperatorofaschoolbusshallnotuseoroperateanelectronic
283+60communicationdevicewhiletheschoolbusisinmotionunlessthedeviceisbeingusedin
284+61asimilarmannerasatwo-wayradiotoallowlivecommunicationbetweentheoperator
285+62andschoolofficialsorpublicsafetyofficials.Theoperatorofaschoolbusshallnotuse
286+HCSSSSCSSB398 8 63oroperateanelectroniccommunicationdeviceoratwo-wayradiowhileloadingor
287+64unloadingpassengers.
288+65 5.Thissectionshallnotapplyto:
289+66 (1)Lawenforcementofficersoroperatorsofemergencyvehicles,assuchtermis
290+67definedinsection304.022,whoarebothusingtheelectroniccommunicationdeviceand
291+68operatingtheemergencyvehicleintheperformanceoftheirofficialduties;
292+69 (2)Operatorsusinganelectroniccommunicationdeviceforthesolepurposeof
293+70reportinganemergencysituationandcontinuingcommunicationwithemergency
294+71personnelduringtheemergencysituation;
295+72 (3)Operatorsofnoncommercialmotorvehiclesusinganelectronic
296+73communicationdevicesolelythroughavoice-operatedorhands-freefeatureor
297+74function;
298+75 (4)Operatorsofcommercialmotorvehiclesusingavoice-operatedorhands-free
299+76featureorfunction,aslongastheoperatorremainsseatedandisrestrainedbyaseat
300+77beltasrequiredbylaw;
301+78 (5)Operatorsofcommercialmotorvehiclesreadingamessagedisplayedona
302+79permanentlyinstalledcommunicationdevicedesignedforacommercialmotorvehicle
303+80withascreenthatdoesnotexceedteninchestallbytenincheswideinsize;
304+81 (6)Operatorsusingelectroniccommunicationdeviceswhilethevehicleis
305+82lawfullystoppedorparked;
306+83 (7)Commercialmotorvehiclesthatarerespondingtoarequestforroadside
307+84assistance,whensuchresponseisconductedbyamotorclubasdefinedinsection
308+85385.450oratowingcompanyasdefinedinsection304.001;
309+86 (8)Theuseofanelectroniccommunicationdevicetorelayinformationbetween
310+87atransitorfor-hirevehicleoperatorandthatoperator'sdispatcher,providedthedevice
311+88ismountedoraffixedtothevehicle;
312+89 (9)Theuseofanelectroniccommunicationdevicetoaccessorviewamapfor
313+90navigationalpurposes;
314+91 (10)Theuseofanelectroniccommunicationdevicetoaccessorlistentoanaudio
315+92broadcastordigitalaudiorecording;or
316+93 (11)Theuseofanelectroniccommunicationdevicetorelayinformationthrough
317+94atransportationnetworkcompany'sdigitalnetworktoatransportationnetwork
318+95companydriver,providedthedeviceismountedoraffixedtothevehicle.
319+96 6.Exceptasotherwiseprovidedinthissubsection,violationofthissectionshall
320+97beaninfraction.Penaltiesforviolationsofthissectionshallbeasprovidedinthis
321+98subsection.Priorconvictionsshallbepleadedandproveninthesamemanneras
322+99requiredundersection558.021.
323+HCSSSSCSSB398 9 100 (1)Foraconvictionunderthissectionwherethereisnopriorconvictionunder
324+101thissectionwithintheprecedingtwenty-fourmonths,thecourtshallimposeafineofup
325+102toonehundredfiftydollars.
326+103 (2)Foraconvictionunderthissectionwherethereisonepriorconvictionunder
327+104thissectionwithintheprecedingtwenty-fourmonths,thecourtshallimposeafineofup
328+105totwohundredfiftydollars.
329+106 (3)Foraconvictionunderthissectionwheretherearetwoormoreprior
330+107convictionsunderthissectionintheprecedingtwenty-fourmonths,thecourtshall
331+108imposeafineofuptofivehundreddollars.
332+109 (4)Foraconvictionunderthissectionwheretheviolationoccurredinawork
333+110zonewhenworkersarepresent,assuchtermsaredefinedinsection304.580,orfora
334+111convictionunderthissectionwheretheviolationoccurredinanareadesignatedasa
335+112schoolzoneandmarkedinanywaythatwouldalertareasonablyprudentoperatorto
336+113thepresenceoftheschoolzone,thecourtshallimposeafineofuptofivehundred
337+114dollars.
338+115 (5)Aviolationofthissectionthatistheproximatecauseofdamagetoproperty
339+116inexcessoffivethousanddollarsshallbeaclassDmisdemeanor.
340+117 (6)Aviolationofthissectionthatistheproximatecauseofseriousphysical
341+118injurytoanotherpersonshallbeaclassBmisdemeanor.
342+119 (7)Aviolationofthissectionthatistheproximatecauseofthedeathofanother
343+120personshallbeaclassDfelony.
344+121 (8)Aviolationofthissectionwhileoperatingacommercialmotorvehicleshall
345+122bedeemedaserioustrafficviolation,assuchtermisdefinedinsection302.700,for
346+123purposesofcommercialdriver'slicensedisqualificationundersection302.755.
347+124 7.Alawenforcementofficerwhostopsanoncommercialmotorvehiclefora
348+125violationofthissectionshallinformtheoperatoroftheoperator'srighttodeclinea
349+126searchoftheirelectroniccommunicationdeviceandshallnotaccesstheelectronic
350+127communicationdevicewithoutawarrant,norconfiscatethedevicewhileawaiting
351+128issuanceofawarrant.
352+129 8.Aviolationofthissectionshallnotbeusedtoestablishprobablecauseforany
353+130otherviolation.
354+131 9.Theprovisionsofthissectionshallbesubjecttothereportingrequirements
355+132setforthinsection590.650.
356+133 10.Thestatepreemptsthefieldofregulatingtheuseofelectronic
357+134communicationdevicesbytheoperatorsofcommercialandnoncommercialmotor
358+135vehicles.Theprovisionsofthissectionshallsupercedeanylocallaws,ordinances,
359+136orders,rules,orregulationsenactedbyacounty,municipality,orotherpolitical
360+HCSSSSCSSB398 10 137subdivisiontoregulatetheuseofelectroniccommunicationdevicesbytheoperatorofa
361+138commercialornoncommercialmotorvehicle.
362+139 11.PriortoJanuary1,2025,alawenforcementofficerwhostopsa
363+140noncommercialmotorvehicleforaviolationofthissectionshallnotissueacitation
364+141foraviolationofthissectionandshallonlyissueawarning.
365+142 12.Nopersonshallbestopped,inspected,ordetainedsolelyforaviolationof
366+143thissection.
367+407.812.1.AnyfranchisorobtainingorrenewingitslicenseafterAugust28,2010,
368+2shallbeboundbytheprovisionsoftheMVFPactandshallcomplywithit,andnofranchise
369+3agreementmade,entered,modified,orrenewedafterAugust28,2010,shallavoidthe
370+4requirementsoftheMVFPact,orviolateitsprovisions,andnofranchiseagreementshallbe
371+5performedafterthedatethefranchisor'slicenseisissuedorrenewedinsuchamannerthatthe
372+6franchisoravoidsorotherwisedoesnotconformorcomplywiththerequirementsofthe
373+7MVFPact.Notwithstandingtheeffectivedateofanyfranchiseagreement,allfranchisor
374+8licensesandrenewalsthereofareissuedsubjecttoallprovisionsoftheMVFPactandchapter
375+9301andanyregulationsineffectuponthedateofissuance,aswellasallfutureprovisionsof
376+10theMVFPactandchapter301andanyregulationswhichmaybecomeeffectiveduringthe
377+11termofthelicense.
378+12 2.TheprovisionsoftheMVFPactshallapplytoeachfranchisethatafranchisor,
379+13manufacturer,importer,ordistributorhaswithafranchiseeandallagreementsbetweena
380+14franchiseeandacommonentityoranypersonthatiscontrolledbyafranchisor.
381+15 3.Nodealerormanufacturerlicensedinthisstateundersections301.550to
382+16301.573shallallowanysubsidiaryorrelatedentitytoengageinthebusinessofselling
383+17motorvehicles,asdefinedinsection301.010,toretailconsumersinthisstate,exceptas
384+18otherwisepermittedbylaw.Anydealerormanufacturerlicensedinthisstateshallhave
385+19standingtoenforcetheprovisionsofthissubsectionprovidedthatafranchise
386+20relationshipexistsbetweentheparties.
387+21 4.Noentitycontrolling,controlledby,orsharingacommonparententityor
388+22siblingentitywithalicenseddealerormanufacturershallengageinthebusinessof
389+23sellingmotorvehiclestoretailconsumersinthisstate,exceptaspermittedbysections
390+24301.550to301.575andtheMVFPact.Anydealerormanufacturerlicensedinthisstate
391+25shallhavestandingtoenforcetheprovisionsofthissubsection.
392+26 5.Nodealerormanufacturernotlicensedinthisstateundersections301.550to
393+27301.575shallengageinthebusinessofsellingmotorvehiclestoretailconsumersinthis
394+28state,exceptaspermittedbysections301.550to301.575andtheMVFPact.Anydealer
395+29ormanufacturerinthisstateshallhavestandingtoenforcetheprovisionsofthis
396+30subsection,providedthatafranchiserelationshipexistsbetweentheparties.
397+HCSSSSCSSB398 11 31 6.Amanufacturer,importer,ordistributormayengageinthebusinessofselling
398+32motorvehiclestoretailconsumersinthisstatefromadealershipifthemanufacturer,
399+33importer,ordistributorownedthedealershipandfirstappliesforalicenseforthe
400+34dealershiponorbeforeAugust28,2023,providedthatthelicenseissubsequently
401+35granted,andtheownershiporcontrollinginterestofsuchdealershipisnottransferred,
402+36sold,orconveyedtoanotherpersonorentityrequiredtobelicensedunderthischapter.
403+407.828.1.Notwithstandinganyprovisioninafranchisetothecontrary,each
404+2franchisorshallspecifyinwritingtoeachofitsfranchiseesinthisstatethefranchisee's
405+3obligationsforpreparation,delivery,andwarrantyserviceonitsproducts.Thefranchisor
406+4shallfairlyandreasonablycompensatethefranchiseeforpreparation,delivery,andwarranty
407+5servicerequiredofthefranchiseebythefranchisor.Thefranchisorshallprovidethe
408+6franchiseewiththescheduleofcompensationtobepaidtothefranchiseeforparts,labor,and
409+7service,andthetimeallowancefortheperformanceofthelaborandserviceforthe
410+8franchisee'sobligationsforpreparation,delivery,andwarrantyservice.
411+9 2.Thescheduleofcompensationshallincludereasonablecompensationfor
412+10diagnosticwork,aswellasrepairserviceandlaborforthefranchiseetomeetitsobligations
413+11forpreparation,delivery,andwarrantyservice.Thescheduleshallalsoincludereasonable
414+12andadequatetimeallowancesforthediagnosisandperformanceofpreparation,delivery,and
415+13warrantyservicetobeperformedinacarefulandprofessionalmanner.Inthedetermination
416+14ofwhatconstitutesreasonablecompensationforlaborandservicepursuanttothissection,the
417+15principalfactortobegivenconsiderationshallbetheprevailingwageratesbeingchargedfor
418+16similarlaborandserviceby[franchiseesinthemarketinwhichthefranchiseeisdoing
419+17business,andinnoeventshallthecompensationofafranchiseeforlaborandservicebeless
420+18thantherateschargedby]thefranchiseeforsimilarlaborandservicetoretailcustomersfor
421+19nonwarrantylaborandservice[, providedthatsuchratesarereasonable]. Theprimaryfactor
422+20indetermining[afairand]reasonablecompensationforpartsunderthissectionshallbethe
423+21[prevailingamountchargedforsimilarpartsbyothersameline-makefranchiseesinthe
424+22marketinwhichthefranchiseeisdoingbusinessandthefairandreasonablecompensationfor
425+23partsshallnotbelessthanthe]amountchargedbythefranchiseeforsimilarpartstoretail
426+24customersfornonwarrantyparts[, providedthatsuchratesarereasonable.Ifanothersame
427+25line-makefranchiseeisnotavailablewithinthemarket,thentheprevailingamountcharged
428+26forsimilarpartsbyotherfranchiseesinthemarketshallbeusedastheprimaryfactor].
429+27 3.Afranchisorshallperformallwarrantyobligations,includingrecallnotices;
430+28includeinwrittennoticesoffranchisorrecallstonewmotorvehicleownersandfranchisees
431+29theexpecteddatebywhichnecessarypartsandequipmentwillbeavailabletofranchiseesfor
432+30thecorrectionofthedefects;and[reasonably] compensateanyofthefranchiseesinthisstate
433+HCSSSSCSSB398 12 31forrepairsrequiredbytherecall.[Reasonable] Compensationforparts[,] andlabor[, and
434+32service] forrecallrepairsshallbedeterminedundersubsection2ofthissection.
435+33 4.Nofranchisorshallrequireafranchiseetosubmitaclaimauthorizedunderthis
436+34sectionsoonerthanthirtydaysafterthefranchiseecompletesthepreparation,delivery,or
437+35warrantyserviceauthorizingtheclaimforpreparation,delivery,orwarrantyservice.All
438+36claimsmadebyafranchiseeunderthissectionshallbepaidwithinthirtydaysaftertheir
439+37approval.Allclaimsshallbeeitherapprovedordisapprovedbythefranchisorwithinthirty
440+38daysaftertheirreceiptonaproperformgenerallyusedbythefranchisorandcontainingthe
441+39usuallyrequiredinformationtherein.Anyclaimsnotspecificallydisapprovedinwriting
442+40withinthirtydaysafterthereceiptoftheformshallbeconsideredtobeapprovedand
443+41paymentshallbemadewithinfifteendaysthereafter.Afranchiseeshallnotberequiredto
444+42maintaindefectivepartsformorethanthirtydaysaftersubmissionofaclaim.
445+43 5.Afranchisorshallcompensatethefranchiseeforfranchisor-sponsoredsalesor
446+44servicepromotionevents,includingbutnotlimitedto,rebates,programs,oractivitiesin
447+45accordancewithestablishedwrittenguidelinesforsuchevents,programs,oractivities,which
448+46guidelinesshallbeprovidedtoeachfranchisee.
449+47 6.Nofranchisorshallrequireafranchiseetosubmitaclaimauthorizedunder
450+48subsection5ofthissectionsoonerthanthirtydaysafterthefranchiseebecomeseligibleto
451+49submittheclaim.Allclaimsmadebyafranchiseepursuanttosubsection5ofthissectionfor
452+50promotionevents,includingbutnotlimitedtorebates,programs,oractivitiesshallbepaid
453+51withintendaysaftertheirapproval.Allclaimsshallbeeitherapprovedordisapprovedbythe
454+52franchisorwithinthirtydaysaftertheirreceiptonaproperformgenerallyusedbythe
455+53franchisorandcontainingtheusuallyrequiredinformationtherein.Anyclaimnot
456+54specificallydisapprovedinwritingwithinthirtydaysafterthereceiptofthisformshallbe
457+55consideredtobeapprovedandpaymentshallbemadewithin[ten]fifteendays.
458+56 7.Incalculatingtheretailratecustomarilychargedbythefranchiseeforparts,
459+57service,andlabor,thefollowingworkshallnotbeincludedinthecalculation:
460+58 (1)Repairsforfranchisor,manufacturer,ordistributorspecialevents,specials,or
461+59promotionaldiscountsforretailcustomerrepairs;
462+60 (2)Partssoldatwholesale;
463+61 (3)Engineassembliesandtransmissionassemblies;
464+62 (4)Routinemaintenancenotcoveredunderanyretailcustomerwarranty,suchas
465+63fluids,filters,andbeltsnotprovidedinthecourseofrepairs;
466+64 (5)Nuts,bolts,fasteners,andsimilaritemsthatdonothaveanindividualpart
467+65number;
468+66 (6)Tires;and
469+67 (7)Vehiclereconditioning.
470+HCSSSSCSSB398 13 68 8.Ifafranchisor,manufacturer,importer,ordistributorfurnishesapartorcomponent
471+69toafranchisee,atnocost,touseinperformingrepairsunderarecall,campaignservice
472+70action,orwarrantyrepair,thefranchisorshallcompensatethefranchiseeforthepartor
473+71componentinthesamemanneraswarrantypartscompensationunderthissectionby
474+72compensatingthefranchiseeattheaveragemarkuponthecostforthepartorcomponentas
475+73listedinthepricescheduleofthefranchisor,manufacturer,importer,ordistributor,lessthe
476+74costforthepartorcomponent.Thissubsectionshallnotapplytoentireengine
477+75assemblies,propulsionengineassemblies,includingelectricvehiclebatteries,orentire
478+76transmissionassemblies.
479+77 9.Afranchisorshallnotrequireafranchiseetoestablishtheretailratecustomarily
480+78chargedbythefranchiseeforparts,service,orlaborbyanundulyburdensomeortime-
481+79consumingmethodorbyrequiringinformationthatisundulyburdensomeortimeconsuming
482+80toprovide,including,butnotlimitedto,part-by-partortransaction-by-transaction
483+81calculations.Afranchiseeshallnotrequestafranchisortoapproveadifferentlaborrate
484+82orpartsratemorethantwiceinonecalendaryear.
485+83 10.Ifafranchiseesubmitsanyclaimunderthissectiontoafranchisorthatis
486+84incomplete,inaccurate,orlackinganyinformationusuallyrequiredbythefranchisor,thenthe
487+85franchisorshallpromptlynotifythefranchisee,andthetimelimittosubmittheclaimshallbe
488+86extendedforareasonablelengthoftime,notlessthanfivebusinessdaysfollowingnoticeby
489+87thefranchisortothefranchisee,forthefranchiseetoprovidethecomplete,accurate,or
490+88lackinginformationtothefranchisor.
491+89 11.(1)Afranchisormayonlyauditwarranty,sales,orincentiveclaimsandcharge-
492+90backtothefranchiseeunsubstantiatedclaimsforaperiodoftwelvemonthsfollowing
493+91payment,subjecttoalloftheprovisionsofthissection.Furthermore,ifthefranchisorhas
494+92goodcausetobelievethatafranchiseehassubmittedfraudulentclaims,thenthefranchisor
495+93mayonlyauditsuspectedfraudulentwarranty,sales,orincentiveclaimsandcharge-backto
496+94thefranchiseefraudulentclaimsforaperiodoftwoyearsfollowingpayment,subjecttoall
497+95provisionsofthissection.
498+96 (2)Afranchisorshallnotrequiredocumentationforwarranty,sales,orincentive
499+97claimsmorethantwelvemonthsaftertheclaimwaspaid.
500+98 (3)Priortorequiringanycharge-back,reimbursement,orcreditagainstafuture
501+99transactionarisingoutofanaudit,thefranchisorshallsubmitwrittennoticetothefranchisee
502+100alongwithacopyofitsauditandthedetailedreasonforeachintendedcharge-back,
503+101reimbursement,orcredit.
504+102 12.Afranchiseemayfileacomplaintwiththeadministrativehearingcommission
505+103pursuanttosection407.822within[thirty] sixtydaysafterreceiptofany[such] written
506+104notice[challengingsuchaction] byafranchisorofanyadversedecisiononanyclaimfor
507+HCSSSSCSSB398 14 105reimbursementsubmittedpursuanttothissection,including,butnotlimitedto,specific
508+106claimsforreimbursementinindividualwarrantyrepairtransactions,andrequestsfor
509+107anincreaseinlabororpartsrate.Ifacomplaintisfiledwithinthe[thirty] sixtydays,then
510+108the[charge-back,reimbursement,orcredit] denialorreductionofreimbursement,denial
511+109ofarequestforanincreaseinlabororpartsrate,charge-back,orotherdetermination
512+110byafranchisorwhichisadversetoafranchiseeshallbestayedpendingahearingand
513+111determinationofthematterundersection407.822.Thefranchisorshallfileananswerto
514+112thecomplaintwithinthirtydaysafterserviceofthecomplaint.If,followingahearing
515+113whichshallbeheldwithinsixtydaysfollowingserviceofthefranchisor'sanswer,the
516+114administrativehearingcommissiondeterminesthat[anyportionofthecharge-back,
517+115reimbursement,orcreditisimproper,thenthatportionofthecharge-back,reimbursement,
518+116orcreditshallbevoidandnotallowed] afranchisorhasviolatedanyrequirementsofthis
519+117section,thenthedenialorreductionofreimbursement,denialofarequestforan
520+118increaseinlabororpartsrate,orcharge-backshallbevoidandthefranchisorshall,
521+119withinfifteendaysofthecommission'sorder,fairlycompensatethefranchiseeas
522+120requiredbytheprovisionsofthissection.Section407.835shallapplytoproceedings
523+121pursuanttothissection.
524+[304.820.1.Exceptasotherwiseprovidedinthissection,noperson
525+2 twenty-oneyearsofageoryoungeroperatingamovingmotorvehicleupon
526+3 thehighwaysofthisstateshall,bymeansofahand-heldelectronicwireless
527+4 communicationsdevice,send,read,orwriteatextmessageorelectronic
528+5 message.
529+6 2.Exceptasotherwiseprovidedinthissection,nopersonshalloperate
530+7 acommercialmotorvehiclewhileusingahand-heldmobiletelephone.
531+8 3.Exceptasotherwiseprovidedinthissection,nopersonshalloperate
532+9 acommercialmotorvehiclewhileusingawirelesscommunicationsdeviceto
533+10 send,read,orwriteatextmessageorelectronicmessage.
534+11 4.Theprovisionsofsubsection1throughsubsection3ofthissection
535+12 shallnotapplytoapersonoperating:
536+13 (1)Anauthorizedemergencyvehicle;or
537+14 (2)Amovingmotorvehiclewhileusingahand-heldelectronic
538+15 wirelesscommunicationsdeviceto:
539+16 (a)Reportillegalactivity;
540+17 (b)Summonmedicalorotheremergencyhelp;
541+18 (c)Preventinjurytoapersonorproperty;or
542+19 (d)Relayinformationbetweenatransitorfor-hireoperatorandthat
543+20 operator'sdispatcher,inwhichthedeviceispermanentlyaffixedtothevehicle.
544+21 5.Nothinginthissectionshallbeconstruedorinterpretedas
545+22 prohibitingapersonfrommakingortakingpartinatelephonecall,bymeans
546+23 ofahand-heldelectronicwirelesscommunicationsdevice,whileoperatinga
547+24 noncommercialmotorvehicleuponthehighwaysofthisstate.
548+HCSSSSCSSB398 15 25 6.Asusedinthissection,"electronicmessage"meansaself-contained
549+26 pieceofdigitalcommunicationthatisdesignedorintendedtobetransmitted
550+27 betweenhand-heldelectronicwirelesscommunicationdevices."Electronic
551+28 message"includes,butisnotlimitedto,electronicmail,atextmessage,an
552+29 instantmessage,oracommandorrequesttoaccessaninternetsite.
553+30 7.Asusedinthissection,"hand-heldelectronicwireless
554+31 communicationsdevice"includesanyhand-heldcellularphone,palmpilot,
555+32 blackberry,orothermobileelectronicdeviceusedtocommunicateverballyor
556+33 bytextorelectronicmessaging,butshallnotapplytoanydevicethatis
557+34 permanentlyembeddedintothearchitectureanddesignofthemotorvehicle.
558+35 8.Asusedinthissection,"makingortakingpartinatelephonecall"
559+36 meanslisteningtoorengaginginverbalcommunicationthroughahand-held
560+37 electronicwirelesscommunicationdevice.
561+38 9.Asusedinthissection,"send,read,orwriteatextmessageor
562+39 electronicmessage"meansusingahand-heldelectronicwireless
563+40 telecommunicationsdevicetomanuallycommunicatewithanypersonby
564+41 usinganelectronicmessage.Sending,reading,orwritingatextmessageor
565+42 electronicmessagedoesnotincludereading,selecting,orenteringaphone
566+43 numberornameintoahand-heldelectronicwirelesscommunicationsdevice
567+44 forthepurposeofmakingatelephonecall.
568+45 10.Aviolationofthissectionshallbedeemedaninfractionandshall
569+46 bedeemedamovingviolationforpurposesofpointassessmentundersection
570+47 302.302.
571+48 11.Thestatepreemptsthefieldofregulatingtheuseofhand-held
572+49 electronicwirelesscommunicationsdevicesinmotorvehicles,andthe
573+50 provisionsofthissectionshallsupercedeanylocallaws,ordinances,orders,
574+51 rules,orregulationsenactedbyacounty,municipality,orotherpolitical
575+52 subdivisiontoregulatetheuseofhand-heldelectronicwireless
576+53 communicationdevicesbytheoperatorofamotorvehicle.
577+54 12.Theprovisionsofthissectionshallnotapplyto:
578+55 (1)Theoperatorofavehiclethatislawfullyparkedorstopped;
579+56 (2)Anyofthefollowingwhileintheperformanceoftheirofficial
580+57 duties:alawenforcementofficer;amemberofafiredepartment;orthe
581+58 operatorofapublicorprivateambulance;
582+59 (3)Theuseoffactory-installedoraftermarketglobalpositioning
583+60 systems(GPS)orwirelesscommunicationsdevicesusedtotransmitorreceive
584+61 dataaspartofadigitaldispatchsystem;
585+62 (4)Theuseofvoice-operatedtechnology;
586+63 (5)Theuseoftwo-wayradiotransmittersorreceiversbyalicenseeof
587+64 theFederalCommunicationsCommissionintheAmateurRadioService.]
588+
589+HCSSSSCSSB398 16