EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
[TRULY AGREED TO AND FINALLY PASSED ]
HOUSE COMMITTEE SUBSTITUTE FOR
SENATE SUBSTITUTE FOR
SENATE COMMITTEE SUBSTITUTE FOR
SENATE BILL NO. 398
102ND GENERAL ASSEMBLY
2023
1413H.07T
AN ACT
To repeal sections 144.020, 144.070, 304.820, 407.812, and 407.828, RSMo, and to enact in lieu
thereof twenty-five new sections relating to motor vehicles, with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 14 4.020, 144.070, 304.820, 407.812, 1
and 407.828, RSMo, are repealed and twenty -five new sections 2
enacted in lieu thereof, to be known as sections 144.020, 3
144.070, 303.420, 303.422, 303.425, 303.430, 303.440, 304.822, 4
407.812, 407.828, 407.2020, 407.2025, 40 7.2030, 407.2035, 5
407.2040, 407.2045, 407.2050, 407.2055, 407.2060, 407.2065, 6
407.2070, 407.2075, 407.2080, 407.2085, and 407.2090, to read 7
as follows:8
144.020. 1. A tax is hereby levied and imposed for 1
the privilege of titling new and used motor vehicles, 2
trailers, boats, and outboard motors purchased or acquired 3
for use on the highways or waters of this state which are 4
required to be titled under the laws of the state of 5
Missouri and, except as provided in subdivision (9) of this 6
subsection, upon all sellers for the privilege of engaging 7
in the business of selling tangible personal property or 8 HCS SS SCS SB 398 2
rendering taxable service at retail in this state. The rate 9
of tax shall be as follows: 10
(1) Upon every retail sale in this state of tangible 11
personal property, excluding motor vehicles, trailers, 12
motorcycles, mopeds, motortricycles, boats and outboard 13
motors required to be titled under the laws of the state of 14
Missouri and subject to tax under subdivision (9) of this 15
subsection, a tax equi valent to four percent of the purchase 16
price paid or charged, or in case such sale involves the 17
exchange of property, a tax equivalent to four percent of 18
the consideration paid or charged, including the fair market 19
value of the property exchanged at th e time and place of the 20
exchange, except as otherwise provided in section 144.025; 21
(2) A tax equivalent to four percent of the amount 22
paid for admission and seating accommodations, or fees paid 23
to, or in any place of amusement, entertainment or 24
recreation, games and athletic events, except amounts paid 25
for any instructional class; 26
(3) A tax equivalent to four percent of the basic rate 27
paid or charged on all sales of electricity or electrical 28
current, water and gas, natural or artificial, to domestic, 29
commercial or industrial consumers; 30
(4) (a) A tax equivalent to four percent on the basic 31
rate paid or charged on all sales of local and long distance 32
telecommunications service to telecommunications subscribers 33
and to others throug h equipment of telecommunications 34
subscribers for the transmission of messages and 35
conversations and upon the sale, rental or leasing of all 36
equipment or services pertaining or incidental thereto; 37
except that, the payment made by telecommunications 38
subscribers or others, pursuant to section 144.060, and any 39
amounts paid for access to the internet or interactive 40 HCS SS SCS SB 398 3
computer services shall not be considered as amounts paid 41
for telecommunications services; 42
(b) If local and long distance telecommunic ations 43
services subject to tax under this subdivision are 44
aggregated with and not separately stated from charges for 45
telecommunications service or other services not subject to 46
tax under this subdivision, including, but not limited to, 47
interstate or international telecommunications services, 48
then the charges for nontaxable services may be subject to 49
taxation unless the telecommunications provider can identify 50
by reasonable and verifiable standards such portion of the 51
charges not subject to such tax from its books and records 52
that are kept in the regular course of business, including, 53
but not limited to, financial statement, general ledgers, 54
invoice and billing systems and reports, and reports for 55
regulatory tariffs and other regulatory matters; 56
(c) A telecommunications provider shall notify the 57
director of revenue of its intention to utilize the 58
standards described in paragraph (b) of this subdivision to 59
determine the charges that are subject to sales tax under 60
this subdivision. Such notification shall be in writing and 61
shall meet standardized criteria established by the 62
department regarding the form and format of such notice; 63
(d) The director of revenue may promulgate and enforce 64
reasonable rules and regulations for the admini stration and 65
enforcement of the provisions of this subdivision. Any rule 66
or portion of a rule, as that term is defined in section 67
536.010, that is created under the authority delegated in 68
this section shall become effective only if it complies with 69
and is subject to all of the provisions of chapter 536 and, 70
if applicable, section 536.028. This section and chapter 71
536 are nonseverable and if any of the powers vested with 72 HCS SS SCS SB 398 4
the general assembly pursuant to chapter 536 to review, to 73
delay the effective date, or to disapprove and annul a rule 74
are subsequently held unconstitutional, then the grant of 75
rulemaking authority and any rule proposed or adopted after 76
August 28, 2019, shall be invalid and void; 77
(5) A tax equivalent to four percent of the basic rate 78
paid or charged for all sales of services for transmission 79
of messages of telegraph companies; 80
(6) A tax equivalent to four percent on the amount of 81
sales or charges for all rooms, meals and drinks furnished 82
at any hotel, motel, taver n, inn, restaurant, eating house, 83
drugstore, dining car, tourist cabin, tourist camp or other 84
place in which rooms, meals or drinks are regularly served 85
to the public. The tax imposed under this subdivision shall 86
not apply to any automatic mandatory g ratuity for a large 87
group imposed by a restaurant when such gratuity is reported 88
as employee tip income and the restaurant withholds income 89
tax under section 143.191 on such gratuity; 90
(7) A tax equivalent to four percent of the amount 91
paid or charged for intrastate tickets by every person 92
operating a railroad, sleeping car, dining car, express car, 93
boat, airplane and such buses and trucks as are licensed by 94
the division of motor carrier and railroad safety of the 95
department of economic develop ment of Missouri, engaged in 96
the transportation of persons for hire; 97
(8) A tax equivalent to four percent of the amount 98
paid or charged for rental or lease of tangible personal 99
property, provided that if the lessor or renter of any 100
tangible personal property had previously purchased the 101
property under the conditions of sale at retail or leased or 102
rented the property and the tax was paid at the time of 103
purchase, lease or rental, the lessor, sublessor, renter or 104 HCS SS SCS SB 398 5
subrenter shall not apply or coll ect the tax on the 105
subsequent lease, sublease, rental or subrental receipts 106
from that property. The purchase, rental or lease of motor 107
vehicles, trailers, motorcycles, mopeds, motortricycles, 108
boats, and outboard motors shall be taxed and the tax paid 109
as provided in this section and section 144.070. In no 110
event shall the rental or lease of boats and outboard motors 111
be considered a sale, charge, or fee to, for or in places of 112
amusement, entertainment or recreation nor shall any such 113
rental or lease be subject to any tax imposed to, for, or in 114
such places of amusement, entertainment or recreation. 115
Rental and leased boats or outboard motors shall be taxed 116
under the provisions of the sales tax laws as provided under 117
such laws for motor vehicles an d trailers. Tangible 118
personal property which is exempt from the sales or use tax 119
under section 144.030 upon a sale thereof is likewise exempt 120
from the sales or use tax upon the lease or rental thereof; 121
(9) A tax equivalent to four percent of the purchase 122
price, as defined in section 144.070, of new and used motor 123
vehicles, trailers, boats, and outboard motors purchased or 124
acquired for use on the highways or waters of this state 125
which are required to be registered under the laws of the 126
state of Missouri. This tax is imposed on the person 127
titling such property, and shall be paid according to the 128
procedures in section 144.070 or 144.440. 129
2. All tickets sold which are sold under the 130
provisions of this chapter which are subject to the sal es 131
tax shall have printed, stamped or otherwise endorsed 132
thereon, the words "This ticket is subject to a sales tax.". 133
144.070. 1. At the time the owner of any new or used 1
motor vehicle, trailer, boat, or outboard motor which was 2
acquired in a transaction subject to sales tax under the 3 HCS SS SCS SB 398 6
Missouri sales tax law makes application to the director of 4
revenue for an official certificate of title and the 5
registration of the motor vehicle, trailer, boat, or 6
outboard motor as otherwise pro vided by law, the owner shall 7
present to the director of revenue evidence satisfactory to 8
the director of revenue showing the purchase price exclusive 9
of any charge incident to the extension of credit paid by or 10
charged to the applicant in the acquisit ion of the motor 11
vehicle, trailer, boat, or outboard motor, or that no sales 12
tax was incurred in its acquisition, and if sales tax was 13
incurred in its acquisition, the applicant shall pay or 14
cause to be paid to the director of revenue the sales tax 15
provided by the Missouri sales tax law in addition to the 16
registration fees now or hereafter required according to 17
law, and the director of revenue shall not issue a 18
certificate of title for any new or used motor vehicle, 19
trailer, boat, or outboard motor subject to sales tax as 20
provided in the Missouri sales tax law until the tax levied 21
for the sale of the same under sections 144.010 to 144.510 22
has been paid as provided in this section or is registered 23
under the provisions of subsection 5 of this sect ion. 24
2. As used in subsection 1 of this section, the term 25
"purchase price" shall mean the total amount of the contract 26
price agreed upon between the seller and the applicant in 27
the acquisition of the motor vehicle, trailer, boat, or 28
outboard motor, regardless of the medium of payment therefor. 29
3. In the event that the purchase price is unknown or 30
undisclosed, or that the evidence thereof is not 31
satisfactory to the director of revenue, the same shall be 32
fixed by appraisement by the directo r. 33
4. The director of the department of revenue shall 34
endorse upon the official certificate of title issued by the 35 HCS SS SCS SB 398 7
director upon such application an entry showing that such 36
sales tax has been paid or that the motor vehicle, trailer, 37
boat, or outboard motor represented by such certificate is 38
exempt from sales tax and state the ground for such 39
exemption. 40
5. Any person, company, or corporation engaged in the 41
business of renting or leasing motor vehicles, trailers, 42
boats, or outboard motors, which are to be used exclusively 43
for rental or lease purposes, and not for resale, may apply 44
to the director of revenue for authority to operate as a 45
leasing or rental company and pay an annual fee of two 46
hundred fifty dollars for such authority. Any company 47
approved by the director of revenue may pay the tax due on 48
any motor vehicle, trailer, boat, or outboard motor as 49
required in section 144.020 at the time of registration 50
thereof or in lieu thereof may pay a sales tax as provided 51
in sections 144.010, 144.020, 144.070 and 144.440. A sales 52
tax shall be charged to and paid by a leasing company which 53
does not exercise the option of paying in accordance with 54
section 144.020, on the amount charged for each rental or 55
lease agreement while the mot or vehicle, trailer, boat, or 56
outboard motor is domiciled in this state. Any motor 57
vehicle, trailer, boat, or outboard motor which is leased as 58
the result of a contract executed in this state shall be 59
presumed to be domiciled in this state. 60
6. Every applicant to be a registered fleet owner as 61
described in subsections 6 to 10 of section 301.032 shall 62
furnish with the application to operate as a registered 63
fleet owner a corporate surety bond or irrevocable letter of 64
credit, as defined in sectio n 400.5-102, issued by any state 65
or federal financial institution in the penal sum of one 66
hundred thousand dollars, on a form approved by the 67 HCS SS SCS SB 398 8
department. The bond or irrevocable letter of credit shall 68
be conditioned upon the registered fleet owner com plying 69
with the provisions of any statutes applicable to registered 70
fleet owners, and the bond shall be an indemnity for any 71
loss sustained by reason of the acts of the person bonded 72
when such acts constitute grounds for the suspension or 73
revocation of the registered fleet owner license. The bond 74
shall be executed in the name of the state of Missouri for 75
the benefit of all aggrieved parties or the irrevocable 76
letter of credit shall name the state of Missouri as the 77
beneficiary; except that, the ag gregate liability of the 78
surety or financial institution to the aggrieved parties 79
shall, in no event, exceed the amount of the bond or 80
irrevocable letter of credit. The proceeds of the bond or 81
irrevocable letter of credit shall be paid upon receipt by 82
the department of a final judgment from a Missouri court of 83
competent jurisdiction against the principal and in favor of 84
an aggrieved party. 85
7. Any corporation may have one or more of its 86
divisions separately apply to the director of revenue for 87
authorization to operate as a leasing company, provided that 88
the corporation: 89
(1) Has filed a written consent with the director 90
authorizing any of its divisions to apply for such authority; 91
(2) Is authorized to do business in Missouri; 92
(3) Has agreed to treat any sale of a motor vehicle, 93
trailer, boat, or outboard motor from one of its divisions 94
to another of its divisions as a sale at retail; 95
(4) Has registered under the fictitious name 96
provisions of sections 417.200 to 417.2 30 each of its 97
divisions doing business in Missouri as a leasing company; 98
and 99 HCS SS SCS SB 398 9
(5) Operates each of its divisions on a basis separate 100
from each of its other divisions. However, when the 101
transfer of a motor vehicle, trailer, boat or outboard motor 102
occurs within a corporation which holds a license to operate 103
as a motor vehicle or boat dealer pursuant to sections 104
301.550 to 301.573 the provisions in subdivision (3) of this 105
subsection shall not apply. 106
8. If the owner of any motor vehicle, tr ailer, boat, 107
or outboard motor desires to charge and collect sales tax as 108
provided in this section, the owner shall make application 109
to the director of revenue for a permit to operate as a 110
motor vehicle, trailer, boat, or outboard motor leasing 111
company. The director of revenue shall promulgate rules and 112
regulations determining the qualifications of such a 113
company, and the method of collection and reporting of sales 114
tax charged and collected. Such regulations shall apply 115
only to owners of motor ve hicles, trailers, boats, or 116
outboard motors, electing to qualify as motor vehicle, 117
trailer, boat, or outboard motor leasing companies under the 118
provisions of subsection 5 of this section, and no motor 119
vehicle renting or leasing, trailer renting or leas ing, or 120
boat or outboard motor renting or leasing company can come 121
under sections 144.010, 144.020, 144.070 and 144.440 unless 122
all motor vehicles, trailers, boats, and outboard motors 123
held for renting and leasing are included. 124
9. Any person, company, or corporation engaged in the 125
business of renting or leasing three thousand five hundred 126
or more motor vehicles which are to be used exclusively for 127
rental or leasing purposes and not for resale, and that has 128
applied to the director of revenue for authority to operate 129
as a leasing company may also operate as a registered fleet 130
owner as prescribed in section 301.032. 131 HCS SS SCS SB 398 10
10. Beginning July 1, 2010, any motor vehicle dealer 132
licensed under section 301.560 engaged in the business of 133
selling motor vehicles or trailers [may] shall apply to the 134
director of revenue for authority to collect and remit the 135
sales tax required under this section on all motor vehicles 136
sold by the motor vehicle dealer. A motor vehicle dealer 137
receiving authority to collec t and remit the tax is subject 138
to all provisions under sections 144.010 to 144.525. Any 139
motor vehicle dealer authorized to collect and remit sales 140
taxes on motor vehicles under this subsection shall be 141
entitled to deduct and retain an amount equal to two percent 142
of the motor vehicle sales tax pursuant to section 144.140. 143
Any amount of the tax collected under this subsection that 144
is retained by a motor vehicle dealer pursuant to section 145
144.140 shall not constitute state revenue. In no event 146
shall revenues from the general revenue fund or any other 147
state fund be utilized to compensate motor vehicle dealers 148
for their role in collecting and remitting sales taxes on 149
motor vehicles. In the event this subsection or any portion 150
thereof is held to v iolate Article IV, Section 30(b) of the 151
Missouri Constitution, no motor vehicle dealer shall be 152
authorized to collect and remit sales taxes on motor 153
vehicles under this section. No motor vehicle dealer shall 154
seek compensation from the state of Missour i or its agencies 155
if a court of competent jurisdiction declares that the 156
retention of two percent of the motor vehicle sales tax is 157
unconstitutional and orders the return of such revenues. 158
11. (1) Every motor vehicle dealer licensed under 159
section 301.560, as soon as technologically possible 160
following the development and maintenance of a modernized, 161
integrated system for the titling of vehicles, issuance and 162
renewal of vehicle registrations, issuance and renewal of 163 HCS SS SCS SB 398 11
driver's licenses and identi fication cards, and perfection 164
and release of liens and encumbrances on vehicles, to be 165
funded by the motor vehicle administration technology fund 166
as created in section 301.558, shall collect and remit the 167
sales tax required under this section on all m otor vehicles 168
that such dealer sells. In collecting and remitting this 169
sales tax, motor vehicle dealers shall be subject to all 170
applicable provisions under sections 144.010 to 144.527. 171
(2) The director of revenue may promulgate all 172
necessary rules and regulations for the administration of 173
this subsection. Any rule or portion of a rule, as that 174
term is defined in section 536.010, that is created under 175
the authority delegated in this subsection shall become 176
effective only if it complies with a nd is subject to all of 177
the provisions of chapter 536 and, if applicable, section 178
536.028. This subsection and chapter 536 are nonseverable 179
and if any of the powers vested with the general assembly 180
pursuant to chapter 536 to review, to delay the effec tive 181
date, or to disapprove and annul a rule are subsequently 182
held unconstitutional, then the grant of rulemaking 183
authority and any rule proposed or adopted after August 28, 184
2023, shall be invalid and void. 185
303.420. As used in sections 303.420 to 303.440, 1
unless the context requires otherwise, the following terms 2
shall mean: 3
(1) "Program", the motor vehicle financial 4
responsibility enforcement and compliance incentive program 5
established under section 303.425; 6
(2) "Qualified agency", the department of revenue, the 7
Missouri state highway patrol, the prosecuting attorney or 8
sheriff's office of any county or city not within a county, 9
the chiefs of police of any city or municipality, or any 10 HCS SS SCS SB 398 12
other authorized law enforce ment agency recognized by the 11
state; 12
(3) "System" or "verification system", the web -based 13
resource established under section 303.430 for online 14
verification of motor vehicle financial responsibility. 15
303.422. 1. There is hereby created in the state 1
treasury the "Motor Vehicle Financial Responsibility 2
Verification and Enforcement Fund", which shall consist of 3
money received by the department of revenue under sections 4
303.420 to 303.440. The state treasurer shall be custodia n 5
of the fund. In accordance with sections 30.170 and 30.180, 6
the state treasurer may approve disbursements. The fund 7
shall be a dedicated fund and money in the fund shall be 8
used solely by the department of revenue for the 9
administration of section s 303.420 to 303.440. 10
2. Notwithstanding the provisions of section 33.080 to 11
the contrary, any moneys remaining in the fund at the end of 12
the biennium shall not revert to the credit of the general 13
revenue fund. 14
3. The state treasurer shall i nvest moneys in the fund 15
in the same manner as other funds are invested. Any 16
interest and moneys earned on such investments shall be 17
credited to the fund. 18
303.425. 1. (1) There is hereby created within the 1
department of revenue t he motor vehicle financial 2
responsibility enforcement and compliance incentive 3
program. The department of revenue may enter into 4
contractual agreements with third -party vendors to 5
facilitate the necessary technology and equipment, 6
maintenance thereof, and associated program management 7
services. 8 HCS SS SCS SB 398 13
(2) The department of revenue or a third -party vendor 9
shall utilize technology to compare vehicle registration 10
information with the financial responsibility information 11
accessible through the system. The department of revenue 12
shall utilize this information to identify motorists who are 13
in violation of the motor vehicle financial responsibility 14
law. The department of revenue may offer offenders under 15
this program the option of pretrial diversion a s an 16
alternative to statutory fines or reinstatement fees 17
prescribed under the motor vehicle financial responsibility 18
law as a method of encouraging compliance and discouraging 19
recidivism. 20
(3) The department of revenue or third -party vendors 21
shall not use any data collected from or technology 22
associated with any automated motor vehicle financial 23
responsibility enforcement system. For purposes of this 24
subdivision, "motor vehicle financial responsibility 25
enforcement system" means a device cons isting of a camera or 26
cameras and vehicle sensor or sensors installed to record 27
motor vehicle financial responsibility violations. 28
(4) All fees paid to or collected by third -party 29
vendors under sections 303.420 to 303.440 may come from 30
violator diversion fees generated by the pretrial diversion 31
option established under this section. 32
2. The department of revenue may authorize law 33
enforcement agencies or third -party vendors to use 34
technology to collect data for the investigation, detection, 35
analysis, and enforcement of the motor vehicle financial 36
responsibility law. 37
3. The department of revenue may authorize traffic 38
enforcement officers, or third -party vendors to administer 39
the processing and issuance of notices of violation, the 40 HCS SS SCS SB 398 14
collection of fees for a violation of the motor vehicle 41
financial responsibility law, or the referral of cases for 42
prosecution, under the program. 43
4. Access to the system shall be restricted to 44
qualified agencies and the third -party vendors with w hich 45
the department of revenue contracts for purposes of the 46
program, provided that any third -party vendor with which a 47
contract is executed to provide necessary technology, 48
equipment, or maintenance for the program shall be 49
authorized as necessary to collaborate for required updates 50
and maintenance of system software. 51
5. For purposes of the program, any data collected and 52
matched to a corresponding vehicle insurance record as 53
verified through the system, and any Missouri vehicle 54
registration database, may be used to identify violations of 55
the motor vehicle financial responsibility law. Such 56
corresponding data shall constitute evidence of the 57
violations. 58
6. Except as otherwise provided in this section, the 59
department of revenue shal l suspend, in accordance with 60
section 303.041, the registration of any motor vehicle that 61
is determined under the program to be in violation of the 62
motor vehicle financial responsibility law. 63
7. The department of revenue shall send to an owner 64
whose vehicle is identified under the program as being in 65
violation of the motor vehicle financial responsibility law 66
a notice that the vehicle's registration may be suspended 67
unless the owner, within thirty days, provides proof of 68
financial responsibili ty for the vehicle or proof, in a form 69
specified by the department of revenue, that the owner has a 70
pending criminal charge for a violation of the motor vehicle 71
financial responsibility law. The notice shall include 72 HCS SS SCS SB 398 15
information on steps an individual may take to obtain proof 73
of financial responsibility and a web address to a page on 74
the department of revenue's website where information on 75
obtaining proof of financial responsibility shall be 76
provided. If proof of financial responsibility or a pendi ng 77
criminal charge is not provided within the time allotted, 78
the department of revenue shall provide a notice of 79
suspension and suspend the vehicle's registration in 80
accordance with section 303.041, or shall send a notice of 81
vehicle registration suspe nsion, clearly specifying the 82
reason and statutory grounds for the suspension and the 83
effective date of the suspension, the right of the vehicle 84
owner to request a hearing, the procedure for requesting a 85
hearing, and the date by which that request for a hearing 86
must be made, as well as informing the owner that the matter 87
will be referred for prosecution if a satisfactory response 88
is not received in the time allotted, informing the owner 89
that the minimum penalty for the violation is three hundred 90
dollars and four license points, and offering the owner 91
participation in a pretrial diversion option to preclude 92
referral for prosecution and registration suspension under 93
sections 303.420 to 303.440. The notice of vehicle 94
registration suspension shall give a period of thirty -three 95
days from mailing for the vehicle owner to respond, and 96
shall be deemed received three days after mailing. If no 97
request for a hearing or agreement to participate in the 98
diversion option is received by the department of r evenue 99
prior to the date provided on the notice of vehicle 100
registration suspension, the director shall suspend the 101
vehicle's registration, effective immediately, and refer the 102
case to the appropriate prosecuting attorney. If an 103
agreement by the vehic le owner to participate in the 104 HCS SS SCS SB 398 16
diversion option is received by the department of revenue 105
prior to the effective date provided on the notice of 106
vehicle registration suspension, then upon payment of a 107
diversion participation fee not to exceed two hundred 108
dollars, agreement to secure proof of financial 109
responsibility within the time provided on the notice of 110
suspension, and agreement that such financial responsibility 111
shall be maintained for a minimum of two years, no points 112
shall be assessed to the v ehicle owner's driver's license 113
under section 302.302 and the department of revenue shall 114
not take further action against the vehicle owner under 115
sections 303.420 to 303.440, subject to compliance with the 116
terms of the pretrial diversion option. The department of 117
revenue shall suspend the vehicle registration of, and shall 118
refer the case to the appropriate prosecuting attorney for 119
prosecution of, participating vehicle owners who violate the 120
terms of the pretrial diversion option. If a request for 121
hearing is received by the department of revenue prior to 122
the effective date provided on the notice of vehicle 123
registration suspension, then for all purposes other than 124
eligibility for participation in the diversion option, the 125
effective date of the s uspension shall be stayed until a 126
final order is issued following the hearing. The department 127
of revenue shall suspend the registration of vehicles 128
determined under the final order to have violated the motor 129
vehicle financial responsibility law, and s hall refer the 130
case to the appropriate prosecuting attorney for 131
prosecution. Notices under this subsection shall be mailed 132
to the vehicle owner at the last known address shown on the 133
department of revenue's records. The department of revenue 134
or its third-party vendor shall issue receipts for the 135
collection of diversion participation fees. Except as 136 HCS SS SCS SB 398 17
otherwise provided in subsection 1 of this section, all such 137
fees shall be deposited into the motor vehicle financial 138
responsibility verification and enforcement fund established 139
in section 303.422. A vehicle owner whose registration has 140
been suspended under sections 303.420 to 303.440 may obtain 141
reinstatement of the registration upon providing proof of 142
financial responsibility and payment to the department of 143
revenue of a nonrefundable reinstatement fee equal to the 144
fee that would be applicable under subsection 2 of section 145
303.042 if the registration had been suspended under section 146
303.041. 147
8. Data collected or retained under the progr am shall 148
not be used by any entity for purposes other than 149
enforcement of the motor vehicle financial responsibility 150
law. Data collected and stored by law enforcement under the 151
program shall be considered evidence if noncompliance with 152
the motor vehicle financial responsibility law is 153
confirmed. The evidence, and an affidavit stating that the 154
evidence and system have identified a particular vehicle as 155
being in violation of the motor vehicle financial 156
responsibility law, shall constitute probable cause for 157
prosecution and shall be forwarded in accordance with 158
subsection 7 of this section to the appropriate prosecuting 159
attorney. 160
9. Owners of vehicles identified under the program as 161
being in violation of the motor vehicle financial 162
responsibility law shall be provided with options for 163
disputing such claims which do not require appearance at any 164
state or local court of law, or administrative facility. 165
Any person who presents timely proof that he or she was in 166
compliance with the motor v ehicle financial responsibility 167
law at the time of the alleged violation shall be entitled 168 HCS SS SCS SB 398 18
to dismissal of the charge with no assessment of fees or 169
fines. Proof provided by a vehicle owner to the department 170
of revenue that the vehicle was in complianc e at the time of 171
the suspected violation of the motor vehicle financial 172
responsibility law shall be recorded in the system 173
established by the department of revenue under section 174
303.430. 175
10. The collection of data pursuant to this section 176
shall be done in a manner that prohibits any bias towards a 177
specific community, race, gender, or socioeconomic status of 178
vehicle owner. 179
11. Law enforcement agencies, third -party vendors, or 180
other entities authorized to operate under the program shall 181
not sell data collected or retained under the program for 182
any purpose or share it for any purpose not expressly 183
authorized in this section. All data shall be secured and 184
any third-party vendor or other entity authorized to operate 185
under the program may be liable for any data security breach. 186
12. The department of revenue shall not take action 187
under sections 303.420 to 303.440 against vehicles 188
registered as fleet vehicles under section 301.032, or 189
against vehicles known to the department of reve nue to be 190
insured under a policy of commercial auto coverage, as such 191
term is defined in subdivision (10) of subsection 2 of 192
section 303.430. 193
13. Following one year after the implementation of the 194
program, and every year thereafter, the departmen t of 195
revenue shall provide a report to the president pro tempore 196
of the senate, the speaker of the house of representatives, 197
the chairs of the house and senate committees with 198
jurisdictions over insurance or transportation matters, and 199
the chairs of the house budget and senate appropriations 200 HCS SS SCS SB 398 19
committees. The report shall include an evaluation of 201
program operations, information as to the costs of the 202
program incurred by the department of revenue, insurers, and 203
the public, information as to the effec tiveness of the 204
program in reducing the number of uninsured motor vehicles, 205
and anonymized demographic information including the race 206
and zip code of vehicle owners identified under the program 207
as being in violation of the motor vehicle financial 208
responsibility law, and may include any additional 209
information and recommendations for improvement of the 210
program deemed appropriate by the department of revenue. 211
The department of revenue may, by rule, require the state, 212
counties, and municipalities to p rovide information in order 213
to complete the report. 214
14. The department of revenue may promulgate rules as 215
necessary for the implementation of this section. Any rule 216
or portion of a rule, as that term is defined in section 217
536.010, that is create d under the authority delegated in 218
this section shall become effective only if it complies with 219
and is subject to all of the provisions of chapter 536 and, 220
if applicable, section 536.028. This section and chapter 221
536 are nonseverable and if any of the powers vested with 222
the general assembly pursuant to chapter 536 to review, to 223
delay the effective date, or to disapprove and annul a rule 224
are subsequently held unconstitutional, then the grant of 225
rulemaking authority and any rule proposed or adopted a fter 226
August 28, 2023, shall be invalid and void. 227
303.430. 1. The department of revenue shall establish 1
and maintain a web-based system for the verification of 2
motor vehicle financial responsibility, shall provide access 3
to insurance reporting data and vehicle registration and 4
financial responsibility data, and shall require motor 5 HCS SS SCS SB 398 20
vehicle insurers to establish functionality for the 6
verification system, as provided in sections 303.420 to 7
303.440. The verification system, includin g any exceptions 8
as provided for in sections 303.420 to 303.440 or in the 9
implementation guide developed to support the program, shall 10
supersede any existing verification system, and shall be the 11
sole system used for the purpose of verifying financial 12
responsibility required under this chapter. 13
2. The system established pursuant to subsection 1 of 14
this section shall be subject to the following: 15
(1) The verification system shall transmit requests to 16
insurers for verification of motor vehic le insurance 17
coverage via web services established by the insurers 18
through the internet in compliance with the specifications 19
and standards of the Insurance Industry Committee on Motor 20
Vehicle Administration, or "IICMVA". Insurance company 21
systems shall respond to each request with a prescribed 22
response upon evaluation of the data provided in the 23
request. The system shall include appropriate protections 24
to secure its data against unauthorized access, and the 25
department of revenue shall maintain a historical record of 26
the system data for a period of no more than twelve months 27
from the date of all requests and responses. The system 28
shall be used for verification of the financial 29
responsibility required under this chapter. The system 30
shall be accessible to authorized personnel of the 31
department of revenue, the courts, law enforcement 32
personnel, and other entities authorized by the state as 33
permitted by state or federal privacy laws, and it shall be 34
interfaced, wherever appropriate, with exi sting state 35
systems. The system shall include information enabling the 36
department of revenue to submit inquiries to insurers 37 HCS SS SCS SB 398 21
regarding motor vehicle insurance which are consistent with 38
insurance industry and IICMVA recommendations, 39
specifications, and standards by using the following data 40
elements for greater matching accuracy: insurer National 41
Association of Insurance Commissioners, or "NAIC", company 42
code; vehicle identification number; policy number; 43
verification date; or as otherwise describe d in the 44
specifications and standards of the IICMVA. The department 45
of revenue shall promulgate rules to offer insurers who 46
insure one thousand or fewer vehicles within this state an 47
alternative method for verifying motor vehicle insurance 48
coverage in lieu of web services, and to provide for the 49
verification of financial responsibility when financial 50
responsibility is proven to the department to be maintained 51
by means other than a policy of motor vehicle insurance. 52
Insurers shall not be required to verify insurance coverage 53
for vehicles registered in other jurisdictions; 54
(2) The verification system shall respond to each 55
request within a time period established by the department 56
of revenue. An insurer's system shall respond within the 57
time period prescribed by the IICMVA's specifications and 58
standards. Insurer systems shall be permitted reasonable 59
system downtime for maintenance and other work with advance 60
notice to the department of revenue. Insurers shall not be 61
subject to enforcement fees or other sanctions under such 62
circumstances, or when systems are not available because of 63
emergency, outside attack, or other unexpected outages not 64
planned by the insurer and reasonably outside its control; 65
(3) The system shall assist i n identifying violations 66
of the motor vehicle financial responsibility law in the 67
most effective way possible. Responses to individual 68
insurance verification requests shall have no bearing on 69 HCS SS SCS SB 398 22
whether insurance coverage is determined to be in force at 70
the time of a claim. Claims shall be individually 71
investigated to determine the existence of coverage. 72
Nothing in sections 303.420 to 303.440 shall prohibit the 73
department of revenue from contracting with a third -party 74
vendor or vendors who have suc cessfully implemented similar 75
systems in other states to assist in establishing and 76
maintaining this verification system; 77
(4) The department of revenue shall consult with 78
representatives of the insurance industry and may consult 79
with third-party vendors to determine the objectives, 80
details, and deadlines related to the system by 81
establishment of an advisory council. The advisory council 82
shall consist of voting members comprised of: 83
(a) The director of the department of commerce and 84
insurance, or his or her designee, who shall serve as chair; 85
(b) Two representatives of the department of revenue, 86
to be appointed by the director of the department of revenue; 87
(c) One representative of the department of commerce 88
and insurance, to be appointed by the director of the 89
department of commerce and insurance; 90
(d) Three representatives of insurance companies, to 91
be appointed by the director of the department of commerce 92
and insurance; 93
(e) One representative from the Missou ri Insurance 94
Coalition; 95
(f) One representative chosen by the National 96
Association of Mutual Insurance Companies; 97
(g) One representative chosen by the American Property 98
and Casualty Insurance Association; 99
(h) One representative chosen b y the Missouri 100
Independent Agents Association; and 101 HCS SS SCS SB 398 23
(i) Such other representatives as may be appointed by 102
the director of the department of commerce and insurance; 103
(5) The department of revenue shall publish for 104
comment, and then issue, a det ailed implementation guide for 105
its online verification system; 106
(6) The department of revenue and its third -party 107
vendors, if any, shall each maintain a contact person for 108
insurers during the establishment, implementation, and 109
operation of the sys tem; 110
(7) If the department of revenue has reason to believe 111
a vehicle owner does not maintain financial responsibility 112
as required under this chapter, it may also request an 113
insurer to verify the existence of such financial 114
responsibility in a fo rm approved by the department of 115
revenue. In addition, insurers shall cooperate with the 116
department of revenue in establishing and maintaining the 117
verification system established under this section, and 118
shall provide motor vehicle insurance policy sta tus 119
information as provided in the rules promulgated by the 120
department of revenue; 121
(8) Every property and casualty insurance company 122
licensed to issue motor vehicle insurance or authorized to 123
do business in this state shall comply with sections 3 03.420 124
to 303.440, and corresponding rules promulgated by the 125
department of revenue, for the verification of such 126
insurance for every vehicle insured by that company in this 127
state; 128
(9) Insurers shall maintain a historical record of 129
insurance data for a minimum period of six months from the 130
date of policy inception or policy change for the purpose of 131
historical verification inquiries; 132 HCS SS SCS SB 398 24
(10) For the purposes of this section, "commercial 133
auto coverage" shall mean any coverage provided to an 134
insured, regardless of number of vehicles or entities 135
covered, under a commercial coverage form and rated from a 136
commercial manual approved by the department of commerce and 137
insurance. Sections 303.420 to 303.440 shall not apply to 138
vehicles insured under commercial auto coverage; however, 139
insurers of such vehicles may participate on a voluntary 140
basis, and vehicle owners may provide proof at or subsequent 141
to the time of vehicle registration that a vehicle is 142
insured under commercial auto coverage, which the department 143
of revenue shall record in the system; 144
(11) Insurers shall provide commercial or fleet 145
automobile customers with evidence reflecting that the 146
vehicle is insured under a commercial or fleet automobile 147
liability policy. Sufficient evidence shall include an 148
insurance identification card clearly marked with a suitable 149
identifier such as "commercial auto insurance identification 150
card", "fleet auto insurance identification card", or other 151
clear identification that the vehicle i s insured under a 152
fleet or commercial policy; 153
(12) Notwithstanding any provision of sections 303.420 154
to 303.440, insurers shall be immune from civil and 155
administrative liability for good faith efforts to comply 156
with the terms of sections 303.420 to 303.440; 157
(13) Nothing in this section shall prohibit an insurer 158
from using the services of a third -party vendor for 159
facilitating the verification system required under sections 160
303.420 to 303.440. 161
3. The department of revenue shall promul gate rules as 162
necessary for the implementation of sections 303.420 to 163
303.440. Any rule or portion of a rule, as that term is 164 HCS SS SCS SB 398 25
defined in section 536.010, that is created under the 165
authority delegated in this section shall become effective 166
only if it complies with and is subject to all of the 167
provisions of chapter 536 and, if applicable, section 168
536.028. This section and chapter 536 are nonseverable and 169
if any of the powers vested with the general assembly 170
pursuant to chapter 536 to review, to del ay the effective 171
date, or to disapprove and annul a rule are subsequently 172
held unconstitutional, then the grant of rulemaking 173
authority and any rule proposed or adopted after August 28, 174
2023, shall be invalid and void. 175
303.440. The verification system established under 1
section 303.430 shall be installed and fully operational on 2
January 1, 2025, following an appropriate testing or pilot 3
period of not less than nine months. Until the successful 4
completion of the testing or pilot p eriod in the judgment of 5
the director of the department of revenue, no enforcement 6
action shall be taken based on the system, including but not 7
limited to action taken under the program established under 8
section 303.425. 9
304.822. 1. This section shall be known as the 1
"Siddens Bening Hands Free Law". 2
2. As used in this section, the following terms shall 3
mean: 4
(1) "Commercial motor vehicle", the same meaning as is 5
ascribed to such term in section 302.700; 6
(2) "Electronic communication device", a portable 7
device that is used to initiate, receive, store, or view 8
communication, information, images, or data electronically; 9
(a) Such term shall include but not be limited to: 10
cellular telephones; portable telepho nes; text-messaging 11
devices; personal digital assistants; pagers; broadband 12 HCS SS SCS SB 398 26
personal communication devices; electronic devices with 13
mobile data access; computers, including but not limited to 14
tablets, laptops, notebook computers, and electronic or 15
video game systems; devices capable of transmitting, 16
retrieving, or displaying a video, movie, broadcast 17
television image, or visual image; and any substantially 18
similar device that is used to initiate or receive 19
communication or store and review informat ion, videos, 20
images, or data; 21
(b) Such term shall not include: radios; citizens band 22
radios; commercial two -way radio communication devices or 23
their functional equivalent; subscription -based emergency 24
communication devices; prescribed medical dev ices; amateur 25
or ham radio devices; or global positioning system 26
receivers, security, navigation, communication, or remote 27
diagnostics systems permanently affixed to the vehicle; 28
(3) "Highway", the same meaning as is ascribed to such 29
term in section 302.010; 30
(4) "Noncommercial motor vehicle", the same meaning as 31
is ascribed to such term in section 302.700; 32
(5) "Operating", the actual physical control of a 33
vehicle; 34
(6) "Operator", a person who is in actual physical 35
control; 36
(7) "School bus", the same meaning as is ascribed to 37
such term in section 302.700; 38
(8) "Voice-operated or hands-free feature or 39
function", a feature or function, whether internally 40
installed or externally attached or connected to an 41
electronic communication device, that allows a person to use 42
an electronic communication device without the use of either 43 HCS SS SCS SB 398 27
hand, except to activate, deactivate, or initiate the 44
feature or function with a single touch or single swipe. 45
3. Except as otherwise p rovided in this section, while 46
operating a noncommercial motor vehicle or commercial motor 47
vehicle on any highway or property open to the public for 48
vehicular traffic in this state, no operator shall: 49
(1) Physically hold or support, with any part of his 50
or her body, an electronic communication device; 51
(2) Write, send, or read any text -based communication, 52
including but not limited to a text message, instant 53
message, email, or social media interaction on an electronic 54
communication device. This subdivision shall not apply to 55
operators of a noncommercial motor vehicle using a voice - 56
operated or hands-free feature or function that converts the 57
message to be sent as a message in a written form, provided 58
that the operator does not divert hi s or her attention from 59
lawful operation of the vehicle; 60
(3) Make any communication on an electronic 61
communication device, including a phone call, voice message, 62
or one-way voice communication; provided however, that this 63
prohibition shall not ap ply to use of a voice -operated or 64
hands-free feature or function; 65
(4) Engage in any form of electronic data retrieval or 66
electronic data communication on an electronic communication 67
device; 68
(5) Manually enter letters, numbers, or symbols int o 69
any website, search engine, or application on an electronic 70
communication device; 71
(6) Watch a video or movie on an electronic 72
communication device, other than watching data related to 73
the navigation of the vehicle; or 74 HCS SS SCS SB 398 28
(7) Record, post, send, or broadcast video, including 75
a video conference, on an electronic communication device, 76
provided that this prohibition shall not apply to electronic 77
devices used for the sole purpose of continually monitoring 78
operator behavior by recording or broa dcasting video within 79
or outside the vehicle. 80
4. The operator of a school bus shall not use or 81
operate an electronic communication device while the school 82
bus is in motion unless the device is being used in a 83
similar manner as a two -way radio to allow live 84
communication between the operator and school officials or 85
public safety officials. The operator of a school bus shall 86
not use or operate an electronic communication device or a 87
two-way radio while loading or unloading passengers. 88
5. This section shall not apply to: 89
(1) Law enforcement officers or operators of emergency 90
vehicles, as such term is defined in section 304.022, who 91
are both using the electronic communication device and 92
operating the emergency vehicle in the perform ance of their 93
official duties; 94
(2) Operators using an electronic communication device 95
for the sole purpose of reporting an emergency situation and 96
continuing communication with emergency personnel during the 97
emergency situation; 98
(3) Operators of noncommercial motor vehicles using an 99
electronic communication device solely through a voice - 100
operated or hands-free feature or function; 101
(4) Operators of commercial motor vehicles using a 102
voice-operated or hands-free feature or function, as long as 103
the operator remains seated and is restrained by a seat belt 104
as required by law; 105 HCS SS SCS SB 398 29
(5) Operators of commercial motor vehicles reading a 106
message displayed on a permanently installed communication 107
device designed for a commercial motor vehicl e with a screen 108
that does not exceed ten inches tall by ten inches wide in 109
size; 110
(6) Operators using electronic communication devices 111
while the vehicle is lawfully stopped or parked; 112
(7) Commercial motor vehicles that are responding to a 113
request for roadside assistance, when such response is 114
conducted by a motor club as defined in section 385.450 or a 115
towing company as defined in section 304.001; 116
(8) The use of an electronic communication device to 117
relay information between a transi t or for-hire vehicle 118
operator and that operator's dispatcher, provided the device 119
is mounted or affixed to the vehicle; 120
(9) The use of an electronic communication device to 121
access or view a map for navigational purposes; 122
(10) The use of an electronic communication device to 123
access or listen to an audio broadcast or digital audio 124
recording; or 125
(11) The use of an electronic communication device to 126
relay information through a transportation network company's 127
digital network to a trans portation network company driver, 128
provided the device is mounted or affixed to the vehicle. 129
6. Except as otherwise provided in this subsection, 130
violation of this section shall be an infraction. Penalties 131
for violations of this section shall be as provided in this 132
subsection. Prior convictions shall be pleaded and proven 133
in the same manner as required under section 558.021. 134
(1) For a conviction under this section where there is 135
no prior conviction under this section within the preceding 136 HCS SS SCS SB 398 30
twenty-four months, the court shall impose a fine of up to 137
one hundred fifty dollars. 138
(2) For a conviction under this section where there is 139
one prior conviction under this section within the preceding 140
twenty-four months, the court shall impose a fine of up to 141
two hundred fifty dollars. 142
(3) For a conviction under this section where there 143
are two or more prior convictions under this section in the 144
preceding twenty-four months, the court shall impose a fine 145
of up to five hundred dollars. 146
(4) For a conviction under this section where the 147
violation occurred in a work zone when workers are present, 148
as such terms are defined in section 304.580, or for a 149
conviction under this section where the violation occurred 150
in an area designated as a school zone and marked in any way 151
that would alert a reasonably prudent operator to the 152
presence of the school zone, the court shall impose a fine 153
of up to five hundred dollars. 154
(5) A violation of this section that is the proximate 155
cause of damage to property in excess of five thousand 156
dollars shall be a class D misdemeanor. 157
(6) A violation of this section that is the proximate 158
cause of serious physical injury to another person shall be 159
a class B misdemeanor. 160
(7) A violation of this section that is the proximate 161
cause of the death of another person shall be a class D 162
felony. 163
(8) A violation of this section while operating a 164
commercial motor vehicle shall be deemed a serious traffic 165
violation, as such term is defined in s ection 302.700, for 166
purposes of commercial driver's license disqualification 167
under section 302.755. 168 HCS SS SCS SB 398 31
7. A law enforcement officer who stops a noncommercial 169
motor vehicle for a violation of this section shall inform 170
the operator of the operator's r ight to decline a search of 171
their electronic communication device. No warrant shall be 172
issued to confiscate or access an electronic communication 173
device based on a violation of this section unless the 174
violation results in serious bodily injury or deat h. 175
8. A violation of this section shall not be used to 176
establish probable cause for any other violation. 177
9. The provisions of this section shall be subject to 178
the reporting requirements set forth in section 590.650. 179
10. The state preempts the field of regulating the use 180
of electronic communication devices by the operators of 181
commercial and noncommercial motor vehicles. The provisions 182
of this section shall supercede any local laws, ordinances, 183
orders, rules, or regulations enacted by a county, 184
municipality, or other political subdivision to regulate the 185
use of electronic communication devices by the operator of a 186
commercial or noncommercial motor vehicle. 187
11. Prior to January 1, 2025, a law enforcement 188
officer who stops a no ncommercial motor vehicle for a 189
violation of this section shall not issue a citation for a 190
violation of this section and shall only issue a warning. 191
12. No person shall be stopped, inspected, or detained 192
solely for a violation of this section. 193
407.812. 1. Any franchisor obtaining or renewing its 1
license after August 28, 2010, shall be bound by the 2
provisions of the MVFP act and shall comply with it, and no 3
franchise agreement made, entered, modified, or renewed 4
after August 28, 2010, shall avoid the requirements of the 5
MVFP act, or violate its provisions, and no franchise 6
agreement shall be performed after the date the franchisor's 7 HCS SS SCS SB 398 32
license is issued or renewed in such a manner that the 8
franchisor avoids or otherwise does not conform or comply 9
with the requirements of the MVFP act. Notwithstanding the 10
effective date of any franchise agreement, all franchisor 11
licenses and renewals thereof are issued subject to all 12
provisions of the MVFP act and chapter 301 and any 13
regulations in effect upon the date of issuance, as well as 14
all future provisions of the MVFP act and chapter 301 and 15
any regulations which may become effective during the term 16
of the license. 17
2. The provisions of the MVFP act shall apply to each 18
franchise that a franchisor, manufacturer, importer, or 19
distributor has with a franchisee and all agreements between 20
a franchisee and a common entity or any person that is 21
controlled by a franchisor. 22
3. No dealer or manufacturer licensed in this state 23
under sections 301.550 to 301.573 shall allow any subsidiary 24
or related entity to engage in the business of selling motor 25
vehicles, as defined in section 301.010, to retail consumers 26
in this state, except as otherwise permitted by law. Any 27
dealer or manufacturer licensed in this state shall have 28
standing to enforce the provisions of this subsection 29
provided that a franchise relationship exists between the 30
parties. 31
4. No entity controlling, controlled by, or sharing a 32
common parent entity or sibling entity with a licensed 33
dealer or manufacturer shall engage in the business of 34
selling motor vehicles to retail consumers in this state, 35
except as permitted by sections 301.550 to 301.575 and the 36
MVFP act. Any dealer or manufacturer lice nsed in this state 37
shall have standing to enforce the provisions of this 38
subsection. 39 HCS SS SCS SB 398 33
5. No dealer or manufacturer not licensed in this 40
state under sections 301.550 to 301.575 shall engage in the 41
business of selling motor vehicles to retail consum ers in 42
this state, except as permitted by sections 301.550 to 43
301.575 and the MVFP act. Any dealer or manufacturer in 44
this state shall have standing to enforce the provisions of 45
this subsection, provided that a franchise relationship 46
exists between the parties. 47
6. Notwithstanding any provision of sections 301.550 48
to 301.575 to the contrary, a manufacturer, importer, or 49
distributor may engage in the business of selling motor 50
vehicles to retail consumers in this state from a dealership 51
if the manufacturer, importer, or distributor owned the 52
dealership and initially submitted a dealer license 53
application to the Missouri department of revenue on or 54
before August 28, 2023, provided that the license is 55
subsequently granted, and the ownership or controlling 56
interest of such dealership is not transferred, sold, or 57
conveyed to another person or entity required to be licensed 58
under this chapter. 59
407.828. 1. Notwithstanding any provision in a 1
franchise to the contrary, each f ranchisor shall specify in 2
writing to each of its franchisees in this state the 3
franchisee's obligations for preparation, delivery, and 4
warranty service on its products. The franchisor shall 5
fairly and reasonably compensate the franchisee for 6
preparation, delivery, and warranty service required of the 7
franchisee by the franchisor. The franchisor shall provide 8
the franchisee with the schedule of compensation to be paid 9
to the franchisee for parts, labor, and service, and the 10
time allowance for the performance of the labor and service 11 HCS SS SCS SB 398 34
for the franchisee's obligations for preparation, delivery, 12
and warranty service. 13
2. The schedule of compensation shall include 14
reasonable compensation for diagnostic work, as well as 15
repair service and labor for the franchisee to meet its 16
obligations for preparation, delivery, and warranty service. 17
The schedule shall also include reasonable and adequate 18
time allowances for the diagnosis and performance of 19
preparation, delivery, and warranty service to be performed 20
in a careful and professional manner. In the determination 21
of what constitutes reasonable compensation for labor and 22
service pursuant to this section, the principal factor to be 23
given consideration shall be the prevailing wage rates being 24
charged for similar labor and service by [franchisees in the 25
market in which the franchisee is doing business, and in no 26
event shall the compensation of a franchisee for labor and 27
service be less than the rates charged by ] the franchisee 28
for similar labor and service to retail customers for 29
nonwarranty labor and service [, provided that such rates are 30
reasonable]. The primary factor in determining [a fair and] 31
reasonable compensation for parts under this section shall 32
be the [prevailing amount charg ed for similar parts by other 33
same line-make franchisees in the market in which the 34
franchisee is doing business and the fair and reasonable 35
compensation for parts shall not be less than the ] amount 36
charged by the franchisee for similar parts to retail 37
customers for nonwarranty parts [, provided that such rates 38
are reasonable. If another same line -make franchisee is not 39
available within the market, then the prevailing amount 40
charged for similar parts by other franchisees in the market 41
shall be used as the primary factor ]. 42 HCS SS SCS SB 398 35
3. A franchisor shall perform all warranty 43
obligations, including recall notices; include in written 44
notices of franchisor recalls to new motor vehicle owners 45
and franchisees the expected date by which necessary parts 46
and equipment will be available to franchisees for the 47
correction of the defects; and [reasonably] compensate any 48
of the franchisees in this state for repairs required by the 49
recall. [Reasonable] Compensation for parts [,] and labor[, 50
and service] for recall repairs shall be determined under 51
subsection 2 of this section. 52
4. No franchisor shall require a franchisee to submit 53
a claim authorized under this section sooner than thirty 54
days after the franchisee completes the preparation, 55
delivery, or warranty service authorizing the claim for 56
preparation, delivery, or warranty service. All claims made 57
by a franchisee under this section shall be paid within 58
thirty days after their approval. All claims shall be 59
either approved or disapproved by the franchisor within 60
thirty days after their receipt on a proper form generally 61
used by the franchisor and containing the usually required 62
information therein. Any claims not specifically 63
disapproved in writing within thirty days after the receipt 64
of the form shall be considered to be approved and payment 65
shall be made within fifteen days thereafter. A franchisee 66
shall not be required to maintain defective parts for more 67
than thirty days after submission of a claim. 68
5. A franchisor shall compen sate the franchisee for 69
franchisor-sponsored sales or service promotion events, 70
including but not limited to, rebates, programs, or 71
activities in accordance with established written guidelines 72
for such events, programs, or activities, which guidelines 73
shall be provided to each franchisee. 74 HCS SS SCS SB 398 36
6. No franchisor shall require a franchisee to submit 75
a claim authorized under subsection 5 of this section sooner 76
than thirty days after the franchisee becomes eligible to 77
submit the claim. All claims made by a franchisee pursuant 78
to subsection 5 of this section for promotion events, 79
including but not limited to rebates, programs, or 80
activities shall be paid within ten days after their 81
approval. All claims shall be either approved or 82
disapproved by the franchisor within thirty days after their 83
receipt on a proper form generally used by the franchisor 84
and containing the usually required information therein. 85
Any claim not specifically disapproved in writing within 86
thirty days after the receipt of thi s form shall be 87
considered to be approved and payment shall be made within 88
[ten] fifteen days. 89
7. In calculating the retail rate customarily charged 90
by the franchisee for parts, service, and labor, the 91
following work shall not be included in the calculation: 92
(1) Repairs for franchisor, manufacturer, or 93
distributor special events, specials, or promotional 94
discounts for retail customer repairs; 95
(2) Parts sold at wholesale; 96
(3) Engine assemblies and transmission assemblies; 97
(4) Routine maintenance not covered under any retail 98
customer warranty, such as fluids, filters, and belts not 99
provided in the course of repairs; 100
(5) Nuts, bolts, fasteners, and similar items that do 101
not have an individual part number; 102
(6) Tires; and 103
(7) Vehicle reconditioning. 104
8. If a franchisor, manufacturer, importer, or 105
distributor furnishes a part or component to a franchisee, 106 HCS SS SCS SB 398 37
at no cost, to use in performing repairs under a recall, 107
campaign service action, or warranty rep air, the franchisor 108
shall compensate the franchisee for the part or component in 109
the same manner as warranty parts compensation under this 110
section by compensating the franchisee at the average markup 111
on the cost for the part or component as listed in t he price 112
schedule of the franchisor, manufacturer, importer, or 113
distributor, less the cost for the part or component. This 114
subsection shall not apply to entire engine assemblies, 115
propulsion engine assemblies, including electric vehicle 116
batteries, or entire transmission assemblies. 117
9. A franchisor shall not require a franchisee to 118
establish the retail rate customarily charged by the 119
franchisee for parts, service, or labor by an unduly 120
burdensome or time-consuming method or by requiring 121
information that is unduly burdensome or time consuming to 122
provide, including, but not limited to, part -by-part or 123
transaction-by-transaction calculations. A franchisee shall 124
not request a franchisor to approve a different labor rate 125
or parts rate more than twice in one calendar year. 126
10. If a franchisee submits any claim under this 127
section to a franchisor that is incomplete, inaccurate, or 128
lacking any information usually required by the franchisor, 129
then the franchisor shall promptly notify the fran chisee, 130
and the time limit to submit the claim shall be extended for 131
a reasonable length of time, not less than five business 132
days following notice by the franchisor to the franchisee, 133
for the franchisee to provide the complete, accurate, or 134
lacking information to the franchisor. 135
11. (1) A franchisor may only audit warranty, sales, 136
or incentive claims and charge -back to the franchisee 137
unsubstantiated claims for a period of twelve months 138 HCS SS SCS SB 398 38
following payment, subject to all of the provisions of t his 139
section. Furthermore, if the franchisor has good cause to 140
believe that a franchisee has submitted fraudulent claims, 141
then the franchisor may only audit suspected fraudulent 142
warranty, sales, or incentive claims and charge -back to the 143
franchisee fraudulent claims for a period of two years 144
following payment, subject to all provisions of this section. 145
(2) A franchisor shall not require documentation for 146
warranty, sales, or incentive claims more than twelve months 147
after the claim was paid. 148
(3) Prior to requiring any charge -back, reimbursement, 149
or credit against a future transaction arising out of an 150
audit, the franchisor shall submit written notice to the 151
franchisee along with a copy of its audit and the detailed 152
reason for each inten ded charge-back, reimbursement, or 153
credit. 154
12. A franchisee may file a complaint with the 155
administrative hearing commission pursuant to section 156
407.822 within [thirty] sixty days after receipt of any 157
[such] written notice [challenging such acti on] by a 158
franchisor of any adverse decision on any claim for 159
reimbursement submitted pursuant to this section, including, 160
but not limited to, specific claims for reimbursement in 161
individual warranty repair transactions, and requests for an 162
increase in labor or parts rate. If a complaint is filed 163
within the [thirty] sixty days, then the [charge-back, 164
reimbursement, or credit ] denial or reduction of 165
reimbursement, denial of a request for an increase in labor 166
or parts rate, charge -back, or other determination by a 167
franchisor which is adverse to a franchisee shall be stayed 168
pending a hearing and determination of the matter under 169
section 407.822. The franchisor shall file an answer to the 170 HCS SS SCS SB 398 39
complaint within thirty days after service of the 171
complaint. If, following a hearing which shall be held 172
within sixty days following service of the franchisor's 173
answer, the administrative hearing commission determines 174
that [any portion of the charge -back, reimbursement, or 175
credit is improper, then that portio n of the charge-back, 176
reimbursement, or credit shall be void and not allowed ] a 177
franchisor has violated any requirements of this section, 178
then the denial or reduction of reimbursement, denial of a 179
request for an increase in labor or parts rate, or char ge- 180
back shall be void and the franchisor shall, within fifteen 181
days of the commission's order, fairly compensate the 182
franchisee as required by the provisions of this section. 183
Section 407.835 shall apply to proceedings pursuant to this 184
section. 185
407.2020. For purposes of sections 407.2020 to 1
407.2090, the following terms mean: 2
(1) "Commercial transaction", a transaction involving 3
a motor vehicle in which the motor vehicle will primarily be 4
used for business purposes r ather than personal purposes; 5
(2) "Consumer", an individual purchaser of a motor 6
vehicle or a borrower under a finance agreement. The term 7
"consumer" includes any borrower, as defined in section 8
407.2030, or contract holder, as defined in section 9
407.2060, as applicable; 10
(3) "Finance agreement", a loan, retail installment 11
sales contract, or lease for the purchase, refinancing, or 12
lease of a motor vehicle; 13
(4) "Free-look period", a period of time from the 14
effective date of the motor vehicle financial protection 15
product until the date the motor vehicle financial 16
protection product may be cancelled without penalty, fees, 17 HCS SS SCS SB 398 40
or costs. This period of time shall not be shorter than 18
thirty days; 19
(5) "Insurer", an insurance company licensed, 20
registered, or otherwise authorized to issue contractual 21
liability insurance under the insurance laws of this state; 22
(6) "Motor vehicle", any self -propelled or towed 23
vehicle designed for personal or commercial use including, 24
but not limited to, automobiles, trucks, motorcycles, 25
recreational vehicles, all -terrain vehicles, snowmobiles, 26
campers, boats, personal watercraft, and related trailers; 27
(7) "Motor vehicle financial protection product", an 28
agreement that protects a consumer 's financial interest in 29
his or her current or future motor vehicle. The term "motor 30
vehicle financial protection product" includes any debt 31
waiver, as defined in section 407.2030, and any vehicle 32
value protection agreement, as defined in section 407. 2060; 33
(8) "Person", an individual, company, association, 34
organization, partnership, business trust, or corporation, 35
and every form of legal entity. 36
407.2025. 1. Motor vehicle financial protection 1
products may be offered, sold, or given to consumers in this 2
state in compliance with sections 407.2020 to 407.2090. 3
2. Any amount charged or financed for a motor vehicle 4
financial protection product shall be separately stated and 5
shall not be considered a finance charge or in terest. 6
3. Any extension of credit, terms of credit, or terms 7
of the related motor vehicle sale or lease shall not be 8
conditioned upon the consumer's payment for or financing of 9
any charge for a motor vehicle financial protection product, 10
except that motor vehicle financial protection products may 11
be discounted or given at no charge in connection with the 12
purchase of other non -credit-related goods or services. 13 HCS SS SCS SB 398 41
407.2030. For purposes of sections 407.2030 to 1
407.2055, the following terms mean: 2
(1) "Administrator", any person, other than an insurer 3
or creditor, who performs administrative or operational 4
functions for debt waiver programs; 5
(2) "Borrower", a debtor or retail buyer or lessee 6
under a finance agreement ; 7
(3) "Creditor": 8
(a) The lender in a loan or credit transaction; 9
(b) The lessor in a lease transaction; 10
(c) Any retail seller of motor vehicles; 11
(d) The seller in commercial retail installment 12
transactions; or 13
(e) The assignee of any person described in paragraphs 14
(a) to (d) of this subdivision to whom the credit obligation 15
is payable; 16
(4) "Debt waiver", any guaranteed asset protection 17
waiver or excess wear and use waiver; 18
(5) "Excess wear and use waiver" , a contractual 19
agreement in which a creditor agrees, with or without a 20
separate charge, to cancel or waive all or part of amounts 21
that may become due under a borrower's lease agreement as a 22
result of excessive wear and use of a motor vehicle, which 23
agreement shall be part of, or a separate addendum to, the 24
lease agreement. Excess wear and use waivers may also 25
cancel or waive amounts due for excess mileage; 26
(6) "Guaranteed asset protection waiver", a 27
contractual agreement in which a creditor agrees, with or 28
without a separate charge, to cancel or waive all or part of 29
amounts due on a borrower's finance agreement in the event 30
of a total physical damage loss or unrecovered theft of the 31
motor vehicle, which agreement shall be part of, or a 32 HCS SS SCS SB 398 42
separate addendum to, the finance agreement. A guaranteed 33
asset protection waiver may also provide, with or without a 34
separate charge, a benefit that waives an amount, or 35
provides a borrower with a credit, toward the purchase of a 36
replacement motor veh icle. 37
407.2035. 1. (1) A retail seller shall insure its 1
debt waiver obligations under a contractual liability or 2
other insurance policy issued by an insurer. A creditor, 3
other than a retail seller, may insure its debt waiver 4
obligations under a contractual liability policy or other 5
such policy issued by an insurer. Any such insurance policy 6
may be directly obtained by a creditor or retail seller or 7
may be procured by an administrator to cover a creditor's or 8
retail seller's obligations. 9
(2) Notwithstanding the provisions of subdivision (1) 10
of this subsection, retail sellers who are lessors on motor 11
vehicles shall not be required to insure obligations related 12
to debt waivers on such leased motor vehicles. 13
2. The debt waiver remains a part of the finance 14
agreement upon the assignment, sale, or transfer of such 15
finance agreement by the creditor. 16
3. Any creditor who offers a debt waiver shall report 17
the sale of, and forward funds due to, the designated party 18
or parties. 19
4. Funds received or held by a creditor or 20
administrator and belonging to an insurer, creditor, or 21
administrator shall be held by such creditor or 22
administrator in a fiduciary capacity. 23
407.2040. 1. Contractual liability or other insurance 1
policies insuring debt waivers shall state the obligation of 2
the insurer to reimburse or pay to the creditor any sums the 3
creditor is legally obligated to waive under a debt waiver. 4 HCS SS SCS SB 398 43
2. Coverage under a contractual liabi lity or other 5
insurance policy insuring a debt waiver shall also cover any 6
subsequent assignee upon the assignment, sale, or transfer 7
of the finance agreement. 8
3. Coverage under a contractual liability or other 9
insurance policy insuring a debt wa iver shall remain in 10
effect unless cancelled or terminated in compliance with 11
applicable insurance laws of this state. 12
4. The cancellation or termination of a contractual 13
liability or other insurance policy shall not reduce the 14
insurer's responsibility for debt waivers issued by the 15
creditor before the date of cancellation or termination and 16
for which premium has been received by the insurer. 17
407.2045. Debt waivers shall disclose in writing and 1
in clear, understandable langu age that is easy to read the 2
following: 3
(1) The name and address of the initial creditor and 4
the borrower at the time of sale, and the identity of any 5
administrator if different from the creditor; 6
(2) The purchase price, if any, and the term s of the 7
debt waiver including, but not limited to, the requirements 8
for protection, conditions, or exclusions associated with 9
the debt waiver; 10
(3) A statement that the borrower may cancel the debt 11
waiver within a free -look period as specified in the debt 12
waiver and, if so cancelled, shall be entitled to a full 13
refund of the purchase price paid by the borrower, if any, 14
so long as no benefits have been provided; 15
(4) The procedure the borrower is required to follow, 16
if any, to obtain debt waiver benefits under the terms and 17
conditions of the debt waiver, including, if applicable, a 18 HCS SS SCS SB 398 44
telephone number or website and address where the borrower 19
may apply for debt waiver benefits; 20
(5) The terms and conditions governing cancellation 21
consistent with all applicable Missouri laws; and 22
(6) A statement that any extension of credit, terms of 23
the credit, or terms of the related motor vehicle sale or 24
lease shall not be conditioned upon the borrower's purchase 25
of a debt waiver. 26
407.2050. 1. Debt waivers shall provide that if a 1
borrower cancels a debt waiver within the free -look period, 2
the borrower shall be entitled to a full refund of the 3
amount the borrower paid, if any, so long as no benefits 4
have been provided. 5
2. If, after the debt waiver has been in effect beyond 6
the free-look period, the borrower cancels the debt waiver 7
or there is an early termination of the finance agreement, 8
the borrower may be entitled to a refund of the amount the 9
borrower paid of the unearned portion of the purchase price, 10
if any, less a cancellation fee up to seventy -five dollars, 11
if no benefit has been or will be provided. 12
3. If the cancellation of a debt waiver occurs as a 13
result of a default under the fi nance agreement, the 14
repossession of the motor vehicle associated with the 15
finance agreement, or any other termination of the finance 16
agreement, any refund due may be paid directly to the 17
creditor or administrator and applied as a reduction of the 18
amount owed under the finance agreement unless the borrower 19
can show that the finance agreement has been paid in full. 20
407.2055. 1. Debt waivers offered by state or federal 1
banks or credit unions in compliance with applicable state 2
or federal law shall be exempt from the provisions of 3
sections 407.2020 to 407.2090. 4 HCS SS SCS SB 398 45
2. The provisions of sections 407.2045 and 407.2080 5
shall not apply to debt waivers offered in connection with 6
commercial transactions. 7
407.2060. For purposes of sections 407.2060 to 1
407.2075, the following terms mean: 2
(1) "Administrator", any person who is responsible for 3
the administrative or operational functions of vehicle value 4
protection agreements including, but not limited to, the 5
adjudication of claims or benefit requests by contract 6
holders; 7
(2) "Contract holder", a person who is the purchaser 8
or holder of a vehicle value protection agreement; 9
(3) "Provider", a person who is obligated to provide a 10
benefit under a vehicle value protection agreement. A 11
provider may perform as an administrator or retain the 12
services of a third-party administrator; 13
(4) "Vehicle value protection agreement", a 14
contractual agreement that: 15
(a) Provides a benefit toward the r eduction of some or 16
all of the contract holder's current finance agreement 17
deficiency balance or toward the purchase or lease of a 18
replacement motor vehicle or motor vehicle services upon the 19
occurrence of an adverse event to the motor vehicle 20
including, but not limited to, loss, theft, damage, 21
obsolescence, diminished value, or depreciation; 22
(b) Does not include debt waivers; and 23
(c) May include agreements such as, but not limited 24
to, trade-in-credit agreements, diminished value agreemen ts, 25
depreciation benefit agreements, or other similarly named 26
agreements. 27
407.2065. 1. A provider may, but is not required to, 1
use an administrator or other designee to be responsible for 2 HCS SS SCS SB 398 46
any and all of the administration of vehicl e value 3
protection agreements in compliance with the provisions of 4
sections 407.2020 to 407.2090. 5
2. Vehicle value protection agreements shall not be 6
sold unless the contract holder has been or will be provided 7
access to a copy of the vehicle val ue protection agreement 8
within a reasonable time. 9
3. In order to assure the faithful performance of the 10
provider's obligations to its contract holders, each 11
provider shall comply with subdivision (1) or (2) of this 12
subsection, as follows: 13
(1) In order to satisfy the requirements of this 14
subsection under this subdivision, the provider shall insure 15
all its vehicle value protection agreements under an 16
insurance policy that pays or reimburses in the event the 17
provider fails to perform its ob ligations under the vehicle 18
value protection agreement and that is issued by an insurer 19
who is licensed, registered, or otherwise authorized to do 20
business in this state and who: 21
(a) Maintains surplus as to policyholders and paid -in 22
capital of at least fifteen million dollars; or 23
(b) Maintains: 24
a. Surplus as to policyholders and paid -in capital of 25
less than fifteen million dollars but at least equal to ten 26
million dollars; and 27
b. A ratio of net written premiums, wherever writte n, 28
to surplus as to policyholders and paid -in capital of not 29
greater than three to one; or 30
(2) In order to satisfy the requirements of this 31
subsection under this subdivision, the provider shall: 32 HCS SS SCS SB 398 47
(a) Maintain, or together with its parent comp any 33
maintain, a net worth or stockholders' equity of one hundred 34
million dollars; and 35
(b) Upon request, provide the attorney general with a 36
copy of the provider's or the provider's parent company's 37
most recent Form 10-K or Form 20-F filed with the Securities 38
and Exchange Commission (SEC) within the last calendar year 39
or, if the company does not file with the SEC, a copy of the 40
company's audited financial statements, which show a net 41
worth of the provider or its parent company of at least one 42
hundred million dollars. If the provider's parent company's 43
Form 10-K, Form 20-F, or financial statements are filed to 44
meet the provider's financial security requirement, the 45
parent company shall agree to guarantee the obligations of 46
the provider relating to vehicle value protection agreements 47
sold by the provider in this state. 48
4. Except for the requirements specified in subsection 49
3 of this section, no other financial security requirements 50
shall be required for vehicle value protection agree ment 51
providers. 52
407.2070. Vehicle value protection agreements shall 1
disclose in writing and in clear, understandable language 2
that is easy to read the following: 3
(1) The name and address of the provider, contract 4
holder, and administrator, if any; 5
(2) The terms of the vehicle value protection 6
agreement including, but not limited to, the purchase price 7
to be paid by the contract holder, if any, the requirements 8
for eligibility, the conditions of coverage, and any 9
exclusions; 10
(3) A statement that the vehicle value protection 11
agreement may be cancelled by the contract holder within a 12 HCS SS SCS SB 398 48
free-look period as specified in the vehicle value 13
protection agreement and that in such event the contract 14
holder shall be entitl ed to a full refund of the purchase 15
price paid by the contract holder, if any, so long as no 16
benefits have been provided; 17
(4) The procedure the contract holder shall follow, if 18
any, to obtain a benefit under the terms and conditions of 19
the vehicle value protection agreement, including, if 20
applicable, a telephone number or website and address where 21
the contract holder may apply for a benefit; 22
(5) A statement that indicates whether the vehicle 23
value protection agreement may be cancelled aft er the free- 24
look period and the conditions under which it may be 25
cancelled, including the procedures for requesting any 26
refund of the unearned purchase price paid by the contract 27
holder; 28
(6) If the vehicle value protection agreement is 29
cancellable after the free-look period, a statement that any 30
refund of the unearned purchase price of the vehicle value 31
protection agreement shall be calculated on a pro rata basis; 32
(7) A statement that any extension of credit, terms of 33
the credit, or terms of the related motor vehicle sale or 34
lease shall not be conditioned upon the purchase of the 35
vehicle value protection agreement; 36
(8) The terms, restrictions, or conditions governing 37
cancellation of the vehicle value protection agreement 38
before the termination or expiration date of the vehicle 39
value protection agreement by either the provider or the 40
contract holder. The provider of the vehicle value 41
protection agreement shall mail a written notice to the 42
contract holder at the last known add ress of the contract 43
holder contained in the records of the provider at least 44 HCS SS SCS SB 398 49
five days before cancellation by the provider. Prior notice 45
shall not be required if the reason for cancellation is 46
nonpayment of the provider fee, a material misrepresentat ion 47
by the contract holder to the provider or administrator, or 48
a substantial breach of duties by the contract holder 49
relating to the covered product or its use. The notice 50
shall state the effective date of the cancellation and the 51
reason for the cancellation. If a vehicle value protection 52
agreement is cancelled by the provider for a reason other 53
than nonpayment of the provider fee, the provider shall 54
refund to the contract holder one hundred percent of the 55
unearned pro rata provider fee paid by the contract holder, 56
if any. If coverage under the vehicle value protection 57
agreement continues after a claim, any refund may deduct 58
claims paid. A reasonable administrative fee may be charged 59
by the provider up to seventy -five dollars; and 60
(9) A statement that the agreement is not an insurance 61
contract. 62
407.2075. The provisions of sections 407.2070 and 1
407.2080 shall not apply to vehicle value protection 2
agreements offered in connection with a commercial 3
transaction. 4
407.2080. The attorney general may take action that is 1
necessary or appropriate to enforce the provisions of 2
sections 407.2020 to 407.2090 and to protect motor vehicle 3
financial protection product consumers in this state. After 4
proper notice and opportunity for hearing, the attorney 5
general may: 6
(1) Order the creditor, provider, administrator, or 7
any other person not in compliance with the provisions of 8
sections 407.2020 to 407.2090 to cease and desist from 9 HCS SS SCS SB 398 50
product-related operations that are in violation of the 10
provisions of sections 407.2020 to 407.2090; and 11
(2) Impose a penalty of not more than five hundred 12
dollars for each violation of the provisions of sections 13
407.2020 to 407.2090 and not more than ten thous and dollars 14
in the aggregate for all violations of a similar nature. A 15
violation shall be considered of a similar nature to another 16
violation if the violation consists of the same or similar 17
course of conduct, action, or practice, irrespective of the 18
number of times the action, conduct, or practice that is 19
determined to be a violation of the provisions of sections 20
407.2020 to 407.2090 occurred. 21
407.2085. Notwithstanding the provisions of section 1
407.2090, all motor vehicle finan cial protection products 2
issued before and on and after August 28, 2023, shall not be 3
considered insurance. 4
407.2090. The provisions of sections 407.2020 to 1
407.2090 shall apply to all motor vehicle financial 2
protection products tha t become effective after February 23, 3
2024. 4
[304.820. 1. Except as otherwise provided 1
in this section, no person twenty -one years of 2
age or younger operating a moving motor vehicle 3
upon the highways of this state shall, by means 4
of a hand-held electronic wireless 5
communications device, send, read, or write a 6
text message or electronic message. 7
2. Except as otherwise provided in this 8
section, no person shall operate a commercial 9
motor vehicle while using a hand -held mobile 10
telephone. 11
3. Except as otherwise provided in this 12
section, no person shall operate a commercial 13
motor vehicle while using a wireless 14
communications device to send, read, or write a 15
text message or electronic message. 16
4. The provisions of subsection 1 through 17
subsection 3 of this section shall not apply to 18
a person operating: 19
(1) An authorized emergency vehicle; or 20 HCS SS SCS SB 398 51
(2) A moving motor vehicle while using a 21
hand-held electronic wireless communications 22
device to: 23
(a) Report illegal activity; 24
(b) Summon medical or other emergency help; 25
(c) Prevent injury to a person or 26
property; or 27
(d) Relay information between a transit or 28
for-hire operator and that operator's 29
dispatcher, in which the device is perman ently 30
affixed to the vehicle. 31
5. Nothing in this section shall be 32
construed or interpreted as prohibiting a person 33
from making or taking part in a telephone call, 34
by means of a hand-held electronic wireless 35
communications device, while operating a 36
noncommercial motor vehicle upon the highways of 37
this state. 38
6. As used in this section, "electronic 39
message" means a self -contained piece of digital 40
communication that is designed or intended to be 41
transmitted between hand -held electronic 42
wireless communication devices. "Electronic 43
message" includes, but is not limited to, 44
electronic mail, a text message, an instant 45
message, or a command or request to access an 46
internet site. 47
7. As used in this section, "hand -held 48
electronic wireless communications device" 49
includes any hand-held cellular phone, palm 50
pilot, blackberry, or other mobile electronic 51
device used to communicate verbally or by text 52
or electronic messaging, but shall not apply to 53
any device that is permanently embedde d into the 54
architecture and design of the motor vehicle. 55
8. As used in this section, "making or 56
taking part in a telephone call" means listening 57
to or engaging in verbal communication through a 58
hand-held electronic wireless communication 59
device. 60
9. As used in this section, "send, read, 61
or write a text message or electronic message" 62
means using a hand-held electronic wireless 63
telecommunications device to manually 64
communicate with any person by using an 65
electronic message. Sending, reading, or 66
writing a text message or electronic message 67
does not include reading, selecting, or entering 68
a phone number or name into a hand -held 69
electronic wireless communications device for 70
the purpose of making a telephone call. 71
10. A violation of this section shall be 72
deemed an infraction and shall be deemed a 73
moving violation for purposes of point 74
assessment under section 302.302. 75
11. The state preempts the field of 76
regulating the use of hand -held electronic 77 HCS SS SCS SB 398 52
wireless communications de vices in motor 78
vehicles, and the provisions of this section 79
shall supercede any local laws, ordinances, 80
orders, rules, or regulations enacted by a 81
county, municipality, or other political 82
subdivision to regulate the use of hand -held 83
electronic wireless communication devices by the 84
operator of a motor vehicle. 85
12. The provisions of this section shall 86
not apply to: 87
(1) The operator of a vehicle that is 88
lawfully parked or stopped; 89
(2) Any of the following while in the 90
performance of their official duties: a law 91
enforcement officer; a member of a fire 92
department; or the operator of a public or 93
private ambulance; 94
(3) The use of factory-installed or 95
aftermarket global positioning systems (GPS) or 96
wireless communications devi ces used to transmit 97
or receive data as part of a digital dispatch 98
system; 99
(4) The use of voice-operated technology; 100
(5) The use of two-way radio transmitters 101
or receivers by a licensee of the Federal 102
Communications Commission in the Amateu r Radio 103
Service.] 104
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