Missouri Senate Bill SB1359 Comm Sub / Bill

                    SECONDREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
SENATESUBSTITUTEFOR
SENATEBILLNO.1359
102NDGENERALASSEMBLY
5286H.07C	DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections208.151,303.425,303.430,303.440,361.700,361.705,361.707,361.711,
361.715,361.718,361.720,361.723,361.725,361.727,374.190,379.1640,408.035,
408.140,and442.210,RSMo,andtoenactinlieuthereoffifty-ninenewsections
relatingtofinancialinstitutions,withpenaltyprovisions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections208.151,303.425,303.430,303.440,361.700,361.705,361.707,
2361.711,361.715,361.718,361.720,361.723,361.725,361.727,374.190,379.1640,
3408.035,408.140,and442.210,RSMo,arerepealedandfifty-ninenewsectionsenactedin
4lieuthereof,tobeknownassections208.151,303.425,303.430,303.440,361.900,361.903,
5361.906,361.909,361.912,361.915,361.918,361.921,361.924,361.927,361.930,361.933,
6361.936,361.939,361.942,361.945,361.948,361.951,361.954,361.957,361.960,361.963,
7361.966,361.969,361.972,361.975,361.978,361.981,361.984,361.987,361.990,361.996,
8361.999,361.1002,361.1005,361.1008,361.1011,361.1014,361.1017,361.1020,361.1023,
9361.1026,361.1029,361.1032,361.1035,374.190,374.192,375.1183,379.1640,380.621,
10380.631,408.035,408.140,427.300,and442.210,toreadasfollows:
208.151.1.Medicalassistanceonbehalfofneedypersonsshallbeknownas"MO
2HealthNet".ForthepurposeofpayingMOHealthNetbenefitsandtocomplywithTitleXIX,
3PublicLaw89-97,1965amendmentstothefederalSocialSecurityAct(42U.S.C.Section
4301,etseq.)asamended,thefollowingneedypersonsshallbeeligibletoreceiveMO
5HealthNetbenefitstotheextentandinthemannerhereinafterprovided:
6 (1)Allparticipantsreceivingstatesupplementalpaymentsfortheaged,blindand
7disabled;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 8 (2)Allparticipantsreceivingaidtofamilieswithdependentchildrenbenefits,
9includingallpersonsundernineteenyearsofagewhowouldbeclassifiedasdependent
10childrenexceptfortherequirementsofsubdivision(1)ofsubsection1ofsection208.040.
11Participantseligibleunderthissubdivisionwhoareparticipatingintreatmentcourt,as
12definedinsection478.001,shallhavetheireligibilityautomaticallyextendedsixtydaysfrom
13thetimetheirdependentchildisremovedfromthecustodyoftheparticipant,subjectto
14approvaloftheCentersforMedicareandMedicaidServices;
15 (3)Allparticipantsreceivingblindpensionbenefits;
16 (4)Allpersonswhowouldbedeterminedtobeeligibleforoldageassistance
17benefits,permanentandtotaldisabilitybenefits,oraidtotheblindbenefitsunderthe
18eligibilitystandardsineffectDecember31,1973,orlessrestrictivestandardsasestablished
19byruleofthefamilysupportdivision,whoaresixty-fiveyearsofageoroverandarepatients
20instateinstitutionsformentaldiseasesortuberculosis;
21 (5)Allpersonsundertheageoftwenty-oneyearswhowouldbeeligibleforaidto
22familieswithdependentchildrenexceptfortherequirementsofsubdivision(2)ofsubsection
231ofsection208.040,andwhoareresidinginanintermediatecarefacility,orreceivingactive
24treatmentasinpatientsinpsychiatricfacilitiesorprograms,asdefinedin42U.S.C.Section
251396d,asamended;
26 (6)Allpersonsundertheageoftwenty-oneyearswhowouldbeeligibleforaidto
27familieswithdependentchildrenbenefitsexceptfortherequirementofdeprivationof
28parentalsupportasprovidedforinsubdivision(2)ofsubsection1ofsection208.040;
29 (7)Allpersonseligibletoreceivenursingcarebenefits;
30 (8)Allparticipantsreceivingfamilyfosterhomeornonprofitprivatechild-care
31institutioncare,subsidizedadoptionbenefitsandparentalschoolcarewhereinstatefundsare
32usedaspartialorfullpaymentforsuchcare;
33 (9)Allpersonswhowereparticipantsreceivingoldageassistancebenefits,aidtothe
34permanentlyandtotallydisabled,oraidtotheblindbenefitsonDecember31,1973,andwho
35continuetomeettheeligibilityrequirements,exceptincome,fortheseassistancecategories,
36butwhoarenolongerreceivingsuchbenefitsbecauseoftheimplementationofTitleXVIof
37thefederalSocialSecurityAct,asamended;
38 (10)Pregnantwomenwhomeettherequirementsforaidtofamilieswithdependent
39children,exceptfortheexistenceofadependentchildinthehome;
40 (11)Pregnantwomenwhomeettherequirementsforaidtofamilieswithdependent
41children,exceptfortheexistenceofadependentchildwhoisdeprivedofparentalsupportas
42providedforinsubdivision(2)ofsubsection1ofsection208.040;
43 (12)Pregnantwomenorinfantsunderoneyearofage,orboth,whosefamilyincome
44doesnotexceedanincomeeligibilitystandardequaltoonehundredeighty-fivepercentofthe
HCSSSSB1359	2 45federalpovertylevelasestablishedandamendedbythefederalDepartmentofHealthand
46HumanServices,oritssuccessoragency;
47 (13)Childrenwhohaveattainedoneyearofagebuthavenotattainedsixyearsofage
48whoareeligibleformedicalassistanceunder6401ofP.L.101-239(OmnibusBudget
49ReconciliationActof1989)(42U.S.C.Sections1396ato1396b).Thefamilysupport
50divisionshalluseanincomeeligibilitystandardequaltoonehundredthirty-threepercentof
51thefederalpovertylevelestablishedbytheDepartmentofHealthandHumanServices,orits
52successoragency;
53 (14)Childrenwhohaveattainedsixyearsofagebuthavenotattainednineteenyears
54ofage.Forchildrenwhohaveattainedsixyearsofagebuthavenotattainednineteenyears
55ofage,thefamilysupportdivisionshalluseanincomeassessmentmethodologywhich
56providesforeligibilitywhenfamilyincomeisequaltoorlessthanequaltoonehundred
57percentofthefederalpovertylevelestablishedbytheDepartmentofHealthandHuman
58Services,oritssuccessoragency.AsnecessarytoprovideMOHealthNetcoverageunderthis
59subdivision,thedepartmentofsocialservicesmayrevisethestateMOHealthNetplanto
60extendcoverageunder42U.S.C.Section1396a(a)(10)(A)(i)(III)tochildrenwhohave
61attainedsixyearsofagebuthavenotattainednineteenyearsofageaspermittedbyparagraph
62(2)ofsubsection(n)of42U.S.C.Section1396dusingamoreliberalincomeassessment
63methodologyasauthorizedbyparagraph(2)ofsubsection(r)of42U.S.C.Section1396a;
64 (15)Thefamilysupportdivisionshallnotestablisharesourceeligibilitystandardin
65assessingeligibilityforpersonsundersubdivision(12),(13)or(14)ofthissubsection.The
66MOHealthNetdivisionshalldefinetheamountandscopeofbenefitswhichareavailableto
67individualseligibleundereachofthesubdivisions(12),(13),and(14)ofthissubsection,in
68accordancewiththerequirementsoffederallawandregulationspromulgatedthereunder;
69 (16)Notwithstandinganyotherprovisionsoflawtothecontrary,ambulatoryprenatal
70careshallbemadeavailabletopregnantwomenduringaperiodofpresumptiveeligibility
71pursuantto42U.S.C.Section1396r-1,asamended;
72 (17)AchildborntoawomaneligibleforandreceivingMOHealthNetbenefitsunder
73thissectiononthedateofthechild'sbirthshallbedeemedtohaveappliedforMOHealthNet
74benefitsandtohavebeenfoundeligibleforsuchassistanceundersuchplanonthedateof
75suchbirthandtoremaineligibleforsuchassistanceforaperiodoftimedeterminedin
76accordancewithapplicablefederalandstatelawandregulationssolongasthechildisa
77memberofthewoman'shouseholdandeitherthewomanremainseligibleforsuchassistance
78orforchildrenbornonorafterJanuary1,1991,thewomanwouldremaineligibleforsuch
79assistanceifshewerestillpregnant.Uponnotificationofsuchchild'sbirth,thefamily
80supportdivisionshallassignaMOHealthNeteligibilityidentificationnumbertothechildso
81thatclaimsmaybesubmittedandpaidundersuchchild'sidentificationnumber;
HCSSSSB1359	3 82 (18)PregnantwomenandchildreneligibleforMOHealthNetbenefitspursuantto
83subdivision(12),(13)or(14)ofthissubsectionshallnotasaconditionofeligibilityforMO
84HealthNetbenefitsberequiredtoapplyforaidtofamilieswithdependentchildren.The
85familysupportdivisionshallutilizeanapplicationforeligibilityforsuchpersonswhich
86eliminatesinformationrequirementsotherthanthosenecessarytoapplyforMOHealthNet
87benefits.Thedivisionshallprovidesuchapplicationformstoapplicantswhosepreliminary
88incomeinformationindicatesthattheyareineligibleforaidtofamilieswithdependent
89children.ApplicantsforMOHealthNetbenefitsundersubdivision(12),(13)or(14)ofthis
90subsectionshallbeinformedoftheaidtofamilieswithdependentchildrenprogramandthat
91theyareentitledtoapplyforsuchbenefits.Anyformsutilizedbythefamilysupportdivision
92forassessingeligibilityunderthischaptershallbeassimpleaspracticable;
93 (19)Subjecttoappropriationsnecessarytorecruitandtrainsuchstaff,thefamily
94supportdivisionshallprovideoneormorefull-time,permanenteligibilityspecialiststo
95processapplicationsforMOHealthNetbenefitsatthesiteofahealthcareprovider,ifthe
96healthcareproviderrequeststheplacementofsucheligibilityspecialistsandreimbursesthe
97divisionfortheexpensesincludingbutnotlimitedtosalaries,benefits,travel,training,
98telephone,supplies,andequipmentofsucheligibilityspecialists.Thedivisionmayprovidea
99healthcareproviderwithapart-timeortemporaryeligibilityspecialistatthesiteofahealth
100careproviderifthehealthcareproviderrequeststheplacementofsuchaneligibilityspecialist
101andreimbursesthedivisionfortheexpenses,includingbutnotlimitedtothesalary,benefits,
102travel,training,telephone,supplies,andequipment,ofsuchaneligibilityspecialist.The
103divisionmayseektoemploysucheligibilityspecialistswhoareotherwisequalifiedforsuch
104positionsandwhoarecurrentorformerwelfareparticipants.Thedivisionmayconsider
105trainingsuchcurrentorformerwelfareparticipantsaseligibilityspecialistsforthisprogram;
106 (20)Pregnantwomenwhoareeligiblefor,haveappliedforandhavereceivedMO
107HealthNetbenefitsundersubdivision(2),(10),(11)or(12)ofthissubsectionshallcontinue
108tobeconsideredeligibleforallpregnancy-relatedandpostpartumMOHealthNetbenefits
109providedundersection208.152untiltheendofthesixty-dayperiodbeginningonthelastday
110oftheirpregnancy.Pregnantwomenreceivingmentalhealthtreatmentforpostpartum
111depressionorrelatedmentalhealthconditionswithinsixtydaysofgivingbirthshall,subject
112toappropriationsandanynecessaryfederalapproval,beeligibleforMOHealthNetbenefits
113formentalhealthservicesforthetreatmentofpostpartumdepressionandrelatedmental
114healthconditionsforuptotwelveadditionalmonths.Pregnantwomenreceivingsubstance
115abusetreatmentwithinsixtydaysofgivingbirthshall,subjecttoappropriationsandany
116necessaryfederalapproval,beeligibleforMOHealthNetbenefitsforsubstanceabuse
117treatmentandmentalhealthservicesforthetreatmentofsubstanceabusefornomorethan
118twelveadditionalmonths,aslongasthewomanremainsadherentwithtreatment.The
HCSSSSB1359	4 119departmentofmentalhealthandthedepartmentofsocialservicesshallseekanynecessary
120waiversorstateplanamendmentsfromtheCentersforMedicareandMedicaidServicesand
121shalldeveloprulesrelatingtotreatmentplanadherence.Nolaterthanfifteenmonthsafter
122receivinganynecessarywaiver,thedepartmentofmentalhealthandthedepartmentofsocial
123servicesshallreporttothehouseofrepresentativesbudgetcommitteeandthesenate
124appropriationscommitteeonthecompliancewithfederalcostneutralityrequirements;
125 (21)Casemanagementservicesforpregnantwomenandyoungchildrenatriskshall
126beacoveredservice.Tothegreatestextentpossible,andincompliancewithfederallawand
127regulations,thedepartmentofhealthandseniorservicesshallprovidecasemanagement
128servicestopregnantwomenbycontractoragreementwiththedepartmentofsocialservices
129throughlocalhealthdepartmentsorganizedundertheprovisionsofchapter192orchapter
130205oracityhealthdepartmentoperatedunderacitycharteroracombinedcity-countyhealth
131departmentorotherdepartmentofhealthandseniorservicesdesignees.Tothegreatestextent
132possiblethedepartmentofsocialservicesandthedepartmentofhealthandseniorservices
133shallmutuallycoordinateallservicesforpregnantwomenandchildrenwiththecrippled
134children'sprogram,thepreventionofintellectualdisabilityanddevelopmentaldisability
135programandtheprenatalcareprogramadministeredbythedepartmentofhealthandsenior
136services.Thedepartmentofsocialservicesshallbyregulationestablishthemethodologyfor
137reimbursementforcasemanagementservicesprovidedbythedepartmentofhealthandsenior
138services.Forpurposesofthissection,theterm"casemanagement"shallmeanthose
139activitiesoflocalpublichealthpersonneltoidentifyprospectiveMOHealthNet-eligiblehigh-
140riskmothersandenrolltheminthestate'sMOHealthNetprogram,referthemtolocal
141physiciansorlocalhealthdepartmentswhoprovideprenatalcareunderphysicianprotocol
142andwhoparticipateintheMOHealthNetprogramforprenatalcareandtoensurethatsaid
143high-riskmothersreceivesupportfromallprivateandpublicprogramsforwhichtheyare
144eligibleandshallnotincludeinvolvementinanyMOHealthNetprepaid,case-managed
145programs;
146 (22)ByJanuary1,1988,thedepartmentofsocialservicesandthedepartmentof
147healthandseniorservicesshallstudyallsignificantaspectsofpresumptiveeligibilityfor
148pregnantwomenandsubmitajointreportonthesubject,includingprojectedcostsandthe
149timeneededforimplementation,tothegeneralassembly.Thedepartmentofsocialservices,
150atthedirectionofthegeneralassembly,mayimplementpresumptiveeligibilitybyregulation
151promulgatedpursuanttochapter207;
152 (23)Allparticipantswhowouldbeeligibleforaidtofamilieswithdependent
153childrenbenefitsexceptfortherequirementsofparagraph(d)ofsubdivision(1)ofsection
154208.150;
HCSSSSB1359	5 155 (24)(a)Allpersonswhowouldbedeterminedtobeeligibleforoldageassistance
156benefitsundertheeligibilitystandardsineffectDecember31,1973,asauthorizedby42
157U.S.C.Section1396a(f),orlessrestrictivemethodologiesascontainedintheMOHealthNet
158stateplanasofJanuary1,2005;exceptthat,onorafterJuly1,2005,lessrestrictiveincome
159methodologies,asauthorizedin42U.S.C.Section1396a(r)(2),maybeusedtochangethe
160incomelimitifauthorizedbyannualappropriation;
161 (b)Allpersonswhowouldbedeterminedtobeeligibleforaidtotheblindbenefits
162undertheeligibilitystandardsineffectDecember31,1973,asauthorizedby42U.S.C.
163Section1396a(f),orlessrestrictivemethodologiesascontainedintheMOHealthNetstate
164planasofJanuary1,2005,exceptthatlessrestrictiveincomemethodologies,asauthorizedin
16542U.S.C.Section1396a(r)(2),shallbeusedtoraisetheincomelimittoonehundredpercent
166ofthefederalpovertylevel;
167 (c)Allpersonswhowouldbedeterminedtobeeligibleforpermanentandtotal
168disabilitybenefitsundertheeligibilitystandardsineffectDecember31,1973,asauthorized
169by42U.S.C.Section1396a(f);orlessrestrictivemethodologiesascontainedintheMO
170HealthNetstateplanasofJanuary1,2005;exceptthat,onorafterJuly1,2005,less
171restrictiveincomemethodologies,asauthorizedin42U.S.C.Section1396a(r)(2),maybe
172usedtochangetheincomelimitifauthorizedbyannualappropriations.Eligibilitystandards
173forpermanentandtotaldisabilitybenefitsshallnotbelimitedbyage;
174 (25)Personswhohavebeendiagnosedwithbreastorcervicalcancerandwhoare
175eligibleforcoveragepursuantto42U.S.C.Section1396a(a)(10)(A)(ii)(XVIII).Such
176personsshallbeeligibleduringaperiodofpresumptiveeligibilityinaccordancewith42
177U.S.C.Section1396r-1.Apersonwhoreceivesabreastorcervicalcancerscreening
178serviceofatypethatiswithinthescopeofscreeningservicesunderTitleXVofthe
179PublicHealthServiceAct(42U.S.C.Section300ketseq.)andwhootherwisemeetsthe
180eligibilityrequirementsformedicalassistancefortreatmentofbreastorcervicalcancer
181asprovidedunderthissubdivisioniseligibleformedicalassistanceunderthis
182subdivisionregardlessofwhetherthescreeningservicewasprovidedbyaproviderwho
183receivesorusesfundsunderthattitle;
184 (26)PersonswhoareinfostercareundertheresponsibilityofthestateofMissourion
185thedatesuchpersonsattainedtheageofeighteenyears,oratanytimeduringthethirty-day
186periodprecedingtheireighteenthbirthday,orpersonswhoreceivedfostercareforatleastsix
187monthsinanotherstate,areresidinginMissouri,andareatleasteighteenyearsofage,
188withoutregardtoincomeorassets,ifsuchpersons:
189 (a)Areundertwenty-sixyearsofage;
190 (b)Arenoteligibleforcoverageunderanothermandatorycoveragegroup;and
191 (c)WerecoveredbyMedicaidwhiletheywereinfostercare;
HCSSSSB1359	6 192 (27)Anyhomelesschildorhomelessyouth,asthosetermsaredefinedinsection
193167.020,subjecttoapprovalofastateplanamendmentbytheCentersforMedicareand
194MedicaidServices;
195 (28)(a)Subjecttoapprovalofanynecessarystateplanamendmentsorwaivers,
196beginningonJuly6,2023,pregnantwomenwhoareeligiblefor,haveappliedfor,andhave
197receivedMOHealthNetbenefitsundersubdivision(2),(10),(11),or(12)ofthissubsection
198shallbeeligibleformedicalassistanceduringthepregnancyandduringthetwelve-month
199periodthatbeginsonthelastdayofthewoman'spregnancyandendsonthelastdayofthe
200monthinwhichsuchtwelve-monthperiodends,consistentwiththeprovisionsof42U.S.C.
201Section1396a(e)(16).ThedepartmentshallsubmitastateplanamendmenttotheCentersfor
202MedicareandMedicaidServiceswhenthenumberofineligibleMOHealthNetparticipants
203removedfromtheprogramin2023pursuanttosection208.239exceedstheprojectednumber
204ofbeneficiarieslikelytoenrollinbenefitsin2023underthissubdivisionandsubdivision(2)
205ofsubsection6ofsection208.662,asdeterminedbythedepartment,byatleastonehundred
206individuals;
207 (b)Theprovisionsofthissubdivisionshallremainineffectforanyperiodoftime
208duringwhichthefederalauthorityunder42U.S.C.Section1396a(e)(16),asamended,orany
209successorstatutesorimplementingregulations,isineffect.
210 2.Rulesandregulationstoimplementthissectionshallbepromulgatedinaccordance
211withchapter536.Anyruleorportionofarule,asthattermisdefinedinsection536.010,that
212iscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
213complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section
214536.028.Thissectionandchapter536arenonseverableandifanyofthepowersvestedwith
215thegeneralassemblypursuanttochapter536toreview,todelaytheeffectivedateorto
216disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
217rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2002,shallbeinvalid
218andvoid.
219 3.AfterDecember31,1973,andbeforeApril1,1990,anyfamilyeligiblefor
220assistancepursuantto42U.S.C.Section601,etseq.,asamended,inatleastthreeofthelast
221sixmonthsimmediatelyprecedingthemonthinwhichsuchfamilybecameineligibleforsuch
222assistancebecauseofincreasedincomefromemploymentshall,whileamemberofsuch
223familyisemployed,remaineligibleforMOHealthNetbenefitsforfourcalendarmonths
224followingthemonthinwhichsuchfamilywouldotherwisebedeterminedtobeineligiblefor
225suchassistancebecauseofincomeandresourcelimitation.AfterApril1,1990,anyfamily
226receivingaidpursuantto42U.S.C.Section601,etseq.,asamended,inatleastthreeofthe
227sixmonthsimmediatelyprecedingthemonthinwhichsuchfamilybecomesineligiblefor
228suchaid,becauseofhoursofemploymentorincomefromemploymentofthecaretaker
HCSSSSB1359	7 229relative,shallremaineligibleforMOHealthNetbenefitsforsixcalendarmonthsfollowing
230themonthofsuchineligibilityaslongassuchfamilyincludesachildasprovidedin42
231U.S.C.Section1396r-6.Eachfamilywhichhasreceivedsuchmedicalassistanceduringthe
232entiresix-monthperioddescribedinthissectionandwhichmeetsreportingrequirementsand
233incometestsestablishedbythedivisionandcontinuestoincludeachildasprovidedin42
234U.S.C.Section1396r-6shallreceiveMOHealthNetbenefitswithoutfeeforanadditionalsix
235months.TheMOHealthNetdivisionmayprovidebyruleandasauthorizedbyannual
236appropriationthescopeofMOHealthNetcoveragetobegrantedtosuchfamilies.
237 4.WhenanyindividualhasbeendeterminedtobeeligibleforMOHealthNet
238benefits,suchmedicalassistancewillbemadeavailabletohimorherforcareandservices
239furnishedinorafterthethirdmonthbeforethemonthinwhichhemadeapplicationforsuch
240assistanceifsuchindividualwas,oruponapplicationwouldhavebeen,eligibleforsuch
241assistanceatthetimesuchcareandserviceswerefurnished;provided,further,thatsuch
242medicalexpensesremainunpaid.
243 5.ThedepartmentofsocialservicesmayapplytothefederalDepartmentofHealth
244andHumanServicesforaMOHealthNetwaiveramendmenttotheSection1115
245demonstrationwaiverorforanyadditionalMOHealthNetwaiversnecessarynottoexceed
246onemilliondollarsinadditionalcoststothestate,unlesssubjecttoappropriationordirected
247bystatute,butinnoeventshallsuchwaiverapplicationsoramendmentsseektowaivethe
248servicesofaruralhealthclinicorafederallyqualifiedhealthcenterasdefinedin42U.S.C.
249Section1396d(l)(1)and(2)orthepaymentrequirementsforsuchclinicsandcentersas
250providedin42U.S.C.Section1396a(a)(15)and1396a(bb)unlesssuchwaiverapplicationis
251approvedbytheoversightcommitteecreatedinsection208.955.Arequestforsuchawaiver
252sosubmittedshallonlybecomeeffectivebyexecutiveordernotsoonerthanninetydaysafter
253thefinaladjournmentofthesessionofthegeneralassemblytowhichitissubmitted,unlessit
254isdisapprovedwithinsixtydaysofitssubmissiontoaregularsessionbyasenateorhouse
255resolutionadoptedbyamajorityvoteoftherespectiveelectedmembersthereof,unlessthe
256requestforsuchawaiverismadesubjecttoappropriationordirectedbystatute.
257 6.Notwithstandinganyotherprovisionoflawtothecontrary,inanygivenfiscal
258year,anypersonsmadeeligibleforMOHealthNetbenefitsundersubdivisions(1)to(22)of
259subsection1ofthissectionshallonlybeeligibleifannualappropriationsaremadeforsuch
260eligibility.Thissubsectionshallnotapplytoclassesofindividualslistedin42U.S.C.Section
2611396a(a)(10)(A)(i).
262 7.(1)Notwithstandinganyprovisionoflawtothecontrary,amilitaryservice
263member,oranimmediatefamilymemberresidingwithsuchmilitaryservicemember,whois
264alegalresidentofthisstateandiseligibleforMOHealthNetdevelopmentaldisability
265services,shallhavehisorhereligibilityforMOHealthNetdevelopmentaldisabilityservices
HCSSSSB1359	8 266temporarilysuspendedforanyperiodoftimeduringwhichsuchpersontemporarilyresides
267outsideofthisstateforreasonsrelatingtomilitaryservice,butshallhavehisorhereligibility
268immediatelyrestoreduponreturningtothisstatetoreside.
269 (2)Notwithstandinganyprovisionoflawtothecontrary,ifamilitaryservice
270member,oranimmediatefamilymemberresidingwithsuchmilitaryservicemember,isnota
271legalresidentofthisstate,butwouldotherwisebeeligibleforMOHealthNetdevelopmental
272disabilityservices,suchindividualshallbedeemedeligibleforMOHealthNetdevelopmental
273disabilityservicesforthedurationofanytimeinwhichsuchindividualistemporarilypresent
274inthisstateforreasonsrelatingtomilitaryservice.
303.425.1.(1)Thereisherebycreatedwithinthedepartmentofrevenuethemotor
2vehiclefinancialresponsibilityenforcementandcomplianceincentiveprogram.The
3departmentofrevenuemayenterintocontractualagreementswiththird-partyvendorsto
4facilitatethenecessarytechnologyandequipment,maintenancethereof,andassociated
5programmanagementservices.
6 (2)Thedepartmentofrevenueorathird-partyvendorshallutilizetechnologyto
7comparevehicleregistrationinformationwiththefinancialresponsibilityinformation
8accessiblethroughthesystem.Thedepartmentofrevenueshallutilizethisinformationto
9identifymotoristswhoareinviolationofthemotorvehiclefinancialresponsibilitylaw.The
10departmentofrevenuemayofferoffendersunderthisprogramtheoptionofpretrialdiversion
11asanalternativetostatutoryfinesorreinstatementfeesprescribedunderthemotorvehicle
12financialresponsibilitylawasamethodofencouragingcomplianceanddiscouraging
13recidivism.
14 (3)Thedepartmentofrevenueorthird-partyvendorsshallnotuseanydatacollected
15fromortechnologyassociatedwithanyautomatedmotorvehiclefinancialresponsibility
16enforcementsystem.Forpurposesofthissubdivision,"motorvehiclefinancialresponsibility
17enforcementsystem"meansadeviceconsistingofacameraorcamerasandvehiclesensoror
18sensorsinstalledtorecordmotorvehiclefinancialresponsibilityviolations.
19 (4)Allfeespaidtoorcollectedbythird-partyvendorsundersections303.420to
20303.440maycomefromviolatordiversionfeesgeneratedbythepretrialdiversionoption
21establishedunderthissection.
22 2.Thedepartmentofrevenuemayauthorizelawenforcementagenciesorthird-party
23vendorstousetechnologytocollectdatafortheinvestigation,detection,analysis,and
24enforcementofthemotorvehiclefinancialresponsibilitylaw.
25 3.Thedepartmentofrevenuemayauthorizetrafficenforcementofficersorthird-
26partyvendorstoadministertheprocessingandissuanceofnoticesofviolation,thecollection
27offeesforaviolationofthemotorvehiclefinancialresponsibilitylaw,orthereferralofcases
28forprosecution,undertheprogram.
HCSSSSB1359	9 29 4.Accesstothesystemshallberestrictedtoqualifiedagenciesandthethird-party
30vendorswithwhichthedepartmentofrevenuecontractsforpurposesoftheprogram,
31providedthatanythird-partyvendorwithwhichacontractisexecutedtoprovidenecessary
32technology,equipment,ormaintenancefortheprogramshallbeauthorizedasnecessaryto
33collaborateforrequiredupdatesandmaintenanceofsystemsoftware.
34 5.Forpurposesoftheprogram,anydatacollectedandmatchedtoacorresponding
35vehicleinsurancerecordasverifiedthroughthesystem,andanyMissourivehicleregistration
36database,maybeusedtoidentifyviolationsofthemotorvehiclefinancialresponsibilitylaw.
37Suchcorrespondingdatashallconstituteevidenceoftheviolations.
38 6.Exceptasotherwiseprovidedinthissection,thedepartmentofrevenueshall
39suspend,inaccordancewithsection303.041,theregistrationofanymotorvehiclethatis
40determinedundertheprogramtobeinviolationofthemotorvehiclefinancialresponsibility
41law.
42 7.Thedepartmentofrevenueshallsendtoanownerwhosevehicleisidentifiedunder
43theprogramasbeinginviolationofthemotorvehiclefinancialresponsibilitylawanotice
44thatthevehicle'sregistrationmaybesuspendedunlesstheowner,withinthirtydays,provides
45proofoffinancialresponsibilityforthevehicleorproof,inaformspecifiedbythedepartment
46ofrevenue,thattheownerhasapendingcriminalchargeforaviolationofthemotorvehicle
47financialresponsibilitylaw.Thenoticeshallincludeinformationonstepsanindividualmay
48taketoobtainproofoffinancialresponsibilityandawebaddresstoapageonthedepartment
49ofrevenue'swebsitewhereinformationonobtainingproofoffinancialresponsibilityshallbe
50provided.Ifproofoffinancialresponsibilityorapendingcriminalchargeisnotprovided
51withinthetimeallotted,thedepartmentofrevenueshallprovideanoticeofsuspensionand
52suspendthevehicle'sregistrationinaccordancewithsection303.041,orshallsendanoticeof
53vehicleregistrationsuspension,clearlyspecifyingthereasonandstatutorygroundsforthe
54suspensionandtheeffectivedateofthesuspension,therightofthevehicleownertorequesta
55hearing,theprocedureforrequestingahearing,andthedatebywhichthatrequestfora
56hearingmustbemade,aswellasinformingtheownerthatthematterwillbereferredfor
57prosecutionifasatisfactoryresponseisnotreceivedinthetimeallotted,informingtheowner
58thattheminimumpenaltyfortheviolationisthreehundreddollars[andfourlicensepoints],
59andofferingtheownerparticipationinapretrialdiversionoptiontoprecludereferralfor
60prosecutionandregistrationsuspensionundersections303.420to303.440.Thenoticeof
61vehicleregistrationsuspensionshallgiveaperiodofthirty-threedaysfrommailingforthe
62vehicleownertorespond,andshallbedeemedreceivedthreedaysaftermailing.Ifno
63requestforahearingoragreementtoparticipateinthediversionoptionisreceivedbythe
64departmentofrevenuepriortothedateprovidedonthenoticeofvehicleregistration
65suspension,thedirectorshallsuspendthevehicle'sregistration,effectiveimmediately,and
HCSSSSB1359	10 66referthecasetotheappropriateprosecutingattorney.Ifanagreementbythevehicleownerto
67participateinthediversionoptionisreceivedbythedepartmentofrevenuepriortothe
68effectivedateprovidedonthenoticeofvehicleregistrationsuspension,thenuponpaymentof
69adiversionparticipationfeenottoexceedtwohundreddollars,agreementtosecureproofof
70financialresponsibilitywithinthetimeprovidedonthenoticeofsuspension,andagreement
71thatsuchfinancialresponsibilityshallbemaintainedforaminimumoftwoyears,nopoints
72shallbeassessedtothevehicleowner'sdriver'slicenseundersection302.302andthe
73departmentofrevenueshallnottakefurtheractionagainstthevehicleownerundersections
74303.420to303.440,subjecttocompliancewiththetermsofthepretrialdiversionoption.The
75departmentofrevenueshallsuspendthevehicleregistrationof,andshallreferthecasetothe
76appropriateprosecutingattorneyforprosecutionof,participatingvehicleownerswhoviolate
77thetermsofthepretrialdiversionoption.Ifarequestforhearingisreceivedbythe
78departmentofrevenuepriortotheeffectivedateprovidedonthenoticeofvehicleregistration
79suspension,thenforallpurposesotherthaneligibilityforparticipationinthediversion
80option,theeffectivedateofthesuspensionshallbestayeduntilafinalorderisissued
81followingthehearing.Thedepartmentofrevenueshallsuspendtheregistrationofvehicles
82determinedunderthefinalordertohaveviolatedthemotorvehiclefinancialresponsibility
83law,andshallreferthecasetotheappropriateprosecutingattorneyforprosecution.Notices
84underthissubsectionshallbemailedtothevehicleowneratthelastknownaddressshownon
85thedepartmentofrevenue'srecords.Thedepartmentofrevenueoritsthird-partyvendor
86shallissuereceiptsforthecollectionofdiversionparticipationfees.Exceptasotherwise
87providedinsubsection1ofthissection,allsuchfeesshallbedepositedintothemotorvehicle
88financialresponsibilityverificationandenforcementfundestablishedinsection303.422.A
89vehicleownerwhoseregistrationhasbeensuspendedundersections303.420to303.440may
90obtainreinstatementoftheregistrationuponprovidingproofoffinancialresponsibilityand
91paymenttothedepartmentofrevenueofanonrefundablereinstatementfeeequaltothefee
92thatwouldbeapplicableundersubsection2ofsection303.042iftheregistrationhadbeen
93suspendedundersection303.041.
94 8.Datacollectedorretainedundertheprogramshallnotbeusedbyanyentityfor
95purposesotherthanenforcementofthemotorvehiclefinancialresponsibilitylaw.Data
96collectedandstoredbylawenforcementundertheprogramshallbeconsideredevidenceif
97noncompliancewiththemotorvehiclefinancialresponsibilitylawisconfirmed.The
98evidence,andanaffidavitstatingthattheevidenceandsystemhaveidentifiedaparticular
99vehicleasbeinginviolationofthemotorvehiclefinancialresponsibilitylaw,shallconstitute
100probablecauseforprosecutionandshallbeforwardedinaccordancewithsubsection7ofthis
101sectiontotheappropriateprosecutingattorney.
HCSSSSB1359	11 102 9.Ownersofvehiclesidentifiedundertheprogramasbeinginviolationofthemotor
103vehiclefinancialresponsibilitylawshallbeprovidedwithoptionsfordisputingsuchclaims
104whichdonotrequireappearanceatanystateorlocalcourtoflaw,oradministrativefacility.
105Anypersonwhopresentstimelyproofthatheorshewasincompliancewiththemotor
106vehiclefinancialresponsibilitylawatthetimeoftheallegedviolationshallbeentitledto
107dismissalofthechargewithnoassessmentoffeesorfines.Proofprovidedbyavehicle
108ownertothedepartmentofrevenuethatthevehiclewasincomplianceatthetimeofthe
109suspectedviolationofthemotorvehiclefinancialresponsibilitylawshallberecordedinthe
110systemestablishedbythedepartmentofrevenueundersection303.430.
111 10.Thecollectionofdatapursuanttothissectionshallbedoneinamannerthat
112prohibitsanybiastowardsaspecificcommunity,race,gender,orsocioeconomicstatusof
113vehicleowner.
114 11.Lawenforcementagencies,third-partyvendors,orotherentitiesauthorizedto
115operateundertheprogramshallnotselldatacollectedorretainedundertheprogramforany
116purposeorshareitforanypurposenotexpresslyauthorizedinthissection.Alldatashallbe
117securedandanythird-partyvendororotherentityauthorizedtooperateundertheprogram
118maybeliableforanydatasecuritybreach.
119 12.Thedepartmentofrevenueshallnottakeactionundersections303.420to
120303.440againstvehiclesregisteredasfleetvehiclesundersection301.032,oragainst
121vehiclesknowntothedepartmentofrevenuetobeinsuredunderapolicyofcommercialauto
122coverage,assuchtermisdefinedinsubdivision(10)ofsubsection2ofsection303.430.
123 13.Followingoneyearaftertheimplementationoftheprogram,andeveryyear
124thereafterforaperiodoffiveyears, thedepartmentofrevenueshallprovideareporttothe
125presidentprotemporeofthesenate,thespeakerofthehouseofrepresentatives,thechairsof
126thehouseandsenatecommitteeswithjurisdictionsoverinsuranceortransportationmatters,
127andthechairsofthehousebudgetandsenateappropriationscommittees.Thereportshall
128includeanevaluationofprogramoperations,informationastothecostsoftheprogram
129incurredbythedepartmentofrevenue,insurers,andthepublic,informationastothe
130effectivenessoftheprograminreducingthenumberofuninsuredmotorvehicles,and
131anonymizeddemographicinformationincludingtheraceandzipcodeofvehicleowners
132identifiedundertheprogramasbeinginviolationofthemotorvehiclefinancialresponsibility
133law,andmayincludeanyadditionalinformationandrecommendationsforimprovementof
134theprogramdeemedappropriatebythedepartmentofrevenue.Thedepartmentofrevenue
135may,byrule,requirethestate,counties,andmunicipalitiestoprovideinformationinorderto
136completethereport.
137 14.Thedepartmentofrevenuemaypromulgaterulesasnecessaryforthe
138implementationofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
HCSSSSB1359	12 139536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffective
140onlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
141section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
142vestedwiththegeneralassemblypursuanttochapter536toreview,todelaytheeffective
143date,ortodisapproveandannularulearesubsequentlyheldunconstitutional,thenthegrant
144ofrulemakingauthorityandanyruleproposedoradoptedafterAugust28,2023,shallbe
145invalidandvoid.
303.430.1.Thedepartmentofrevenueshallestablishandmaintainaweb-based
2systemfortheverificationofmotorvehiclefinancialresponsibility,shallprovideaccessto
3insurancereportingdataandvehicleregistrationandfinancialresponsibilitydata,andshall
4requiremotorvehicleinsurerstoestablishfunctionalityfortheverificationsystem,as
5providedinsections303.420to303.440.Theverificationsystem,includinganyexceptions
6asprovidedforinsections303.420to303.440orintheimplementationguidedevelopedto
7supporttheprogram,shallsupersedeanyexistingverificationsystem,andshallbethesole
8systemusedforthepurposeofverifyingfinancialresponsibilityrequiredunderthischapter.
9 2.Thesystemestablishedpursuanttosubsection1ofthissectionshallbesubjectto
10thefollowing:
11 (1)Theverificationsystemshalltransmitrequeststoinsurersforverificationof
12motorvehicleinsurancecoverageviawebservicesestablishedbytheinsurersthroughthe
13internetincompliancewiththespecificationsandstandardsoftheInsuranceIndustry
14CommitteeonMotorVehicleAdministration,or"IICMVA".Insurancecompanysystems
15shallrespondtoeachrequestwithaprescribedresponseuponevaluationofthedataprovided
16intherequest.Thesystemshallincludeappropriateprotectionstosecureitsdataagainst
17unauthorizedaccess,andthedepartmentofrevenueshallmaintainahistoricalrecordofthe
18systemdataforaperiodofnomorethantwelvemonthsfromthedateofallrequestsand
19responses.Thesystemshallbeusedforverificationofthefinancialresponsibilityrequired
20underthischapter.Thesystemshallbeaccessibletoauthorizedpersonnelofthedepartment
21ofrevenue,thecourts,lawenforcementpersonnel,andotherentitiesauthorizedbythestate
22aspermittedbystateorfederalprivacylaws,anditshallbeinterfaced,whereverappropriate,
23withexistingstatesystems.Thesystemshallincludeinformationenablingthedepartmentof
24revenuetosubmitinquiriestoinsurersregardingmotorvehicleinsurancewhichare
25consistentwithinsuranceindustryandIICMVArecommendations,specifications,and
26standardsbyusingthefollowingdataelementsforgreatermatchingaccuracy:insurer
27NationalAssociationofInsuranceCommissioners,or"NAIC",companycode;vehicle
28identificationnumber;policynumber;verificationdate;orasotherwisedescribedinthe
29specificationsandstandardsoftheIICMVA.Thedepartmentofrevenueshallpromulgate
30rulestoofferinsurerswhoinsureonethousandorfewervehicleswithinthisstatean
HCSSSSB1359	13 31alternativemethodforverifyingmotorvehicleinsurancecoverageinlieuofwebservices,and
32toprovidefortheverificationoffinancialresponsibilitywhenfinancialresponsibilityis
33proventothedepartmenttobemaintainedbymeansotherthanapolicyofmotorvehicle
34insurance.Insurersshallnotberequiredtoverifyinsurancecoverageforvehiclesregistered
35inotherjurisdictions;
36 (2)Theverificationsystemshallrespondtoeachrequestwithinatimeperiod
37establishedbythedepartmentofrevenue.Aninsurer'ssystemshallrespondwithinthetime
38periodprescribedbytheIICMVA'sspecificationsandstandards.Insurersystemsshallbe
39permittedreasonablesystemdowntimeformaintenanceandotherworkwithadvancenotice
40tothedepartmentofrevenue.Insurersshallnotbesubjecttoenforcementfeesorother
41sanctionsundersuchcircumstances,orwhensystemsarenotavailablebecauseofemergency,
42outsideattack,orotherunexpectedoutagesnotplannedbytheinsurerandreasonablyoutside
43itscontrol;
44 (3)Thesystemshallassistinidentifyingviolationsofthemotorvehiclefinancial
45responsibilitylawinthemosteffectivewaypossible.Responsestoindividualinsurance
46verificationrequestsshallhavenobearingonwhetherinsurancecoverageisdeterminedtobe
47inforceatthetimeofaclaim.Claimsshallbeindividuallyinvestigatedtodeterminethe
48existenceofcoverage.Nothinginsections303.420to303.440shallprohibitthedepartment
49ofrevenuefromcontractingwithathird-partyvendororvendorswhohavesuccessfully
50implementedsimilarsystemsinotherstatestoassistinestablishingandmaintainingthis
51verificationsystem;
52 (4)Thedepartmentofrevenueshallconsultwithrepresentativesoftheinsurance
53industryandmayconsultwiththird-partyvendorstodeterminetheobjectives,details,and
54deadlinesrelatedtothesystembyestablishmentofanadvisorycouncil.Membersofthe
55advisorycouncilshallserveinanadvisorycapacityinmatterspertainingtothe
56administrationofsections303.420to303.440,asthedepartmentofrevenuemay
57request.Theadvisorycouncilshallexpireoneyearafterimplementationofthe
58program.Theadvisorycouncilshallconsistofvotingmemberscomprisedof:
59 (a)Thedirectorofthedepartmentofcommerceandinsurance,orhisorherdesignee,
60whoshallserveaschair;
61 (b)Tworepresentativesofthedepartmentofrevenue,tobeappointedbythedirector
62ofthedepartmentofrevenue;
63 (c)Onerepresentativeofthedepartmentofcommerceandinsurance,tobeappointed
64bythedirectorofthedepartmentofcommerceandinsurance;
65 (d)Threerepresentativesofinsurancecompanies,tobeappointedbythedirectorof
66thedepartmentofcommerceandinsurance;
67 (e)OnerepresentativefromtheMissouriInsuranceCoalition;
HCSSSSB1359	14 68 (f)OnerepresentativechosenbytheNationalAssociationofMutualInsurance
69Companies;
70 (g)OnerepresentativechosenbytheAmericanPropertyandCasualtyInsurance
71Association;
72 (h)OnerepresentativechosenbytheMissouriIndependentAgentsAssociation;and
73 (i)Suchotherrepresentativesasmaybeappointedbythedirectorofthedepartment
74ofcommerceandinsurance;
75 (5)Thedepartmentofrevenueshallpublishforcomment,andthenissue,adetailed
76implementationguideforitsonlineverificationsystem;
77 (6)Thedepartmentofrevenueanditsthird-partyvendors,ifany,shalleachmaintain
78acontactpersonforinsurersduringtheestablishment,implementation,andoperationofthe
79system;
80 (7)Ifthedepartmentofrevenuehasreasontobelieveavehicleownerdoesnot
81maintainfinancialresponsibilityasrequiredunderthischapter,itmayalsorequestaninsurer
82toverifytheexistenceofsuchfinancialresponsibilityinaformapprovedbythedepartment
83ofrevenue.Inaddition,insurersshallcooperatewiththedepartmentofrevenuein
84establishingandmaintainingtheverificationsystemestablishedunderthissection,andshall
85providemotorvehicleinsurancepolicystatusinformationasprovidedintherules
86promulgatedbythedepartmentofrevenue;
87 (8)Everypropertyandcasualtyinsurancecompanylicensedtoissuemotorvehicle
88insuranceorauthorizedtodobusinessinthisstateshallcomplywithsections303.420to
89303.440,andcorrespondingrulespromulgatedbythedepartmentofrevenue,forthe
90verificationofsuchinsuranceforeveryvehicleinsuredbythatcompanyinthisstate;
91 (9)Insurersshallmaintainahistoricalrecordofinsurancedataforaminimumperiod
92ofsixmonthsfromthedateofpolicyinceptionorpolicychangeforthepurposeofhistorical
93verificationinquiries;
94 (10)Forthepurposesofthissection,"commercialautocoverage"shallmeanany
95coverageprovidedtoaninsured,regardlessofnumberofvehiclesorentitiescovered,undera
96commercialcoverageformandratedfromacommercialmanualapprovedbythedepartment
97ofcommerceandinsurance.Sections303.420to303.440shallnotapplytovehiclesinsured
98undercommercialautocoverage;however,insurersofsuchvehiclesmayparticipateona
99voluntarybasis,andvehicleownersmayprovideproofatorsubsequenttothetimeofvehicle
100registrationthatavehicleisinsuredundercommercialautocoverage,whichthedepartment
101ofrevenueshallrecordinthesystem;
102 (11)Insurersshallprovidecommercialorfleetautomobilecustomerswithevidence
103reflectingthatthevehicleisinsuredunderacommercialorfleetautomobileliabilitypolicy.
104Sufficientevidenceshallincludeaninsuranceidentificationcardclearlymarkedwitha
HCSSSSB1359	15 105suitableidentifiersuchas"commercialautoinsuranceidentificationcard","fleetauto
106insuranceidentificationcard",orotherclearidentificationthatthevehicleisinsuredundera
107fleetorcommercialpolicy;
108 (12)Notwithstandinganyprovisionofsections303.420to303.440,insurersshallbe
109immunefromcivilandadministrativeliabilityforgoodfaitheffortstocomplywiththeterms
110ofsections303.420to303.440;
111 (13)Nothinginthissectionshallprohibitaninsurerfromusingtheservicesofa
112third-partyvendorforfacilitatingtheverificationsystemrequiredundersections303.420to
113303.440.
114 3.Thedepartmentofrevenueshallpromulgaterulesasnecessaryforthe
115implementationofsections303.420to303.440.Anyruleorportionofarule,asthatterm
116isdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
117becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536
118and,ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
119ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
120effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,then
121thegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust28,2023,
122shallbeinvalidandvoid.
303.440.Theverificationsystemestablishedundersection303.430shallbeinstalled
2andfullyoperational[onJanuary1,2025] nolaterthanDecember31,2027,orassoonas
3technologicallypossiblefollowingthedevelopmentandmaintenanceofamodernized,
4integratedsystemforthetitlingofvehicles,issuanceandrenewalofvehicle
5registrations,issuanceandrenewalofdriver'slicensesandidentificationcards,and
6perfectionandreleaseofliensandencumbrancesonvehicles,tobefundedbythemotor
7vehicleadministrationtechnologyfundascreatedinsection301.558, followingan
8appropriatetestingorpilotperiodofnotlessthanninemonths.Untilthesuccessful
9completionofthetestingorpilotperiodinthejudgmentofthedirectorofthedepartmentof
10revenue,noenforcementactionshallbetakenbasedonthesystem,includingbutnotlimited
11toactiontakenundertheprogramestablishedundersection303.425.
361.900.Sections361.900to361.1035shallbeknownandmaybecitedasthe
2"MoneyTransmissionModernizationActof2024".
361.903.Sections361.900to361.1035aredesignedtoreplaceexistingstate
2moneytransmissionlawscurrentlycodifiedinlawandto:
3 (1)Ensurestatesmaycoordinateinallareasofregulation,licensing,and
4supervisiontoeliminateunnecessaryregulatoryburdenandmoreeffectivelyutilize
5regulatorresources;
6 (2)Protectthepublicfromfinancialcrime;
HCSSSSB1359	16 7 (3)Standardizethetypesofactivitiesthataresubjecttolicensingorotherwise
8exemptfromlicensing;and
9 (4)Modernizesafetyandsoundnessrequirementstoensurecustomerfundsare
10protectedinanenvironmentthatsupportsinnovativeandcompetitivebusiness
11practices.
361.906.Forpurposesofsections361.900to361.1035,thefollowingtermsshall
2mean:
3 (1)"Actinginconcert",personsknowinglyactingtogetherwithacommongoal
4ofjointlyacquiringcontrolofalicensee,regardlessofwhetherunderanexpress
5agreement;
6 (2)"Authorizeddelegate",apersonthatalicenseedesignatestoengagein
7moneytransmissiononbehalfofthelicensee;
8 (3)"Averagedailymoneytransmissionliability",theamountofthelicensee's
9outstandingmoneytransmissionobligationsinthisstateattheendofeachdayina
10givenperiodoftime,addedtogether,anddividedbythetotalnumberofdaysinthe
11givenperiodoftime.Forpurposesofcalculatingaveragedailymoneytransmission
12liabilityundersections361.900to361.1035foranylicenseerequiredtodoso,thegiven
13periodoftimeshallbethequartersendingMarchthirty-first,Junethirtieth,September
14thirtieth,andDecemberthirty-first;
15 (4)"BankSecrecyAct",theBankSecrecyAct,31U.S.C.Section5311etseq.,
16anditsimplementingregulations,asamendedandrecodifiedfromtimetotime;
17 (5)"Closedloopstoredvalue",storedvaluethatisredeemablebytheissueronly
18forgoodsorservicesprovidedbytheissueroritsaffiliateorfranchiseesoftheissueror
19itsaffiliate,excepttotheextentrequiredbyapplicablelawtoberedeemableincashfor
20itscashvalue;
21 (6)"Control":
22 (a)Thepowertovote,directlyorindirectly,atleasttwenty-fivepercentofthe
23outstandingvotingsharesorvotinginterestsofalicenseeorpersonincontrolofa
24licensee;
25 (b)Thepowertoelectorappointamajorityofkeyindividualsorexecutive
26officers,managers,directors,trustees,orotherpersonsexercisingmanagerialauthority
27ofapersonincontrolofalicensee;or
28 (c)Thepowertoexercise,directlyorindirectly,acontrollinginfluenceoverthe
29managementorpoliciesofalicenseeorpersonincontrolofalicensee.
30
31Apersonispresumedtoexerciseacontrollinginfluenceifthepersonholdsthepowerto
32vote,directlyorindirectly,atleasttenpercentoftheoutstandingvotingsharesorvoting
HCSSSSB1359	17 33interestsofalicenseeorpersonincontrolofalicensee.Apersonpresumedtoexercisea
34controllinginfluenceasdefinedunderthissubdivisioncanrebutthepresumptionof
35controlifthepersonisapassiveinvestor.Forpurposesofdeterminingthepercentageof
36apersoncontrolledbyanyotherperson,theperson'sinterestshallbeaggregatedwith
37theinterestofanyotherimmediatefamilymember,includingtheperson'sspouse,
38parents,children,siblings,mothers-andfathers-inlaw,sons-anddaughters-in-law,
39brothers-andsisters-in-law,andanyotherpersonwhosharessuchperson'shome;
40 (7)"Director",thedirectoroftheMissouridivisionoffinance;
41 (8)"Eligiblerating",acreditratingofanyofthethreehighestratingcategories
42providedbyaneligibleratingservice.Eachcategorymayincluderatingcategory
43modifierssuchas"plus"or"minus"forStandardandPoor'sortheequivalentforany
44othereligibleratingservice;
45 (9)"Eligibleratingservice",anynationallyrecognizedstatisticalrating
46organization(NRSRO)asdefinedbytheUnitedStatesSecuritiesandExchange
47Commissionandanyotherorganizationdesignatedbyruleororder;
48 (10)"Federallyinsureddepositoryfinancialinstitution",abank,creditunion,
49savingsandloanassociation,trustcompany,savingsassociation,savingsbank,
50industrialbank,orindustrialloancompanyorganizedunderthelawsoftheUnited
51StatesoranystateoftheUnitedStatesifsuchbank,creditunion,savingsandloan
52association,trustcompany,savingsassociation,savingsbank,industrialbank,or
53industrialloancompanyhasfederallyinsureddeposits;
54 (11)"Inthisstate",ataphysicallocationwithinthisstateforatransaction
55requestedinperson.Foratransactionrequestedelectronicallyorbyphone,the
56providerofmoneytransmissionmaydetermineifthepersonrequestingthetransaction
57isinthisstatebyrelyingonotherinformationprovidedbythepersonregardingthe
58locationoftheindividual'sresidentialaddressorabusinessentity'sprincipalplaceof
59businessorotherphysicaladdresslocation,andanyrecordsassociatedwiththeperson
60thattheproviderofmoneytransmissionmayhavethatindicatesuchlocationincluding,
61butnotlimitedto,anaddressassociatedwithanaccount;
62 (12)"Individual",anaturalperson;
63 (13)"Keyindividual",anyindividualultimatelyresponsibleforestablishingor
64directingpoliciesandproceduresofthelicensee,suchasanexecutiveofficer,manager,
65director,ortrustee;
66 (14)"Licensee",apersonlicensedundersections361.900to361.1035;
67 (15)"Materiallitigation",litigationthat,accordingtoUnitedStatesgenerally
68acceptedaccountingprinciples,issignificanttoaperson'sfinancialhealthandwouldbe
HCSSSSB1359	18 69requiredtobedisclosedintheperson'sannualauditedfinancialstatements,reportto
70shareholders,orsimilarrecords;
71 (16)"Monetaryvalue",amediumofexchange,regardlessofwhether
72redeemableinmoney;
73 (17)"Money",amediumofexchangethatisauthorizedoradoptedbythe
74UnitedStatesoraforeigngovernment.Thetermincludesamonetaryunitofaccount
75establishedbyanintergovernmentalorganizationorbyagreementbetweentwoormore
76governments;
77 (18)"Moneytransmission",anyofthefollowing:
78 (a)Sellingorissuingpaymentinstrumentstoapersonlocatedinthisstate;
79 (b)Sellingorissuingstoredvaluetoapersonlocatedinthisstate;or
80 (c)Receivingmoneyfortransmissionfromapersonlocatedinthisstate.
81
82Thetermincludespayrollprocessingservices.Thetermdoesnotincludetheprovision
83solelyofonlineortelecommunicationsservicesornetworkaccess;
84 (19)"Multistatelicensingprocess",anyagreemententeredintobyandamong
85stateregulatorsrelatingtocoordinatedprocessingofapplicationsformoney
86transmissionlicenses,applicationsfortheacquisitionofcontrolofalicensee,control
87determinations,ornoticeandinformationrequirementsforachangeofkeyindividuals;
88 (20)"NMLS",theNationwideMultistateLicensingSystemandRegistry
89developedbytheConferenceofStateBankSupervisorsandtheAmericanAssociation
90ofResidentialMortgageRegulatorsandownedandoperatedbytheStateRegulatory
91RegistryLLCoranysuccessororaffiliatedentityforthelicensingandregistrationof
92personsinfinancialservicesindustries;
93 (21)"Outstandingmoneytransmissionobligations":
94 (a)Anypaymentinstrumentorstoredvalueissuedorsoldbythelicenseetoa
95personlocatedintheUnitedStatesorreportedassoldbyanauthorizeddelegateofthe
96licenseetoapersonthatislocatedintheUnitedStatesthathasnotyetbeenpaidor
97refundedbyorforthelicenseeorescheatedinaccordancewithapplicableabandoned
98propertylaws;or
99 (b)Anymoneyreceivedfortransmissionbythelicenseeoranauthorized
100delegateintheUnitedStatesfromapersonlocatedintheUnitedStatesthathasnot
101beenreceivedbythepayeeorrefundedtothesender,orescheatedinaccordancewith
102applicableabandonedpropertylaws.
103
104Forpurposesofthissubdivision,"intheUnitedStates"shallinclude,totheextent
105applicable,apersoninanystate,territory,orpossessionoftheUnitedStates;the
HCSSSSB1359	19 106DistrictofColumbia;theCommonwealthofPuertoRico;oraU.S.militaryinstallation
107thatislocatedinaforeigncountry;
108 (22)"Passiveinvestor",apersonthat:
109 (a)Doesnothavethepowertoelectamajorityofkeyindividualsorexecutive
110officers,managers,directors,trustees,orotherpersonsexercisingmanagerialauthority
111ofapersonincontrolofalicensee;
112 (b)Isnotemployedbyanddoesnothaveanymanagerialdutiesofthelicensee
113orpersonincontrolofalicensee;
114 (c)Doesnothavethepowertoexercise,directlyorindirectly,acontrolling
115influenceoverthemanagementorpoliciesofalicenseeorpersonincontrolofalicensee;
116and
117 (d)Either:
118 a.Atteststoparagraphs(a),(b),and(c)ofthissubdivision,inaformandina
119mediumprescribedbythedirector;or
120 b.Commitstothepassivitycharacteristicsofparagraphs(a),(b),and(c)ofthis
121subdivisioninawrittendocument;
122 (23)"Paymentinstrument",awrittenorelectroniccheck,draft,moneyorder,
123traveler'scheck,orotherwrittenorelectronicinstrumentforthetransmissionor
124paymentofmoneyormonetaryvalue,regardlessofwhethernegotiable.Thetermdoes
125notincludestoredvalueoranyinstrumentthat:
126 (a)Isredeemablebytheissueronlyforgoodsorservicesprovidedbytheissuer
127oritsaffiliateorfranchiseesoftheissueroritsaffiliate,excepttotheextentrequiredby
128applicablelawtoberedeemableincashforitscashvalue;or
129 (b)Isnotsoldtothepublicbutissuedanddistributedaspartofaloyalty,
130rewards,orpromotionalprogram;
131 (24)"Payrollprocessingservices",receivingmoneyfortransmissionundera
132contractwithapersontodeliverwagesorsalaries,makepaymentofpayrolltaxesto
133stateandfederalagencies,makepaymentsrelatingtoemployeebenefitplans,ormake
134distributionsofotherauthorizeddeductionsfromwagesorsalaries.Thetermdoesnot
135includeanemployerperformingpayrollprocessingservicesonitsownbehalforon
136behalfofitsaffiliateoraprofessionalemployerorganizationsubjecttoregulationunder
137sections285.700to285.750;
138 (25)"Person",anyindividual,generalpartnership,limitedpartnership,limited
139liabilitycompany,corporation,trust,association,jointstockcorporation,orother
140corporateentityidentifiedbythedirector;
HCSSSSB1359	20 141 (26)"Receivingmoneyfortransmission"or"moneyreceivedfortransmission",
142receivingmoneyormonetaryvalueintheUnitedStatesfortransmissionwithinor
143outsidetheUnitedStatesbyelectronicorothermeans;
144 (27)"Storedvalue",monetaryvaluerepresentingaclaimagainsttheissuer
145evidencedbyanelectronicordigitalrecordandthatisintendedandacceptedforuseas
146ameansofredemptionformoney,ormonetaryvalue,orpaymentforgoodsorservices.
147Thetermincludes,butisnotlimitedto,"prepaidaccess"asdefinedunder31CFR
148Section1010.100,asamendedorrecodifiedfromtimetotime.Notwithstandingthe
149provisionsofthissubdivision,thetermdoesnotincludeapaymentinstrumentorclosed
150loopstoredvalue,orstoredvaluenotsoldtothepublicbutissuedanddistributedas
151partofaloyalty,rewards,orpromotionalprogram;
152 (28)"Tangiblenetworth",theaggregateassetsofalicenseeexcludingall
153intangibleassets,lessliabilities,asdeterminedinaccordancewithUnitedStates
154generallyacceptedaccountingprinciples.
361.909.Sections361.900to361.1035shallnotapplyto:
2 (1)Anoperatorofapaymentsystemtotheextentthatitprovidesprocessing,
3clearing,orsettlementservicesbetweenoramongpersonsexemptedunderthissection
4orlicenseesinconnectionwithwiretransfers,creditcardtransactions,debitcard
5transactions,storedvaluetransactions,automatedclearinghousetransfers,orsimilar
6fundstransfers;
7 (2)Apersonappointedasanagentofapayeetocollectandprocessapayment
8fromapayertothepayeeforgoodsorservices,otherthanmoneytransmissionitself,
9providedtothepayerbythepayee,providedthat:
10 (a)Thereexistsawrittenagreementbetweenthepayeeandtheagentdirecting
11theagenttocollectandprocesspaymentsfromapayeronthepayee'sbehalf;
12 (b)Thepayeeholdstheagentouttothepublicasacceptingpaymentsforgoods
13orservicesonthepayee'sbehalf;and
14 (c)Paymentforthegoodsandservicesistreatedasreceivedbythepayeeupon
15receiptbytheagentsothatthepayer'sobligationisextinguishedandthereisnoriskof
16losstothepayeriftheagentfailstoremitthefundstothepayee;
17 (3)Apersonthatactsasanintermediarybyprocessingpaymentsbetweenan
18entitythathasdirectlyincurredanoutstandingmoneytransmissionobligationtoa
19senderandthesender'sdesignatedrecipient,providedthattheentity:
20 (a)Isproperlylicensedorexemptfromlicensingrequirementsundersections
21361.900to361.1035;
HCSSSSB1359	21 22 (b)Providesareceipt,electronicrecord,orotherwrittenconfirmationtothe
23senderidentifyingtheentityastheproviderofmoneytransmissioninthetransaction;
24and
25 (c)Bearssoleresponsibilitytosatisfytheoutstandingmoneytransmission
26obligationtothesender,includingtheobligationtomakethesenderwholeinconnection
27withanyfailuretotransmitthefundstothesender'sdesignatedrecipient;
28 (4)TheUnitedStatesoradepartment,agency,orinstrumentalitythereof,orits
29agent;
30 (5)MoneytransmissionbytheUnitedStatesPostalServiceorbyanagentofthe
31UnitedStatesPostalService;
32 (6)Astate,county,city,oranyothergovernmentalagencyorgovernmental
33subdivisionorinstrumentalityofastate,oritsagent;
34 (7)Afederallyinsureddepositoryfinancialinstitution;bankholdingcompany;
35officeofaninternationalbankingcorporation;foreignbankthatestablishesafederal
36branchundertheInternationalBankAct,12U.S.C.Section3102,asamendedor
37recodifiedfromtimetotime;corporationorganizedundertheBankService
38CorporationAct,12U.S.C.Sections1861-1867,asamendedorrecodifiedfromtime
39totime;orcorporationorganizedundertheEdgeAct,12U.S.C.Sections611-633,as
40amendedorrecodifiedfromtimetotime,underthelawsofastateortheUnitedStates;
41 (8)Electronicfundstransferofgovernmentalbenefitsforafederal,state,
42county,orgovernmentalagencybyacontractoronbehalfoftheUnitedStatesora
43department,agency,orinstrumentalitythereof,oronbehalfofastateorgovernmental
44subdivision,agency,orinstrumentalitythereof;
45 (9)Aboardoftradedesignatedasacontractmarketunderthefederal
46CommodityExchangeAct,7U.S.C.Sections1-25,asamendedorrecodifiedfromtime
47totime,orapersonthat,intheordinarycourseofbusiness,providesclearanceand
48settlementservicesforaboardoftradetotheextentofitsoperationasorforsucha
49board;
50 (10)Aregisteredfuturescommissionmerchantunderthefederalcommodities
51lawstotheextentofitsoperationassuchamerchant;
52 (11)Apersonregisteredasasecuritiesbroker-dealerunderfederalorstate
53securitieslawstotheextentofitsoperationassuchabroker-dealer;
54 (12)Anindividualemployedbyalicensee,authorizeddelegate,oranyperson
55exemptedfromthelicensingrequirementsundersections361.900to361.1035ifacting
56withinthescopeofemploymentandunderthesupervisionofthelicensee,authorized
57delegate,orexemptedpersonasanemployeeandnotasanindependentcontractor;
HCSSSSB1359	22 58 (13)Apersonexpresslyappointedasathird-partyserviceprovidertooragent
59ofanentityexemptundersubdivision(7)ofthissubsectionsolelytotheextentthat:
60 (a)Suchserviceprovideroragentisengaginginmoneytransmissiononbehalf
61ofandunderawrittenagreementwiththeexemptentitythatsetsforththespecific
62functionsthattheserviceprovideroragentistoperform;and
63 (b)Theexemptentityassumesallriskoflossandalllegalresponsibilityfor
64satisfyingtheoutstandingmoneytransmissionobligationsowedtopurchasersand
65holdersoftheoutstandingmoneytransmissionobligationsuponreceiptofthe
66purchaser'sorholder'smoneyormonetaryvaluebytheserviceprovideroragent.
361.912.Thedirectormayrequirethatanypersonclaimingtobeexemptfrom
2licensingundersection361.909provideinformationanddocumentationtothedirector
3demonstratingthatthepersonqualifiesforanyclaimedexemption.
361.915.1.Inordertocarryoutthepurposesofsections361.900to361.1035,
2thedirectormay,subjecttotheprovisionsofsubsections1and2ofsection361.918:
3 (1)Enterintoagreementsorrelationshipswithothergovernmentofficialsor
4federalandstateregulatoryagenciesandregulatoryassociationsinordertoimprove
5efficienciesandreduceregulatoryburdenbystandardizingmethodsorprocedures,and
6sharingresources,records,orrelatedinformationobtainedundersections361.900to
7361.1035;
8 (2)Use,hire,contract,oremployanalyticalsystems,methods,orsoftwareto
9examineorinvestigateanypersonsubjecttosections361.900to361.1035;
10 (3)Accept,fromotherstateorfederalgovernmentagenciesorofficials,
11licensing,examination,orinvestigationreportsmadebysuchotherstateorfederal
12governmentagenciesorofficials;and
13 (4)Acceptauditreportsmadebyanindependentcertifiedpublicaccountantor
14otherqualifiedthird-partyauditorforanapplicantorlicenseeandincorporatethe
15auditreportinanyreportofexaminationorinvestigation.
16 2.Thedirectorshallhavethebroadadministrativeauthorityto:
17 (1)Administer,interpret,andenforcesections361.900to361.1035and
18promulgaterulesorregulationsimplementingsections361.900to361.1035;and
19 (2)Recoverthecostofadministeringandenforcingsections361.900to361.1035
20byimposingandcollectingproportionateandequitablefeesandcostsassociatedwith
21applications,examinations,investigations,andotheractionsrequiredtoachievethe
22purposeofsections361.900to361.1035.
23 3.Thedirectorshallpromulgateallnecessaryrulesandregulationsforthe
24administrationofsections361.900to361.1035.Anyruleorportionofarule,asthat
25termisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
HCSSSSB1359	23 26sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
27provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
28536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
29pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
30arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
31andanyruleproposedoradoptedafterAugust28,2024,shallbeinvalidandvoid.
361.918.1.Exceptasotherwiseprovidedinsubsection2ofthissection,all
2informationorreportsobtainedbythedirectorfromanapplicant,licensee,or
3authorizeddelegateandallinformationcontainedinorrelatedtoanexamination,
4investigation,operatingreport,orconditionreportpreparedby,onbehalfof,orforthe
5useofthedirector,orfinancialstatements,balancesheets,orauthorizeddelegate
6information,shallbeconfidentialandheldinaccordancewithsection361.080.
7 2.Thedirectormaydiscloseinformationnototherwisesubjecttodisclosure
8undersubsection1ofthissectiontorepresentativesofstateorfederalagencieswho
9shallconfirminwritingthattheywillmaintaintheconfidentialityoftheinformation.
10 3.Thissectiondoesnotprohibitthedirectorfromdisclosingtothepublicalist
11ofalllicenseesortheaggregatedfinancialortransactionaldataconcerningthose
12licensees.
361.921.1.Thedirectormayconductanexaminationorinvestigationofa
2licenseeorauthorizeddelegateorotherwisetakeindependentactionauthorizedby
3sections361.900to361.1035orbyaruleadoptedororderissuedundersections361.900
4to361.1035asreasonablynecessaryorappropriatetoadministerandenforcesections
5361.900to361.1035,regulationsimplementingsections361.900to361.1035,andother
6applicablelaw,includingtheBankSecrecyActandtheUSAPATRIOTAct.The
7directormay:
8 (1)Conductanexaminationeitheronsiteoroffsiteasthedirectormay
9reasonablyrequire;
10 (2)Conductanexaminationinconjunctionwithanexaminationconductedby
11representativesofotherstateagenciesoragenciesofanotherstateorofthefederal
12government;
13 (3)Accepttheexaminationreportofanotherstateagencyoranagencyof
14anotherstateorofthefederalgovernment,orareportpreparedbyanindependent
15accountingfirm,whichonbeingacceptedisconsideredforallpurposesasanofficial
16reportofthedirector;and
17 (4)Summonandexamineunderoathakeyindividualoremployeeofalicensee
18orauthorizeddelegateandrequirethepersontoproducerecordsregardinganymatter
19relatedtotheconditionandbusinessofthelicenseeorauthorizeddelegate.
HCSSSSB1359	24 20 2.Alicenseeorauthorizeddelegateshallprovide,andthedirectorshallhavefull
21andcompleteaccessto,allrecordsthedirectormayreasonablyrequiretoconducta
22completeexamination.Therecordsshallbeprovidedatthelocationandintheformat
23specifiedbythedirector.Thedirectormayutilizemultistaterecordproduction
24standardsandexaminationproceduresifsuchstandardsandprocedureswill
25reasonablyachievetherequirementsofthissubsection.
26 3.Unlessotherwisedirectedbythedirector,alicenseeshallpayallcosts
27reasonablyincurredinconnectionwithanexaminationofthelicenseeorthelicensee's
28authorizeddelegates.
361.924.1.Toefficientlyandeffectivelyadministerandenforcesections361.900
2to361.1035andtominimizeregulatoryburden,thedirectorisauthorizedtoparticipate
3inmultistatesupervisoryprocessesestablishedbetweenstatesorcoordinatedthrough
4theConferenceofStateBankSupervisors,MoneyTransmitterRegulatorsAssociation,
5andaffiliatesandsuccessorsthereofforalllicenseesthatholdlicensesinthisstateand
6otherstates.Asaparticipantinmultistatesupervision,thedirectormay:
7 (1)Cooperate,coordinate,andshareinformationwithotherstateandfederal
8regulatorsinaccordancewithsection361.918;
9 (2)Enterintowrittencooperation,coordination,orinformation-sharing
10contractsoragreementswithorganizationsthemembershipofwhichismadeupof
11stateorfederalgovernmentalagencies;and
12 (3)Cooperate,coordinate,andshareinformationwithorganizationsthe
13membershipofwhichismadeupofstateorfederalgovernmentalagencies,provided
14thattheorganizationsagreeinwritingtomaintaintheconfidentialityandsecurityofthe
15sharedinformationinaccordancewiththissection.
16 2.Thedirectorshallnotwaiveandnothinginthissectionconstitutesawaiverof
17thedirector'sauthoritytoconductanexaminationorinvestigationorotherwisetake
18independentactionauthorizedbysections361.900to361.1035oraruleadoptedor
19orderissuedundersections361.900to361.1035toenforcecompliancewithapplicable
20stateorfederallaw.
21 3.Ajointexaminationorinvestigation,oracceptanceofanexaminationor
22investigationreport,doesnotwaiveanexaminationassessmentprovidedforinsections
23361.900to361.1035.
361.927.1.Intheeventstatemoneytransmissionjurisdictionisconditionedon
2afederallaw,anyinconsistenciesbetweenaprovisionofsections361.900to361.1035
3andthefederallawgoverningmoneytransmissionshallbegovernedbytheapplicable
4federallawtotheextentoftheinconsistency.
HCSSSSB1359	25 5 2.Intheeventofanyinconsistenciesbetweensections361.900to361.1035anda
6federallawthatgovernsundersubsection1ofthissection,thedirectormayprovide
7interpretiveguidancethat:
8 (1)Identifiestheinconsistency;and
9 (2)Identifiestheappropriatemeansofcompliancewithfederallaw.
361.930.1.Apersonshallnotengageinthebusinessofmoneytransmissionor
2advertise,solicit,orholditselfoutasprovidingmoneytransmissionunlessthepersonis
3licensedundersections361.900to361.1035.
4 2.Subsection1ofthissectionshallnotapplyto:
5 (1)Apersonthatisanauthorizeddelegateofapersonlicensedundersections
6361.900to361.1035actingwithinthescopeofauthorityconferredbyawrittencontract
7withthelicensee;or
8 (2)Apersonthatisexemptundersection361.909anddoesnotengageinmoney
9transmissionoutsidethescopeofsuchexemption.
10 3.Alicenseissuedundersection361.942shallnotbetransferableorassignable.
361.933.1.Toestablishconsistentlicensingbetweenthisstateandotherstates,
2thedirectorisauthorizedto:
3 (1)Implementthelicensingprovisionsofsections361.900to361.1035ina
4mannerthatisconsistentwithotherstatesthathaveadoptedthemoneytransmission
5modernizationsactormultistatelicensingprocesses;and
6 (2)Participateinnationwideprotocolsforlicensingcooperationand
7coordinationamongstateregulators,providedthatsuchprotocolsareconsistentwith
8sections361.900to361.1035.
9 2.Inordertofulfillthepurposesofsections361.900to361.1035,thedirectoris
10authorizedtoestablishrelationshipsorcontractswithNMLS,orotherentities
11designatedbyNMLSorotherthirdpartiestoenablethedirectorto:
12 (1)Collectandmaintainrecords;
13 (2)Coordinatemultistatelicensingprocessesandsupervisionprocesses;
14 (3)Processfees;and
15 (4)Facilitatecommunicationbetweenthisstateandlicenseesorotherpersons
16subjecttosections361.900to361.1035.
17 3.ThedirectorisauthorizedtoutilizeNMLSforallaspectsoflicensingin
18accordancewithsections361.900to361.1035including,butnotlimitedto,license
19applications,applicationsforacquisitionsofcontrol,suretybonds,reporting,criminal
20historybackgroundchecks,creditchecks,feeprocessing,andexaminations.
21 4.ThedirectorisauthorizedtoutilizeNMLSforms,processes,and
22functionalitiesinaccordancewithsections361.900to361.1035.
HCSSSSB1359	26 23 5.(1)Thedirectorisauthorizedtoestablishandadopt,byruleorregulation,
24requirementsforparticipationbyapplicantsandlicenseesinNMLSuponthedivisionof
25finance'sdeterminationthateachrequirementisconsistentwithlaw,publicinterest,
26andthepurposesofthissection.
27 (2)Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
28createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
29complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
30section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
31vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
32effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
33thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
3428,2024,shallbeinvalidandvoid.
361.936.1.Applicantsforalicenseshallapplyinaformandinamediumas
2prescribedbythedirector.Eachsuchformshallcontaincontentassetforthbyrule,
3regulation,instruction,orprocedureofthedirectorandmaybechangedorupdatedby
4thedirectorinaccordancewithapplicablelawinordertocarryoutthepurposesof
5sections361.900to361.1035andmaintainconsistencywithlicensingstandardsand
6practices.Theapplicationshallstateorcontain,asapplicable:
7 (1)Thelegalnameandresidentialandbusinessaddressesoftheapplicantand
8anyfictitiousortradenameusedbytheapplicantinconductingitsbusiness;
9 (2)Whethertheapplicanthasbeenconvictedof,orpledguiltyornolo
10contendereto,afelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
11laundering;
12 (3)Adescriptionofanymoneytransmissionpreviouslyprovidedbythe
13applicantandthemoneytransmissionthattheapplicantseekstoprovideinthisstate;
14 (4)Alistoftheapplicant'sproposedauthorizeddelegatesandthelocationsin
15thisstatewheretheapplicantanditsauthorizeddelegatesproposetoengageinmoney
16transmission;
17 (5)Alistofotherstatesinwhichtheapplicantislicensedtoengageinmoney
18transmissionandanylicenserevocations,suspensions,orotherdisciplinaryactiontaken
19againsttheapplicantinanotherstate;
20 (6)Informationconcerninganybankruptcyorreceivershipproceedings
21affectingthelicenseeorapersonincontrolofalicensee;
22 (7)Asampleformofcontractforauthorizeddelegates,ifapplicable;
23 (8)Asampleformofpaymentinstrumentorstoredvalue,asapplicable;
24 (9)Thenameandaddressofanyfederallyinsureddepositoryfinancial
25institutionthroughwhichtheapplicantplanstoconductmoneytransmission;
HCSSSSB1359	27 26 (10)Alistofanymateriallitigationinwhichtheapplicanthasbeeninvolvedin
27theten-yearperiodnextprecedingthesubmissionoftheapplication;and
28 (11)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
29applicant.
30 2.Ifanapplicantisacorporation,limitedliabilitycompany,partnership,or
31otherlegalentity,theapplicantshallalsoprovide:
32 (1)Thedateoftheapplicant'sincorporationorformationandstateorcountry
33ofincorporationorformation;
34 (2)Ifapplicable,acertificateofgoodstandingfromthestateorcountryinwhich
35theapplicantisincorporatedorformed;
36 (3)Abriefdescriptionofthestructureororganizationoftheapplicant,
37includinganyparentsorsubsidiariesoftheapplicant,andwhetheranyparentsor
38subsidiariesarepubliclytraded;
39 (4)Thelegalname,anyfictitiousortradename,allbusinessandresidential
40addresses,andtheemployment,asapplicable,intheten-yearperiodnextprecedingthe
41submissionoftheapplicationofeachkeyindividualandpersonincontrolofthe
42applicant;
43 (5)Whethertheyhavebeenconvictedof,orpledguiltyornolocontendereto,a
44felonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoneylaundering;
45 (6)Acopyofauditedfinancialstatementsoftheapplicantforthemostrecent
46fiscalyearandforthetwo-yearperiodnextprecedingthesubmissionoftheapplication
47or,ifdeterminedtobeacceptabletothedirector,certifiedunauditedfinancial
48statementsforthemostrecentfiscalyearorotherperiodacceptabletothedirector;
49 (7)Acertifiedcopyofunauditedfinancialstatementsoftheapplicantforthe
50mostrecentfiscalquarter;
51 (8)Iftheapplicantisapubliclytradedcorporation,acopyofthemostrecent
52reportfiledwiththeUnitedStatesSecuritiesandExchangeCommissionunderSection
5313ofthefederalSecuritiesExchangeActof1934,15U.S.C.Section78m,asamendedor
54recodifiedfromtimetotime;
55 (9)Iftheapplicantisawhollyownedsubsidiaryof:
56 (a)AcorporationpubliclytradedintheUnitedStates,acopyofaudited
57financialstatementsfortheparentcorporationforthemostrecentfiscalyearoracopy
58oftheparentcorporation'smostrecentreportfiledunderSection13oftheU.S.
59SecuritiesExchangeActof1934,15U.S.C.Section78m,asamendedorrecodifiedfrom
60timetotime;or
HCSSSSB1359	28 61 (b)AcorporationpubliclytradedoutsidetheUnitedStates,acopyofsimilar
62documentationfiledwiththeregulatoroftheparentcorporation'sdomicileoutsidethe
63UnitedStates;
64 (10)Thenameandaddressoftheapplicant'sregisteredagentinthisstate;
65 (11)Alistofanymateriallitigationinwhichtheapplicanthasbeeninvolvedin
66theten-yearperiodnextprecedingthesubmissionoftheapplication;and
67 (12)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
68applicant.
69 3.Anonrefundableapplicationfeeandlicensefee,asdeterminedbythedirector,
70shallaccompanyanapplicationforalicenseunderthissection.
71 4.Thedirectormaywaiveoneormorerequirementsofsubsections1and2of
72thissectionorpermitanapplicanttosubmitotherinformationinlieuoftherequired
73information.
361.939.1.Anyindividualincontrolofalicenseeorapplicant,anyindividual
2thatseekstoacquirecontrolofalicensee,andeachkeyindividualshallfurnishtothe
3directorthroughNMLSthefollowing:
4 (1)Theindividual'sfingerprintsforsubmissiontotheFederalBureauof
5Investigationandthedirectorforpurposesofanationalcriminalhistorybackground
6checkunlessthepersoncurrentlyresidesoutsideoftheUnitedStatesandhasresided
7outsideoftheUnitedStatesforthelasttenyears;and
8 (2)Personalhistoryandexperienceinaformandinamediumprescribedbythe
9director,toobtainthefollowing:
10 (a)Anindependentcreditreportfromaconsumerreportingagencyunlessthe
11individualdoesnothaveaSocialSecuritynumber,inwhichcasethisrequirementshall
12bewaived;
13 (b)Whethertheyhavebeenconvictedof,orpledguiltyornolocontendereto,a
14felonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoneylaundering;and
15 (c)Informationrelatedtoanyregulatoryoradministrativeactionandanycivil
16litigationinvolvingclaimsoffraud,misrepresentation,conversion,mismanagementof
17funds,breachoffiduciaryduty,orbreachofcontract.
18 2.IftheindividualhasresidedoutsideoftheUnitedStatesatanytimeinthelast
19tenyears,theindividualshallalsoprovideaninvestigativebackgroundreportprepared
20byanindependentsearchfirmthatmeetsthefollowingrequirements:
21 (1)Ataminimum,thesearchfirmshall:
22 (a)Demonstratethatithassufficientknowledgeandresourcesandemploys
23acceptedandreasonablemethodologiestoconducttheresearchforthebackground
24report;and
HCSSSSB1359	29 25 (b)Notbeaffiliatedwithorhaveaninterestwiththeindividualitisresearching;
26and
27 (2)Ataminimum,theinvestigativebackgroundreportshallbewritteninthe
28Englishlanguageandshallcontainthefollowing:
29 (a)Ifavailableintheindividual'scurrentjurisdictionofresidency,a
30comprehensivecreditreport,oranyequivalentinformationobtainedorgeneratedby
31theindependentsearchfirmtoaccomplishsuchreport,includingasearchofthecourt
32datainthecountries,provinces,states,cities,towns,andcontiguousareaswherethe
33individualresidedandworked;
34 (b)Criminalrecordsinformationforthepasttenyearsincluding,butnot
35limitedto,felonies,misdemeanors,orsimilarconvictionsforviolationsoflawinthe
36countries,provinces,states,cities,towns,andcontiguousareaswheretheindividual
37residedandworked;
38 (c)Employmenthistory;
39 (d)Mediahistory,includinganelectronicsearchofnationalandlocal
40publications,wireservices,andbusinessapplications;and
41 (e)Financialservices-relatedregulatoryhistoryincludingbutnotlimitedto,
42moneytransmission,securities,banking,insurance,andmortgage-relatedindustries.
361.942.1.Ifanapplicationforanoriginallicenseundersections361.900to
2361.1035appearstoincludealltheitemsandaddressesandallofthemattersthatare
3required,theapplicationiscompleteandthedirectorshallpromptlynotifythe
4applicantinarecordofthedateonwhichtheapplicationisdeterminedtobecomplete,
5and:
6 (1)Thedirectorshallapproveordenytheapplicationwithinonehundred
7twentydaysafterthecompletiondate;or
8 (2)Iftheapplicationisnotapprovedordeniedwithinonehundredtwentydays
9afterthecompletiondate:
10 (a)Theapplicationisapproved;and
11 (b)Thelicensetakeseffectasofthefirstbusinessdayafterexpirationoftheone-
12hundred-twenty-dayperiod.
13
14Thedirectormayforgoodcauseextendtheapplicationperiod.
15 2.Adeterminationbythedirectorthatanapplicationiscompleteandis
16acceptedforprocessingmeansonlythattheapplication,onitsface,appearstoinclude
17alloftheitems,includingthecriminalbackgroundcheckresponsefromtheFederal
18BureauofInvestigation,andaddressallofthemattersthatarerequired,andisnotan
HCSSSSB1359	30 19assessmentofthesubstanceoftheapplicationorofthesufficiencyoftheinformation
20provided.
21 3.Ifanapplicationisfiledandconsideredcompleteunderthissection,the
22directorshallinvestigatetheapplicant'sfinancialconditionandresponsibility,financial
23andbusinessexperience,character,andgeneralfitness.Thedirectormayconductan
24onsiteinvestigationoftheapplicant,thereasonablecostofwhichtheapplicantshallpay.
25Thedirectorshallissuealicensetoanapplicantunderthissectionifthedirectorfinds
26thatallofthefollowingconditionshavebeenfulfilled:
27 (1)Theapplicanthascompliedwiththeprovisionsofsections361.929and
28361.936;and
29 (2)Thefinancialconditionandresponsibility,financialandbusinessexperience,
30competence,character,andgeneralfitnessoftheapplicant;andthecompetence,
31experience,character,andgeneralfitnessofthekeyindividualsandpersonsincontrol
32oftheapplicantindicatethatitisintheinterestofthepublictopermittheapplicantto
33engageinmoneytransmission.
34 4.Ifanapplicantavailsitselforisotherwisesubjecttoamultistatelicensing
35process:
36 (1)Thedirectorshallbeauthorizedtoaccepttheinvestigationresultsofalead
37investigativestateforthepurposeofsubsection3ofthissectioniftheleadinvestigative
38statehassufficientstaffing,expertise,andminimumstandards;or
39 (2)Ifthisstateisaleadinvestigativestate,thedirectorshallbeauthorizedto
40investigatetheapplicantundersubsection3ofthissectionandthetimeframes
41establishedbyagreementthroughthemultistatelicensingprocess,providedhowever,
42thatinnocaseshallsuchtimeframebenoncompliantwiththeapplicationperiodin
43subdivision(1)ofsubsection1ofthissection.
44 5.Thedirectorshallissueaformalwrittennoticeofthedenialofalicense
45applicationwithinthirtydaysofthedecisiontodenytheapplication.Thedirectorshall
46setforthinthenoticeofdenialthespecificreasonsforthedenialoftheapplication.An
47applicantwhoseapplicationisdeniedbythedirectorunderthissubsectionmayappeal
48withinthirtydaysafterreceiptofthewrittennoticeofthedenialunderchapter536.
49 6.Theinitiallicensetermshallbeginonthedaytheapplicationisapproved.
50ThelicenseshallexpireonDecemberthirty-firstoftheyearinwhichthelicenseterm
51beganunlesstheinitiallicensedateisbetweenNovemberfirstandDecemberthirty-
52first,inwhichinstancetheinitiallicensetermshallrunthroughDecemberthirty-firstof
53thefollowingyear.
361.945.1.Alicenseundersections361.900to361.1035shallberenewed
2annually.Anannualrenewalfee,tobedeterminedbythedirector,shallbepaidno
HCSSSSB1359	31 3morethansixtydaysbeforethelicenseexpiration.Therenewaltermshallbefora
4periodofoneyearandshallbeginonJanuaryfirstofeachyearaftertheinitiallicense
5termandshallexpireonDecemberthirty-firstoftheyeartherenewaltermbegins.
6 2.Alicenseeshallsubmitarenewalreportwiththerenewalfee,inaformandin
7amediumprescribedbythedirector.Therenewalreportshallstateorcontaina
8descriptionofeachmaterialchangeininformationsubmittedbythelicenseeinits
9originallicenseapplicationthathasnotbeenreportedtothedirector.
10 3.Thedirectorforgoodcausemaygrantanextensionoftherenewaldate.
11 4.ThedirectorshallbeauthorizedandencouragedtoutilizeNMLStoprocess
12licenserenewals,providedthatsuchfunctionalityisconsistentwiththissection.
361.948.1.Ifalicenseedoesnotcontinuetomeetthequalificationsorsatisfythe
2requirementsthatapplytoanapplicantforanewmoneytransmissionlicense,the
3directormaysuspendorrevokethelicensee'slicenseinaccordancewiththeprocedures
4establishedundersections361.900to361.1035orotherapplicablestatelawforsuch
5suspensionorrevocation.
6 2.Anapplicantforamoneytransmissionlicenseshalldemonstratethatitmeets
7orwillmeet,andamoneytransmissionlicenseeshallatalltimesmeet,therequirements
8insections361.999,361.1002,and361.1005.
361.951.1.Anyperson,orgroupofpersonsactinginconcert,seekingtoacquire
2controlofalicenseeshallobtainthewrittenapprovalofthedirectorpriortoacquiring
3control.Anindividualisnotdeemedtoacquirecontrolofalicenseeandisnotsubjectto
4theacquisitionofcontrolprovisionsifthatindividualbecomesakeyindividualinthe
5ordinarycourseofbusiness.
6 2.Aperson,orgroupofpersonsactinginconcert,seekingtoacquirecontrolofa
7licenseeshall,incooperationwiththelicensee:
8 (1)Submitanapplicationinaformandinamediumprescribedbythedirector;
9and
10 (2)Submitanonrefundablefee,tobedeterminedbythedirector,withthe
11requestforapproval.
12 3.Uponrequest,thedirectormaypermitalicenseeoraperson,orgroupof
13personsactinginconcert,tosubmitsomeorallinformationrequiredbythedirector
14undersubdivision(1)ofsubsection2ofthissectionwithoutusingNMLS.
15 4.Theapplicationrequiredundersubdivision(1)ofsubsection2ofthissection
16shallincludeinformationrequiredundersection361.939foranynewkeyindividuals
17thathavenotpreviouslycompletedtherequirementsofsection361.939foralicensee.
18 5.Whenanapplicationforacquisitionofcontrolunderthissectionappearsto
19includealltheitemsandaddressallofthemattersthatarerequired,theapplication
HCSSSSB1359	32 20shallbeconsideredcomplete.Thedirectorshallpromptlynotifytheapplicantina
21recordofthedateonwhichtheapplicationwasdeterminedtobecomplete,and:
22 (1)Thedirectorshallapproveordenytheapplicationwithinsixtydaysafterthe
23completiondate;or
24 (2)Iftheapplicationisnotapprovedordeniedwithinsixtydaysafterthe
25completiondate:
26 (a)Theapplicationisapproved;and
27 (b)Theperson,orgroupofpersonsactinginconcert,arenotprohibitedfrom
28acquiringcontrol;and
29 (3)Thedirectormayforgoodcauseextendtheapplicationperiod.
30 6.Adeterminationbythedirectorthatanapplicationiscompleteandis
31acceptedforprocessingmeansonlythattheapplication,onitsface,appearstoinclude
32alloftheitemsandaddressallofthemattersthatarerequired,andisnotanassessment
33ofthesubstanceoftheapplicationorofthesufficiencyoftheinformationprovided.
34 7.Ifanapplicationisfiledandconsideredcompleteundersubsection5ofthis
35section,thedirectorshallinvestigatethefinancialconditionandresponsibility,financial
36andbusinessexperience,character,andgeneralfitnessoftheperson,orgroupof
37personsactinginconcert,seekingtoacquirecontrol.Thedirectorshallapprovean
38acquisitionofcontrolunderthissectionifthedirectorfindsthatallofthefollowing
39conditionshavebeenfulfilled:
40 (1)Therequirementsofsubsections2and4ofthissectionhavebeenmet,as
41applicable;and
42 (2)Thefinancialconditionandresponsibility,financialandbusinessexperience,
43competence,character,andgeneralfitnessoftheperson,orgroupofpersonsactingin
44concert,seekingtoacquirecontrolandthecompetence,experience,character,and
45generalfitnessofthekeyindividualsandpersonsthatwouldbeincontrolofthelicensee
46aftertheacquisitionofcontrolindicatethatitisintheinterestofthepublictopermit
47theperson,orgroupofpersonsactinginconcert,tocontrolthelicensee.
48 8.Ifanapplicantavailsitselforisotherwisesubjecttoamultistatelicensing
49process:
50 (1)Thedirectorisauthorizedtoaccepttheinvestigationresultsofalead
51investigativestateforthepurposeofsubsection7ofthissectioniftheleadinvestigative
52statehassufficientstaffing,expertise,andminimumstandards;or
53 (2)Ifthisstateisaleadinvestigativestate,thedirectorisauthorizedto
54investigatetheapplicantundersubsection7ofthissectionandthetimeframes
55establishedbyagreementthroughthemultistatelicensingprocess.
HCSSSSB1359	33 56 9.Thedirectorshallissueaformalwrittennoticeofthedenialofanapplication
57toacquirecontrolwithinthirtydaysofthedecisiontodenytheapplication.The
58directorshallsetforthinthenoticeofdenialthespecificreasonsforthedenialofthe
59application.Anapplicantwhoseapplicationisdeniedbythedirectorunderthis
60subsectionmayappealwithinthirtydaysafterreceiptofthewrittennoticeofthedenial
61underchapter536.
62 10.Therequirementsofsubsections1and2ofthissectionshallnotapplytoany
63ofthefollowing:
64 (1)Apersonthatactsasaproxyforthesolepurposeofvotingatadesignated
65meetingoftheshareholdersorholdersofvotingsharesorvotinginterestsofalicensee
66orapersonincontrolofalicensee;
67 (2)Apersonthatacquirescontrolofalicenseebydeviseordescent;
68 (3)Apersonthatacquirescontrolofalicenseeasapersonalrepresentative,
69custodian,guardian,conservator,ortrustee,orasanofficerappointedbyacourtof
70competentjurisdictionorbyoperationoflaw;
71 (4)Apersonthatisexemptundersubsection7ofsection361.909;
72 (5)Apersonthatthedirectordeterminesisnotsubjecttosubsection1ofthis
73sectionbasedonthepublicinterest;
74 (6)Apublicofferingofsecuritiesofalicenseeorapersonincontrolofa
75licensee;or
76 (7)Aninternalreorganizationofapersonincontrolofthelicenseewherethe
77ultimatepersonincontrolofthelicenseeremainsthesame.
78 11.Personsinsubdivisions(2),(3),(4),(6),and(7)ofsubsection10ofthissection
79incooperationwiththelicenseeshallnotifythedirectorwithinfifteendaysafterthe
80acquisitionofcontrol.
81 12.(1)Therequirementsofsubsections1and2ofthissectionshallnotapplyto
82apersonthathascompliedwithandreceivedapprovaltoengageinmoneytransmission
83undersections361.900to361.1035orwasidentifiedasapersonincontrolinaprior
84applicationfiledwithandapprovedbythedirectororbyanotherstateundera
85multistatelicensingprocess,providedthat:
86 (a)Thepersonhasnothadalicenserevokedorsuspendedorcontrolleda
87licenseethathashadalicenserevokedorsuspendedwhilethepersonwasincontrolof
88thelicenseeinthepreviousfiveyears;
89 (b)Ifthepersonisalicensee,thepersoniswellmanagedandhasreceivedat
90leastasatisfactoryratingforcomplianceatitsmostrecentexaminationbyanotherstate
91ifsuchratingwasgiven;
HCSSSSB1359	34 92 (c)Thelicenseetobeacquiredisprojectedtomeettherequirementsofsections
93361.999,361.1002,and361.1005aftertheacquisitionofcontroliscompleted,andifthe
94personacquiringcontrolisalicensee,thatlicenseeisalsoprojectedtomeetthe
95requirementsofsections361.999,361.1002,and361.1005aftertheacquisitionofcontrol
96iscompleted;
97 (d)Thelicenseetobeacquiredwillnotimplementanymaterialchangestoits
98businessplanasaresultoftheacquisitionofcontrol,andifthepersonacquiringcontrol
99isalicensee,thatlicenseealsowillnotimplementanymaterialchangestoitsbusiness
100planasaresultoftheacquisitionofcontrol;and
101 (e)Thepersonprovidesnoticeoftheacquisitionincooperationwiththelicensee
102andatteststoparagraphs(a)to(d)ofthissubdivisioninaformandinamedium
103prescribedbythedirector.
104 (2)Ifthenoticeisnotdisapprovedwithinthirtydaysafterthedateonwhichthe
105noticewasdeterminedtobecomplete,thenoticeisdeemedapproved.
106 13.Beforefilinganapplicationforapprovaltoacquirecontrolofalicensee,a
107personmayrequestinwritingadeterminationfromthedirectorastowhetherthe
108personwouldbeconsideredapersonincontrolofalicenseeuponconsummationofa
109proposedtransaction.Ifthedirectordeterminesthatthepersonwouldnotbeaperson
110incontrolofalicensee,theproposedpersonandtransactionisnotsubjecttothe
111requirementsofsubsections1and2ofthissection.
112 14.Ifamultistatelicensingprocessincludesadeterminationundersubsection13
113ofthissectionandanapplicantavailsitselforisotherwisesubjecttothemultistate
114licensingprocess:
115 (1)Thedirectorisauthorizedtoacceptthecontroldeterminationofalead
116investigativestatewithsufficientstaffing,expertise,andminimumstandardsforthe
117purposeofsubsection13ofthissection;or
118 (2)Ifthisstateisaleadinvestigativestate,thedirectorisauthorizedto
119investigatetheapplicantundersubsection13ofthissectionandthetimeframes
120establishedbyagreementthroughthemultistatelicensingprocess.
361.954.1.Alicenseeaddingorreplacinganykeyindividualshall:
2 (1)Providenoticeinamannerprescribedbythedirectorwithinfifteendays
3aftertheeffectivedateofthekeyindividual'sappointment;and
4 (2)Provideinformationasrequiredbysection361.939withinforty-fivedaysof
5theeffectivedate.
6 2.Withinninetydaysofthedateonwhichthenoticeprovidedundersubsection
71ofthissectionwasdeterminedtobecomplete,thedirectormayissueanoticeof
8disapprovalofakeyindividualifthecompetence,experience,character,orintegrityof
HCSSSSB1359	35 9theindividualwouldnotbeinthebestinterestsofthepublicorthecustomersofthe
10licenseetopermittheindividualtobeakeyindividualofsuchlicensee.
11 3.Anoticeofdisapprovalshallcontainastatementofthebasisfordisapproval
12andshallbesenttothelicenseeandthedisapprovedindividual.Alicenseemayappeala
13noticeofdisapprovalunderchapter536withinthirtydaysafterreceiptofsuchnoticeof
14disapproval.
15 4.Ifthenoticeprovidedundersubsection1ofthissectionisnotdisapproved
16withinninetydaysafterthedateonwhichthenoticewasdeterminedtobecomplete,the
17keyindividualisdeemedapproved.
18 5.Ifamultistatelicensingprocessincludesakeyindividualnoticereviewand
19disapprovalprocessunderthissectionandthelicenseeavailsitselforisotherwise
20subjecttothemultistatelicensingprocess:
21 (1)Thedirectorisauthorizedtoacceptthedeterminationofanotherstateifthe
22investigatingstatehassufficientstaffing,expertise,andminimumstandardsforthe
23purposeofthissection;or
24 (2)Ifthisstateisaleadinvestigativestate,thedirectorisauthorizedto
25investigatetheapplicantundersubsection2ofthissectionandthetimeframes
26establishedbyagreementthroughthemultistatelicensingprocess.
361.957.1.Eachlicenseeshallsubmitareportofconditionwithinfortydaysof
2theendofthecalendarquarterorwithinanyextendedtimeasthedirectormay
3prescribe.
4 2.Thereportofconditionshallinclude:
5 (1)Financialinformationatthelicenseelevel;
6 (2)Nationwideandstate-specificmoneytransmissiontransactioninformationin
7everyjurisdictionintheUnitedStateswherethelicenseeislicensedtoengageinmoney
8transmission;
9 (3)Permissibleinvestmentsreport;
10 (4)Transactiondestinationcountryreportingformoneyreceivedfor
11transmission,ifapplicable;and
12 (5)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
13licensee.ThedirectorisauthorizedtoutilizeNMLSforthesubmissionofthereport
14requiredbysubsection1ofthissectionandisauthorizedtoupdateasnecessarythe
15requirementsofthissectiontocarryoutthepurposesofsections361.900to361.1035
16andmaintainconsistencywithNMLSreporting.
17 3.Theinformationrequiredundersubdivision(4)ofsubsection2ofthissection
18shallbeincludedonlyinareportofconditionsubmittedwithinforty-fivedaysofthe
19endofthefourthcalendarquarter.
HCSSSSB1359	36 361.960.1.Eachlicenseeshall,withinninetydaysaftertheendofeachfiscal
2yearorwithinanyextendedtimeasthedirectormayprescribe,filewiththedirector:
3 (1)Anauditedfinancialstatementofthelicenseeforthefiscalyearpreparedin
4accordancewithUnitedStatesgenerallyacceptedaccountingprinciples;and
5 (2)Anyotherinformationasthedirectormayreasonablyrequire.
6 2.Theauditedfinancialstatementshallbepreparedbyanindependentcertified
7publicaccountantorindependentpublicaccountantwhoissatisfactorytothedirector.
8 3.Theauditedfinancialstatementsshallincludeorbeaccompaniedbya
9certificateofopinionoftheindependentcertifiedpublicaccountantorindependent
10publicaccountantthatissatisfactoryinformandcontenttothedirector.Ifthe
11certificateoropinionisqualified,thedirectormayorderthelicenseetotakeanyaction
12asthedirectormayfindnecessarytoenabletheindependentcertifiedpublicaccountant
13orindependentpublicaccountanttoremovethequalification.
361.963.1.Eachlicenseeshallsubmitareportofauthorizeddelegateswithin
2forty-fivedaysoftheendofthecalendarquarter.Thedirectorisauthorizedtoutilize
3NMLSforthesubmissionofthereportrequiredunderthissection,providedthatsuch
4functionalityisconsistentwiththerequirementsofthissection.
5 2.Theauthorizeddelegatereportshallinclude,ataminimum,eachauthorized
6delegate's:
7 (1)Companylegalname;
8 (2)Taxpayeremployeridentificationnumber;
9 (3)Principalprovideridentifier;
10 (4)Physicaladdress,ifany;
11 (5)Mailingaddress;
12 (6)Anybusinessconductedinotherstates;
13 (7)Anyfictitiousortradename;
14 (8)Contactpersonname,phonenumber,andemail;
15 (9)Startdateaslicensee'sauthorizeddelegate;
16 (10)Enddateactingaslicensee'sauthorizeddelegate,ifapplicable;and
17 (11)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
18authorizeddelegate.
361.966.1.Alicenseeshallfileareportwiththedirectorwithinonebusiness
2dayafterthelicenseehasreasontoknowoftheoccurrenceofanyofthefollowing
3events:
4 (1)ThefilingofapetitionbyoragainstthelicenseeundertheUnitedStates
5BankruptcyCode,11U.S.C.Section101-110,asamendedorrecodifiedfromtimeto
6time,forbankruptcyorreorganization;
HCSSSSB1359	37 7 (2)Thefilingofapetitionbyoragainstthelicenseeforreceivership,the
8commencementofanyotherjudicialoradministrativeproceedingforitsdissolutionor
9reorganization,orthemakingofageneralassignmentforthebenefitofitscreditors;or
10 (3)Thecommencementofaproceedingtorevokeorsuspenditslicenseinastate
11orcountryinwhichthelicenseeengagesinbusinessorislicensed.
12 2.Alicenseeshallnotifythedirectorwithinthreebusinessdaysafterthelicensee
13hasreasontoknowthat:
14 (1)Thelicenseeorakeyindividualorpersonincontrolofthelicensee,hasbeen
15convictedof,orpledguiltyornolocontenderetoafelonyinvolvinganactoffraud,
16dishonesty,abreachoftrust,ormoneylaundering;or
17 (2)Anauthorizeddelegatehasbeenconvictedof,orpledguiltyornolo
18contendereto,afelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
19laundering.
361.969.Alicenseeandanauthorizeddelegateshallfileallreportsrequiredby
2federalcurrencyreporting,recordkeeping,andsuspiciousactivityreporting
3requirementsassetforthintheBankSecrecyActandotherfederalandstatelaws
4pertainingtomoneylaundering.Thetimelyfilingofacompleteandaccuratereport
5requiredunderthissectionwiththeappropriatefederalagencyisdeemedcompliant
6withtherequirementsofthissection.
361.972.1.Alicenseeshallmaintainthefollowingrecordsfordeterminingits
2compliancewithsections361.900to361.1035foratleastthreeyears:
3 (1)Arecordofeachoutstandingmoneytransmissionobligationsold;
4 (2)Ageneralledgerpostedatleastmonthlycontainingallasset,liability,capital,
5income,andexpenseaccounts;
6 (3)Bankstatementsandbankreconciliationrecords;
7 (4)Recordsofoutstandingmoneytransmissionobligations;
8 (5)Recordsofeachoutstandingmoneytransmissionobligationpaidwithinthe
9three-yearperiod;
10 (6)Alistofthelastknownnamesandaddressesofallofthelicensee'sauthorized
11delegates;and
12 (7)Anyotherrecordsthedirectorreasonablyrequiresbyrule.
13 2.Theitemsspecifiedinsubsection1ofthissectionmaybemaintainedinany
14formofrecord.
15 3.Recordsspecifiedinsubsection1ofthissectionmaybemaintainedoutside
16thisstateiftherecordsaremadeaccessibletothedirectoronsevenbusinessdays'notice
17thatissentinarecord.
HCSSSSB1359	38 18 4.Allrecordsmaintainedbythelicenseeasrequiredinsubsections1to3ofthis
19sectionareopentoinspectionbythedirectorundersubsection1ofsection361.921.
361.975.1.Asusedinthissection,"remit"meanstomakedirectpaymentsof
2moneytoalicenseeoritsrepresentativeauthorizedtoreceivemoneyortodeposit
3moneyinabankinanaccountspecifiedbythelicensee.
4 2.Beforealicenseeisauthorizedtoconductbusinessthroughanauthorized
5delegate,orallowsapersontoactasthelicensee'sauthorizeddelegate,thelicensee
6shall:
7 (1)Adopt,andupdateasnecessary,writtenpoliciesandproceduresreasonably
8designedtoensurethatthelicensee'sauthorizeddelegatescomplywithapplicablestate
9andfederallaw;
10 (2)Enterintoawrittencontractthatcomplieswithsubsection4ofthissection;
11and
12 (3)Conductareasonablerisk-basedbackgroundinvestigationsufficientforthe
13licenseetodeterminewhethertheauthorizeddelegatehascompliedandwilllikely
14complywithapplicablestateandfederallaw.
15 3.Anauthorizeddelegateshalloperateinfullcompliancewithsections361.900
16to361.1035.
17 4.Thewrittencontractrequiredundersubsection2ofthissectionshallbe
18signedbythelicenseeandtheauthorizeddelegateand,ataminimum,shall:
19 (1)Appointthepersonsigningthecontractasthelicensee'sauthorizeddelegate
20withtheauthoritytoconductmoneytransmissiononbehalfofthelicensee;
21 (2)Setforththenatureandscopeoftherelationshipbetweenthelicenseeand
22theauthorizeddelegateandtherespectiverightsandresponsibilitiesoftheparties;
23 (3)Requiretheauthorizeddelegatetoagreetofullycomplywithallapplicable
24stateandfederallaws,rules,andregulationspertainingtomoneytransmission,
25includingsections361.900to361.1035andregulationsimplementingsections361.900to
26361.1035,relevantprovisionsoftheBankSecrecyAct,andtheUSAPATRIOTAct;
27 (4)Requiretheauthorizeddelegatetoremitandhandlemoneyandmonetary
28valueinaccordancewiththetermsofthecontractbetweenthelicenseeandthe
29authorizeddelegate;
30 (5)Imposeatrustonmoneyandmonetaryvaluenetoffeesreceivedformoney
31transmissionforthebenefitofthelicensee;
32 (6)Requiretheauthorizeddelegatetoprepareandmaintainrecordsasrequired
33bysections361.900to361.1035orregulationsimplementingsections361.900to
34361.1035,orasreasonablyrequestedbythedirector;
HCSSSSB1359	39 35 (7)Acknowledgethattheauthorizeddelegateconsentstoexaminationor
36investigationbythedirector;
37 (8)Statethatthelicenseeissubjecttoregulationbythedirectorandthat,aspart
38ofthatregulation,thedirectormaysuspendorrevokeanauthorizeddelegate
39designationorrequirethelicenseetoterminateanauthorizeddelegatedesignation;and
40 (9)Acknowledgereceiptofthewrittenpoliciesandproceduresrequiredunder
41subdivision(1)ofsubsection1ofthissection.
42 5.Ifthelicensee'slicenseissuspended,revoked,surrendered,orexpired,the
43licenseeshall,withinfivebusinessdays,providedocumentationtothedirectorthatthe
44licenseehasnotifiedallapplicableauthorizeddelegatesofthelicenseewhosenamesare
45inarecordfiledwiththedirectorsofthesuspension,revocation,surrender,or
46expirationofalicense.Uponsuspension,revocation,surrender,orexpirationofa
47license,applicableauthorizeddelegatesshallimmediatelyceasetoprovidemoney
48transmissionasanauthorizeddelegateofthelicensee.
49 6.Anauthorizeddelegateofalicenseeholdsintrustforthebenefitofthe
50licenseeallmoneynetoffeesreceivedfrommoneytransmission.Ifanyauthorized
51delegatecomminglesanyfundsreceivedfrommoneytransmissionwithanyotherfunds
52orpropertyownedorcontrolledbytheauthorizeddelegate,allcommingledfundsand
53otherpropertyshallbeconsideredheldintrustinfavorofthelicenseeinanamount
54equaltotheamountofmoneynetoffeesreceivedfrommoneytransmission.
55 7.Anauthorizeddelegateshallnotuseasubdelegatetoconductmoney
56transmissiononbehalfofalicensee.
361.978.Apersonshallnotengageinthebusinessofmoneytransmissionon
2behalfofapersonnotlicensedundersections361.900to361.1035ornotexemptunder
3sections361.909and361.912.Apersonthatengagesinsuchactivityprovidesmoney
4transmissiontothesameextentasifthepersonwerealicenseeandshallbejointlyand
5severallyliablewiththeunlicensedornonexemptperson.
361.981.1.Thecircuitcourtinanactionbroughtbyalicenseeshallhave
2jurisdictiontograntappropriateequitableorlegalrelief,includingwithoutlimitation
3prohibitingtheauthorizeddelegatefromdirectlyorindirectlyactingasanauthorized
4delegateforanylicenseeinthisstateandthepaymentofrestitution,damages,orother
5monetaryrelief,ifthecircuitcourtfindsthatanauthorizeddelegatefailedtoremit
6moneyinaccordancewiththewrittencontractrequiredbysubsection2ofsection
7361.1275orasotherwisedirectedbythelicenseeorrequiredbylaw.
8 2.Ifthecircuitcourtissuesanorderprohibitingapersonfromactingasan
9authorizeddelegateforanylicenseeundersubsection1ofthissection,thelicenseethat
HCSSSSB1359	40 10broughttheactionshallreporttheordertothedirectorwithinthirtydaysandshall
11reporttheorderthroughNMLSwithinninetydays.
12 3.Anauthorizeddelegatewhoholdsmoneyintrustforthebenefitofalicensee
13andknowinglyfailstoremitmorethanonethousanddollarsofsuchmoneyisguiltyofa
14classEfelony.
15 4.Anauthorizeddelegatewhoholdsmoneyintrustforthebenefitofalicensee
16andknowinglyfailstoremitnomorethanonethousanddollarsofsuchmoneyisguilty
17ofaclassAmisdemeanor.
361.984.1.Everylicenseeshallforwardallmoneyreceivedfortransmissionin
2accordancewiththetermsoftheagreementbetweenthelicenseeandthesenderunless
3thelicenseehasareasonablebelieforareasonablebasistobelievethatthesendermay
4beavictimoffraudorthatacrimeorviolationoflaw,rule,orregulationhasoccurred,
5isoccurring,ormayoccur.
6 2.Ifalicenseefailstoforwardmoneyreceivedfortransmissioninaccordance
7withthissection,thelicenseeshallrespondtoinquiriesbythesenderwiththereasonfor
8thefailureunlessprovidingaresponsewouldviolateastateorfederallaw,rule,or
9regulation.
361.987.1.Thissectionshallnotapplyto:
2 (1)MoneyreceivedfortransmissionsubjecttothefederalRemittanceRule,12
3CFRPart1005,SubpartB,asamendedorrecodifiedfromtimetotime;or
4 (2)Moneyreceivedfortransmissionunderawrittenagreementbetweenthe
5licenseeandpayeetoprocesspaymentsforgoodsorservicesprovidedbythepayee.
6 2.Everylicenseeshallrefundtothesender,withintendaysofreceiptofthe
7sender'swrittenrequestforarefund,anyandallmoneyreceivedfortransmission
8unlessanyofthefollowingoccurs:
9 (1)Themoneyhasbeenforwardedwithintendaysofthedateonwhichthe
10moneywasreceivedfortransmission;
11 (2)Instructionshavebeengivencommittinganequivalentamountofmoneyto
12thepersondesignatedbythesenderwithintendaysofthedateonwhichthemoneywas
13receivedfortransmission;
14 (3)Theagreementbetweenthelicenseeandthesenderinstructsthelicenseeto
15forwardthemoneyatatimethatisbeyondtendaysofthedateonwhichthemoneywas
16receivedfortransmission.Iffundshavenotyetbeenforwardedinaccordancewiththe
17termsoftheagreementbetweenthelicenseeandthesender,thelicenseeshallissuea
18refundinaccordancewiththeotherprovisionsofthissection;
HCSSSSB1359	41 19 (4)Therefundisrequestedforatransactionthatthelicenseehasnotcompleted
20basedonareasonablebelieforareasonablebasistobelievethatacrimeorviolationof
21law,rule,orregulationhasoccurred,isoccurring,ormayoccur;or
22 (5)Therefundrequestdoesnotenablethelicenseeto:
23 (a)Identifythesender'snameandaddressortelephonenumber;or
24 (b)Identifytheparticulartransactiontoberefundedintheeventthesenderhas
25multipletransactionsoutstanding.
361.990.1.Thissectionshallnotapplyto:
2 (1)MoneyreceivedfortransmissionsubjecttothefederalRemittanceRule,12
3CFRPart1005,SubpartB,asamendedorrecodifiedfromtimetotime;
4 (2)Moneyreceivedfortransmissionthatisnotprimarilyforpersonal,family,or
5householdpurposes;
6 (3)Moneyreceivedfortransmissionunderawrittenagreementbetweenthe
7licenseeandpayeetoprocesspaymentsforgoodsorservicesprovidedbythepayee;or
8 (4)Payrollprocessingservices.
9 2.Forpurposesofthissection,"receipt"meansapaperreceipt,electronic
10record,orotherwrittenconfirmation.Foratransactionconductedinperson,the
11receiptmaybeprovidedelectronicallyifthesenderrequestsoragreestoreceivean
12electronicreceipt.Foratransactionconductedelectronicallyorbyphone,areceiptmay
13beprovidedelectronically.Allelectronicreceiptsshallbeprovidedinaretainableform.
14 3.(1)Everylicenseeoritsauthorizeddelegateshallprovidethesenderareceipt
15formoneyreceivedfortransmission.Thereceiptshallcontainthefollowing
16information,asapplicable:
17 (a)Thenameofthesender;
18 (b)Thenameofthedesignatedrecipient;
19 (c)Thedateofthetransaction;
20 (d)Theuniquetransactionoridentificationnumber;
21 (e)Thenameofthelicensee,NMLSuniqueidentifier,thelicensee'sbusiness
22address,andthelicensee'scustomerservicetelephonenumber;
23 (f)TheamountofthetransactioninUnitedStatesdollars;
24 (g)Anyfeechargedbythelicenseetothesenderforthetransaction;and
25 (h)Anytaxescollectedbythelicenseefromthesenderforthetransaction.
26 (2)ThereceiptrequiredbythissectionshallbeinEnglishandinthelanguage
27principallyusedbythelicenseeorauthorizeddelegatetoadvertise,solicit,ornegotiate,
28eitherorallyorinwriting,foratransactionconductedinperson,electronically,orby
29phone,ifotherthanEnglish.
361.996.1.Alicenseethatprovidespayrollprocessingservicesshall:
HCSSSSB1359	42 2 (1)Issuereportstoclientsdetailingclientpayrollobligationsinadvanceofthe
3payrollfundsbeingdeductedfromanaccount;and
4 (2)Makeavailableworkerpaystubsoranequivalentstatementtoworkers.
5 2.Subsection1ofthissectionshallnotapplytoalicenseeprovidingpayroll
6processingservicesifthelicensee'sclientdesignatestheintendedrecipientstothe
7licenseeandisresponsibleforprovidingthedisclosuresrequiredbysubdivision(2)of
8subsection1ofthissection.
361.999.1.Alicenseeundersections361.900to361.1035shallmaintainatall
2timesatangiblenetworthofthegreaterofonehundredthousanddollarsorthree
3percentoftotalassetsforthefirstonehundredmilliondollars,twopercentofadditional
4assetsforonehundredmilliondollarstoonebilliondollars,andone-halfofonepercent
5ofadditionalassetsforoveronebilliondollars.
6 2.Tangiblenetworthshallbedemonstratedatinitialapplicationbythe
7applicant'smostrecentauditedorunauditedfinancialstatementsundersubdivision(6)
8ofsubsection2ofsection361.936.
9 3.Notwithstandingtheprovisionsofthissection,thedirectorshallhavethe
10authority,forgoodcauseshown,toexempt,inpartorinwhole,fromtherequirements
11ofthissectionanyapplicantorlicensee.
361.1002.1.Anapplicantforamoneytransmissionlicenseshallprovide,anda
2licenseeatalltimesshallmaintain,securityconsistingofasuretybondinaform
3satisfactorytothedirector.
4 2.Theamountoftherequiredsecurityshallbe:
5 (1)Thegreaterofonehundredthousanddollarsoranamountequaltoone
6hundredpercentofthelicensee'saveragedailymoneytransmissionliabilityinthisstate
7calculatedforthemostrecentlycompletedthree-monthperiod,uptoamaximumoffive
8hundredthousanddollars;or
9 (2)Intheeventthatthelicensee'stangiblenetworthexceedstenpercentofthe
10totalassets,asuretybondofonehundredthousanddollars.
11 3.Alicenseethatmaintainsabondinthemaximumamountprovidedforin
12subsection2ofthissectionshallnotberequiredtocalculateitsaveragedailymoney
13transmissionliabilityinthisstateforpurposesofthissection.
361.1005.1.Alicenseeshallmaintainatalltimespermissibleinvestmentsthat
2haveamarketvaluecomputedinaccordancewithUnitedStatesgenerallyaccepted
3accountingprinciplesofnotlessthantheaggregateamountofallofitsoutstanding
4moneytransmissionobligations.
5 2.Exceptforpermissibleinvestmentsenumeratedinsubsection1ofsection
6361.1008,thedirector,withrespecttoanylicensee,maybyrulelimittheextenttowhich
HCSSSSB1359	43 7aspecificinvestmentmaintainedbyalicenseewithinaclassofpermissibleinvestments
8maybeconsideredapermissibleinvestmentifthespecificinvestmentrepresentsundue
9risktocustomersnotreflectedinthemarketvalueofinvestments.
10 3.Permissibleinvestments,evenifcommingledwithotherassetsofthelicensee,
11areheldintrustforthebenefitofthepurchasersandholdersofthelicensee's
12outstandingmoneytransmissionobligationsintheeventofinsolvency,thefilingofa
13petitionbyoragainstthelicenseeundertheUnitedStatesBankruptcyCode,11U.S.C.
14Section101-110,asamendedorrecodifiedfromtimetotime,forbankruptcyor
15reorganization,thefilingofapetitionbyoragainstthelicenseeforreceivership,the
16commencementofanyotherjudicialoradministrativeproceedingforitsdissolutionor
17reorganization,orintheeventofanactionbyacreditoragainstthelicenseewhoisnota
18beneficiaryofthestatutorytrust.Nopermissibleinvestmentsimpressedwithatrust
19underthissubsectionshallbesubjecttoattachment,levyofexecution,orsequestration
20byorderofanycourt,exceptforabeneficiaryofthestatutorytrust.
21 4.Upontheestablishmentofastatutorytrustinaccordancewithsubsection3of
22thissectionorwhenanyfundsaredrawnonaletterofcreditundersubdivision(4)of
23subsection1ofsection361.1008,thedirectorshallnotifytheapplicableregulatorofeach
24stateinwhichthelicenseeislicensedtoengageinmoneytransmission,ifany,ofthe
25establishmentofthetrustorthefundsdrawnontheletterofcredit,asapplicable.
26Noticeshallbedeemedsatisfiedifperformedunderamultistateagreementorthrough
27NMLS.Fundsdrawnonaletterofcredit,andanyotherpermissibleinvestmentsheld
28intrustforthebenefitofthepurchasersandholdersofthelicensee'soutstandingmoney
29transmissionobligations,aredeemedheldintrustforthebenefitofsuchpurchasersand
30holdersonaprorataandequitablebasisinaccordancewithstatutesunderwhich
31permissibleinvestmentsarerequiredtobeheldinthisstate,andotherstates,as
32applicable.Anystatutorytrustestablishedunderthissubsectionshallbeterminated
33uponextinguishmentofallofthelicensee'soutstandingmoneytransmissionobligations.
34 5.Thedirectorbyruleorbyordermayallowothertypesofinvestmentsthatthe
35directordeterminesareofsufficientliquidityandqualitytobeapermissibleinvestment.
36Thedirectorisauthorizedtoparticipateineffortswithotherstateregulatorsto
37determinethatothertypesofinvestmentsareofsufficientliquidityandqualitytobea
38permissibleinvestment.
361.1008.1.Thefollowinginvestmentsarepermissibleundersection361.1005:
2 (1)Cash,includingdemanddeposits,savingsdeposits,andfundsinsuch
3accountsheldforthebenefitofthelicensee'scustomersinafederallyinsureddepository
4financialinstitution,andcashequivalents,includingautomatedclearinghouseitemsin
5transittothelicenseeandautomatedclearinghouseitemsorinternationalwiresin
HCSSSSB1359	44 6transittoapayee,cashintransitviaarmoredcar,cashinsmartsafes,cashinlicensee-
7ownedlocations,debitcardorcreditcardfundedtransmissionreceivablesowedbyany
8bank,ormoneymarketmutualfundsratedAAAbyStandard&Poor's,orthe
9equivalentfromanyeligibleratingservice;
10 (2)Certificatesofdepositorseniordebtobligationsofaninsureddepository
11institution,asdefinedundertheFederalDepositInsuranceAct,12U.S.C.Section1813,
12asamendedorrecodifiedfromtimetotime,orasdefinedunderthefederalCredit
13UnionAct,12U.S.C.Section1781,asamendedorrecodifiedfromtimetotime;
14 (3)AnobligationoftheUnitedStatesoracommission,agency,or
15instrumentalitythereof;anobligationthatisguaranteedfullyastoprincipaland
16interestbytheUnitedStates;oranobligationofastateoragovernmentalsubdivision,
17agency,orinstrumentalitythereof;
18 (4)Onehundredpercentofthesuretybondprovidedforundersection361.1002
19thatexceedstheaveragedailymoneytransmissionliabilityinthisstate;and
20 (5)Thefulldrawableamountofanirrevocablestandbyletterofcreditforwhich
21thestatedbeneficiaryisthedirectorthatstipulatesthatthebeneficiaryneeddrawonly
22asightdraftundertheletterofcreditandpresentittoobtainfundsuptotheletterof
23creditamountwithinsevendaysofpresentationoftheitemsrequiredbyparagraph(d)
24ofthissubdivision.Theletterofcreditshall:
25 (a)Beissuedbyafederallyinsureddepositoryfinancialinstitution,aforeign
26bankthatisauthorizedunderfederallawtomaintainafederalagencyorfederal
27branchofficeinastateorstates,oraforeignbankthatisauthorizedunderstatelawto
28maintainabranchinastatethat:
29 a.Bearsaneligibleratingorwhoseparentcompanybearsaneligiblerating;and
30 b.Isregulated,supervised,andexaminedbyUnitedStatesfederalorstate
31authoritieshavingregulatoryauthorityoverbanks,creditunions,andtrustcompanies;
32 (b)Beirrevocable,unconditional,andindicatethatitisnotsubjecttoany
33conditionorqualificationsoutsideoftheletterofcredit;
34 (c)Notcontainreferencestoanyotheragreements,documentsorentities,or
35otherwiseprovideforanysecurityinterestinthelicensee;and
36 (d)Containanissuedateandexpirationdate,andexpresslyprovidefor
37automaticextension,withoutawrittenamendment,foranadditionalperiodofoneyear
38fromthepresentoreachfutureexpirationdateunlesstheissueroftheletterofcredit
39notifiesthedirectorinwritingbycertifiedorregisteredmailorcouriermailorother
40receiptedmeans,atleastsixtydayspriortoanyexpirationdate,thattheirrevocable
41letterofcreditwillnotbeextended.
HCSSSSB1359	45 42 2.Intheeventofanynoticeofexpirationornonextensionofaletterofcredit
43issuedunderparagraph(d)ofsubdivision(4)ofsubsection1ofthissection,thelicensee
44shallberequiredtodemonstratetothesatisfactionofthedirector,fifteendayspriorto
45expiration,thatthelicenseemaintainsandwillmaintainpermissibleinvestmentsin
46accordancewithsubsection1ofsection361.1005upontheexpirationoftheletterof
47credit.Ifthelicenseeisnotabletodoso,thedirectormaydrawontheletterofcreditin
48anamountuptotheamountnecessarytomeetthelicensee'srequirementstomaintain
49permissibleinvestmentsinaccordancewithsubsection1ofsection361.1005.Anysuch
50drawshallbeoffsetagainstthelicensee'soutstandingmoneytransmissionobligations.
51Thedrawnfundsshallbeheldintrustbythedirectororthedirector'sdesignatedagent,
52totheextentauthorizedbylaw,asagentforthebenefitofthepurchasersandholdersof
53thelicensee'soutstandingmoneytransmissionobligations.
54 3.Theletterofcreditshallprovidethattheissueroftheletterofcreditwill
55honor,atsight,apresentationmadebythebeneficiarytotheissuerofthefollowing
56documentsonorpriortotheexpirationdateoftheletterofcredit:
57 (1)Theoriginalletterofcredit,includinganyamendments;and
58 (2)Awrittenstatementfromthebeneficiarystatingthatanyofthefollowing
59eventshaveoccurred:
60 (a)ThefilingofapetitionbyoragainstthelicenseeundertheUnitedStates
61BankruptcyCode,11U.S.C.Sections101-110,asamendedorrecodifiedfromtimeto
62time,forbankruptcyorreorganization;
63 (b)Thefilingofapetitionbyoragainstthelicenseeforreceivership,orthe
64commencementofanyotherjudicialoradministrativeproceedingforitsdissolutionor
65reorganization;
66 (c)Theseizureofassetsofalicenseebythedirectorunderanemergencyorder
67issuedinaccordancewithapplicablelaw,onthebasisofanaction,violation,or
68conditionthathascausedorislikelytocausetheinsolvencyofthelicensee;or
69 (d)Thebeneficiaryhasreceivednoticeofexpirationornonextensionofaletter
70ofcreditandthelicenseefailedtodemonstratetothesatisfactionofthebeneficiarythat
71thelicenseewillmaintainpermissibleinvestmentsinaccordancewithsubsection1of
72section361.1005upontheexpirationornonextensionoftheletterofcredit.
73 4.Thedirectormaydesignateanagenttoserveonthedirector'sbehalfas
74beneficiarytoaletterofcreditsolongastheagentandletterofcreditmeet
75requirementsestablishedbythedirector.Thedirector'sagentmayserveasagentfor
76multiplelicensingauthoritiesforasingleirrevocableletterofcreditiftheproceedsof
77thedrawableamountforthepurposesofthissubsectionareassignedtothedirector.
HCSSSSB1359	46 78 5.Thedirectorisauthorizedtoparticipateinmultistateprocessesdesignedto
79facilitatetheissuanceandadministrationoflettersofcreditincluding,butnotlimited
80to,servicesprovidedbytheNMLS,StateRegulatoryRegistryLLCorotherthird
81parties.
82 6.Unlesspermittedbythedirectorbyruleorbyordertoexceedthelimitasset
83forthherein,thefollowinginvestmentsarepermissibleundersection361.1005tothe
84extentspecified:
85 (1)Receivablesthatarepayabletoalicenseefromitsauthorizeddelegatesinthe
86ordinarycourseofbusinessthatarelessthansevendaysold,uptofiftypercentofthe
87aggregatevalueofthelicensee'stotalpermissibleinvestments.Ofthereceivables
88permissibleunderthissubdivision,receivablesthatarepayabletoalicenseefroma
89singleauthorizeddelegateintheordinarycourseofbusinessshallnotexceedtenpercent
90oftheaggregatevalueofthelicensee'stotalpermissibleinvestments;
91 (2)Thefollowinginvestments,uptotwentypercentpercategoryandcombined
92uptofiftypercentoftheaggregatevalueofthelicensee'stotalpermissibleinvestments:
93 (a)Ashort-terminvestmentbearinganeligiblerating.Forpurposesofthis
94paragraph,"short-term"meansuptosixmonths;
95 (b)Commercialpaperbearinganeligiblerating;
96 (c)Abill,note,bond,ordebenturebearinganeligiblerating;
97 (d)UnitedStatestripartyrepurchaseagreementscollateralizedatonehundred
98percentormorewithUnitedStatesgovernmentoragencysecurities,municipalbonds,
99orothersecuritiesbearinganeligiblerating;
100 (e)Moneymarketmutualfundsratedlessthan"AAA"andequaltoorhigher
101than"A-"byStandard&Poor's,ortheequivalentfromanyothereligiblerating
102service;and
103 (f)Amutualfundorotherinvestmentfundcomposedsolelyandexclusivelyof
104oneormorepermissibleinvestmentslistedinsubdivisions(1)to(3)ofsubsection1of
105thissection;and
106 (3)Cash,includingdemanddeposits,savingsdeposits,andfundsinsuch
107accountsheldforthebenefitofthelicensee'scustomers,atforeigndepository
108institutionstotenpercentoftheaggregatevalueofthelicensee'stotalpermissible
109investmentsifthelicenseehasreceivedasatisfactoryratinginitsmostrecent
110examinationandtheforeigndepositoryinstitution:
111 (a)Hasaneligiblerating;
112 (b)IsregisteredundertheForeignAccountTaxComplianceAct;
113 (c)IsnotlocatedinanycountrysubjecttosanctionsfromtheOfficeofForeign
114AssetControl;and
HCSSSSB1359	47 115 (d)Isnotlocatedinahighriskornoncooperativejurisdictionasdesignatedby
116theFinancialActionTaskForce.
361.1011.1.Thedirectormaysuspendorrevokealicenseororderalicenseeto
2revokethedesignationofanauthorizeddelegateif:
3 (1)Thelicenseeviolatessections361.900to361.1035oraruleadoptedoran
4orderissuedundersections361.900to361.1035;
5 (2)Thelicenseedoesnotcooperatewithanexaminationorinvestigationbythe
6director;
7 (3)Thelicenseeengagesinfraud,intentionalmisrepresentation,orgross
8negligence;
9 (4)Anauthorizeddelegateisconvictedof,orentersapleaofguiltyornolo
10contenderetoafelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
11laundering,orviolatesaruleadoptedoranorderissuedundersections361.900to
12361.1035asaresultofthelicensee'swillfulmisconductorwillfulblindness;
13 (5)Thecompetence,experience,character,orgeneralfitnessofthelicensee,
14authorizeddelegate,personincontrolofalicensee,keyindividual,orresponsible
15personoftheauthorizeddelegateindicatesthatitisnotinthepublicinteresttopermit
16thepersontoprovidemoneytransmission;
17 (6)Thelicenseeengagesinanunsafeorunsoundpractice;
18 (7)Thelicenseeisinsolvent,suspendspaymentofitsobligations,ormakesa
19generalassignmentforthebenefitofitscreditors;or
20 (8)Thelicenseedoesnotremoveanauthorizeddelegateafterthedirectorissues
21andservesuponthelicenseeafinalorderincludingafindingthattheauthorized
22delegatehasviolatedsections361.900to361.1035.
23 2.Indeterminingwhetheralicenseeisengaginginanunsafeorunsound
24practice,thedirectormayconsiderthesizeandconditionofthelicensee'smoney
25transmission,themagnitudeoftheloss,thegravityoftheviolationofsections361.900to
26361.1035,andthepreviousconductofthepersoninvolved.
361.1014.1.Thedirectormayissueanordersuspendingorrevokingthe
2designationofanauthorizeddelegate,ifthedirectorfindsthat:
3 (1)Theauthorizeddelegateviolatedsections361.900to361.1035orarule
4adoptedoranorderissuedundersections361.900to361.1035;
5 (2)Theauthorizeddelegatedidnotcooperatewithanexaminationor
6investigationbythedirector;
7 (3)Theauthorizeddelegateengagedinfraud,intentionalmisrepresentation,or
8grossnegligence;
HCSSSSB1359	48 9 (4)Theauthorizeddelegatehasbeenconvictedof,orpledguiltyornolo
10contenderetoafelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
11laundering;
12 (5)Thecompetence,experience,character,orgeneralfitnessoftheauthorized
13delegateorapersonincontroloftheauthorizeddelegateindicatesthatitisnotinthe
14publicinteresttopermittheauthorizeddelegatetoprovidemoneytransmission;or
15 (6)Theauthorizeddelegateisengaginginanunsafeorunsoundpractice.
16 2.Indeterminingwhetheranauthorizeddelegateisengaginginanunsafeor
17unsoundpractice,thedirectormayconsiderthesizeandconditionoftheauthorized
18delegate'sprovisionofmoneytransmission,themagnitudeoftheloss,thegravityofthe
19violationofsections361.900to361.1035oraruleadoptedororderissuedundersections
20361.900to361.1035,andthepreviousconductoftheauthorizeddelegate.
21 3.Anauthorizeddelegatemayapplyforrelieffromasuspensionorrevocation
22ofdesignationasanauthorizeddelegateaccordingtoproceduresprescribedbythe
23director.
361.1017.1.Ifthedirectordeterminesthataviolationofsections361.900to
2361.1035orofaruleadoptedoranorderissuedundersections361.900to361.1035bya
3licenseeorauthorizeddelegateislikelytocauseimmediateandirreparableharmtothe
4licensee,itscustomers,orthepublicasaresultoftheviolation,orcauseinsolvencyor
5significantdissipationofassetsofthelicensee,thedirectormayissueanorderrequiring
6thelicenseeorauthorizeddelegatetoceaseanddesistfromtheviolation.Theorder
7becomeseffectiveuponservicetothelicenseeorauthorizeddelegate.
8 2.Thedirectormayissueanorderagainstalicenseetoceaseanddesistfrom
9providingmoneytransmissionthroughanauthorizeddelegatethatisthesubjectofa
10separateorderbythedirector.
11 3.Anordertoceaseanddesistremainseffectiveandenforceablependingthe
12completionofanadministrativeproceedingunderchapter536.
13 4.Alicenseeoranauthorizeddelegatethatisservedwithanordertoceaseand
14desistmaypetitionthecircuitcourtwithjurisdictionforajudicialordersettingaside,
15limiting,orsuspendingtheenforcement,operation,oreffectivenessoftheorderpending
16thecompletionofanadministrativeproceedingunderchapter536.
17 5.Anordertoceaseanddesistexpiresunlessthedirectorcommencesan
18administrativeproceedingunderchapter536withintendaysafteritisissued.
361.1020.Thedirectormayenterintoaconsentorderatanytimewithaperson
2toresolveamatterarisingundersections361.900to361.1035oraruleadoptedororder
3issuedundersections361.900to361.1035.Aconsentordershallbesignedbytheperson
4towhomitisissuedorbytheperson'sauthorizedrepresentativeandshallindicate
HCSSSSB1359	49 5agreementwiththetermscontainedintheorder.Aconsentordermayprovidethatit
6doesnotconstituteanadmissionbyapersonthatsections361.900to361.1035orarule
7adoptedoranorderissuedundersections361.900to361.1035hasbeenviolated.
361.1023.1.Apersonthatintentionallymakesafalsestatement,
2misrepresentation,orfalsecertificationinarecordfiledorrequiredtobemaintained
3undersections361.900to361.1035orthatintentionallymakesafalseentryoromitsa
4materialentryinsucharecordisguiltyofaclassEfelony.
5 2.Apersonthatknowinglyengagesinanactivityforwhichalicenseisrequired
6undersections361.900to361.1035withoutbeinglicensedundersections361.900to
7361.1035andthatreceivesmorethanfivehundreddollarsincompensationwithina
8thirty-dayperiodforthisactivityisguiltyofaclassEfelony.
9 3.Apersonthatknowinglyengagesinanactivityforwhichalicenseisrequired
10undersections361.900to361.1035withoutbeinglicensedundersections361.900to
11361.1035andthatreceivesnomorethanfivehundreddollarsincompensationwithina
12thirty-dayperiodforthisactivityisguiltyofaclassAmisdemeanor.
361.1026.Thedirectormayassessacivilpenaltyagainstapersonthatviolates
2sections361.900to361.1035oraruleadoptedoranorderissuedundersections361.900
3to361.1035inanamountnottoexceedonethousanddollarsperdayforeachdaythe
4violationisoutstanding,plusthisstate'scostsandexpensesfortheinvestigationand
5prosecutionofthematter,includingreasonableattorney'sfees.
361.1029.1.Ifthedirectorhasreasontobelievethatapersonhasviolatedoris
2violatingsection361.930,thedirectormayissueanordertoshowcausewhyanorderto
3ceaseanddesistshallnotbeissuedrequiringthatthepersonceaseanddesistfromthe
4violationofsection361.930.
5 2.Inanemergency,thedirectormaypetitionthecircuitcourtwithjurisdiction
6fortheissuanceofatemporaryrestrainingorderundertherulesofcivilprocedure.
7 3.Anordertoceaseanddesistbecomeseffectiveuponservicetotheperson.
8 4.Anordertoceaseanddesistremainseffectiveandenforceablependingthe
9completionofanadministrativeproceedingunderchapter536.
10 5.Apersonthatisservedwithanordertoceaseanddesistforviolatingsection
11361.930maypetitionthecircuitcourtwithjurisdictionforajudicialordersettingaside,
12limiting,orsuspendingtheenforcement,operation,oreffectivenessoftheorderpending
13thecompletionofanadministrativeproceedingunderchapter536.
14 6.Anordertoceaseanddesistexpiresunlessthedirectorcommencesan
15administrativeproceedingwithintendaysafteritisissued.
HCSSSSB1359	50 361.1032.Inapplyingandconstruingsections361.900to361.1035,consideration
2shallbegiventotheneedtopromoteuniformityofthelawwithrespecttoitssubject
3matteramongstatesthatenactit.
361.1035.1.Apersonlicensedinthisstatetoengageinthebusinessofmoney
2transmissionshallnotbesubjecttotheprovisionsofsections361.900to361.1035tothe
3extentthattheyconflictwithcurrentlaworestablishnewrequirementsnotimposed
4undercurrentlaw,untilsuchtimeasthelicenseerenewsthelicensee'scurrentlicense.
5 2.Notwithstandingsubsection1ofthissection,alicenseeshallberequiredonly
6toamenditsauthorizeddelegatecontractsforcontractsenteredintooramendedafter
7theeffectivedateorthecompletionofanytransitionperiodcontemplatedunder
8subsection1ofthissection.Nothinghereinshallbeconstruedaslimitinganauthorized
9delegate'sobligationstooperateinfullcompliancewithsections361.900to361.1035as
10requiredbysubsection3ofsection361.975.
374.190.1.Thedirectorshallexamineandinquireintoallviolationsoftheinsurance
2lawsofthestate,andinquireintoandinvestigatethebusinessofinsurancetransactedinthis
3statebyanyinsuranceagent,broker,agencyorinsurancecompany.
4 2.Heoranyofhisdulyappointedagentsmaycompeltheattendancebeforehim,and
5mayexamine,underoath,thedirectors,officers,agents,employees,solicitors,attorneysor
6anyotherperson,inreferencetothecondition,affairs,managementofthebusiness,orany
7mattersrelatingthereto.Hemayadministeroathsoraffirmations,andshallhavepowerto
8summonandcompeltheattendanceofwitnesses,andtorequireandcompeltheproductionof
9records,books,papers,contractsorotherdocuments,ifnecessary.
10 3.Thedirectormaymakeandconducttheinvestigationinperson,orhemayappoint
11oneormorepersonstomakeandconductthesameforhim.Ifmadebyanotherthanthe
12directorinperson,thepersondulyappointedbythedirectorshallhavethesamepowersas
13abovegrantedtothedirector.Acertificateofappointment,undertheofficialsealofthe
14director,shallbesufficientauthorityandevidencethereofforthepersonorpersonstoact.
15Forthepurposeofmakingtheinvestigations,orhavingthesamemade,thedirectormay
16employthenecessaryclerical,actuarialandotherassistance.
17 4.Notwithstandinganyprovisionoflawtothecontrary,theconfidentiality
18provisionsofsection374.205,includingsubdivision(5)ofsubsection3ofsection
19374.205,andsubsection4ofsection374.205,shallapplytoallreports,workingpapers,
20recordedinformation,documents,andcopiesthereof,producedby,obtainedby,or
21disclosedtothedirectororanyotherpersoninthecourseofanymarketconduct
22investigationormarketconductaction.
374.192.1.Notwithstandinganyprovisionoflawtothecontrary,aregulated
2entityshallhavenotlessthanthirtycalendardaystosubmitanyrecordormaterial
HCSSSSB1359	51 3requestedbythedepartment.Thissubsectionshallnotapplytorequestsforrecordsor
4materialsbythedivisionofconsumeraffairsortorequestsforinformationonforms
5submittedundersection375.920.
6 2.Notwithstandinganyprovisionoflawtothecontrary,anyrecordor
7document,regardlessofphysicalformorcharacteristic,maintainedbeyondtherecord
8retentionperiodspecifiedinsection374.205shallnotbesubjecttorequestorreviewby
9thedirectorunlessthedirectorhassubstantialandcompetentevidencethatthe
10regulatedentityhaswillfullyengagedinanactoromissionconstitutingalevelfouror
11fiveviolationofthelawsofthisstaterelatingtoinsurance,includingthischapter,
12chapter354,andchapters375to385,orhasbeenconvictedofanyfelonyrelatedtothe
13businessofinsurance,inwhichcasethedirectormayrequestorreviewrecordsor
14documentsmaintainedbeyondtherecordretentionperiodspecifiedinsection374.205
15thatdirectlyrelatetotheviolationorconviction.
375.1183.1.Contractsreinsuringpoliciesoflifeorhealthinsuranceorannuities
2referredtoinsection375.1178issuedbyacedinginsurerthathasbeenplacedin
3conservationorrehabilitationproceedingsundersections375.1150to375.1246shallbe
4continuedorterminatedunderthetermsandconditionsofeachcontractandthe
5provisionsofthissection.
6 2.Contractsreinsuringpoliciesoflifeorhealthinsuranceorannuitiesreferred
7toinsection375.1178issuedbyacedinginsurerthathasbeenplacedintoliquidation
8undersections375.1150to375.1246shallbecontinued,subjecttotheprovisionsofthis
9section,unless:
10 (1)Thecontractswereterminatedpursuanttotheirtermspriortothedateof
11theorderofliquidation;or
12 (2)Thecontractswereterminatedpursuanttotheorderofliquidation,inwhich
13casetheprovisionsofsubsection9ofthissectionshallapply.
14 3.(1)Atanytimewithinonehundredeightydaysofthedateoftheorderof
15liquidation,aguarantyassociationcoveringpoliciesoflifeorhealthinsuranceor
16annuitiesreferredtoinsection375.1178,inwholeorinpart,mayelecttoassumethe
17rightsandobligationsofthecedinginsurerthatrelatetothepoliciesorannuitiesunder
18anyoneormorereinsurancecontractsbetweenthecedinginsureranditsreinsurers.
19Anysuchassumptionshallbeeffectiveasofthedateoftheorderofliquidation.The
20electionshallbemadebytheguarantyassociationorthenationalorganizationoflife
21andhealthinsuranceguarantyassociationsonitsbehalfbysendingwrittennotice,
22returnreceiptrequested,totheaffectedreinsurers.
HCSSSSB1359	52 23 (2)Tofacilitatethedecision,thereceiverandeachaffectedreinsurershallmake
24availableuponrequesttotheguarantyassociationortothenationalorganizationoflife
25andhealthinsuranceguarantyassociationsonitsbehalf:
26 (a)Copiesofin-forcereinsurancecontractsandallrelatedfilesandrecords
27relevanttothedeterminationofwhethersuchcontractsshouldbeassumed;and
28 (b)Noticesofanydefaultsunderthereinsurancecontractsoranyknownevent
29orconditionwhichwiththepassageoftimecouldbecomeadefaultunderthe
30reinsurancecontracts.
31 (3)Paragraphs(a)through(d)ofthissubdivisionshallapplytoreinsurance
32contractssoassumedbyaguarantyassociation:
33 (a)Theguarantyassociationshallberesponsibleforallunpaidpremiumsdue
34underthereinsurancecontracts,forperiodsbothbeforeandafterthedateoftheorder
35ofliquidation,andshallberesponsiblefortheperformanceofallotherobligationstobe
36performedafterthedateoftheorderofliquidation.
37 (b)Theguarantyassociationshallbeentitledtoanyamountspayablebythe
38reinsurerunderthereinsurancecontractswithrespecttolossesoreventsthatoccurin
39periodsonorafterthedateoftheorderofliquidation.
40 (c)Withinthirtydaysfollowingthedateoftheguarantyassociation'selectionto
41assumeareinsurancecontract,theguarantyassociationandthereinsurershall
42calculatethebalanceduetoorfromtheguarantyassociationundereachreinsurance
43contractasofthedateofsuchelection,andtheguarantyassociationorreinsurershall
44payanyremainingbalanceduetheotherwithinthirty-fivedaysofthedateofsuch
45election.Anydisputesovertheamountsduetoeithertheguarantyassociationorthe
46reinsurershallberesolvedbyarbitrationpursuanttothetermsoftheaffected
47reinsurancecontractor,ifthecontractcontainsnoarbitrationclause,pursuanttothe
48provisionsofsubdivision(3)ofsubsection9ofthissection.
49 (d)Iftheguarantyassociation,orreceiveronbehalfofsuchguaranty
50association,withinsixtydaysofthedateoftheguarantyassociation'selectiontoassume
51areinsurancecontract,paystheunpaidpremiumsdueforperiodsbothbeforeandafter
52thedateofsuchelectionthatareduepursuanttothereinsurancecontract,thereinsurer
53shallnotbeentitledtoterminatethereinsurancecontractforfailuretopaypremiums,
54andshallnotbeentitledtosetoffanyunpaidamountsdueunderothercontracts,or
55unpaidamountsduefrompartiesotherthantheguarantyassociation,againstamounts
56duesuchguarantyassociation.
57 4.Ifareceivercontinuespoliciesoflifeorhealthinsuranceorannuitiesreferred
58toinsection375.1178inforcefollowinganorderofliquidation,andthepoliciesor
59annuitiesarenotcoveredinwholeorinpartbyoneormoreguarantyassociations,the
HCSSSSB1359	53 60receivermay,withinonehundredeightydaysofthedateoftheorderofliquidation,
61electtoassumetherightsandobligationsofthecedinginsurerunderanyoneormoreof
62thereinsurancecontractsthatrelatetothepoliciesorannuities,providedthecontracts
63havenotbeenterminatedassetforthinsubsection2ofthissection.Theelectionshall
64bemadebysendingwrittennotice,returnreceiptrequested,totheaffectedreinsurers.
65Inthatevent,paymentofpremiumsonthereinsurancecontractsforthepoliciesand
66annuities,forperiodsbothbeforeandafterthedateoftheorderofliquidation,shallbe
67chargeableagainsttheestateasaclass1administrativeexpense.Amountspaidbythe
68reinsureronaccountoflossesonthepoliciesandannuitiesshallbetotheestateofthe
69cedinginsurer.
70 5.Duringtheperiodfromthedateoftheorderofliquidationuntilthedatethe
71guarantyassociationorthereceiverelectstoassumetherightsandobligationsofthe
72cedinginsurerunderanyoneormoreofthereinsurancecontractsthatrelatetothe
73policiesorannuitiesasprovidedforinsubsection3or4ofthissection,theguaranty
74association,thereceiver,andthereinsurershallnothaveanyrightsorobligationsunder
75anyreinsurancecontractthatiseligibleforassumptionbysuchassociationorthe
76receiver.
77 6.(1)Iftheguarantyassociationorthereceiver,asthecasemaybe,hastimely
78electedtoassumeareinsurancecontractpursuanttosubsection3or4ofthissection,as
79applicable,theparties'rightsandobligationsshallbegovernedbytheprovisionsof
80subsection3or4ofthissection,asapplicable.
81 (2)Wheretheguarantyassociationcoveringpoliciesoflifeorhealthinsurance
82orannuitiesreferredtoinsection375.1178orthereceiver,asthecasemaybe,doesnot
83timelyelecttoassumeareinsurancecontractpursuanttosubsection3or4ofthis
84section,asapplicable,thereinsurancecontractshallbeterminatedretroactively
85effectiveonthedateoftheorderofliquidationandsubsection9ofthissectionshall
86apply.
87 7.Whenpoliciesoflifeorhealthinsuranceorannuitiesreferredtoinsection
88375.1178,ortheobligationsoftheguarantyassociationwithrespectthereto,are
89transferredtoanassuminginsurer,reinsuranceonthepoliciesorannuitiesmayalsobe
90transferredbytheguarantyassociation,inthecaseofcontractsassumedunder
91subsection3ofthissection,orthereceiver,inthecaseofcontractsassumedunder
92subsection4ofthissection,subjecttothefollowing:
93 (1)Unlessthereinsurerandtheassuminginsureragreeotherwise,the
94reinsurancecontracttransferredshallnotcoveranynewpoliciesorannuitiesin
95additiontothosetransferred;
HCSSSSB1359	54 96 (2)Theobligationsdescribedinsubsections3and4ofthissectionshallno
97longerapplywithrespecttomattersarisingaftertheeffectivedateofthetransfer;and
98 (3)Noticeshallbegiveninwriting,returnreceiptrequested,bythetransferring
99partytotheaffectedreinsurernotlessthanthirtydayspriortotheeffectivedateofthe
100transfer.
101 8.Theprovisionsofthissectionshall,totheextentprovidedinsections375.1150
102to375.1246,supersedetheprovisionsofanylaworofanyaffectedreinsurancecontract
103thatprovidesfororrequiresanypaymentofreinsuranceproceeds,onaccountoflosses
104oreventsthatoccurinperiodsafterthedateoftheorderofliquidation,tothereceiver
105ofthecedinginsureroranyotherperson.Thereceivershallremainentitledtoany
106amountspayablebythereinsurerunderthereinsurancecontractswithrespecttolosses
107oreventsthatoccurinperiodspriortothedateoftheorderofliquidation,subjectto
108provisionsofsections375.1150to375.1246includingapplicablesetoffprovisions.
109 9.Whenareinsurancecontractisterminatedpursuanttosections375.1150to
110375.1246,thereinsurerandthereceivershallcommenceamandatorynegotiation
111procedureinaccordancewiththissubsection:
112 (1)Nolaterthanthirtydaysafterthedateoftermination,eachpartyshall
113appointanactuarytodetermineanestimatedsumdueasaresultoftheterminationof
114thereinsurancecontractcalculatedinawayexpectedtomakethepartieseconomically
115indifferentastowhetherthereinsurancecontractcontinuesorterminates,givingdue
116regardtotheeconomiceffectsoftheinsolvency.Thesumshalltakeintoaccountthe
117presentvalueoffuturecashflowsexpectedunderthereinsurancecontractandbebased
118onagrosspremiumvaluationofnetliabilityusingcurrentassumptionsthatreflectpost-
119insolvencyexperienceexpectations,withnoadditionalmargins,netofanyamounts
120payableandreceivable,withamarketvalueadjustmenttoreflectprematuresaleof
121assetstofundthesettlement;
122 (2)Withinninetydaysofthedateoftermination,eachpartyshallprovidethe
123otherpartywithitsestimateofthesumdueasaresultoftheterminationofthe
124reinsurancecontract,togetherwithallrelevantdocumentsandotherinformation
125supportingtheestimate.Thepartiesshallmakeagoodfaithefforttoreachagreement
126onthesumdue;
127 (3)Ifthepartiesareunabletoreachagreementwithinninetydaysfollowingthe
128submissionofmaterialsrequiredinsubdivision(2)ofthissubsection,eitherpartymay
129initiatearbitrationproceedingsasprovidedinthereinsurancecontract.Intheevent
130thatthereinsurancecontractdoesnotcontainanarbitrationclause,eitherpartymay
131initiatearbitrationpursuanttothissubdivisionbyprovidingtheotherpartywitha
HCSSSSB1359	55 132writtendemandforarbitration.Thearbitrationshallbeconductedpursuanttothe
133followingprocedures:
134 (a)Venueforthearbitrationshallbewithinthecountyofthecourt'sjurisdiction
135pursuanttosection375.1154,oranotherlocationagreedtobytheparties;
136 (b)Withinthirtydaysoftherespondingparty'sreceiptofthearbitration
137demand,eachpartyshallappointanarbitratorwhoisadisinterestedactiveorretired
138officerorexecutiveofalifeorhealthinsuranceorreinsurancecompany,orother
139professionalwithnolessthantenyears'experienceinorrelatingtothefieldoflifeor
140healthinsuranceorreinsurance.Thetwoarbitratorsshallappointanindependent,
141impartial,disinterestedumpirewhoisanactiveorretiredofficerorexecutiveofalifeor
142healthinsuranceorreinsurancecompany,orotherprofessionalwithnolessthanten
143years'experienceinthefieldoflifeorhealthinsuranceorreinsurance.Ifthe
144arbitratorsareunabletoagreeonanumpire,eacharbitratorshallprovidetheother
145withthenamesofthreequalifiedindividuals,eacharbitratorshallstriketwonames
146fromtheother'slist,andtheumpireshallbechosenbydrawinglotsfromtheremaining
147individuals;
148 (c)Withinsixtydaysfollowingtheappointmentoftheumpire,thepartiesshall,
149unlessotherwiseorderedbythepanel,submittothearbitrationpaneltheirestimatesof
150thesumdueasaresultoftheterminationofthereinsurancecontract,togetherwithall
151relevantdocumentsandotherinformationsupportingtheestimate;
152 (d)Thetimeperiodssetforthintheseparagraphsmaybeextendeduponmutual
153agreementoftheparties;
154 (e)Thepanelshallhaveallpowersnecessarytoconductthearbitration
155proceedingsinafairandappropriatemanner,includingthepowertorequestadditional
156informationfromtheparties,authorizediscovery,holdhearings,andheartestimony.
157Thepanelalsomayappointindependentactuarialexperts,theexpenseofwhichshallbe
158sharedequallybetweentheparties;
159 (4)Anarbitrationpanelconsideringthematterssetforthinthissubsectionshall
160applythestandardssetforthinthissubsectionandshallissueawrittenaward
161specifyinganetsettlementamountduefromonepartyortheotherasaresultofthe
162terminationofthereinsurancecontract.Thereceivershipcourtshallconfirmthat
163awardabsentproofofstatutorygroundsforvacatingormodifyingarbitrationawards
164undertheFederalArbitrationAct;
165 (5)Ifthenetsettlementamountagreedorawardedpursuanttothissubsectionis
166payablebythereinsurer,thereinsurershallpaytheamountduetotheestatesubjectto
167anyapplicableset-offundersection375.1198.Ifthenetsettlementamountagreedor
168awardedpursuanttothissubsectionispayablebythecedinginsurer,thereinsurershall
HCSSSSB1359	56 169bedeemedtohaveatimelyfiledclaimagainsttheestateforthatamount,whichclaim
170shallbepaidpursuanttothepriorityestablishedinsubsection5ofsection375.1218.
171Theaffectedguarantyassociationsshallnotbeentitledtoreceivethenetsettlement
172amount,excepttotheextenttheyareentitledtoshareintheestateassetsascreditorsof
173theestate,andshallhavenoresponsibilityforthenetsettlementamount.
174 10.Exceptasotherwiseprovidedinthissection,nothinginthissectionshallalter
175ormodifythetermsandconditionsofanyreinsurancecontract.Nothinginthissection
176shallabrogateorlimitanyrightsofanyreinsurertoclaimthatitisentitledtorescinda
177reinsurancecontract.Nothinginthissectionshallgiveapolicyholderorbeneficiaryan
178independentcauseofactionagainstareinsurerthatisnototherwisesetforthinthe
179reinsurancecontract.Nothinginthissectionshalllimitoraffectanyguaranty
180association'srightsasacreditoroftheestateagainsttheassetsoftheestate.Nothingin
181thissectionshallapplytoreinsurancecontractscoveringpropertyorcasualtyrisks.
182 11.Thissectionandsubdivision(10)ofsubsection1ofsection376.734shallbe
183construedtogetherinamannerthatisconsistentwitheachotherandwiththepurpose
184providedforinsection376.715.
379.1640.1.Asusedinthissection,thefollowingtermsshallmean:
2 (1)"Department",thedepartmentofcommerceandinsurance;
3 (2)"Director",thedirectorofthedepartmentofcommerceandinsurance;
4 (3)"Limitedlinesself-servicestorageinsuranceproducer",anowner,operator,lessor,
5orsublessorofaself-servicestoragefacility,oranagentorotherpersonauthorizedtomanage
6thefacility,dulylicensedbythedepartmentofcommerceandinsurance;
7 (4)"Offeranddisseminate",providegeneralinformation,includingadescriptionof
8thecoverageandprice,aswellasprocesstheapplication,collectpremiums,andperform
9othernonlicensableactivitiespermittedbythestate;
10 (5)"Self-servicestorageinsurance",insurancecoverageforthelossof,ordamageto,
11tangiblepersonalpropertyinaself-servicestoragefacilityasdefinedinsection415.405orin
12transitduringtherentalperiod.
13 2.Notwithstandinganyotherprovisionoflaw:
14 (1)Individualsmayofferanddisseminateself-servicestorageinsuranceonbehalfof
15andunderthecontrolofalimitedlinesself-servicestorageinsuranceproduceronlyifthe
16followingconditionsaremet:
17 (a)Thelimitedlinesself-servicestorageinsuranceproducerprovidestopurchasersof
18self-servicestorageinsurance:
19 a.Adescriptionofthematerialtermsortheactualmaterialtermsoftheinsurance
20coverage;
21 b.Adescriptionoftheprocessforfilingaclaim;
HCSSSSB1359	57 22 c.Adescriptionoftherevieworcancellationprocessfortheself-servicestorage
23insurancecoverage;and
24 d.Theidentityandcontactinformationoftheinsurerandanythird-party
25administratororsupervisingentityauthorizedtoactonbehalfoftheinsurer;
26 (b)Atthetimeoflicensure,thelimitedlinesself-servicestorageinsuranceproducer
27shallestablishandmaintainaregisteronaformprescribedbythedirectorofeachindividual
28thatoffersself-servicestorageinsuranceonthelimitedlinesself-servicestorageinsurance
29producer'sbehalf.Theregistershallbemaintainedandupdatedannuallybythelimitedlines
30self-servicestorageinsuranceproducerandshallincludethename,address,andcontact
31informationofthelimitedlinesself-servicestorageinsuranceproducerandanofficeror
32personwhodirectsorcontrolsthelimitedlinesself-servicestorageinsuranceproducer's
33operations,andtheself-servicestoragefacility'sfederaltaxidentificationnumber.The
34limitedlinesself-servicestorageinsuranceproducershallsubmitsuchregisterwithinthirty
35daysuponrequestbythedepartment.Thelimitedlinesself-servicestorageinsurance
36producershallalsocertifythateachindividuallistedontheself-servicestorageregister
37complieswith18U.S.C.Section1033;
38 (c)Thelimitedlinesself-servicestorageinsuranceproducerservesasorhas
39designatedoneofitsemployeeswhoisalicensedindividualproducerasapersonresponsible
40forthebusinessentity'scompliancewiththeself-servicestorageinsurancelaws,rules,and
41regulationsofthisstate;
42 (d)Anindividualapplyingforalimitedlinesself-servicestorageinsuranceproducer
43licenseshallmakeapplicationtothedirectoronthespecifiedapplicationanddeclareunder
44penaltyofrefusal,suspensionorrevocationofthelicensethatthestatementsmadeonthe
45applicationaretrue,correctandcompletetothebestoftheknowledgeandbeliefofthe
46applicant.Beforeapprovingtheapplication,thedirectorshallfindthattheindividual:
47 a.Isatleasteighteenyearsofage;
48 b.Hasnotcommittedanyactthatisagroundfordenial,suspension,orrevocationset
49forthinsection375.141;
50 c.Haspaidalicensefeeinthesumofonehundreddollars;and
51 d.Hascompletedaqualifiedtrainingprogramregardingself-servicestorage
52insurancepolicies,whichhasbeenfiledwithandapprovedbythedirector;
53 (e)Individualsapplyingforlimitedlinesself-servicestorageinsuranceproducer
54licensesshallbeexemptfromexamination.Thedirectormayrequireanydocuments
55reasonablynecessarytoverifytheinformationcontainedinanapplication.Withinthirty
56workingdaysafterthechangeofanyinformationsubmittedontheapplication,theself-
57servicestorageinsuranceproducershallnotifythedirectorofthechange.Nofeeshallbe
58chargedforanysuchchange.Ifthedirectorhastakennoactionwithintwenty-fiveworking
HCSSSSB1359	58 59daysofreceiptofanapplication,theapplicationshallbedeemedapprovedandtheapplicant
60mayactasalicensedself-servicestorageinsuranceproducer,unlesstheapplicanthas
61indicatedaconvictionforafelonyoracrimeinvolvingmoralturpitude;
62 (f)Thelimitedlinesself-servicestorageinsuranceproducerrequireseachemployee
63andauthorizedrepresentativeoftheself-servicestorageinsuranceproducerwhoseduties
64includeofferinganddisseminatingself-servicestorageinsurancetoreceiveaprogramof
65instructionortrainingprovidedorauthorizedbytheinsurerorsupervisingentitythathas
66beenreviewedandapprovedbythedirector.Thetrainingmaterialshall,ataminimum,
67containinstructionsonthetypesofinsuranceoffered,ethicalsalespractices,andrequired
68disclosurestoprospectivecustomers;
69 (2)Anyindividualofferingordisseminatingself-servicestorageinsuranceshall
70providetoprospectivepurchasersbrochuresorotherwrittenmaterialsthat:
71 (a)Providetheidentityandcontactinformationoftheinsurerandanythird-party
72administratororsupervisingentityauthorizedtoactonbehalfoftheinsurer;
73 (b)Explainthatthepurchaseofself-servicestorageinsuranceisnotrequiredinorder
74toleaseself-storageunits;
75 (c)Explainthatanunlicensedself-servicestorageoperatorispermittedtoprovide
76generalinformationabouttheinsuranceofferedbytheself-servicestorageoperator,including
77adescriptionofthecoverageandprice,butisnotqualifiedorauthorizedtoanswertechnical
78questionsaboutthetermsandconditionsoftheinsuranceofferedbytheself-servicestorage
79operatorortoevaluatetheadequacyofthecustomer'sexistinginsurancecoverage;and
80 (d)Disclosethatself-servicestorageinsurancemayprovideduplicationofcoverage
81alreadyprovidedbyanoccupant's,homeowner's,renter's,orothersourceofcoverage;
82 (3)Alimitedlinesself-servicestorageproducer'semployeeorauthorized
83representative,whoisnotlicensedasaninsuranceproducer,maynot:
84 (a)Evaluateorinterpretthetechnicalterms,benefits,andconditionsoftheoffered
85self-servicestorageinsurancecoverage;
86 (b)Evaluateorprovideadviceconcerningaprospectivepurchaser'sexisting
87insurancecoverage;or
88 (c)Holdthemselvesoritselfoutasalicensedinsurer,licensedproducer,orinsurance
89expert;
90 (4)Ifself-servicestorageinsuranceisofferedtothecustomer,premiumorother
91chargesspecificallyapplicabletoself-servicestorageinsuranceshallbelistedasaseparate
92amountandapartfromotherchargesrelatingtotheleaseand/orprocurementofaself-service
93storageunitonalldocumentationpertinenttothetransaction.
94 3.Notwithstandinganyotherprovisionoflaw,alimitedlinesself-servicestorage
95insuranceproviderwhoseinsurance-relatedactivities,andthoseofitsemployeesand
HCSSSSB1359	59 96authorizedrepresentatives,arelimitedtoofferinganddisseminatingself-servicestorage
97insuranceonbehalfofandunderthedirectionofalimitedlinesself-servicestorageinsurance
98producermeetingtheconditionsstatedinthissectionisauthorizedtodosoandreceive
99relatedcompensation,uponregistrationbythelimitedlinesself-servicestorageinsurance
100producerasdescribedinparagraph(b)ofsubdivision(1)ofsubsection2ofthissection.
101 4.Self-servicestorageinsurancemaybeprovidedunderanindividualpolicyorunder
102agroupormasterpolicy.
103 5.Limitedlinesself-servicestorageinsuranceproducers,operators,employeesand
104authorizedrepresentativesofferinganddisseminatingself-servicestorageinsuranceunderthe
105limitedlinesself-servicestorageinsuranceproducerlicenseshallbesubjecttotheprovisions
106ofchapters374and375,exceptasprovidedforinthissection.
107 6.Limitedlinesself-servicestorageinsuranceproducers,operators,employeesand
108authorizedrepresentativesmayofferanddisseminateself-servicestorageinsurancepolicies
109inanamountnottoexceed[five] fifteenthousanddollarsofcoveragepercustomerper
110storageunit.
111 7.Thedirectormaypromulgaterulestoeffectuatethissection.Anyruleorportionof
112arule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegated
113inthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
114provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter536
115arenonseverableandifanyofthepowersvestedwiththegeneralassemblypursuantto
116chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
117subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
118proposedoradoptedafterAugust28,2016,shallbeinvalidandvoid.
380.621.1.Thissectionshallbeknownandmaybecitedasthe"Protecting
2Missouri'sMutualInsuranceCompaniesAct".
3 2.Asusedinthissection,thefollowingtermsshallmean:
4 (1)"Adequatereinsurance",commerciallyavailablereinsuranceasdeemed
5appropriatebytheboardofdirectorsofthecompany;
6 (2)"Unlimitedaggregatereinsurance",aggregatereinsurancecoveragewhere
7thelossescoveredbythereinsurerarenotlimited.
8 3.Notwithstandinganyprovisionoflawtothecontrary,theauthorityexpressly
9grantedinthischaptershallbethesoleauthoritygrantedtothedepartmentoverany
10Missourimutualinsurancecompanyoperatingundertheprovisionsofthischapter,
11providedthatanyprovisionsregardingpremiumtaxationsetforthinchapter148that
12areapplicabletoMissourimutualinsurancecompaniesshallremainapplicableto
13Missourimutualinsurancecompaniesandfurther,providedthatchapter382shall
14remainapplicabletoanyMissourimutualinsurancecompanythatisamemberof,oris
HCSSSSB1359	60 15seekingtobecomeamemberof,an"insuranceholdingcompanysystem",asthatterm
16isdefinedinsection382.010,providedthatanyexaminationauthorizedbychapter382
17shallcomplywithsubsections6and7ofthissectionwhereaMissourimutualinsurance
18companyowns,inwholeorpart,anaffiliatesubjecttoexamination.Thedepartment
19shallnotrequireanycompanyoperatingundertheprovisionsofthischaptertowaive
20anyrights,benefits,orrequirementsspecifiedinthischapter,norshallitconfer
21favorabletreatmentinexchangefor,norconditionthegrantingofanyexceptionupon,
22anycompanyconcedingadditionalregulatoryoversightbythedepartment.Ifthe
23departmentandanycompanyoperatingundertheprovisionsofthischapterhave
24enteredintoanyagreementinwhichthedepartmenthasreceivedconcessionsincluding,
25butnotlimitedto,additionalregulatoryoversightbeyondtheauthorityexpressly
26grantedinthischapter,suchagreementasitrelatestothedepartment'sauthorityis
27voidupontheenactmentofthissection,butsuchagreementshallremaininfullforce
28andeffectforthestateddurationoftheagreementasitrelatestoanybenefits,
29allowances,orexemptionsgrantedtothecompanybytheagreement.
30 4.(1)Notwithstandinganyprovisionoflawtothecontrary,nothinginthis
31chapternoranyregulationpromulgatedbythedepartmentincluding,butnotlimited
32to,anyregulationpromulgatedundersections374.045,380.021,380.271,and380.561,
33shallrequireorbeconstruedtorequireanycompanyoperatingundertheprovisionsof
34thischaptertoacquireorcarryreinsurancegreaterthanadequatereinsurance
35including,butnotlimitedto,unlimitedaggregatereinsurance.Nothinginthissection
36shallbeconstruedtolimittheoptionofanofferofunlimitedaggregatereinsurance.
37 (2)Missourimutualinsurancecompaniesoperatingundertheprovisionsofthis
38chaptershallannuallyfilethefollowingwiththedirectornolaterthanMarchfirstof
39eachcalendaryear:
40 (a)Documentationfromthereinsurerorbrokerofitsreinsuranceprogram,
41suchasthereinsurancecoveragesummaryorothersimilardocumentation;and
42 (b)Aresolutionfromthecompany’sboardofdirectorsstatingthat:
43 a.Theboardhasreviewedthetermsofthereinsuranceobtainedbythecompany
44andbelievesitissufficienttoprotectthefinancialstabilityofthecompanyforthe
45upcomingcalendaryear;
46 b.Theboardagreestonotifythedirectorwithinfifteendaysafteranyevent,or
47assoonaspracticablethereafterifadversedevelopmentoccurstotriggerthis
48notification,thatisexpectedtoexceedthecompany'saggregateorcatastrophe
49attachmentpointorcouldcausethecompany'sreinsurancecoveragetobeexhausted;
50and
HCSSSSB1359	61 51 c.Theboardagreestonotifythedirectorwithinfifteendaysafterthecompany
52identifiesliquidityconcernsthatcouldimpactthecompany'sabilitytopayclaimsor
53determinesthatthecompany’ssurplusislessthanitsadmittedassetsminusliabilities
54plusthereservefundoradequateguarantyfundrequiredbysection380.021or380.271,
55asapplicable.
56 5.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
57limitedto,theprovisionsofsection380.321,thedirectorshallnothavetheauthorityto
58holdahearingregardingaproposedmergerofcompaniesoperatingpursuanttothe
59provisionsofthischapterunlessthedirectorhassubstantialandcompetentevidenceto
60believetheproposedmergerwillprejudicetheinterestsofthepolicyholdersofthe
61companies.Thedirectorshallhavefifteenbusinessdaystoreviewthepetitionfor
62mergerand,uponsubstantialandcompetentevidencetobelievetheproposedmerger
63willprejudicetheinterestsofthepolicyholdersofthecompanies,sendawrittennotice
64ofahearingregardingtheproposedmerger.Thewrittennoticeofhearingshallitemize
65thereasonswhythedirectorbelievestheproposedmergerwillprejudicethe
66policyholdersofthecompaniesandshallincludethedateofahearingregardingthe
67proposedmergernoearlierthanthirtydaysandnolaterthansixtydaysafterthenotice
68ofhearingisreceivedbythecompaniesinvolvedintheproposedmerger.
69 6.Allworkingpapers,recordedinformation,documents,andcopiesthereof,
70producedby,obtainedby,ordisclosedtothedepartmentoranyotherpersoninthe
71courseofanexaminationmadeunderthischaptershallbeconfidentialandnotsubject
72tosubpoenaandshallnotbemadepublicbythedepartmentorsharedwithanyother
73person,exceptasfollows:
74 (1)Uponadoption,thedirectormayopenthefinalexaminationreportforpublic
75inspection;
76 (2)Thedirectormaydisclosethecontentofanexaminationreport,preliminary
77examinationreportorresults,oranymatterrelatingthereto,totheinsurance
78departmentofthisoranyotherstateorcountry,ortolawenforcementofficialsofthis
79oranyotherstateoragencyofthefederalgovernmentatanytime,solongassuch
80agencyorofficereceivingthereportormattersrelatingtheretoagreesinwritingtohold
81itconfidentialandinamannerconsistentwiththissection;and
82 (3)Intheeventthedirectordeterminesthatlegalorregulatoryactionis
83appropriateasaresultofanyexamination,heorshemayinitiateanyproceedingsor
84actionsasprovidedbylaw.
85 7.(1)Notwithstandingtheprovisionsofsection380.491,thedepartmentshall
86notchargearateforexaminationsinexcessofareasonablefee.Areasonablefeeis
HCSSSSB1359	62 87determinedbytheaveragemarketratetypicallychargedbythird-partyvendorsfor
88suchservices.
89 (2)Atanytimeafternotificationofthecommencementofanexaminationand
90throughitscompletion,acompanymayrequestonaprospectivebasisthatthe
91department’smonthlyexaminationbillingstatementsincludethefollowingadditional
92details:
93 (a)Hoursbilledforanexaminationshallberecordedinabillingstatement
94providedtothecompanyeachmonththatsetsforththetimespent,usingfifteen-minute
95increments,foreachbillingexaminermultipliedbytheapplicablehourlyrate;
96 (b)Billingstatementsshallincludeashortandconcisestatementofthework
97performedduringthemonthtowhichthebillingstatementappliesbythebilling
98examinerforeachperiodoftimespentontheexamination;
99 (c)Thehourlyrateforadepartmentemployeeshallbelistedonthebilling
100statementandshallincludetheemployee’ssalary,benefits,andotherexpensesofthe
101examination;
102 (d)Thehourlyrateforathird-partyvendorshallbethelowestandbesthourly
103rateobtainedbythedepartmentbyandthroughthestateprocurementprocess;and
104 (e)Billingstatementsshallalsoincludeanyotherexpensesortheexamination,
105includingtravelexpenses,asallowedbysection380.491.
106 (3)Atanytimeafternotificationofthecommencementofanexaminationand
107throughitscompletion,acompanymayrequestaschedulingconferencewiththe
108departmenttodiscussthefollowing:
109 (a)Thepurposeandscopeoftheexamination;
110 (b)Theestimatedcostsoftheexamination;
111 (c)Thetypesofinformationthatthecompanywillbeaskedtoproduce;
112 (d)Themostefficientmeansofconductingtheexamination;and
113 (e)Anyalternativeapproachesinconductingtheexaminationthatwouldbe
114moreconvenient,lessburdensome,orlessexpensiveforthecompanywhilestill
115providingforaneffectiveexaminationbythedepartment.
116 (4)(a)Nomorethanthirtydaysaftertheschedulingconference,thedepartment
117shallprovidethecompanywithadetailedwrittenbudgetestimatefortheexamination
118thatshall,foreachforthcomingphaseoftheexamination:
119 a.Identifytheindividualsorfirmsperformingtheexaminationandtheirdaily
120orhourlyrates;
121 b.Provideanestimateoftravel,lodging,meal,andotheradministrativeor
122supplycosts;and
HCSSSSB1359	63 123 c.Estimatethelengthoftimenecessarytoconducton-siteandoff-site
124examinationactivities.
125 (b)Withinfifteendaysofreceiptofabudgetestimateunderparagraph(a)of
126thissubdivision,thecompanyandthedepartmentshallhaveanadditionaldiscussion
127regardingthemostefficientmeansofconductingtheexaminationandproducing
128information.Ifnecessary,revisionsofthebudgetestimateshallbemade.
129 (c)Thetimeperiodsunderparagraphs(a)and(b)ofthissubdivisionmaybe
130extendedifthecompanyandthedepartmentmutuallyagreetotheextension.
131 (d)Atanytimeduringtheexamination,thedepartmentshallholdanother
132schedulingconferencewiththecompanyinaccordancewiththeprovisionsofthis
133subsectionandprovidearevisedbudgetestimateassetforthinparagraph(a)ofthis
134subdivisionif:
135 a.Thedepartmentdeterminesthatthecostoftheexaminationwillexceedthe
136statedestimatedbudgetbymorethantenpercent;or
137 b.Thereisamaterialchangeinstaffing.
380.631.1.Thissectionappliestoanycompanyoperatingundertheprovisions
2ofthischapter.
3 2.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
4limitedto,thedefinitionof"insolvent"undersection375.1152,acompanyoperating
5undertheprovisionsofthischapteris"insolvent"assuchtermisusedinsections
6375.1150to375.1246,ifitisunabletopayitsobligationswhentheyaredue,orifits
7admittedassetsdonotexceeditsliabilitiesplusthereservefundoradequateguaranty
8fundrequiredbysection380.021or380.271,asapplicable.
9 3.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
10limitedto,thespecificexceptionundersubdivision(1)ofsubsection2ofsection
11375.1150,theprovisionsofsections375.1150to375.1246shallapplytoallcompanies
12operatingundertheprovisionsofthischapter,exceptthatsuchcompaniesshallnotbe
13subjecttosections375.1160to375.1164.Sections375.570to375.750shallapplytosuch
14proceedings.
15 4.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
16limitedto,thedefinitionof"insolventinsurer"undersection375.772,acompany
17operatingundertheprovisionsofthischapterisan"insolventinsurer"assuchtermis
18usedinsections375.771to375.779,upontheentryofafinalorderofliquidationwitha
19findingofinsolvencybyacourtofcompetentjurisdictionundertheapplicable
20provisionsofsections375.1150to375.1246,unlesssuchorderofliquidationhasbeen
21stayedorbeenthesubjectofawritofsupersedeasorothercomparableorder.
HCSSSSB1359	64 408.035.Notwithstandingtheprovisionsofanyotherlawtothecontrary,itislawful
2forthepartiestoagreeinwritingtoanyrateofinterest,fees,andothertermsandconditions
3inconnectionwithany:
4 (1)Loantoacorporation,generalpartnership,limitedpartnershiporlimitedliability
5company;
6 (2)Extensionofcreditprimarilyforagricultural,business,orcommercialpurposes;
7 (3)Realestateloan,otherthanresidentialrealestateloans[andloansoflessthanfive
8thousanddollarssecuredbyrealestateusedforanagriculturalactivity]; or
9 (4)Loanoffivethousanddollarsormoresecuredsolelybycertificatesofstock,
10bonds,billsofexchange,certificatesofdeposit,warehousereceipts,orbillsofladingpledged
11ascollateralfortherepaymentofsuchloans.
408.140.1.Nofurtherorotherchargeoramountwhatsoevershallbedirectlyor
2indirectlycharged,contractedfororreceivedforinterest,servicechargesorotherfeesasan
3incidenttoanysuchextensionofcreditexceptasprovidedandregulatedbysections367.100
4to367.200andexcept:
5 (1)Onloansforthirtydaysorlongerwhichareotherthan"open-endcredit"assuch
6termisdefinedinthefederalConsumerCreditProtectionActandregulationsthereunder,a
7fee,nottoexceedtenpercentoftheprincipalamountloanednottoexceedonehundred
8dollarsmaybechargedbythelender;however,nosuchfeeshallbepermittedonany
9extension,refinance,restructureorrenewalofanysuchloan,unlessanyinvestigationismade
10ontheapplicationtoextend,refinance,restructureorrenewtheloan;
11 (2)Thelawfulfeesactuallyandnecessarilypaidoutbythelendertoanypublic
12officerforfiling,recording,orreleasinginanypublicofficeanyinstrumentsecuringtheloan,
13andreasonableandbonafidethird-partyfeesincurredforremoteorelectronicfiling,which
14feesmaybecollectedwhentheloanismadeoratanytimethereafter;however,premiumsfor
15insuranceinlieuofperfectingasecurityinterestrequiredbythelendermaybechargedifthe
16premiumdoesnotexceedthefeeswhichwouldotherwisebepayable;
17 (3)Ifthecontractsoprovides,achargeforlatepaymentoneachinstallmentor
18minimumpaymentindefaultforaperiodofnotlessthanfifteendaysinanamountnotto
19exceedfivepercentofeachinstallmentdueortheminimumpaymentdueorfifteendollars,
20whicheverisgreater,nottoexceedfiftydollars.Ifthecontractsoprovides,achargeforlate
21paymentoneachtwenty-fivedollarsorlessinstallmentindefaultforaperiodofnotlessthan
22fifteendaysshallnotexceedfivedollars;
23 (4)Ifthecontractsoprovides,achargeforlatepaymentforasinglepaymentnotein
24defaultforaperiodofnotlessthanfifteendaysinanamountnottoexceedfivepercentofthe
25paymentdue;providedthat,thelatechargeforasinglepaymentnoteshallnotexceedfifty
26dollars;
HCSSSSB1359	65 27 (5)Chargesorpremiumsforinsurancewritteninconnectionwithanyloanagainst
28lossofordamagetopropertyoragainstliabilityarisingoutofownershiporuseofpropertyas
29providedinsection367.170;however,notwithstandinganyotherprovisionoflaw,withthe
30consentoftheborrower,suchinsurancemaycoverpropertyallorpartofwhichispledgedas
31securityfortheloan,andchargesorpremiumsforinsuranceprovidinglife,health,accident,
32orinvoluntaryunemploymentcoverage;
33 (6)Reasonabletowingcostsandexpensesofretaking,holding,preparingforsale,
34andsellinganypersonalpropertyinaccordancewiththeuniformcommercialcode-secured
35transactions,sections400.9-101to400.9-809;
36 (7)Areasonableservicefeenottoexceedtheamountpermittedundersubdivision(2)
37ofsubsection6ofsection570.120foranycheck,draft,order,orlikeinstrumentthatis
38returnedunpaidbyafinancialinstitution,plusanamountequaltotheactualfeeschargedby
39thefinancialinstitutionforeachcheck,draft,order,orlikeinstrumentreturnedunpaid;
40 (8)Ifthecontractorpromissorynote,signedbytheborrower,providesforattorney
41fees,andifitisnecessarytobringsuit,suchattorneyfeesmaynotexceedfifteenpercentof
42theamountdueandpayableundersuchcontractorpromissorynote,togetherwithanycourt
43costsassessed.Theattorneyfeesshallonlybeapplicablewherethecontractorpromissory
44noteisreferredforcollectiontoanattorney,andisnothandledbyasalariedemployeeofthe
45holderofthecontract;
46 (9)Iftheopen-endcreditcontractistiedtoatransactionaccountinadepository
47institution,suchaccountisintheinstitution'sassetsandsuchcontractprovidesforloansof
48thirty-onedaysorlongerwhichare"open-endcredit",assuchtermisdefinedinthefederal
49ConsumerCreditProtectionActandregulationsthereunder,thecreditormaychargeacredit
50advancefeeofuptothelesserofseventy-fivedollarsortenpercentofthecreditadvanced
51fromtimetotimefromthelineofcredit;suchcreditadvancefeemaybeaddedtotheopen-
52endcreditoutstandingalongwithanyinterest,andshallnotbeconsideredtheunlawful
53compoundingofinterestasspecifiedundersection408.120;
54 (10)Adeficiencywaiveraddendum,guaranteedassetprotection,orasimilarproduct
55purchasedaspartofaloantransactionwithcollateralandattheborrower'sconsent,provided
56thecostoftheproductisdisclosedintheloancontract,isreasonable,andtherequirementsof
57section408.380aremet;
58 (11)Aconveniencefeeforpaymentsusinganalternativepaymentchannelthat
59acceptsadebitorcreditcardnotpresenttransaction,nonface-to-facepayment,providedthat:
60 (a)Thepersonmakingthepaymentisnotifiedoftheconveniencefee;and
61 (b)Thefeeisfixedorflat,exceptthatthefeemayvarybaseduponmethodof
62paymentused;and
63 (12)Achargeequaltothecostofthecreditreport.
HCSSSSB1359	66 64 2.Otherprovisionsoflawtothecontrarynotwithstanding,anopen-endcredit
65contractunderwhichacreditcardisissuedbyacompany,financialinstitution,savingsand
66loanorothercreditissuingcompanywhosecreditcardoperationsarelocatedinMissouri
67maychargeanannualfee,providedthatnofinancechargeshallbeassessedonnewpurchases
68otherthancashadvancesifsuchpurchasesarepaidforwithintwenty-fivedaysofthedateof
69theperiodicstatementtherefor.
70 3.Notwithstandinganyotherprovisionoflawtothecontrary,inadditiontocharges
71allowedpursuanttosection408.100,anopen-endcreditcontractprovidedbyacompany,
72financialinstitution,savingsandloanorothercreditissuingcompanywhichisregulated
73pursuanttothischaptermaychargeanannualfeenottoexceedfiftydollars.
427.300.1.Thissectionshallbeknown,andmaybecitedas,the"Commercial
2FinancingDisclosureLaw".
3 2.Forpurposesofthissection,thefollowingtermsmean:
4 (1)"Account";
5 (a)Includes:
6 a.Arighttopaymentofamonetaryobligation,regardlessofwhetherearnedby
7performance,foroneofthefollowing:
8 (i)Propertythathasbeenoristobesold,leased,licensed,assigned,orotherwise
9disposedof;
10 (ii)Servicesrenderedortoberendered;
11 (iii)Apolicyofinsuranceissuedortobeissued;
12 (iv)Asecondaryobligationincurredortobeincurred;
13 (v)Energyprovidedortobeprovided;
14 (vi)Theuseorhireofavesselunderacharterorothercontract;
15 (vii)Arisingoutoftheuseofacreditorchargecardorinformationcontainedon
16orforusewiththecard;or
17 (viii)Aswinningsinalotteryorothergameofchanceoperatedorsponsoredby
18astate,governmentalunitofastate,orpersonlicensedorauthorizedtooperatethe
19gamebyastateorgovernmentalunitofastate;and
20 b.Health-care-insurancereceivables;and
21 (b)doesnotinclude:
22 a.Rightstopaymentevidencedbychattelpaperoraninstrument;
23 b.Commercialtortclaims;
24 c.Depositaccounts;
25 d.Investmentproperty;
26 e.Letter-of-creditrightsorlettersofcredit;or
HCSSSSB1359	67 27 f.Rightstopaymentformoneysorfundsadvancedorsold,otherthanrights
28arisingoutoftheuseofacreditorchargecardorinformationcontainedonorforuse
29withthecard;
30 (2)"Accountsreceivablepurchasetransaction",anytransactioninwhichthe
31businessforwardsorotherwisesellstotheprovideralloraportionofthebusiness's
32accountsorpaymentintangiblesatadiscounttotheirexpectedvalue.Theprovider's
33characterizationofanaccountsreceivablepurchasetransactionasapurchaseis
34conclusivethattheaccountsreceivablepurchasetransactionisnotaloanora
35transactionfortheuse,forbearance,ordetentionofmoney;
36 (3)"Broker",anypersonwho,forcompensationortheexpectationof
37compensation,obtainsacommercialfinancingtransactionoranofferforacommercial
38financingtransactionfromathirdpartythatwould,ifexecuted,bebindinguponthat
39thirdpartyandcommunicatesthatoffertoabusinesslocatedinthisstate.Theterm
40"broker"excludesaprovider,oranyindividualorentitywhosecompensationisnot
41basedordependentonthetermsofthespecificcommercialfinancingtransaction
42obtainedoroffered;
43 (4)"Business",anindividualorgroupofindividuals,soleproprietorship,
44corporation,limitedliabilitycompany,trust,estate,cooperative,association,orlimited
45orgeneralpartnershipengagedinabusinessactivity;
46 (5)"Businesspurposetransaction",anytransactionwheretheproceedsare
47providedtoabusinessorareintendedtobeusedtocarryonabusinessandnotfor
48personal,family,orhouseholdpurposes.Forpurposesofdeterminingwhethera
49transactionisabusinesspurposetransaction,theprovidermayrelyonanywritten
50statementofintendedpurposesignedbythebusiness.Thestatementmaybeaseparate
51statementormaybecontainedinanapplication,agreement,orotherdocumentsigned
52bythebusinessorthebusinessownerorowners;
53 (6)"Commercialfinancingfacility",aprovider'splanforpurchasingmultiple
54accountsreceivablefromtherecipientoveraperiodoftimepursuanttoanagreement
55thatsetsforththetermsandconditionsgoverningtheuseofthefacility;
56 (7)"Commercialfinancingtransaction",anycommercialloan,accounts
57receivablepurchasetransaction,commercialopen-endcreditplanoreachtothe
58extentthetransactionisabusinesspurposetransaction;
59 (8)"Commercialloan",aloantoabusiness,whethersecuredorunsecured;
60 (9)"Commercialopen-endcreditplan",commercialfinancingextendedbyany
61providerunderaplaninwhich:
62 (a)Theproviderreasonablycontemplatesrepeattransactions;and
HCSSSSB1359	68 63 (b)Theamountoffinancingthatmaybeextendedtothebusinessduringthe
64termoftheplan,uptoanylimitsetbytheprovider,isgenerallymadeavailabletothe
65extentthatanyoutstandingbalanceisrepaid;
66 (10)"Depositoryinstitution",anyofthefollowing:
67 (a)Abank,trustcompany,orindustrialloancompanydoingbusinessunderthe
68authorityof,orinaccordancewith,alicense,certificate,orcharterissuedbytheUnited
69States,thisstate,oranyotherstate,district,territory,orcommonwealthoftheUnited
70Statesthatisauthorizedtotransactbusinessinthisstate;
71 (b)Afederallycharteredsavingsandloanassociation,federalsavingsbank,or
72federalcreditunionthatisauthorizedtotransactbusinessinthisstate;or
73 (c)Asavingsandloanassociation,savingsbank,orcreditunionorganized
74underthelawsofthisoranyotherstatethatisauthorizedtotransactbusinessinthis
75state;
76 (11)"Generalintangible",anypersonalproperty,includingthingsinaction,
77otherthanaccounts,chattelpaper,commercialtortclaims,depositaccounts,
78documents,goods,instruments,investmentproperty,letter-of-creditrights,lettersof
79credit,money,andoil,gas,orothermineralsbeforeextraction."Generalintangible"
80alsoincludespaymentintangiblesandsoftware;
81 (12)"Paymentintangible",ageneralintangibleunderwhichtheaccount
82debtor'sprincipalobligationisamonetaryobligation;
83 (13)"Provider",apersonwhoconsummatesmorethanfivecommercial
84financingtransactionstoabusinesslocatedinthisstateinanycalendaryear.
85"Provider"alsoincludesapersonthatentersintoawrittenagreementwithadepository
86institutiontoarrangefortheextensionofacommercialfinancingtransactionbythe
87depositoryinstitutiontoabusinessviaanonlinelendingplatformadministeredbythe
88person.Thefactthataproviderextendsaspecificofferforacommercialfinancing
89transactiononbehalfofadepositoryinstitutionshallnotbeconstruedtomeanthatthe
90providerengagedinlendingorfinancingororiginatedthatloanorfinancing.
91 3.(1)Aproviderthatconsummatesacommercialfinancingtransactionshall
92disclosethetermsofthecommercialfinancingtransactionasrequiredbythissection.
93Thedisclosuresshallbeprovidedatorbeforeconsummationofthetransaction.Only
94onedisclosureisrequiredforeachcommercialfinancingtransaction,andadisclosureis
95notrequiredasaresultofthemodification,forbearance,orchangetoaconsummated
96commercialfinancingtransaction.
97 (2)Aprovidershalldisclosethefollowinginconnectionwitheachcommercial
98financingtransaction:
HCSSSSB1359	69 99 (a)Thetotalamountoffundsprovidedtothebusinessunderthetermsofthe
100commercialfinancingtransactionagreement.Thisdisclosureshallbelabeled"Total
101AmountofFundsProvided";
102 (b)Thetotalamountoffundsdisbursedtothebusinessunderthetermsofthe
103commercialfinancingtransaction,iflessthanthetotalamountoffundsprovided,asa
104resultofanyfeesdeductedorwithheldatdisbursementandanyamountpaidtoathird
105partyonbehalfofthebusiness.Thisdisclosureshallbelabeled"TotalAmountofFunds
106Disbursed";
107 (c)Thetotalamounttobepaidtotheproviderpursuanttothecommercial
108financingtransactionagreement.Thisdisclosureshallbelabeled"TotalofPayments";
109 (d)Thetotaldollarcostofthecommercialfinancingtransactionundertheterms
110oftheagreement,derivedbysubtractingthetotalamountoffundsprovidedfromthe
111totalofpayments.Thiscalculationshallincludeanyfeesorchargesdeductedbythe
112providerfromthe"TotalAmountofFundsProvided".Thisdisclosureshallbelabeled
113"TotalDollarCostofFinancing";
114 (e)Themanner,frequency,andamountofeachpayment.Thisdisclosureshall
115belabeled"Payments".Ifthepaymentsmayvary,theprovidershallinsteaddisclose
116themanner,frequency,andtheestimatedamountoftheinitialpaymentlabeled
117"EstimatedPayments"andthecommercialfinancingtransactionagreementshall
118includeadescriptionofthemethodologyforcalculatinganyvariablepaymentandthe
119circumstanceswhenpaymentsmayvary;
120 (f)Astatementofwhetherthereareanycostsordiscountsassociatedwith
121prepaymentofthecommercialfinancingproductincludingareferencetotheparagraph
122intheagreementthatcreatesthecontractualrightsofthepartiesrelatedtoprepayment.
123Thisdisclosureshallbelabeled"Prepayment";and
124 (3)Aproviderthatconsummatesacommercialfinancingfacilitymayprovide
125disclosuresofthissubsectionwhicharebasedonanexampleofatransactionthatcould
126occurundertheagreement.Theexampleshallbebasedonanaccountsreceivabletotal
127faceamountowedoftenthousanddollars.Onlyonedisclosureisrequiredforeach
128commercialfinancingfacility,andadisclosureisnotrequiredasresultofa
129modification,forbearance,orchangetothefacility.Anewdisclosureisnotrequired
130eachtimeaccountsreceivablearepurchasedunderthefacility.
131 4.Theprovisionsofthissectionshallnotapplytothefollowing:
132 (1)Aproviderthatisadepositoryinstitutionorasubsidiaryoraffiliate;A
133providerthatisaservicecorporationtoadepositoryinstitutionthatis:
134 (a)Ownedandcontrolledbyadepositoryinstitution;and
135 (b)Regulatedbyafederalbankingagency;
HCSSSSB1359	70 136 (2)AproviderthatisalenderregulatedunderthefederalFarmCreditAct,12
137U.S.C.Section2001etseq.;
138 (3)Acommercialfinancingtransactionthatis:
139 (a)Securedbyrealproperty;
140 (b)Alease;or
141 (c)Apurchasemoneyobligationthatisincurredasallorpartofthepriceofthe
142collateralorforvaluegiventoenablethebusinesstoacquirerightsinortheuseofthe
143collateralifthevalueisinfactsoused;
144 (4)Acommercialfinancingtransactioninwhichtherecipientisamotorvehicle
145dealeroranaffiliateofsuchadealer,oravehiclerentalcompany,oranaffiliateofsuch
146acompany,pursuanttoacommercialloanorcommercialopen-endcreditplanofat
147leastfiftythousanddollarsoracommercialfinancingtransactionofferedbyapersonin
148connectionwiththesaleorleaseofproductsorservicesthatsuchpersonmanufactures,
149licenses,ordistributes,orwhoseparentcompanyoranyofitsdirectlyorindirectly
150ownedandcontrolledsubsidiariesmanufactures,licenses,ordistributes;
151 (5)Acommercialfinancingtransactionthatisafactoringtransaction,purchase,
152sale,advance,orsimilarofaccountsreceivableowedtoahealthcareproviderbecause
153ofapatient'spersonalinjurytreatedbythehealthcareprovider;
154 (6)Aproviderthatislicensedasamoneytransmitterinaccordancewitha
155license,certificate,orcharterissuedbythisstateoranyotherstate,district,territory,or
156commonwealthoftheUnitedStates;
157 (7)Aproviderthatconsummatesnomorethanfivecommercialfinancing
158transactionsinthisstateinatwelve-monthperiod;or
159 (8)Acommercialfinancingtransactionofmorethanfivehundredthousand
160dollars.
161 5.(1)Nopersonshallengageinbusinessasabrokerwithinthisstatefor
162compensation,unlesspriortoconductingsuchbusiness,thepersonhasfileda
163registrationwiththedivisionoffinancewithinthedepartmentofcommerceand
164insuranceandhasonfileagoodandsufficientbondasspecifiedinthissubsection.The
165registrationshallbeeffectiveuponreceiptbythedivisionoffinanceofacompleted
166registrationformandtherequiredregistrationfee,andshallremaineffectiveuntilthe
167timeofrenewal.
168 (2)Afterfilinganinitialregistrationform,abrokershallfile,onorbefore
169Januarythirty-firstofeachyear,arenewalregistrationformalongwiththerequired
170renewalregistrationfee.
HCSSSSB1359	71 171 (3)Thebrokershallpayaone-hundred-dollarregistrationfeeuponthefilingof
172aninitialregistrationandafifty-dollarrenewalregistrationfeeuponthefilingofa
173renewalregistration.
174 (4)Theregistrationformrequiredbythissubsectionshallincludethefollowing:
175 (a)Thenameofthebroker;
176 (b)Thenameinwhichthebrokeristransactedifdifferentfromthatstatedin
177paragraph(a)ofthissubdivision;
178 (c)Theaddressofthebroker'sprincipaloffice,whichmaybeoutsidethisstate;
179 (d)Whetheranyofficer,director,manager,operator,orprincipalofthebroker
180hasbeenconvictedofafelonyinvolvinganactoffraud,dishonesty,breachoftrust,or
181moneylaundering;and
182 (e)Thenameandaddressinthisstateofadesignatedagentuponwhomservice
183ofprocessmaybemade.
184 (5)Ifinformationinaregistrationformchangesorotherwisebecomes
185inaccurateafterfiling,thebrokershallnotberequiredtofileafurtherregistration
186formpriortothetimeofrenewal.
187 (6)Everybrokershallobtainasuretybondissuedbyasuretycompany
188authorizedtodobusinessinthisstate.Theamountofthebondshallbetenthousand
189dollars.ThebondshallbeinfavorofthestateofMissouri.Anypersondamagedbythe
190broker'sbreachofcontractorofanyobligationarisingtherefrom,orbyanyviolationof
191thissection,maybringanactionagainstthebondtorecoverdamagessuffered.The
192aggregateliabilityofthesuretyshallbeonlyforactualdamagesandinnoeventshall
193exceedtheamountofthebond.
194 (7)Employeesregularlyemployedbyabrokerwhohascompliedwiththis
195subsectionshallnotberequiredtofilearegistrationorobtainasuretybondwhen
196actingwithinthescopeoftheiremploymentforthebroker.
197 6.(1)Anypersonwhoviolatesanyprovisionofthissectionshallbepunishedby
198afineoffivehundreddollarsperincident,nottoexceedtwentythousanddollarsforall
199aggregatedviolationsarisingfromtheuseofthetransactiondocumentationormaterials
200foundtobeinviolationofthissection.Anypersonwhoviolatesanyprovisionofthis
201sectionafterreceivingwrittennoticeofapriorviolationfromtheattorneygeneralshall
202bepunishedbyafineofonethousanddollarsperincident,nottoexceedfiftythousand
203dollarsforallaggregatedviolationsarisingfromtheuseofthetransaction
204documentationormaterialsfoundtobeinviolationofthissection.
205 (2)Violationofanyprovisionofthissectionshallnotaffecttheenforceabilityor
206validityoftheunderlyingagreement.
HCSSSSB1359	72 207 (3)Thissectionshallnotcreateaprivaterightofactionagainstanypersonor
208otherentitybaseduponcomplianceornoncompliancewithitsprovisions.
209 (4)Authoritytoenforcecompliancewiththissectionisvestedexclusivelyinthe
210attorneygeneralofthisstate.
211 7.Therequirementsofsubsections3and5ofthissectionshalltakeeffectupon
212either:
213 (1)Sixmonthsafterthedivisionoffinancefinalizespromulgatingrules,ifthe
214divisionintendstopromulgaterules;or
215 (2)February28,2025,ifthedivisiondoesnotintendtopromulgaterules.
216 8.Thedivisionoffinancemaypromulgaterulesimplementingthissection.If
217thedivisionoffinanceintendstopromulgaterules,itshalldeclareitsintenttodosono
218laterthanFebruary28,2025.Anyruleorportionofarule,asthattermisdefinedin
219section536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
220becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter
221536and,ifapplicable,section536.028.Thissectionandchapter536arenonseverable
222andifanyofthepowersvestedwiththegeneralassemblypursuanttochapter536to
223review,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
224heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
225adoptedafterAugust28,2024,shallbeinvalidandvoid.
442.210.1.Thecertificateofacknowledgmentshallstatetheactof
2acknowledgment,andthatthepersonmakingthesamewaspersonallyknowntoatleast
3onejudgeofthecourt,ortotheofficergrantingthecertificate,tobethepersonwhosenameis
4subscribedtotheinstrumentasapartythereto,orwasprovedtobesuchbyatleasttwo
5witnesses,whosenamesandplacesofresidenceshallbeinsertedinthecertificate;andthe
6followingformsofacknowledgmentmaybeusedinthecaseofconveyancesorotherwritten
7instrumentsaffectingrealestate;andanyacknowledgmentsotakenandcertificateshallbe
8sufficienttosatisfyallrequirementsoflawrelatingtotheexecutionorrecordingofsuch
9instruments(begininallcasesbyacaption,specifyingthestateandplacewherethe
10acknowledgmentistaken):
11 (1)Incaseofnaturalpersonsactingintheirownright
12 Onthis______dayof______,20______,beforemepersonallyappearedAB(orAB
13andCD),tomeknowntobetheperson(orpersons)describedinandwhoexecutedthe
14foregoinginstrument,andacknowledgedthathe(orthey)executedthesameashis(ortheir)
15freeactanddeed.
16 (2)Inthecaseofnaturalpersonsactingbyattorney
HCSSSSB1359	73 17 Onthis______dayof______,20______,beforemepersonallyappearedAB,tome
18knowntobethepersonwhoexecutedtheforegoinginstrumentinbehalfofCD,and
19acknowledgedthatheexecutedthesameasthefreeactanddeedofCD.
20 (3)Inthecaseofcorporationsorjointstockassociations
21 Onthis______dayof______,20______,beforemeappearedAB,tomepersonally
22known,who,beingbymedulysworn(oraffirmed)didsaythatheisthepresident(orother
23officeroragentofthecorporationorassociation),of(describingthecorporationor
24association),andthatthesealaffixedtoforegoinginstrumentisthecorporatesealofsaid
25corporation(orassociation),andthatsaidinstrumentwassignedandsealedinbehalfofsaid
26corporation(orassociation)byauthorityofitsboardofdirectors(ortrustees),andsaidAB
27acknowledgedsaidinstrumenttobethefreeactanddeedofsaidcorporation(orassociation).
28 2.Incasethecorporationorassociationhasnocorporateseal,omitthewords"the
29sealaffixedtosaidinstrumentisthecorporatesealofsaidcorporation(orassociation),and
30that",andaddattheendoftheaffidavitclausethewords"andthatsaidcorporation(or
31association)hasnocorporateseal".
32 3.(Inallcasesaddsignatureandtitleoftheofficertakingtheacknowledgment.)
33 [4.Whenamarriedwomanuniteswithherhusbandintheexecutionofanysuch
34instrument,andacknowledgesthesameinoneoftheformsabovesanctioned,sheshallbe
35describedintheacknowledgmentashiswife,butinallotherrespectsheracknowledgment
36shallbetakenandcertifiedasifsheweresole;andnoseparateexaminationofamarried
37womaninrespecttotheexecutionofanyreleaseordower,orotherinstrumentaffectingreal
38estate,shallberequired.]
[361.700.1.Sections361.700to361.727shallbeknownandmaybe
2 citedasthe"SaleofChecksLaw".
3 2.Forthepurposesofsections361.700to361.727,thefollowing
4 termsmean:
5 (1)"Check",anyinstrumentforthetransmissionorpaymentofmoney
6 andshallalsoincludeanyelectronicmeansoftransmittingorpayingmoney;
7 (2)"Director",thedirectorofthedivisionoffinance;
8 (3)"Licensee",anypersondulylicensedbythedirectorpursuantto
9 sections361.700to361.727;
10 (4)"Person",anyindividual,partnership,association,trustor
11 corporation.]
[361.705.1.Nopersonshallissuechecksinthisstatefora
2 considerationwithoutfirstobtainingalicensefromthedirector;provided,
3 however,thatsections361.700to361.727shallnotapplytothereceiptof
4 moneybyanincorporatedtelegraphcompanyatanyofficeoragencyofsuch
5 companyforimmediatetransmissionbytelegraphnortoanybank,trust
6 company,savingsandloanassociation,creditunion,oragencyoftheUnited
7 Statesgovernment.
HCSSSSB1359	74 8 2.Anypersonwhoviolatesanyoftheprovisionsofsections361.700
9 to361.727orattemptstosellorissuecheckswithouthavingfirstobtaineda
10 licensefromthedirectorshallbedeemedguiltyofaclassAmisdemeanor.]
[361.707.1.Eachapplicationforalicensepursuanttosections
2 361.700to361.727shallbeinwritingandunderoathtothedirectorinsuch
3 formashemayprescribe.Theapplicationshallstatethefullnameand
4 businessaddressof:
5 (1)Theproprietor,iftheapplicantisanindividual;
6 (2)Everymember,iftheapplicantisapartnershiporassociation;
7 (3)Thecorporationandeachofficeranddirectorthereof,ifthe
8 applicantisacorporation.
9 2.Eachapplicationforalicenseshallbeaccompaniedbyan
10 investigationfeeofthreehundreddollars.Ifthelicenseisgrantedthe
11 investigationfeeshallbeappliedtothelicensefeeforthefirstyear.No
12 investigationfeeshallberefunded.]
[361.711.Eachapplicationforalicenseshallbeaccompaniedbya
2 corporatesuretybondintheprincipalsumofonehundredthousanddollars.
3 Thebondshallbeinformsatisfactorytothedirectorandshallbeissuedbya
4 bondingcompanyorinsurancecompanyauthorizedtodobusinessinthis
5 state,tosecurethefaithfulperformanceoftheobligationsoftheapplicantand
6 theagentsandsubagentsoftheapplicantwithrespecttothereceipt,
7 transmission,andpaymentofmoneyinconnectionwiththesaleorissuanceof
8 checksandalsotopaythecostsincurredbythedivisiontoremedyanybreach
9 oftheobligationsoftheapplicantsubjecttothebondortopayexamination
10 costsofthedivisionowedandnotpaidbytheapplicant.Uponlicense
11 renewal,therequiredamountofbondshallbeasfollows:
12 (1)Foralllicenseessellingpaymentinstrumentsorstoredvaluecards,
13 fivetimesthehighoutstandingbalancefromthepreviousyearwitha
14 minimumofonehundredthousanddollarsandamaximumofonemillion
15 dollars;
16 (2)Foralllicenseesreceivingmoneyfortransmission,fivetimesthe
17 greatestamounttransmittedinasingledayduringthepreviousyearwitha
18 minimumofonehundredthousanddollarsandamaximumofonemillion
19 dollars.
20
21 Ifintheopinionofthedirectorthebondshallatanytimeappeartobe
22 inadequate,insecure,exhausted,orotherwisedoubtful,additionalbondin
23 formandwithsuretysatisfactorytothedirectorshallbefiledwithinfifteen
24 daysafternoticeoftherequirementisgiventothelicenseebythedirector.An
25 applicantorlicenseemay,inlieuoffilinganybondrequiredunderthis
26 section,providethedirectorwithanirrevocableletterofcredit,asdefinedin
27 section400.5-103,issuedbyanystateorfederalfinancialinstitution.
28 Wheneverinthedirector'sjudgmentitisnecessaryorexpedient,the
29 directormayperformaspecialexaminationofanypersonlicensedunder
30 sections361.700to361.727withallauthorityundersection361.160asthough
HCSSSSB1359	75 31 thelicenseewereabank.Thecostofsuchexaminationshallbepaidbythe
32 licensee.]
[361.715.1.Uponthefilingoftheapplication,thefilingofacertified
2 audit,thepaymentoftheinvestigationfeeandtheapprovalbythedirectorof
3 thenecessarybond,thedirectorshallcause,investigate,anddetermine
4 whetherthecharacter,responsibility,andgeneralfitnessoftheprincipalsof
5 theapplicantoranyaffiliatesaresuchastocommandconfidenceandwarrant
6 beliefthatthebusinessoftheapplicantwillbeconductedhonestlyand
7 efficientlyandthattheapplicantisincompliancewithallotherapplicable
8 stateandfederallaws.Ifsatisfied,thedirectorshallissuetotheapplicanta
9 licensepursuanttotheprovisionsofsections361.700to361.727.In
10 processingarenewallicense,thedirectorshallrequirethesameinformation
11 andfollowthesameproceduresdescribedinthissubsection.
12 2.Eachlicenseeshallpaytothedirectorbeforetheissuanceofthe
13 license,andannuallythereafteronorbeforeAprilfifteenthofeachyear,a
14 licensefeeoffourhundreddollars.
15 3.Thedirectormayassessareasonablecharge,nottoexceedfour
16 hundreddollars,foranyapplicationtoamendandreissueanexistinglicense.]
[361.718.Everylicenseeshallatalltimeshaveondemanddepositina
2 federallyinsureddepositoryinstitutionorintheformofcashonhandorinthe
3 handsofhisagentsorinreadilymarketablesecuritiesanamountequaltoall
4 outstandingunpaidcheckssoldbyhimorhisagentsinMissouri,inadditionto
5 theamountofhisbond.Upondemandbythedirector,licenseesmust
6 immediatelyprovideproofofsuchfundsorsecurities.Thedirectormaymake
7 suchdemandasoftenasreasonablynecessaryandshallmakesuchdemandto
8 eachlicensee,withoutpriornotice,atleasttwiceeachlicenseyear.]
[361.720.Eachlicenseemayconductbusinessatoneormore
2 locationswithinthisstateandbymeansofemployees,agents,subagentsor
3 representativesassuchlicenseemaydesignate.Nolicenseundersections
4 361.700to361.727shallberequiredofanysuchemployee,agent,subagentor
5 representativewhosellschecksinbehalfofalicensee.Eachsuchagent,
6 subagentorrepresentativeshallupondemandtransferanddelivertothe
7 licenseetheproceedsofthesaleoflicensee'scheckslessthefees,ifany,due
8 suchagent,subagentorrepresentative.]
[361.723.Eachlicenseeshallfilewiththedirectorannuallyonor
2 beforeAprilfifteenthofeachyearastatementlistingthelocationsofthe
3 officesofthelicenseeandthenamesandlocationsoftheagentsorsubagents
4 authorizedbythelicenseetoengageinthesaleofchecksofwhichthelicensee
5 istheissuer.]
[361.725.Thedirectormayatanytimesuspendorrevokealicense,
2 foranyreasonhemightrefusetograntalicense,forfailuretopayanannual
3 feeorforaviolationofanyprovisionofsections361.700to361.727.No
4 licenseshallbedenied,revokedorsuspendedexceptontendays'noticetothe
HCSSSSB1359	76 5 applicantorlicensee.Uponreceiptofsuchnoticetheapplicantorlicensee
6 may,withinfivedaysofsuchreceipt,makewrittendemandforahearing.The
7 directorshallthereafterhearanddeterminethematterinaccordancewiththe
8 provisionsofchapter536.]
[361.727.Thedirectorshallissueregulationsnecessarytocarryout
2 theintentandpurposesofsections361.700to361.727,pursuanttothe
3 provisionsofsection361.105andchapter536.]
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