EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
[TRULY AGREED TO AND FINALLY PASSED ]
HOUSE COMMITTEE SUBSTITUTE FOR
SENATE SUBSTITUTE FOR
SENATE BILL NO. 1359
102ND GENERAL ASSEMBLY
2024
5286H.07T
AN ACT
To repeal sections 95.280, 95.285, 95.355, 205.160, 205.165, 205.190, 208.151, 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, 362.245, 362.1010, 362.1015, 362.1030, 362.1035, 362.1040,
362.1055, 362.1060, 362.1085, 362.1090, 362.1095, 362.1100, 362.1105, 362.1110,
362.1115, 362.1116, 362.1117, 374.190, 375.020, 376.427, 376.1345, 379.1640,
408.035, 408.140, 442.210, and 456.950, RSMo, and to enact in lieu thereof eighty-
four new sections relating to financial institutions, with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 95.280, 95.285, 95.355, 205.160, 1
205.165, 205.190, 208.151, 303.425, 303.430, 303.440, 361.700, 2
361.705, 361.707, 361.711, 361.715, 361.718, 361.720, 361.72 3, 3
361.725, 361.727, 362.245, 362.1010, 362.1015, 362.1030, 4
362.1035, 362.1040, 362.1055, 362.1060, 362.1085, 362.1090, 5
362.1095, 362.1100, 362.1105, 362.1110, 362.1115, 362.1116, 6
362.1117, 374.190, 375.020, 376.427, 376.1345, 379.1640, 7
408.035, 408.140, 442.210, and 456.950, RSMo, are repealed and 8
eighty-four new sections enacted in lieu thereof, to be known 9
as sections 110.075, 205.160, 205.165, 205.190, 208.151, 10
303.425, 303.430, 303.440, 361.900, 361.903, 361.906, 361.909, 11
361.912, 361.915, 361.918, 361 .921, 361.924, 361.927, 361.930, 12
361.933, 361.936, 361.939, 361.942, 361.945, 361.948, 361.951, 13 HCS SS SB 1359 2
361.954, 361.957, 361.960, 361.963, 361.966, 361.969, 361.972, 14
361.975, 361.978, 361.981, 361.984, 361.987, 361.990, 361.996, 15
361.999, 361.1002, 361.1005, 361.1 008, 361.1011, 361.1014, 16
361.1017, 361.1020, 361.1023, 361.1026, 361.1029, 361.1032, 17
361.1035, 362.245, 362.1010, 362.1015, 362.1030, 362.1035, 18
362.1040, 362.1055, 362.1060, 362.1085, 362.1090, 362.1095, 19
362.1100, 362.1105, 362.1110, 362.1115, 362.1116, 36 2.1117, 20
374.190, 374.192, 375.020, 375.1183, 376.427, 376.1345, 21
379.1640, 380.621, 380.631, 408.035, 408.140, 427.300, 442.210, 22
and 456.950, to read as follows:23
110.075. 1. As used in this section, the following 1
terms shall mean: 2
(1) "Depository", banking institution headquartered in 3
or maintaining a full -service branch in this state which is 4
selected by a municipality to hold and manage public funds; 5
(2) "Governing body", any city council, board of 6
aldermen, or board of trustees; 7
(3) "Municipal depositories", any state -chartered or 8
federally chartered banking institution as defined in 9
Article IV, Section 15 of the Constitution of Missouri; 10
(4) "Municipality", any city or village in this state; 11
(5) "Public funds", funds owned or controlled by a 12
municipality, including tax revenues, fees, grants, and 13
other sources of income. 14
2. All municipalities shall select depositories 15
through a competitive process in accordance with the 16
provisions in this section. The governing body of each 17
municipality shall develop and publish a request for 18
proposals which shall outline the requirements for selecting 19
one or more municipal depositories. Such requirements shall 20
address or include the following matters: 21 HCS SS SB 1359 3
(1) The municipality shall use due diligence for 22
determining the financial stability and soundness of the 23
depository based on publicly available financial reports and 24
other public sources; 25
(2) Safe custody and liquidity of public funds, 26
including deposit insurance coverage and pledge of 27
collateral or investment in appropriate government 28
securities as authorized for public funds; 29
(3) Interest rates and fees offered; 30
(4) Services offered, including online banking, cash 31
management, deposit sw eep and repurchase accounts, 32
investment in a common trust fund in eligible securities for 33
municipalities and political subdivisions, and other banking 34
service options; 35
(5) Compliance with all applicable state and federal 36
banking regulations; 37
(6) Convenient and efficient treasury functions, 38
including if the location of the depository institution 39
shall be required to be located within the municipality or 40
in the same county as the municipality. 41
3. Banking institutions interested in bec oming the 42
municipal depository shall respond to the municipality's 43
request for proposals within the time frame specified by the 44
municipality in the request. 45
4. The governing body shall evaluate the proposals 46
based on the criteria outlined in the request for proposals 47
and select a banking institution that best meets the 48
municipality's needs and objectives. 49
5. The selected banking institution shall enter into a 50
contract with the municipality outlining the terms and 51
conditions of the deposi tory relationship, including, but 52 HCS SS SB 1359 4
not limited to, the interest rates, fees, and services to be 53
provided. 54
6. Municipalities shall maintain records of the 55
selection process, including all proposals received by the 56
municipality for a period of two y ears. 57
205.160. The county commissions of the several 1
counties of this state, both within and outside such 2
counties, except in counties of the third or fourth 3
classification (other than the county in which the hospital 4
is located) where there already exists a hospital organized 5
pursuant to [chapters 96,] chapter 205 [or 206]; provided, 6
however, that this exception shall not prohibit the 7
continuation of existing activities otherwise allowed by 8
law, are hereby authorized, as provide d in sections 205.160 9
to 205.340, to establish, construct, equip, improve, extend, 10
repair and maintain public hospitals and engage in health 11
care activities, and may issue bonds therefor as authorized 12
by the general law governing the incurring of indeb tedness 13
by counties. 14
205.165. 1. The board of trustees of any hospital 1
authorized under this subsection and organized under the 2
provisions of sections 205.160 to 205.340 may invest [up to 3
fifteen percent of their ] its funds not required for 4
immediate disbursement in obligations or for the operation 5
of the hospital as follows: 6
(1) Up to fifteen percent of such funds into: 7
(a) Any mutual [fund, in the form of an investment 8
company, in which shareholders combine money t o invest in a 9
variety of] funds that invest in stocks, bonds, or real 10
estate, or any combination thereof; 11
(b) Stocks[,]; 12
(c) Bonds[, and] that have: 13 HCS SS SB 1359 5
a. One of the five highest long -term ratings or the 14
highest short-term rating issued by a nationally recognized 15
rating agency; and 16
b. A final maturity of ten years or less; 17
(d) Money-market investments; or 18
(e) Any combination of investments described in 19
paragraphs (a) to (d) of this subdivision; 20
(2) Up to thirty-five percent of such funds into: 21
(a) Mutual funds that invest in stocks, bonds, or real 22
estate, or any combination thereof; 23
(b) Bonds that meet the rating and maturity 24
requirements of paragraph (c) of subdivision (1) of this 25
subsection; 26
(c) Money-market investments; or 27
(d) Any combination of investments described in 28
paragraphs (a) to (c) of this subdivision; and 29
(3) The remaining percentage into any investment in 30
which the state treasurer is allowed to invest . 31
2. The provisions of this section shall only apply if 32
the hospital[: 33
(1) Is located within a county of the first 34
classification with more than one hundred fifty thousand but 35
fewer than two hundred thousand inhabitants; and 36
(2)] receives less than [one] three percent of its 37
annual revenues from county or state taxes. 38
205.190. 1. The trustees shall, within ten days after 1
their appointment or election, qualify by taking the oath of 2
civil officers and organize as a board of hos pital trustees 3
by the election of one of their number as chairman, one as 4
secretary, one as treasurer, and by the election of such 5
other officers as they may deem necessary. 6 HCS SS SB 1359 6
2. No trustee shall receive any compensation for his 7
or her services performed, but a trustee may receive 8
reimbursement for any cash expenditures actually made for 9
personal expenses incurred as such trustee, and an itemized 10
statement of all such expenses and money paid out shall be 11
made under oath by each of such trustees and filed with the 12
secretary and allowed only by the affirmative vote of all of 13
the trustees present at a meeting of the board. 14
3. The board of hospital trustees shall make and adopt 15
such bylaws, rules and regulations for its own guidance and 16
for the government of the hospital as may be deemed 17
expedient for the economic and equitable conduct thereof, 18
not inconsistent with sections 205.160 to 205.340 and the 19
ordinances of the city or town wherein such public hospital 20
is located. The board shall provide by regulation for the 21
bonding of the chief executive officer and may require a 22
bond of the treasurer of the board and of any employee of 23
the hospital as it deems necessary. The costs of all bonds 24
required shall be paid out of the hospital fu nd. Except as 25
provided in subsection 4 of this section, it shall have the 26
exclusive control of the deposit, investment, and 27
expenditure of all moneys collected to the credit of the 28
hospital fund, and of the purchase of site or sites, the 29
purchase or construction of any hospital buildings, and of 30
the supervision, care and custody of the grounds, rooms or 31
buildings purchased, constructed, leased or set apart for 32
that purpose; provided, that all moneys received for such 33
hospital shall be credited to the hospital and deposited 34
into the depositary thereof for the sole use of such 35
hospital in accordance with the provisions of sections 36
205.160 to 205.340. All funds received by each such 37
hospital shall be paid out only upon warrants ordered drawn 38 HCS SS SB 1359 7
by the treasurer of the board of trustees of said county 39
upon the properly authenticated vouchers of the hospital 40
board. 41
4. The trustees shall have authority, both within and 42
outside the county, except in counties of the third or 43
fourth classification (other than the county in which the 44
hospital is located) where there already exists a hospital 45
organized pursuant to [chapters 96,] chapter 205 [or 206]; 46
provided that this exception shall not prohibit the 47
continuation of existing activities otherwi se allowed by 48
law, to operate, maintain and manage a hospital and hospital 49
facilities, and to make and enter into contracts, for the 50
use, operation or management of a hospital or hospital 51
facilities; to engage in health care activities; to make and 52
enter into leases of equipment and real property, a hospital 53
or hospital facilities, as lessor or lessee, regardless of 54
the duration of such lease; provided that any lease of 55
substantially all of the hospital, as the term "hospital" is 56
defined in section 197.020, wherein the board of trustees is 57
lessor shall be entered into only with the approval of the 58
county commission wherein such hospital is located and 59
provided that in a county of the second, third or fourth 60
classification, the income to such cou nty from such lease of 61
substantially all of the hospital shall be appropriated to 62
provide health care services in the county; and further to 63
provide rules and regulations for the operation, management 64
or use of a hospital or hospital facilities. Any agreement 65
entered into pursuant to this subsection pertaining to the 66
lease of the hospital, as herein defined, shall have a 67
definite termination date as negotiated by the parties, but 68
this shall not preclude the trustees from entering into a 69
renewal of the agreement with the same or other parties 70 HCS SS SB 1359 8
pertaining to the same or other subjects upon such terms and 71
conditions as the parties may agree. Notwithstanding any 72
other law to the contrary, the county commission in any 73
noncharter county of the first classification wherein such 74
hospital is located may separately negotiate and enter into 75
contractual agreements with the lessee as a condition of 76
approval of any lease authorized pursuant to this subsection. 77
5. The board of hospital trustees shall have power to 78
appoint a suitable chief executive officer and necessary 79
assistants and fix their compensation, and shall also have 80
power to remove such appointees; and shall in general carry 81
out the spirit and intent of sections 205.160 to 205.340 in 82
establishing and maintaining a county public hospital. 83
6. The board of hospital trustees may establish and 84
operate a day care center to provide care exclusively for 85
the children of the hospital's employees. A day care center 86
established by the boa rd shall be licensed pursuant to the 87
provisions of sections 210.201 to 210.245. The operation of 88
a day care center shall be paid for by fees or charges, 89
established by the board, and collected from the hospital 90
employees who use its services. The board, however, is 91
authorized to receive any private donations or grants from 92
agencies of the federal government intended for the support 93
of the day care center. 94
7. The board of hospital trustees shall hold meetings 95
at least once each month, shall k eep a complete record of 96
all its proceedings; and three members of the board shall 97
constitute a quorum for the transaction of business. 98
8. One of the trustees shall visit and examine the 99
hospital at least twice each month and the board shall, 100
during the first week in January of each year, file with the 101
county commission of the county a report of its proceedings 102 HCS SS SB 1359 9
with reference to such hospital and a statement of all 103
receipts and expenditures during the year; and shall at such 104
time certify the amount necessary to maintain and improve 105
the hospital for the ensuing year. 106
208.151. 1. Medical assistance on behalf of needy 1
persons shall be known as "MO HealthNet". For the purpose 2
of paying MO HealthNet benefits and to comply wi th Title 3
XIX, Public Law 89-97, 1965 amendments to the federal Social 4
Security Act (42 U.S.C. Section 301, et seq.) as amended, 5
the following needy persons shall be eligible to receive MO 6
HealthNet benefits to the extent and in the manner 7
hereinafter provided: 8
(1) All participants receiving state supplemental 9
payments for the aged, blind and disabled; 10
(2) All participants receiving aid to families with 11
dependent children benefits, including all persons under 12
nineteen years of age who wou ld be classified as dependent 13
children except for the requirements of subdivision (1) of 14
subsection 1 of section 208.040. Participants eligible 15
under this subdivision who are participating in treatment 16
court, as defined in section 478.001, shall have their 17
eligibility automatically extended sixty days from the time 18
their dependent child is removed from the custody of the 19
participant, subject to approval of the Centers for Medicare 20
and Medicaid Services; 21
(3) All participants receiving blind pe nsion benefits; 22
(4) All persons who would be determined to be eligible 23
for old age assistance benefits, permanent and total 24
disability benefits, or aid to the blind benefits under the 25
eligibility standards in effect December 31, 1973, or less 26
restrictive standards as established by rule of the family 27
support division, who are sixty -five years of age or over 28 HCS SS SB 1359 10
and are patients in state institutions for mental diseases 29
or tuberculosis; 30
(5) All persons under the age of twenty -one years who 31
would be eligible for aid to families with dependent 32
children except for the requirements of subdivision (2) of 33
subsection 1 of section 208.040, and who are residing in an 34
intermediate care facility, or receiving active treatment as 35
inpatients in psychia tric facilities or programs, as defined 36
in 42 U.S.C. Section 1396d, as amended; 37
(6) All persons under the age of twenty -one years who 38
would be eligible for aid to families with dependent 39
children benefits except for the requirement of deprivation 40
of parental support as provided for in subdivision (2) of 41
subsection 1 of section 208.040; 42
(7) All persons eligible to receive nursing care 43
benefits; 44
(8) All participants receiving family foster home or 45
nonprofit private child -care institution care, subsidized 46
adoption benefits and parental school care wherein state 47
funds are used as partial or full payment for such care; 48
(9) All persons who were participants receiving old 49
age assistance benefits, aid to the permanently and totally 50
disabled, or aid to the blind benefits on December 31, 1973, 51
and who continue to meet the eligibility requirements, 52
except income, for these assistance categories, but who are 53
no longer receiving such benefits because of the 54
implementation of Title XV I of the federal Social Security 55
Act, as amended; 56
(10) Pregnant women who meet the requirements for aid 57
to families with dependent children, except for the 58
existence of a dependent child in the home; 59 HCS SS SB 1359 11
(11) Pregnant women who meet the requirem ents for aid 60
to families with dependent children, except for the 61
existence of a dependent child who is deprived of parental 62
support as provided for in subdivision (2) of subsection 1 63
of section 208.040; 64
(12) Pregnant women or infants under one ye ar of age, 65
or both, whose family income does not exceed an income 66
eligibility standard equal to one hundred eighty -five 67
percent of the federal poverty level as established and 68
amended by the federal Department of Health and Human 69
Services, or its succ essor agency; 70
(13) Children who have attained one year of age but 71
have not attained six years of age who are eligible for 72
medical assistance under 6401 of P.L. 101 -239 (Omnibus 73
Budget Reconciliation Act of 1989) (42 U.S.C. Sections 1396a 74
to 1396b). The family support division shall use an income 75
eligibility standard equal to one hundred thirty -three 76
percent of the federal poverty level established by the 77
Department of Health and Human Services, or its successor 78
agency; 79
(14) Children who have attained six years of age but 80
have not attained nineteen years of age. For children who 81
have attained six years of age but have not attained 82
nineteen years of age, the family support division shall use 83
an income assessment methodology which prov ides for 84
eligibility when family income is equal to or less than 85
equal to one hundred percent of the federal poverty level 86
established by the Department of Health and Human Services, 87
or its successor agency. As necessary to provide MO 88
HealthNet coverage under this subdivision, the department of 89
social services may revise the state MO HealthNet plan to 90
extend coverage under 42 U.S.C. Section 91 HCS SS SB 1359 12
1396a(a)(10)(A)(i)(III) to children who have attained six 92
years of age but have not attained nineteen years of age as 93
permitted by paragraph (2) of subsection (n) of 42 U.S.C. 94
Section 1396d using a more liberal income assessment 95
methodology as authorized by paragraph (2) of subsection (r) 96
of 42 U.S.C. Section 1396a; 97
(15) The family support division sha ll not establish a 98
resource eligibility standard in assessing eligibility for 99
persons under subdivision (12), (13) or (14) of this 100
subsection. The MO HealthNet division shall define the 101
amount and scope of benefits which are available to 102
individuals eligible under each of the subdivisions (12), 103
(13), and (14) of this subsection, in accordance with the 104
requirements of federal law and regulations promulgated 105
thereunder; 106
(16) Notwithstanding any other provisions of law to 107
the contrary, ambulato ry prenatal care shall be made 108
available to pregnant women during a period of presumptive 109
eligibility pursuant to 42 U.S.C. Section 1396r -1, as 110
amended; 111
(17) A child born to a woman eligible for and 112
receiving MO HealthNet benefits under this sect ion on the 113
date of the child's birth shall be deemed to have applied 114
for MO HealthNet benefits and to have been found eligible 115
for such assistance under such plan on the date of such 116
birth and to remain eligible for such assistance for a 117
period of time determined in accordance with applicable 118
federal and state law and regulations so long as the child 119
is a member of the woman's household and either the woman 120
remains eligible for such assistance or for children born on 121
or after January 1, 1991, the w oman would remain eligible 122
for such assistance if she were still pregnant. Upon 123 HCS SS SB 1359 13
notification of such child's birth, the family support 124
division shall assign a MO HealthNet eligibility 125
identification number to the child so that claims may be 126
submitted and paid under such child's identification number; 127
(18) Pregnant women and children eligible for MO 128
HealthNet benefits pursuant to subdivision (12), (13) or 129
(14) of this subsection shall not as a condition of 130
eligibility for MO HealthNet benefits be required to apply 131
for aid to families with dependent children. The family 132
support division shall utilize an application for 133
eligibility for such persons which eliminates information 134
requirements other than those necessary to apply for MO 135
HealthNet benefits. The division shall provide such 136
application forms to applicants whose preliminary income 137
information indicates that they are ineligible for aid to 138
families with dependent children. Applicants for MO 139
HealthNet benefits under subdivision (1 2), (13) or (14) of 140
this subsection shall be informed of the aid to families 141
with dependent children program and that they are entitled 142
to apply for such benefits. Any forms utilized by the 143
family support division for assessing eligibility under this 144
chapter shall be as simple as practicable; 145
(19) Subject to appropriations necessary to recruit 146
and train such staff, the family support division shall 147
provide one or more full -time, permanent eligibility 148
specialists to process applications for MO HealthNet 149
benefits at the site of a health care provider, if the 150
health care provider requests the placement of such 151
eligibility specialists and reimburses the division for the 152
expenses including but not limited to salaries, benefits, 153
travel, training, telephone, supplies, and equipment of such 154
eligibility specialists. The division may provide a health 155 HCS SS SB 1359 14
care provider with a part -time or temporary eligibility 156
specialist at the site of a health care provider if the 157
health care provider requests the placement of such an 158
eligibility specialist and reimburses the division for the 159
expenses, including but not limited to the salary, benefits, 160
travel, training, telephone, supplies, and equipment, of 161
such an eligibility specialist. The division may seek to 162
employ such eligibility specialists who are otherwise 163
qualified for such positions and who are current or former 164
welfare participants. The division may consider training 165
such current or former welfare participants as eligibility 166
specialists for this program; 167
(20) Pregnant women who are eligible for, have applied 168
for and have received MO HealthNet benefits under 169
subdivision (2), (10), (11) or (12) of this subsection shall 170
continue to be considered eligible for all pregnancy -related 171
and postpartum MO HealthNet benefits provided under section 172
208.152 until the end of the sixty -day period beginning on 173
the last day of their pregnancy. Pregnant women receiving 174
mental health treatment for postpartum depression or related 175
mental health conditions within sixty days of giving birth 176
shall, subject to appropriations and any necessary federal 177
approval, be eligible for MO HealthNet benefits for mental 178
health services for the treatment of postpartum depression 179
and related mental health condition s for up to twelve 180
additional months. Pregnant women receiving substance abuse 181
treatment within sixty days of giving birth shall, subject 182
to appropriations and any necessary federal approval, be 183
eligible for MO HealthNet benefits for substance abuse 184
treatment and mental health services for the treatment of 185
substance abuse for no more than twelve additional months, 186
as long as the woman remains adherent with treatment. The 187 HCS SS SB 1359 15
department of mental health and the department of social 188
services shall seek any necessary waivers or state plan 189
amendments from the Centers for Medicare and Medicaid 190
Services and shall develop rules relating to treatment plan 191
adherence. No later than fifteen months after receiving any 192
necessary waiver, the department of ment al health and the 193
department of social services shall report to the house of 194
representatives budget committee and the senate 195
appropriations committee on the compliance with federal cost 196
neutrality requirements; 197
(21) Case management services for p regnant women and 198
young children at risk shall be a covered service. To the 199
greatest extent possible, and in compliance with federal law 200
and regulations, the department of health and senior 201
services shall provide case management services to pregnant 202
women by contract or agreement with the department of social 203
services through local health departments organized under 204
the provisions of chapter 192 or chapter 205 or a city 205
health department operated under a city charter or a 206
combined city-county health department or other department 207
of health and senior services designees. To the greatest 208
extent possible the department of social services and the 209
department of health and senior services shall mutually 210
coordinate all services for pregnant women and children with 211
the crippled children's program, the prevention of 212
intellectual disability and developmental disability program 213
and the prenatal care program administered by the department 214
of health and senior services. The department of social 215
services shall by regulation establish the methodology for 216
reimbursement for case management services provided by the 217
department of health and senior services. For purposes of 218
this section, the term "case management" shall mean those 219 HCS SS SB 1359 16
activities of local pub lic health personnel to identify 220
prospective MO HealthNet -eligible high-risk mothers and 221
enroll them in the state's MO HealthNet program, refer them 222
to local physicians or local health departments who provide 223
prenatal care under physician protocol and who participate 224
in the MO HealthNet program for prenatal care and to ensure 225
that said high-risk mothers receive support from all private 226
and public programs for which they are eligible and shall 227
not include involvement in any MO HealthNet prepaid, case - 228
managed programs; 229
(22) By January 1, 1988, the department of social 230
services and the department of health and senior services 231
shall study all significant aspects of presumptive 232
eligibility for pregnant women and submit a joint report on 233
the subject, including projected costs and the time needed 234
for implementation, to the general assembly. The department 235
of social services, at the direction of the general 236
assembly, may implement presumptive eligibility by 237
regulation promulgated pursuant to c hapter 207; 238
(23) All participants who would be eligible for aid to 239
families with dependent children benefits except for the 240
requirements of paragraph (d) of subdivision (1) of section 241
208.150; 242
(24) (a) All persons who would be determined to be 243
eligible for old age assistance benefits under the 244
eligibility standards in effect December 31, 1973, as 245
authorized by 42 U.S.C. Section 1396a(f), or less 246
restrictive methodologies as contained in the MO HealthNet 247
state plan as of January 1, 2005; except that, on or after 248
July 1, 2005, less restrictive income methodologies, as 249
authorized in 42 U.S.C. Section 1396a(r)(2), may be used to 250 HCS SS SB 1359 17
change the income limit if authorized by annual 251
appropriation; 252
(b) All persons who would be determined t o be eligible 253
for aid to the blind benefits under the eligibility 254
standards in effect December 31, 1973, as authorized by 42 255
U.S.C. Section 1396a(f), or less restrictive methodologies 256
as contained in the MO HealthNet state plan as of January 1, 257
2005, except that less restrictive income methodologies, as 258
authorized in 42 U.S.C. Section 1396a(r)(2), shall be used 259
to raise the income limit to one hundred percent of the 260
federal poverty level; 261
(c) All persons who would be determined to be eligible 262
for permanent and total disability benefits under the 263
eligibility standards in effect December 31, 1973, as 264
authorized by 42 U.S.C. Section 1396a(f); or less 265
restrictive methodologies as contained in the MO HealthNet 266
state plan as of January 1, 2005; except that, on or after 267
July 1, 2005, less restrictive income methodologies, as 268
authorized in 42 U.S.C. Section 1396a(r)(2), may be used to 269
change the income limit if authorized by annual 270
appropriations. Eligibility standards for permanent and 271
total disability benefits shall not be limited by age; 272
(25) Persons who have been diagnosed with breast or 273
cervical cancer and who are eligible for coverage pursuant 274
to 42 U.S.C. Section 1396a(a)(10)(A)(ii)(XVIII). Such 275
persons shall be eligible durin g a period of presumptive 276
eligibility in accordance with 42 U.S.C. Section 1396r -1. A 277
person who receives a breast or cervical cancer screening 278
service of a type that is within the scope of screening 279
services under Title XV of the Public Health Servic e Act (42 280
U.S.C. Section 300k et seq.) and who otherwise meets the 281
eligibility requirements for medical assistance for 282 HCS SS SB 1359 18
treatment of breast or cervical cancer as provided under 283
this subdivision is eligible for medical assistance under 284
this subdivision regardless of whether the screening service 285
was provided by a provider who receives or uses funds under 286
that title; 287
(26) Persons who are in foster care under the 288
responsibility of the state of Missouri on the date such 289
persons attained the age of eighteen years, or at any time 290
during the thirty-day period preceding their eighteenth 291
birthday, or persons who received foster care for at least 292
six months in another state, are residing in Missouri, and 293
are at least eighteen years of age, without re gard to income 294
or assets, if such persons: 295
(a) Are under twenty-six years of age; 296
(b) Are not eligible for coverage under another 297
mandatory coverage group; and 298
(c) Were covered by Medicaid while they were in foster 299
care; 300
(27) Any homeless child or homeless youth, as those 301
terms are defined in section 167.020, subject to approval of 302
a state plan amendment by the Centers for Medicare and 303
Medicaid Services; 304
(28) (a) Subject to approval of any necessary state 305
plan amendments or waivers, beginning on July 6, 2023, 306
pregnant women who are eligible for, have applied for, and 307
have received MO HealthNet benefits under subdivision (2), 308
(10), (11), or (12) of this subsection shall be eligible for 309
medical assistance during the pr egnancy and during the 310
twelve-month period that begins on the last day of the 311
woman's pregnancy and ends on the last day of the month in 312
which such twelve-month period ends, consistent with the 313
provisions of 42 U.S.C. Section 1396a(e)(16). The 314 HCS SS SB 1359 19
department shall submit a state plan amendment to the 315
Centers for Medicare and Medicaid Services when the number 316
of ineligible MO HealthNet participants removed from the 317
program in 2023 pursuant to section 208.239 exceeds the 318
projected number of beneficiarie s likely to enroll in 319
benefits in 2023 under this subdivision and subdivision (2) 320
of subsection 6 of section 208.662, as determined by the 321
department, by at least one hundred individuals; 322
(b) The provisions of this subdivision shall remain in 323
effect for any period of time during which the federal 324
authority under 42 U.S.C. Section 1396a(e)(16), as amended, 325
or any successor statutes or implementing regulations, is in 326
effect. 327
2. Rules and regulations to implement this section 328
shall be promulgated in accordance with chapter 536. Any 329
rule or portion of a rule, as that term is defined in 330
section 536.010, that is created under the authority 331
delegated in this section shall become effective only if it 332
complies with and is subject to all of th e provisions of 333
chapter 536 and, if applicable, section 536.028. This 334
section and chapter 536 are nonseverable and if any of the 335
powers vested with the general assembly pursuant to chapter 336
536 to review, to delay the effective date or to disapprove 337
and annul a rule are subsequently held unconstitutional, 338
then the grant of rulemaking authority and any rule proposed 339
or adopted after August 28, 2002, shall be invalid and void. 340
3. After December 31, 1973, and before April 1, 1990, 341
any family eligible for assistance pursuant to 42 U.S.C. 342
Section 601, et seq., as amended, in at least three of the 343
last six months immediately preceding the month in which 344
such family became ineligible for such assistance because of 345
increased income from employment shall, while a member of 346 HCS SS SB 1359 20
such family is employed, remain eligible for MO HealthNet 347
benefits for four calendar months following the month in 348
which such family would otherwise be determined to be 349
ineligible for such assistance because of income and 350
resource limitation. After April 1, 1990, any family 351
receiving aid pursuant to 42 U.S.C. Section 601, et seq., as 352
amended, in at least three of the six months immediately 353
preceding the month in which such family becomes ineligible 354
for such aid, because of hours of employment or income from 355
employment of the caretaker relative, shall remain eligible 356
for MO HealthNet benefits for six calendar months following 357
the month of such ineligibility as long as such family 358
includes a child as provided in 42 U.S.C. Section 1396r-6. 359
Each family which has received such medical assistance 360
during the entire six -month period described in this section 361
and which meets reporting requirements and income tests 362
established by the division and continues to include a child 363
as provided in 42 U.S.C. Section 1396r -6 shall receive MO 364
HealthNet benefits without fee for an additional six 365
months. The MO HealthNet division may provide by rule and 366
as authorized by annual appropriation the scope of MO 367
HealthNet coverage to be gr anted to such families. 368
4. When any individual has been determined to be 369
eligible for MO HealthNet benefits, such medical assistance 370
will be made available to him or her for care and services 371
furnished in or after the third month before the month in 372
which he made application for such assistance if such 373
individual was, or upon application would have been, 374
eligible for such assistance at the time such care and 375
services were furnished; provided, further, that such 376
medical expenses remain unpaid. 377 HCS SS SB 1359 21
5. The department of social services may apply to the 378
federal Department of Health and Human Services for a MO 379
HealthNet waiver amendment to the Section 1115 demonstration 380
waiver or for any additional MO HealthNet waivers necessary 381
not to exceed one million dollars in additional costs to the 382
state, unless subject to appropriation or directed by 383
statute, but in no event shall such waiver applications or 384
amendments seek to waive the services of a rural health 385
clinic or a federally qualified heal th center as defined in 386
42 U.S.C. Section 1396d(l)(1) and (2) or the payment 387
requirements for such clinics and centers as provided in 42 388
U.S.C. Section 1396a(a)(15) and 1396a(bb) unless such waiver 389
application is approved by the oversight committee cre ated 390
in section 208.955. A request for such a waiver so 391
submitted shall only become effective by executive order not 392
sooner than ninety days after the final adjournment of the 393
session of the general assembly to which it is submitted, 394
unless it is disapproved within sixty days of its submission 395
to a regular session by a senate or house resolution adopted 396
by a majority vote of the respective elected members 397
thereof, unless the request for such a waiver is made 398
subject to appropriation or directed by statute. 399
6. Notwithstanding any other provision of law to the 400
contrary, in any given fiscal year, any persons made 401
eligible for MO HealthNet benefits under subdivisions (1) to 402
(22) of subsection 1 of this section shall only be eligible 403
if annual appropriations are made for such eligibility. 404
This subsection shall not apply to classes of individuals 405
listed in 42 U.S.C. Section 1396a(a)(10)(A)(i). 406
7. (1) Notwithstanding any provision of law to the 407
contrary, a military service member, or a n immediate family 408
member residing with such military service member, who is a 409 HCS SS SB 1359 22
legal resident of this state and is eligible for MO 410
HealthNet developmental disability services, shall have his 411
or her eligibility for MO HealthNet developmental disability 412
services temporarily suspended for any period of time during 413
which such person temporarily resides outside of this state 414
for reasons relating to military service, but shall have his 415
or her eligibility immediately restored upon returning to 416
this state to reside. 417
(2) Notwithstanding any provision of law to the 418
contrary, if a military service member, or an immediate 419
family member residing with such military service member, is 420
not a legal resident of this state, but would otherwise be 421
eligible for MO HealthNet developmental disability services, 422
such individual shall be deemed eligible for MO HealthNet 423
developmental disability services for the duration of any 424
time in which such individual is temporarily present in this 425
state for reasons relatin g to military service. 426
303.425. 1. (1) There is hereby created within the 1
department of revenue the motor vehicle financial 2
responsibility enforcement and compliance incentive 3
program. The department of revenue may enter into 4
contractual agreements with third -party vendors to 5
facilitate the necessary technology and equipment, 6
maintenance thereof, and associated program management 7
services. 8
(2) The department of revenue or a third -party vendor 9
shall utilize technology to compare vehicle registration 10
information with the financial responsibility information 11
accessible through the system. The department of revenue 12
shall utilize this information to identify motorists who are 13
in violation of the motor vehicle financial re sponsibility 14
law. The department of revenue may offer offenders under 15 HCS SS SB 1359 23
this program the option of pretrial diversion as an 16
alternative to statutory fines or reinstatement fees 17
prescribed under the motor vehicle financial responsibility 18
law as a method of encouraging compliance and discouraging 19
recidivism. 20
(3) The department of revenue or third -party vendors 21
shall not use any data collected from or technology 22
associated with any automated motor vehicle financial 23
responsibility enforcement syst em. For purposes of this 24
subdivision, "motor vehicle financial responsibility 25
enforcement system" means a device consisting of a camera or 26
cameras and vehicle sensor or sensors installed to record 27
motor vehicle financial responsibility violations. 28
(4) All fees paid to or collected by third -party 29
vendors under sections 303.420 to 303.440 may come from 30
violator diversion fees generated by the pretrial diversion 31
option established under this section. 32
2. The department of revenue may authori ze law 33
enforcement agencies or third -party vendors to use 34
technology to collect data for the investigation, detection, 35
analysis, and enforcement of the motor vehicle financial 36
responsibility law. 37
3. The department of revenue may authorize traffic 38
enforcement officers or third -party vendors to administer 39
the processing and issuance of notices of violation, the 40
collection of fees for a violation of the motor vehicle 41
financial responsibility law, or the referral of cases for 42
prosecution, under t he program. 43
4. Access to the system shall be restricted to 44
qualified agencies and the third -party vendors with which 45
the department of revenue contracts for purposes of the 46
program, provided that any third -party vendor with which a 47 HCS SS SB 1359 24
contract is executed to provide necessary technology, 48
equipment, or maintenance for the program shall be 49
authorized as necessary to collaborate for required updates 50
and maintenance of system software. 51
5. For purposes of the program, any data collected and 52
matched to a corresponding vehicle insurance record as 53
verified through the system, and any Missouri vehicle 54
registration database, may be used to identify violations of 55
the motor vehicle financial responsibility law. Such 56
corresponding data shall constit ute evidence of the 57
violations. 58
6. Except as otherwise provided in this section, the 59
department of revenue shall suspend, in accordance with 60
section 303.041, the registration of any motor vehicle that 61
is determined under the program to be in viol ation of the 62
motor vehicle financial responsibility law. 63
7. The department of revenue shall send to an owner 64
whose vehicle is identified under the program as being in 65
violation of the motor vehicle financial responsibility law 66
a notice that the vehicle's registration may be suspended 67
unless the owner, within thirty days, provides proof of 68
financial responsibility for the vehicle or proof, in a form 69
specified by the department of revenue, that the owner has a 70
pending criminal charge for a viola tion of the motor vehicle 71
financial responsibility law. The notice shall include 72
information on steps an individual may take to obtain proof 73
of financial responsibility and a web address to a page on 74
the department of revenue's website where informati on on 75
obtaining proof of financial responsibility shall be 76
provided. If proof of financial responsibility or a pending 77
criminal charge is not provided within the time allotted, 78
the department of revenue shall provide a notice of 79 HCS SS SB 1359 25
suspension and suspen d the vehicle's registration in 80
accordance with section 303.041, or shall send a notice of 81
vehicle registration suspension, clearly specifying the 82
reason and statutory grounds for the suspension and the 83
effective date of the suspension, the right of th e vehicle 84
owner to request a hearing, the procedure for requesting a 85
hearing, and the date by which that request for a hearing 86
must be made, as well as informing the owner that the matter 87
will be referred for prosecution if a satisfactory response 88
is not received in the time allotted, informing the owner 89
that the minimum penalty for the violation is three hundred 90
dollars [and four license points ], and offering the owner 91
participation in a pretrial diversion option to preclude 92
referral for prosecuti on and registration suspension under 93
sections 303.420 to 303.440. The notice of vehicle 94
registration suspension shall give a period of thirty -three 95
days from mailing for the vehicle owner to respond, and 96
shall be deemed received three days after maili ng. If no 97
request for a hearing or agreement to participate in the 98
diversion option is received by the department of revenue 99
prior to the date provided on the notice of vehicle 100
registration suspension, the director shall suspend the 101
vehicle's registration, effective immediately, and refer the 102
case to the appropriate prosecuting attorney. If an 103
agreement by the vehicle owner to participate in the 104
diversion option is received by the department of revenue 105
prior to the effective date provided on the notice of 106
vehicle registration suspension, then upon payment of a 107
diversion participation fee not to exceed two hundred 108
dollars, agreement to secure proof of financial 109
responsibility within the time provided on the notice of 110
suspension, and agreement that such financial responsibility 111 HCS SS SB 1359 26
shall be maintained for a minimum of two years, no points 112
shall be assessed to the vehicle owner's driver's license 113
under section 302.302 and the department of revenue shall 114
not take further action against the vehicle owner under 115
sections 303.420 to 303.440, subject to compliance with the 116
terms of the pretrial diversion option. The department of 117
revenue shall suspend the vehicle registration of, and shall 118
refer the case to the appropriate prosecuting attorney for 119
prosecution of, participating vehicle owners who violate the 120
terms of the pretrial diversion option. If a request for 121
hearing is received by the department of revenue prior to 122
the effective date provided on the notice of vehicle 123
registration suspensi on, then for all purposes other than 124
eligibility for participation in the diversion option, the 125
effective date of the suspension shall be stayed until a 126
final order is issued following the hearing. The department 127
of revenue shall suspend the registrat ion of vehicles 128
determined under the final order to have violated the motor 129
vehicle financial responsibility law, and shall refer the 130
case to the appropriate prosecuting attorney for 131
prosecution. Notices under this subsection shall be mailed 132
to the vehicle owner at the last known address shown on the 133
department of revenue's records. The department of revenue 134
or its third-party vendor shall issue receipts for the 135
collection of diversion participation fees. Except as 136
otherwise provided in subsecti on 1 of this section, all such 137
fees shall be deposited into the motor vehicle financial 138
responsibility verification and enforcement fund established 139
in section 303.422. A vehicle owner whose registration has 140
been suspended under sections 303.420 to 30 3.440 may obtain 141
reinstatement of the registration upon providing proof of 142
financial responsibility and payment to the department of 143 HCS SS SB 1359 27
revenue of a nonrefundable reinstatement fee equal to the 144
fee that would be applicable under subsection 2 of section 145
303.042 if the registration had been suspended under section 146
303.041. 147
8. Data collected or retained under the program shall 148
not be used by any entity for purposes other than 149
enforcement of the motor vehicle financial responsibility 150
law. Data collected and stored by law enforcement under the 151
program shall be considered evidence if noncompliance with 152
the motor vehicle financial responsibility law is 153
confirmed. The evidence, and an affidavit stating that the 154
evidence and system have identified a particular vehicle as 155
being in violation of the motor vehicle financial 156
responsibility law, shall constitute probable cause for 157
prosecution and shall be forwarded in accordance with 158
subsection 7 of this section to the appropriate prosecuting 159
attorney. 160
9. Owners of vehicles identified under the program as 161
being in violation of the motor vehicle financial 162
responsibility law shall be provided with options for 163
disputing such claims which do not require appearance at any 164
state or local court of l aw, or administrative facility. 165
Any person who presents timely proof that he or she was in 166
compliance with the motor vehicle financial responsibility 167
law at the time of the alleged violation shall be entitled 168
to dismissal of the charge with no assessm ent of fees or 169
fines. Proof provided by a vehicle owner to the department 170
of revenue that the vehicle was in compliance at the time of 171
the suspected violation of the motor vehicle financial 172
responsibility law shall be recorded in the system 173
established by the department of revenue under section 174
303.430. 175 HCS SS SB 1359 28
10. The collection of data pursuant to this section 176
shall be done in a manner that prohibits any bias towards a 177
specific community, race, gender, or socioeconomic status of 178
vehicle owner. 179
11. Law enforcement agencies, third -party vendors, or 180
other entities authorized to operate under the program shall 181
not sell data collected or retained under the program for 182
any purpose or share it for any purpose not expressly 183
authorized in this sec tion. All data shall be secured and 184
any third-party vendor or other entity authorized to operate 185
under the program may be liable for any data security breach. 186
12. The department of revenue shall not take action 187
under sections 303.420 to 303.440 a gainst vehicles 188
registered as fleet vehicles under section 301.032, or 189
against vehicles known to the department of revenue to be 190
insured under a policy of commercial auto coverage, as such 191
term is defined in subdivision (10) of subsection 2 of 192
section 303.430. 193
13. Following one year after the implementation of the 194
program, and every year thereafter for a period of five 195
years, the department of revenue shall provide a report to 196
the president pro tempore of the senate, the speaker of the 197
house of representatives, the chairs of the house and senate 198
committees with jurisdictions over insurance or 199
transportation matters, and the chairs of the house budget 200
and senate appropriations committees. The report shall 201
include an evaluation of program o perations, information as 202
to the costs of the program incurred by the department of 203
revenue, insurers, and the public, information as to the 204
effectiveness of the program in reducing the number of 205
uninsured motor vehicles, and anonymized demographic 206
information including the race and zip code of vehicle 207 HCS SS SB 1359 29
owners identified under the program as being in violation of 208
the motor vehicle financial responsibility law, and may 209
include any additional information and recommendations for 210
improvement of the prog ram deemed appropriate by the 211
department of revenue. The department of revenue may, by 212
rule, require the state, counties, and municipalities to 213
provide information in order to complete the report. 214
14. The department of revenue may promulgate rule s as 215
necessary for the implementation of this section. Any rule 216
or portion of a rule, as that term is defined in section 217
536.010, that is created under the authority delegated in 218
this section shall become effective only if it complies with 219
and is subject to all of the provisions of chapter 536 and, 220
if applicable, section 536.028. This section and chapter 221
536 are nonseverable and if any of the powers vested with 222
the general assembly pursuant to chapter 536 to review, to 223
delay the effective date, o r to disapprove and annul a rule 224
are subsequently held unconstitutional, then the grant of 225
rulemaking authority and any rule proposed or adopted after 226
August 28, 2023, shall be invalid and void. 227
303.430. 1. The department of revenue shall establish 1
and maintain a web-based system for the verification of 2
motor vehicle financial responsibility, shall provide access 3
to insurance reporting data and vehicle registration and 4
financial responsibility data, and shall require motor 5
vehicle insurers to establish functionality for the 6
verification system, as provided in sections 303.420 to 7
303.440. The verification system, including any exceptions 8
as provided for in sections 303.420 to 303.440 or in the 9
implementation guide developed t o support the program, shall 10
supersede any existing verification system, and shall be the 11 HCS SS SB 1359 30
sole system used for the purpose of verifying financial 12
responsibility required under this chapter. 13
2. The system established pursuant to subsection 1 of 14
this section shall be subject to the following: 15
(1) The verification system shall transmit requests to 16
insurers for verification of motor vehicle insurance 17
coverage via web services established by the insurers 18
through the internet in compliance with the specifications 19
and standards of the Insurance Industry Committee on Motor 20
Vehicle Administration, or "IICMVA". Insurance company 21
systems shall respond to each request with a prescribed 22
response upon evaluation of the data provided in the 23
request. The system shall include appropriate protections 24
to secure its data against unauthorized access, and the 25
department of revenue shall maintain a historical record of 26
the system data for a period of no more than twelve months 27
from the date of all requ ests and responses. The system 28
shall be used for verification of the financial 29
responsibility required under this chapter. The system 30
shall be accessible to authorized personnel of the 31
department of revenue, the courts, law enforcement 32
personnel, and other entities authorized by the state as 33
permitted by state or federal privacy laws, and it shall be 34
interfaced, wherever appropriate, with existing state 35
systems. The system shall include information enabling the 36
department of revenue to submit in quiries to insurers 37
regarding motor vehicle insurance which are consistent with 38
insurance industry and IICMVA recommendations, 39
specifications, and standards by using the following data 40
elements for greater matching accuracy: insurer National 41
Association of Insurance Commissioners, or "NAIC", company 42
code; vehicle identification number; policy number; 43 HCS SS SB 1359 31
verification date; or as otherwise described in the 44
specifications and standards of the IICMVA. The department 45
of revenue shall promulgate rules to offer insurers who 46
insure one thousand or fewer vehicles within this state an 47
alternative method for verifying motor vehicle insurance 48
coverage in lieu of web services, and to provide for the 49
verification of financial responsibility when financial 50
responsibility is proven to the department to be maintained 51
by means other than a policy of motor vehicle insurance. 52
Insurers shall not be required to verify insurance coverage 53
for vehicles registered in other jurisdictions; 54
(2) The verification sys tem shall respond to each 55
request within a time period established by the department 56
of revenue. An insurer's system shall respond within the 57
time period prescribed by the IICMVA's specifications and 58
standards. Insurer systems shall be permitted reas onable 59
system downtime for maintenance and other work with advance 60
notice to the department of revenue. Insurers shall not be 61
subject to enforcement fees or other sanctions under such 62
circumstances, or when systems are not available because of 63
emergency, outside attack, or other unexpected outages not 64
planned by the insurer and reasonably outside its control; 65
(3) The system shall assist in identifying violations 66
of the motor vehicle financial responsibility law in the 67
most effective way possi ble. Responses to individual 68
insurance verification requests shall have no bearing on 69
whether insurance coverage is determined to be in force at 70
the time of a claim. Claims shall be individually 71
investigated to determine the existence of coverage. 72
Nothing in sections 303.420 to 303.440 shall prohibit the 73
department of revenue from contracting with a third -party 74
vendor or vendors who have successfully implemented similar 75 HCS SS SB 1359 32
systems in other states to assist in establishing and 76
maintaining this verif ication system; 77
(4) The department of revenue shall consult with 78
representatives of the insurance industry and may consult 79
with third-party vendors to determine the objectives, 80
details, and deadlines related to the system by 81
establishment of an a dvisory council. Members of the 82
advisory council shall serve in an advisory capacity in 83
matters pertaining to the administration of sections 303.420 84
to 303.440, as the department of revenue may request. The 85
advisory council shall expire one year afte r implementation 86
of the program. The advisory council shall consist of 87
voting members comprised of: 88
(a) The director of the department of commerce and 89
insurance, or his or her designee, who shall serve as chair; 90
(b) Two representatives of t he department of revenue, 91
to be appointed by the director of the department of revenue; 92
(c) One representative of the department of commerce 93
and insurance, to be appointed by the director of the 94
department of commerce and insurance; 95
(d) Three representatives of insurance companies, to 96
be appointed by the director of the department of commerce 97
and insurance; 98
(e) One representative from the Missouri Insurance 99
Coalition; 100
(f) One representative chosen by the National 101
Association of Mutual Insurance Companies; 102
(g) One representative chosen by the American Property 103
and Casualty Insurance Association; 104
(h) One representative chosen by the Missouri 105
Independent Agents Association; and 106 HCS SS SB 1359 33
(i) Such other representatives as may be appointed by 107
the director of the department of commerce and insurance; 108
(5) The department of revenue shall publish for 109
comment, and then issue, a detailed implementation guide for 110
its online verification system; 111
(6) The department of revenue and its third -party 112
vendors, if any, shall each maintain a contact person for 113
insurers during the establishment, implementation, and 114
operation of the system; 115
(7) If the department of revenue has reason to believe 116
a vehicle owner does not maintain financial responsibility 117
as required under this chapter, it may also request an 118
insurer to verify the existence of such financial 119
responsibility in a form approved by the department of 120
revenue. In addition, insurers shall cooperate with the 121
department of revenue in establishing and maintaining the 122
verification system established under this section, and 123
shall provide motor vehicle insurance policy status 124
information as provided in the rules promulgated by the 125
department of revenue; 126
(8) Every property and casualty insurance company 127
licensed to issue motor vehicle insurance or authorized to 128
do business in this state shall comply with sections 303.420 129
to 303.440, and corresponding rules promulgated by the 130
department of revenue, for the verification of such 131
insurance for every vehicle insured by that company in this 132
state; 133
(9) Insurers shall maintain a historical record of 134
insurance data for a minimum period of six months from the 135
date of policy inception or policy change fo r the purpose of 136
historical verification inquiries; 137 HCS SS SB 1359 34
(10) For the purposes of this section, "commercial 138
auto coverage" shall mean any coverage provided to an 139
insured, regardless of number of vehicles or entities 140
covered, under a commercial coverag e form and rated from a 141
commercial manual approved by the department of commerce and 142
insurance. Sections 303.420 to 303.440 shall not apply to 143
vehicles insured under commercial auto coverage; however, 144
insurers of such vehicles may participate on a vol untary 145
basis, and vehicle owners may provide proof at or subsequent 146
to the time of vehicle registration that a vehicle is 147
insured under commercial auto coverage, which the department 148
of revenue shall record in the system; 149
(11) Insurers shall provide commercial or fleet 150
automobile customers with evidence reflecting that the 151
vehicle is insured under a commercial or fleet automobile 152
liability policy. Sufficient evidence shall include an 153
insurance identification card clearly marked with a suitabl e 154
identifier such as "commercial auto insurance identification 155
card", "fleet auto insurance identification card", or other 156
clear identification that the vehicle is insured under a 157
fleet or commercial policy; 158
(12) Notwithstanding any provision of sections 303.420 159
to 303.440, insurers shall be immune from civil and 160
administrative liability for good faith efforts to comply 161
with the terms of sections 303.420 to 303.440; 162
(13) Nothing in this section shall prohibit an insurer 163
from using the services of a third-party vendor for 164
facilitating the verification system required under sections 165
303.420 to 303.440. 166
3. The department of revenue shall promulgate rules as 167
necessary for the implementation of sections 303.420 to 168
303.440. Any rule or portion of a rule, as that term is 169 HCS SS SB 1359 35
defined in section 536.010, that is created under the 170
authority delegated in this section shall become effective 171
only if it complies with and is subject to all of the 172
provisions of chapter 536 and, if applicable, s ection 173
536.028. This section and chapter 536 are nonseverable and 174
if any of the powers vested with the general assembly 175
pursuant to chapter 536 to review, to delay the effective 176
date, or to disapprove and annul a rule are subsequently 177
held unconstitutional, then the grant of rulemaking 178
authority and any rule proposed or adopted after August 28, 179
2023, shall be invalid and void. 180
303.440. The verification system established under 1
section 303.430 shall be installed and fully operati onal [on 2
January 1, 2025] no later than December 31, 2027, or as soon 3
as technologically possible following the development and 4
maintenance of a modernized, integrated system for the 5
titling of vehicles, issuance and renewal of vehicle 6
registrations, issuance and renewal of driver's licenses and 7
identification cards, and perfection and release of liens 8
and encumbrances on vehicles, to be funded by the motor 9
vehicle administration technology fund as created in section 10
301.558, following an appropria te testing or pilot period of 11
not less than nine months. Until the successful completion 12
of the testing or pilot period in the judgment of the 13
director of the department of revenue, no enforcement action 14
shall be taken based on the system, including b ut not 15
limited to action taken under the program established under 16
section 303.425. 17
361.900. Sections 361.900 to 361.1035 shall be known 1
and may be cited as the "Money Transmission Modernization 2
Act of 2024". 3 HCS SS SB 1359 36
361.903. Sections 361.900 to 361.1035 are designed to 1
replace existing state money transmission laws currently 2
codified in law and to: 3
(1) Ensure states may coordinate in all areas of 4
regulation, licensing, and supervision to eliminate 5
unnecessary regulatory burden and more effectively utilize 6
regulator resources; 7
(2) Protect the public from financial crime; 8
(3) Standardize the types of activities that are 9
subject to licensing or otherwise exempt from licensing; and 10
(4) Modernize safety and soundness requirements to 11
ensure customer funds are protected in an environment that 12
supports innovative and competitive business practices. 13
361.906. For purposes of sections 361.900 to 361.1035, 1
the following terms shall mean: 2
(1) "Acting in concert", persons knowingly acting 3
together with a common goal of jointly acquiring control of 4
a licensee, regardless of whether under an express agreement; 5
(2) "Authorized delegate", a person that a licensee 6
designates to engage in money transmission on behalf of the 7
licensee; 8
(3) "Average daily money transmission liability", the 9
amount of the licensee's outstanding money transmission 10
obligations in this state at the end of each day in a given 11
period of time, added together, and divided by the total 12
number of days in the given period of time. For purposes of 13
calculating average daily money transmission liability under 14
sections 361.900 to 361.1035 for any licensee required to do 15
so, the given period of time shall be the quarters ending 16
March thirty-first, June thirtieth, September thirtieth, and 17
December thirty-first; 18 HCS SS SB 1359 37
(4) "Bank Secrecy Act", the Bank Secrecy Act, 31 19
U.S.C. Section 5311 et seq., and its implementing 20
regulations, as amended and recodi fied from time to time; 21
(5) "Closed loop stored value", stored value that is 22
redeemable by the issuer only for goods or services provided 23
by the issuer or its affiliate or franchisees of the issuer 24
or its affiliate, except to the extent required b y 25
applicable law to be redeemable in cash for its cash value; 26
(6) "Control": 27
(a) The power to vote, directly or indirectly, at 28
least twenty-five percent of the outstanding voting shares 29
or voting interests of a licensee or person in control of a 30
licensee; 31
(b) The power to elect or appoint a majority of key 32
individuals or executive officers, managers, directors, 33
trustees, or other persons exercising managerial authority 34
of a person in control of a licensee; or 35
(c) The power to exercise, directly or indirectly, a 36
controlling influence over the management or policies of a 37
licensee or person in control of a licensee. 38
A person is presumed to exercise a controlling influence if 39
the person holds the power to vote, directly or indir ectly, 40
at least ten percent of the outstanding voting shares or 41
voting interests of a licensee or person in control of a 42
licensee. A person presumed to exercise a controlling 43
influence as defined under this subdivision can rebut the 44
presumption of control if the person is a passive investor. 45
For purposes of determining the percentage of a person 46
controlled by any other person, the person's interest shall 47
be aggregated with the interest of any other immediate 48
family member, including the person's spouse, parents, 49 HCS SS SB 1359 38
children, siblings, mothers - and fathers-in-law, sons- and 50
daughters-in-law, brothers- and sisters-in-law, and any 51
other person who shares such person's home; 52
(7) "Director", the director of the Missouri division 53
of finance; 54
(8) "Eligible rating", a credit rating of any of the 55
three highest rating categories provided by an eligible 56
rating service. Each category may include rating category 57
modifiers such as "plus" or "minus" for Standard and Poor's 58
or the equivalent for any other eligible rating service; 59
(9) "Eligible rating service", any nationally 60
recognized statistical rating organization (NRSRO) as 61
defined by the United States Securities and Exchange 62
Commission and any other organization designated by rule or 63
order; 64
(10) "Federally insured depository financial 65
institution", a bank, credit union, savings and loan 66
association, trust company, savings association, savings 67
bank, industrial bank, or industrial loan company organized 68
under the laws of the United States or any state of the 69
United States if such bank, credit union, savings and loan 70
association, trust company, savings association, savings 71
bank, industrial bank, or industrial loan company has 72
federally insured deposits; 73
(11) "In this state", at a physical location within 74
this state for a transaction requested in person. For a 75
transaction requested electronically or by phone, the 76
provider of money transmission may determine if the person 77
requesting the transaction is in this state by relying on 78
other information provided by the person regarding the 79
location of the individual's residential address or a 80
business entity's principal place of business or other 81 HCS SS SB 1359 39
physical address location, and any records associated with 82
the person that the provider of money transmission may have 83
that indicate such location including, but not limited to, 84
an address associated with an account; 85
(12) "Individual", a natural person; 86
(13) "Key individual", any individual ultimately 87
responsible for establishing or directing policies and 88
procedures of the licensee, such as an executive officer, 89
manager, director, or trustee; 90
(14) "Licensee", a person licensed under sections 91
361.900 to 361.1035; 92
(15) "Material litigation", litigatio n that, according 93
to United States generally accepted accounting principles, 94
is significant to a person's financial health and would be 95
required to be disclosed in the person's annual audited 96
financial statements, report to shareholders, or similar 97
records; 98
(16) "Monetary value", a medium of exchange, 99
regardless of whether redeemable in money; 100
(17) "Money", a medium of exchange that is authorized 101
or adopted by the United States or a foreign government. 102
The term includes a monetary unit of account established by 103
an intergovernmental organization or by agreement between 104
two or more governments; 105
(18) "Money transmission", any of the following: 106
(a) Selling or issuing payment instruments to a person 107
located in this state; 108
(b) Selling or issuing stored value to a person 109
located in this state; or 110
(c) Receiving money for transmission from a person 111
located in this state. 112 HCS SS SB 1359 40
The term includes payroll processing services. The term 113
does not include the provision solely of online or 114
telecommunications services or network access; 115
(19) "Multistate licensing process", any agreement 116
entered into by and among state regulators relating to 117
coordinated processing of applications for money 118
transmission licenses, application s for the acquisition of 119
control of a licensee, control determinations, or notice and 120
information requirements for a change of key individuals; 121
(20) "NMLS", the Nationwide Multistate Licensing 122
System and Registry developed by the Conference of Sta te 123
Bank Supervisors and the American Association of Residential 124
Mortgage Regulators and owned and operated by the State 125
Regulatory Registry LLC or any successor or affiliated 126
entity for the licensing and registration of persons in 127
financial services i ndustries; 128
(21) "Outstanding money transmission obligations": 129
(a) Any payment instrument or stored value issued or 130
sold by the licensee to a person located in the United 131
States or reported as sold by an authorized delegate of the 132
licensee to a person that is located in the United States 133
that has not yet been paid or refunded by or for the 134
licensee or escheated in accordance with applicable 135
abandoned property laws; or 136
(b) Any money received for transmission by the 137
licensee or an authorized delegate in the United States from 138
a person located in the United States that has not been 139
received by the payee or refunded to the sender, or 140
escheated in accordance with applicable abandoned property 141
laws. 142 HCS SS SB 1359 41
For purposes of this subdivision, "in the United States" 143
shall include, to the extent applicable, a person in any 144
state, territory, or possession of the United States; the 145
District of Columbia; the Commonwealth of Puerto Rico; or a 146
U.S. military installation that is located in a foreign 147
country; 148
(22) "Passive investor", a person that: 149
(a) Does not have the power to elect a majority of key 150
individuals or executive officers, managers, directors, 151
trustees, or other persons exercising managerial authority 152
of a person in control of a licensee; 153
(b) Is not employed by and does not have any 154
managerial duties of the licensee or person in control of a 155
licensee; 156
(c) Does not have the power to exercise, directly or 157
indirectly, a controlling influence over the management o r 158
policies of a licensee or person in control of a licensee; 159
and 160
(d) Either: 161
a. Attests to paragraphs (a), (b), and (c) of this 162
subdivision, in a form and in a medium prescribed by the 163
director; or 164
b. Commits to the passivity characte ristics of 165
paragraphs (a), (b), and (c) of this subdivision in a 166
written document; 167
(23) "Payment instrument", a written or electronic 168
check, draft, money order, traveler's check, or other 169
written or electronic instrument for the transmission or 170
payment of money or monetary value, regardless of whether 171
negotiable. The term does not include stored value or any 172
instrument that: 173 HCS SS SB 1359 42
(a) Is redeemable by the issuer only for goods or 174
services provided by the issuer or its affiliate or 175
franchisees of the issuer or its affiliate, except to the 176
extent required by applicable law to be redeemable in cash 177
for its cash value; or 178
(b) Is not sold to the public but issued and 179
distributed as part of a loyalty, rewards, or promotional 180
program; 181
(24) "Payroll processing services", receiving money 182
for transmission under a contract with a person to deliver 183
wages or salaries, make payment of payroll taxes to state 184
and federal agencies, make payments relating to employee 185
benefit plans, or make d istributions of other authorized 186
deductions from wages or salaries. The term does not 187
include an employer performing payroll processing services 188
on its own behalf or on behalf of its affiliate or a 189
professional employer organization subject to regulat ion 190
under sections 285.700 to 285.750; 191
(25) "Person", any individual, general partnership, 192
limited partnership, limited liability company, corporation, 193
trust, association, joint stock corporation, or other 194
corporate entity identified by the direc tor; 195
(26) "Receiving money for transmission" or "money 196
received for transmission", receiving money or monetary 197
value in the United States for transmission within or 198
outside the United States by electronic or other means; 199
(27) "Stored value", monetary value representing a 200
claim against the issuer evidenced by an electronic or 201
digital record and that is intended and accepted for use as 202
a means of redemption for money, or monetary value, or 203
payment for goods or services. The term includes, but is 204
not limited to, "prepaid access" as defined under 31 CFR 205 HCS SS SB 1359 43
Section 1010.100, as amended or recodified from time to 206
time. Notwithstanding the provisions of this subdivision, 207
the term does not include a payment instrument or closed 208
loop stored value, or stored value not sold to the public 209
but issued and distributed as part of a loyalty, rewards, or 210
promotional program; 211
(28) "Tangible net worth", the aggregate assets of a 212
licensee excluding all intangible assets, less liabilities, 213
as determined in accordance with United States generally 214
accepted accounting principles. 215
361.909. Sections 361.900 to 361.1035 shall not apply 1
to: 2
(1) An operator of a payment system to the extent that 3
it provides processing, clearing, or settlement services 4
between or among persons exempted under this section or 5
licensees in connection with wire transfers, credit card 6
transactions, debit card transactions, stored value 7
transactions, automated clearinghouse transfers, or similar 8
funds transfers; 9
(2) A person appointed as an agent of a payee to 10
collect and process a payment from a payer to the payee for 11
goods or services, other than money transmission itself, 12
provided to the payer by the payee, provided that: 13
(a) There exists a written agreement between the payee 14
and the agent directing the agent to collect and process 15
payments from a payer on the payee's behalf; 16
(b) The payee holds the agent out to the public as 17
accepting payments for goods or services on the payee's 18
behalf; and 19
(c) Payment for the goods and services is treated as 20
received by the payee upon receipt by the agent so that the 21
payer's obligation is extinguished and there is no risk of 22 HCS SS SB 1359 44
loss to the payer if the agent fails to remit the fund s to 23
the payee; 24
(3) A person that acts as an intermediary by 25
processing payments between an entity that has directly 26
incurred an outstanding money transmission obligation to a 27
sender and the sender's designated recipient, provided that 28
the entity: 29
(a) Is properly licensed or exempt from licensing 30
requirements under sections 361.900 to 361.1035; 31
(b) Provides a receipt, electronic record, or other 32
written confirmation to the sender identifying the entity as 33
the provider of money tran smission in the transaction; and 34
(c) Bears sole responsibility to satisfy the 35
outstanding money transmission obligation to the sender, 36
including the obligation to make the sender whole in 37
connection with any failure to transmit the funds to the 38
sender's designated recipient; 39
(4) The United States or a department, agency, or 40
instrumentality thereof, or its agent; 41
(5) Money transmission by the United States Postal 42
Service or by an agent of the United States Postal Service; 43
(6) A state, county, city, or any other governmental 44
agency or governmental subdivision or instrumentality of a 45
state, or its agent; 46
(7) A federally insured depository financial 47
institution; bank holding company; office of an 48
international banking corp oration; foreign bank that 49
establishes a federal branch under the International Bank 50
Act, 12 U.S.C. Section 3102, as amended or recodified from 51
time to time; corporation organized under the Bank Service 52
Corporation Act, 12 U.S.C. Sections 1861 -1867, as amended or 53
recodified from time to time; or corporation organized under 54 HCS SS SB 1359 45
the Edge Act, 12 U.S.C. Sections 611 -633, as amended or 55
recodified from time to time, under the laws of a state or 56
the United States; 57
(8) Electronic funds transfer of govern mental benefits 58
for a federal, state, county, or governmental agency by a 59
contractor on behalf of the United States or a department, 60
agency, or instrumentality thereof, or on behalf of a state 61
or governmental subdivision, agency, or instrumentality 62
thereof; 63
(9) A board of trade designated as a contract market 64
under the federal Commodity Exchange Act, 7 U.S.C. Sections 65
1-25, as amended or recodified from time to time, or a 66
person that, in the ordinary course of business, provides 67
clearance and settlement services for a board of trade to 68
the extent of its operation as or for such a board; 69
(10) A registered futures commission merchant under 70
the federal commodities laws to the extent of its operation 71
as such a merchant; 72
(11) A person registered as a securities broker -dealer 73
under federal or state securities laws to the extent of its 74
operation as such a broker -dealer; 75
(12) An individual employed by a licensee, authorized 76
delegate, or any person exempted from the licensing 77
requirements under sections 361.900 to 361.1035 if acting 78
within the scope of employment and under the supervision of 79
the licensee, authorized delegate, or exempted person as an 80
employee and not as an independent contractor; 81
(13) A person expressly appointed as a third -party 82
service provider to or agent of an entity exempt under 83
subdivision (7) of this section solely to the extent that: 84
(a) Such service provider or agent is engaging in 85
money transmission on behalf of and under a written 86 HCS SS SB 1359 46
agreement with the exempt entity that sets forth the 87
specific functions that the service provider or agent is to 88
perform; and 89
(b) The exempt entity assumes all risk of loss and all 90
legal responsibility for satisfying the outstanding money 91
transmission obligations owed to purchasers and holders of 92
the outstanding money transmission obligations upon receipt 93
of the purchaser's or holder's money or monetary value by 94
the service provider or agent. 95
361.912. The director may require t hat any person 1
claiming to be exempt from licensing under section 361.909 2
provide information and documentation to the director 3
demonstrating that the person qualifies for any claimed 4
exemption. 5
361.915. 1. In order to carry out th e purposes of 1
sections 361.900 to 361.1035, the director may, subject to 2
the provisions of subsections 1 and 2 of section 361.918: 3
(1) Enter into agreements or relationships with other 4
government officials or federal and state regulatory 5
agencies and regulatory associations in order to improve 6
efficiencies and reduce regulatory burden by standardizing 7
methods or procedures, and sharing resources, records, or 8
related information obtained under sections 361.900 to 9
361.1035; 10
(2) Use, hire, contract, or employ analytical systems, 11
methods, or software to examine or investigate any person 12
subject to sections 361.900 to 361.1035; 13
(3) Accept, from other state or federal government 14
agencies or officials, licensing, examination, or 15
investigation reports made by such other state or federal 16
government agencies or officials; and 17 HCS SS SB 1359 47
(4) Accept audit reports made by an independent 18
certified public accountant or other qualified third -party 19
auditor for an applicant or licensee and incorpora te the 20
audit report in any report of examination or investigation. 21
2. The director shall have the broad administrative 22
authority to: 23
(1) Administer, interpret, and enforce sections 24
361.900 to 361.1035 and promulgate rules or regulations 25
implementing sections 361.900 to 361.1035; and 26
(2) Recover the cost of administering and enforcing 27
sections 361.900 to 361.1035 by imposing and collecting 28
proportionate and equitable fees and costs associated with 29
applications, examinations, investig ations, and other 30
actions required to achieve the purpose of sections 361.900 31
to 361.1035. 32
3. The director shall promulgate all necessary rules 33
and regulations for the administration of sections 361.900 34
to 361.1035. Any rule or portion of a rule , as that term is 35
defined in section 536.010, that is created under the 36
authority delegated in this section shall become effective 37
only if it complies with and is subject to all of the 38
provisions of chapter 536 and, if applicable, section 39
536.028. This section and chapter 536 are nonseverable and 40
if any of the powers vested with the general assembly 41
pursuant to chapter 536 to review, to delay the effective 42
date, or to disapprove and annul a rule are subsequently 43
held unconstitutional, then the gra nt of rulemaking 44
authority and any rule proposed or adopted after August 28, 45
2024, shall be invalid and void. 46
361.918. 1. Except as otherwise provided in 1
subsection 2 of this section, all information or reports 2
obtained by the dire ctor from an applicant, licensee, or 3 HCS SS SB 1359 48
authorized delegate and all information contained in or 4
related to an examination, investigation, operating report, 5
or condition report prepared by, on behalf of, or for the 6
use of the director, or financial stateme nts, balance 7
sheets, or authorized delegate information, shall be 8
confidential and held in accordance with section 361.080. 9
2. The director may disclose information not otherwise 10
subject to disclosure under subsection 1 of this section to 11
representatives of state or federal agencies who shall 12
confirm in writing that they will maintain the 13
confidentiality of the information. 14
3. This section does not prohibit the director from 15
disclosing to the public a list of all licensees or the 16
aggregated financial or transactional data concerning those 17
licensees. 18
361.921. 1. The director may conduct an examination 1
or investigation of a licensee or authorized delegate or 2
otherwise take independent action authorized by sections 3
361.900 to 361.1035 or by a rule adopted or order issued 4
under sections 361.900 to 361.1035 as reasonably necessary 5
or appropriate to administer and enforce sections 361.900 to 6
361.1035, regulations implementing sections 361.900 to 7
361.1035, and other a pplicable law, including the Bank 8
Secrecy Act and the USA PATRIOT Act. The director may: 9
(1) Conduct an examination either onsite or offsite as 10
the director may reasonably require; 11
(2) Conduct an examination in conjunction with an 12
examination conducted by representatives of other state 13
agencies or agencies of another state or of the federal 14
government; 15
(3) Accept the examination report of another state 16
agency or an agency of another state or of the federal 17 HCS SS SB 1359 49
government, or a report p repared by an independent 18
accounting firm, which on being accepted is considered for 19
all purposes as an official report of the director; and 20
(4) Summon and examine under oath a key individual or 21
employee of a licensee or authorized delegate and re quire 22
the person to produce records regarding any matter related 23
to the condition and business of the licensee or authorized 24
delegate. 25
2. A licensee or authorized delegate shall provide, 26
and the director shall have full and complete access to, al l 27
records the director may reasonably require to conduct a 28
complete examination. The records shall be provided at the 29
location and in the format specified by the director. The 30
director may utilize multistate record production standards 31
and examination procedures if such standards and procedures 32
will reasonably achieve the requirements of this subsection. 33
3. Unless otherwise directed by the director, a 34
licensee shall pay all costs reasonably incurred in 35
connection with an examination of the l icensee or the 36
licensee's authorized delegates. 37
361.924. 1. To efficiently and effectively administer 1
and enforce sections 361.900 to 361.1035 and to minimize 2
regulatory burden, the director is authorized to participate 3
in multistate supervisory processes established between 4
states or coordinated through the Conference of State Bank 5
Supervisors, Money Transmitter Regulators Association, and 6
affiliates and successors thereof for all licensees that 7
hold licenses in this state and other states. As a 8
participant in multistate supervision, the director may: 9
(1) Cooperate, coordinate, and share information with 10
other state and federal regulators in accordance with 11
section 361.918; 12 HCS SS SB 1359 50
(2) Enter into written cooperation, coo rdination, or 13
information-sharing contracts or agreements with 14
organizations the membership of which is made up of state or 15
federal governmental agencies; and 16
(3) Cooperate, coordinate, and share information with 17
organizations the membership of w hich is made up of state or 18
federal governmental agencies, provided that the 19
organizations agree in writing to maintain the 20
confidentiality and security of the shared information in 21
accordance with this section. 22
2. The director shall not waive an d nothing in this 23
section constitutes a waiver of the director's authority to 24
conduct an examination or investigation or otherwise take 25
independent action authorized by sections 361.900 to 26
361.1035 or a rule adopted or order issued under sections 27
361.900 to 361.1035 to enforce compliance with applicable 28
state or federal law. 29
3. A joint examination or investigation, or acceptance 30
of an examination or investigation report, does not waive an 31
examination assessment provided for in sections 361.900 to 32
361.1035. 33
361.927. 1. In the event state money transmission 1
jurisdiction is conditioned on a federal law, any 2
inconsistencies between a provision of sections 361.900 to 3
361.1035 and the federal law governing money transmission 4
shall be governed by the applicable federal law to the 5
extent of the inconsistency. 6
2. In the event of any inconsistencies between 7
sections 361.900 to 361.1035 and a federal law that governs 8
under subsection 1 of this section, the director may pr ovide 9
interpretive guidance that: 10
(1) Identifies the inconsistency; and 11 HCS SS SB 1359 51
(2) Identifies the appropriate means of compliance 12
with federal law. 13
361.930. 1. A person shall not engage in the business 1
of money transmission or advertise, solicit, or hold itself 2
out as providing money transmission unless the person is 3
licensed under sections 361.900 to 361.1035. 4
2. Subsection 1 of this section shall not apply to: 5
(1) A person that is an authorized delegate of a 6
person licensed under sections 361.900 to 361.1035 acting 7
within the scope of authority conferred by a written 8
contract with the licensee; or 9
(2) A person that is exempt under section 361.909 and 10
does not engage in money transmission outside the scop e of 11
such exemption. 12
3. A license issued under section 361.942 shall not be 13
transferable or assignable. 14
361.933. 1. To establish consistent licensing between 1
this state and other states, the director is authorized to: 2
(1) Implement the licensing provisions of sections 3
361.900 to 361.1035 in a manner that is consistent with 4
other states that have adopted the money transmission 5
modernizations act or multistate licensing processes; and 6
(2) Participate in nationwide protocols for licensing 7
cooperation and coordination among state regulators, 8
provided that such protocols are consistent with sections 9
361.900 to 361.1035. 10
2. In order to fulfill the purposes of sections 11
361.900 to 361.1035, the director is autho rized to establish 12
relationships or contracts with NMLS, or other entities 13
designated by NMLS or other third parties to enable the 14
director to: 15
(1) Collect and maintain records; 16 HCS SS SB 1359 52
(2) Coordinate multistate licensing processes and 17
supervision processes; 18
(3) Process fees; and 19
(4) Facilitate communication between this state and 20
licensees or other persons subject to sections 361.900 to 21
361.1035. 22
3. The director is authorized to utilize NMLS for all 23
aspects of licensing in acco rdance with sections 361.900 to 24
361.1035 including, but not limited to, license 25
applications, applications for acquisitions of control, 26
surety bonds, reporting, criminal history background checks, 27
credit checks, fee processing, and examinations. 28
4. The director is authorized to utilize NMLS forms, 29
processes, and functionalities in accordance with sections 30
361.900 to 361.1035. 31
5. (1) The director is authorized to establish and 32
adopt, by rule or regulation, requirements for participation 33
by applicants and licensees in NMLS upon the division of 34
finance's determination that each requirement is consistent 35
with law, public interest, and the purposes of this section. 36
(2) Any rule or portion of a rule, as that term is 37
defined in section 536.010, that is created under the 38
authority delegated in this section shall become effective 39
only if it complies with and is subject to all of the 40
provisions of chapter 536 and, if applicable, section 41
536.028. This section and chapter 536 are nonsev erable and 42
if any of the powers vested with the general assembly 43
pursuant to chapter 536 to review, to delay the effective 44
date, or to disapprove and annul a rule are subsequently 45
held unconstitutional, then the grant of rulemaking 46
authority and any rule proposed or adopted after August 28, 47
2024, shall be invalid and void. 48 HCS SS SB 1359 53
361.936. 1. Applicants for a license shall apply in a 1
form and in a medium as prescribed by the director. Each 2
such form shall contain content as set forth b y rule, 3
regulation, instruction, or procedure of the director and 4
may be changed or updated by the director in accordance with 5
applicable law in order to carry out the purposes of 6
sections 361.900 to 361.1035 and maintain consistency with 7
licensing standards and practices. The application shall 8
state or contain, as applicable: 9
(1) The legal name and residential and business 10
addresses of the applicant and any fictitious or trade name 11
used by the applicant in conducting its business; 12
(2) Whether the applicant has been convicted of, or 13
pled guilty or nolo contendere to, a felony involving an act 14
of fraud, dishonesty, a breach of trust, or money laundering; 15
(3) A description of any money transmission previously 16
provided by the appli cant and the money transmission that 17
the applicant seeks to provide in this state; 18
(4) A list of the applicant's proposed authorized 19
delegates and the locations in this state where the 20
applicant and its authorized delegates propose to engage in 21
money transmission; 22
(5) A list of other states in which the applicant is 23
licensed to engage in money transmission and any license 24
revocations, suspensions, or other disciplinary action taken 25
against the applicant in another state; 26
(6) Information concerning any bankruptcy or 27
receivership proceedings affecting the licensee or a person 28
in control of a licensee; 29
(7) A sample form of contract for authorized 30
delegates, if applicable; 31 HCS SS SB 1359 54
(8) A sample form of payment instrument or stored 32
value, as applicable; 33
(9) The name and address of any federally insured 34
depository financial institution through which the applicant 35
plans to conduct money transmission; 36
(10) A list of any material litigation in which the 37
applicant has been involved in the ten-year period next 38
preceding the submission of the application; and 39
(11) Any other information the director reasonably 40
requires with respect to the applicant. 41
2. If an applicant is a corporation, limited liability 42
company, partnership, or other legal entity, the applicant 43
shall also provide: 44
(1) The date of the applicant's incorporation or 45
formation and state or country of incorporation or formation; 46
(2) If applicable, a certificate of good standing from 47
the state or country in which the applicant is incorporated 48
or formed; 49
(3) A brief description of the structure or 50
organization of the applicant, including any parents or 51
subsidiaries of the applicant, and whether any parents or 52
subsidiaries are publ icly traded; 53
(4) The legal name, any fictitious or trade name, all 54
business and residential addresses, and the employment, as 55
applicable, in the ten -year period next preceding the 56
submission of the application of each key individual and 57
person in control of the applicant; 58
(5) Whether they have been convicted of, or pled 59
guilty or nolo contendere to, a felony involving an act of 60
fraud, dishonesty, a breach of trust, or money laundering; 61
(6) A copy of audited financial statements of th e 62
applicant for the most recent fiscal year and for the two - 63 HCS SS SB 1359 55
year period next preceding the submission of the application 64
or, if determined to be acceptable to the director, 65
certified unaudited financial statements for the most recent 66
fiscal year or other period acceptable to the director; 67
(7) A certified copy of unaudited financial statements 68
of the applicant for the most recent fiscal quarter; 69
(8) If the applicant is a publicly traded corporation, 70
a copy of the most recent report filed w ith the United 71
States Securities and Exchange Commission under Section 13 72
of the federal Securities Exchange Act of 1934, 15 U.S.C. 73
Section 78m, as amended or recodified from time to time; 74
(9) If the applicant is a wholly owned subsidiary of: 75
(a) A corporation publicly traded in the United 76
States, a copy of audited financial statements for the 77
parent corporation for the most recent fiscal year or a copy 78
of the parent corporation's most recent report filed under 79
Section 13 of the U.S. Secu rities Exchange Act of 1934, 15 80
U.S.C. Section 78m, as amended or recodified from time to 81
time; or 82
(b) A corporation publicly traded outside the United 83
States, a copy of similar documentation filed with the 84
regulator of the parent corporation's d omicile outside the 85
United States; 86
(10) The name and address of the applicant's 87
registered agent in this state; 88
(11) A list of any material litigation in which the 89
applicant has been involved in the ten -year period next 90
preceding the submis sion of the application; and 91
(12) Any other information the director reasonably 92
requires with respect to the applicant. 93 HCS SS SB 1359 56
3. A nonrefundable application fee and license fee, as 94
determined by the director, shall accompany an application 95
for a license under this section. 96
4. The director may waive one or more requirements of 97
subsections 1 and 2 of this section or permit an applicant 98
to submit other information in lieu of the required 99
information. 100
361.939. 1. Any individual in control of a licensee 1
or applicant, any individual that seeks to acquire control 2
of a licensee, and each key individual shall furnish to the 3
director through NMLS the following: 4
(1) The individual's fingerprints for submission to 5
the Federal Bureau of Investigation and the director for 6
purposes of a national criminal history background check 7
unless the person currently resides outside of the United 8
States and has resided outside of the United States for the 9
last ten years; and 10
(2) Personal history and experience in a form and in a 11
medium prescribed by the director, to obtain the following: 12
(a) An independent credit report from a consumer 13
reporting agency unless the individual does not have a 14
Social Security number, in wh ich case this requirement shall 15
be waived; 16
(b) Whether they have been convicted of, or pled 17
guilty or nolo contendere to, a felony involving an act of 18
fraud, dishonesty, a breach of trust, or money laundering; 19
and 20
(c) Information related to any regulatory or 21
administrative action and any civil litigation involving 22
claims of fraud, misrepresentation, conversion, 23
mismanagement of funds, breach of fiduciary duty, or breach 24
of contract. 25 HCS SS SB 1359 57
2. If the individual has resided outside of the U nited 26
States at any time in the last ten years, the individual 27
shall also provide an investigative background report 28
prepared by an independent search firm that meets the 29
following requirements: 30
(1) At a minimum, the search firm shall: 31
(a) Demonstrate that it has sufficient knowledge and 32
resources and employs accepted and reasonable methodologies 33
to conduct the research for the background report; and 34
(b) Not be affiliated with or have an interest with 35
the individual it is researchin g; and 36
(2) At a minimum, the investigative background report 37
shall be written in the English language and shall contain 38
the following: 39
(a) If available in the individual's current 40
jurisdiction of residency, a comprehensive credit report, or 41
any equivalent information obtained or generated by the 42
independent search firm to accomplish such report, including 43
a search of the court data in the countries, provinces, 44
states, cities, towns, and contiguous areas where the 45
individual resided and w orked; 46
(b) Criminal records information for the past ten 47
years including, but not limited to, felonies, misdemeanors, 48
or similar convictions for violations of law in the 49
countries, provinces, states, cities, towns, and contiguous 50
areas where the individual resided and worked; 51
(c) Employment history; 52
(d) Media history, including an electronic search of 53
national and local publications, wire services, and business 54
applications; and 55
(e) Financial services-related regulatory history 56
including but not limited to, money transmission, 57 HCS SS SB 1359 58
securities, banking, insurance, and mortgage -related 58
industries. 59
361.942. 1. If an application for an original license 1
under sections 361.900 to 361.1035 appears to include all 2
the items and addresses and all of the matters that are 3
required, the application is complete and the director shall 4
promptly notify the applicant in a record of the date on 5
which the application is determined to be complete, and: 6
(1) The director shall approve or deny the application 7
within one hundred twenty days after the completion date; or 8
(2) If the application is not approved or denied 9
within one hundred twenty days after the completion date: 10
(a) The application is approved; and 11
(b) The license takes effect as of the first business 12
day after expiration of the one -hundred-twenty-day period. 13
The director may for good cause extend the application 14
period. 15
2. A determination by the director that an application 16
is complete and is accepted for processing means only that 17
the application, on its face, appears to include all of the 18
items, including the criminal background check response from 19
the Federal Bureau of Investigation, and address all of the 20
matters that are requi red, and is not an assessment of the 21
substance of the application or of the sufficiency of the 22
information provided. 23
3. If an application is filed and considered complete 24
under this section, the director shall investigate the 25
applicant's financia l condition and responsibility, 26
financial and business experience, character, and general 27
fitness. The director may conduct an onsite investigation 28
of the applicant, the reasonable cost of which the applicant 29 HCS SS SB 1359 59
shall pay. The director shall issue a lic ense to an 30
applicant under this section if the director finds that all 31
of the following conditions have been fulfilled: 32
(1) The applicant has complied with the provisions of 33
sections 361.936 and 361.939; and 34
(2) The financial condition and r esponsibility, 35
financial and business experience, competence, character, 36
and general fitness of the applicant; and the competence, 37
experience, character, and general fitness of the key 38
individuals and persons in control of the applicant indicate 39
that it is in the interest of the public to permit the 40
applicant to engage in money transmission. 41
4. If an applicant avails itself or is otherwise 42
subject to a multistate licensing process: 43
(1) The director shall be authorized to accept the 44
investigation results of a lead investigative state for the 45
purpose of subsection 3 of this section if the lead 46
investigative state has sufficient staffing, expertise, and 47
minimum standards; or 48
(2) If this state is a lead investigative state, the 49
director shall be authorized to investigate the applicant 50
under subsection 3 of this section and the time frames 51
established by agreement through the multistate licensing 52
process, provided however, that in no case shall such time 53
frame be noncompliant with the application period in 54
subdivision (1) of subsection 1 of this section. 55
5. The director shall issue a formal written notice of 56
the denial of a license application within thirty days of 57
the decision to deny the application. The director shall 58
set forth in the notice of denial the specific reasons for 59
the denial of the application. An applicant whose 60
application is denied by the director under this subsection 61 HCS SS SB 1359 60
may appeal within thirty days after receipt of the written 62
notice of the denial u nder chapter 536. 63
6. The initial license term shall begin on the day the 64
application is approved. The license shall expire on 65
December thirty-first of the year in which the license term 66
began unless the initial license date is between November 67
first and December thirty -first, in which instance the 68
initial license term shall run through December thirty -first 69
of the following year. 70
361.945. 1. A license under sections 361.900 to 1
361.1035 shall be renewed annually. An annual renewal fee, 2
to be determined by the director, shall be paid no more than 3
sixty days before the license expiration. The renewal term 4
shall be for a period of one year and shall begin on January 5
first of each year after the initial license term and sh all 6
expire on December thirty -first of the year the renewal term 7
begins. 8
2. A licensee shall submit a renewal report with the 9
renewal fee, in a form and in a medium prescribed by the 10
director. The renewal report shall state or contain a 11
description of each material change in information submitted 12
by the licensee in its original license application that has 13
not been reported to the director. 14
3. The director for good cause may grant an extension 15
of the renewal date. 16
4. The director shall be authorized and encouraged to 17
utilize NMLS to process license renewals, provided that such 18
functionality is consistent with this section. 19
361.948. 1. If a licensee does not continue to meet 1
the qualifications or satisfy the requirements that apply to 2
an applicant for a new money transmission license, the 3
director may suspend or revoke the licensee's license in 4 HCS SS SB 1359 61
accordance with the procedures established under sections 5
361.900 to 361.1035 or other applicable state law for s uch 6
suspension or revocation. 7
2. An applicant for a money transmission license shall 8
demonstrate that it meets or will meet, and a money 9
transmission licensee shall at all times meet, the 10
requirements in sections 361.999, 361.1002, and 361.1005. 11
361.951. 1. Any person, or group of persons acting in 1
concert, seeking to acquire control of a licensee shall 2
obtain the written approval of the director prior to 3
acquiring control. An individual is not deemed to acquire 4
control of a licensee and is not subject to the acquisition 5
of control provisions if that individual becomes a key 6
individual in the ordinary course of business. 7
2. A person, or group of persons acting in concert, 8
seeking to acquire control of a licensee shall, in 9
cooperation with the licensee: 10
(1) Submit an application in a form and in a medium 11
prescribed by the director; and 12
(2) Submit a nonrefundable fee, to be determined by 13
the director, with the request for approval. 14
3. Upon request, the director may permit a licensee or 15
a person, or group of persons acting in concert, to submit 16
some or all information required by the director under 17
subdivision (1) of subsection 2 of this section without 18
using NMLS. 19
4. The application required under subdivision (1) of 20
subsection 2 of this section shall include information 21
required under section 361.939 for any new key individuals 22
that have not previously completed the requirements of 23
section 361.939 for a licensee. 24 HCS SS SB 1359 62
5. When an application for acquisition of control 25
under this section appears to include all the items and 26
address all of the matters that are required, the 27
application shall be considered complete. The director 28
shall promptly notify the applicant in a record of the date 29
on which the application was determined to be complete, and: 30
(1) The director shall approve or deny the application 31
within sixty days after the completion date; or 32
(2) If the application is not approved or denied 33
within sixty days afte r the completion date: 34
(a) The application is approved; and 35
(b) The person, or group of persons acting in concert, 36
are not prohibited from acquiring control; and 37
(3) The director may for good cause extend the 38
application period. 39
6. A determination by the director that an application 40
is complete and is accepted for processing means only that 41
the application, on its face, appears to include all of the 42
items and address all of the matters that are required, and 43
is not an assessment of the substance of the application or 44
of the sufficiency of the information provided. 45
7. If an application is filed and considered complete 46
under subsection 5 of this section, the director shall 47
investigate the financial condition and responsib ility, 48
financial and business experience, character, and general 49
fitness of the person, or group of persons acting in 50
concert, seeking to acquire control. The director shall 51
approve an acquisition of control under this section if the 52
director finds that all of the following conditions have 53
been fulfilled: 54
(1) The requirements of subsections 2 and 4 of this 55
section have been met, as applicable; and 56 HCS SS SB 1359 63
(2) The financial condition and responsibility, 57
financial and business experience, compete nce, character, 58
and general fitness of the person, or group of persons 59
acting in concert, seeking to acquire control and the 60
competence, experience, character, and general fitness of 61
the key individuals and persons that would be in control of 62
the licensee after the acquisition of control indicate that 63
it is in the interest of the public to permit the person, or 64
group of persons acting in concert, to control the licensee. 65
8. If an applicant avails itself or is otherwise 66
subject to a multistate licensing process: 67
(1) The director is authorized to accept the 68
investigation results of a lead investigative state for the 69
purpose of subsection 7 of this section if the lead 70
investigative state has sufficient staffing, expertise, and 71
minimum standards; or 72
(2) If this state is a lead investigative state, the 73
director is authorized to investigate the applicant under 74
subsection 7 of this section and the time frames established 75
by agreement through the multistate licensing process. 76
9. The director shall issue a formal written notice of 77
the denial of an application to acquire control within 78
thirty days of the decision to deny the application. The 79
director shall set forth in the notice of denial the 80
specific reasons for the denial o f the application. An 81
applicant whose application is denied by the director under 82
this subsection may appeal within thirty days after receipt 83
of the written notice of the denial under chapter 536. 84
10. The requirements of subsections 1 and 2 of th is 85
section shall not apply to any of the following: 86
(1) A person that acts as a proxy for the sole purpose 87
of voting at a designated meeting of the shareholders or 88 HCS SS SB 1359 64
holders of voting shares or voting interests of a licensee 89
or a person in control of a licensee; 90
(2) A person that acquires control of a licensee by 91
devise or descent; 92
(3) A person that acquires control of a licensee as a 93
personal representative, custodian, guardian, conservator, 94
or trustee, or as an officer appointed by a court of 95
competent jurisdiction or by operation of law; 96
(4) A person that is exempt under subdivision (7) of 97
section 361.909; 98
(5) A person that the director determines is not 99
subject to subsection 1 of this section based on the public 100
interest; 101
(6) A public offering of securities of a licensee or a 102
person in control of a licensee; or 103
(7) An internal reorganization of a person in control 104
of the licensee where the ultimate person in control of the 105
licensee remains the same. 106
11. Persons in subdivisions (2), (3), (4), (6), and 107
(7) of subsection 10 of this section in cooperation with the 108
licensee shall notify the director within fifteen days after 109
the acquisition of control. 110
12. (1) The requirements of subsections 1 and 2 of 111
this section shall not apply to a person that has complied 112
with and received approval to engage in money transmission 113
under sections 361.900 to 361.1035 or was identified as a 114
person in control in a prior application filed with and 115
approved by the director or by another state under a 116
multistate licensing process, provided that: 117
(a) The person has not had a license revoked or 118
suspended or controlled a licensee that has had a license 119 HCS SS SB 1359 65
revoked or suspended while the person was in contro l of the 120
licensee in the previous five years; 121
(b) If the person is a licensee, the person is well 122
managed and has received at least a satisfactory rating for 123
compliance at its most recent examination by another state 124
if such rating was given; 125
(c) The licensee to be acquired is projected to meet 126
the requirements of sections 361.999, 361.1002, and 361.1005 127
after the acquisition of control is completed, and if the 128
person acquiring control is a licensee, that licensee is 129
also projected to me et the requirements of sections 361.999, 130
361.1002, and 361.1005 after the acquisition of control is 131
completed; 132
(d) The licensee to be acquired will not implement any 133
material changes to its business plan as a result of the 134
acquisition of control, and if the person acquiring control 135
is a licensee, that licensee also will not implement any 136
material changes to its business plan as a result of the 137
acquisition of control; and 138
(e) The person provides notice of the acquisition in 139
cooperation with the licensee and attests to paragraphs (a) 140
to (d) of this subdivision in a form and in a medium 141
prescribed by the director. 142
(2) If the notice is not disapproved within thirty 143
days after the date on which the notice was determined to be 144
complete, the notice is deemed approved. 145
13. Before filing an application for approval to 146
acquire control of a licensee, a person may request in 147
writing a determination from the director as to whether the 148
person would be considered a person in control of a licensee 149
upon consummation of a proposed transaction. If the 150
director determines that the person would not be a person in 151 HCS SS SB 1359 66
control of a licensee, the proposed person and transaction 152
is not subject to the requirements of subsections 1 and 2 of 153
this section. 154
14. If a multistate licensing process includes a 155
determination under subsection 13 of this section and an 156
applicant avails itself or is otherwise subject to the 157
multistate licensing process: 158
(1) The director is authorized to accept the control 159
determination of a lead investigative state with sufficient 160
staffing, expertise, and minimum standards for the purpose 161
of subsection 13 of this section; or 162
(2) If this state is a lead investigative state, the 163
director is authorized to investigate the applicant under 164
subsection 13 of this section and the time frames 165
established by agreement through the multistate licensing 166
process. 167
361.954. 1. A licensee adding or replacing any key 1
individual shall: 2
(1) Provide notice in a manner prescribed by the 3
director within fifteen days after the effective date of the 4
key individual's appointment; and 5
(2) Provide information as required by section 361.939 6
within forty-five days of the effective date. 7
2. Within ninety days of the date on which the notice 8
provided under subsection 1 of this section was determined 9
to be complete, the director may issue a notice of 10
disapproval of a key individual if the competence, 11
experience, character, or integrity of the individual would 12
not be in the best interests of the public or the customers 13
of the licensee to permit the individual to be a key 14
individual of such licensee. 15 HCS SS SB 1359 67
3. A notice of disapproval shall contain a statement 16
of the basis for disapproval a nd shall be sent to the 17
licensee and the disapproved individual. A licensee may 18
appeal a notice of disapproval under chapter 536 within 19
thirty days after receipt of such notice of disapproval. 20
4. If the notice provided under subsection 1 of this 21
section is not disapproved within ninety days after the date 22
on which the notice was determined to be complete, the key 23
individual is deemed approved. 24
5. If a multistate licensing process includes a key 25
individual notice review and disapproval pr ocess under this 26
section and the licensee avails itself or is otherwise 27
subject to the multistate licensing process: 28
(1) The director is authorized to accept the 29
determination of another state if the investigating state 30
has sufficient staffing, e xpertise, and minimum standards 31
for the purpose of this section; or 32
(2) If this state is a lead investigative state, the 33
director is authorized to investigate the applicant under 34
subsection 2 of this section and the time frames established 35
by agreement through the multistate licensing process. 36
361.957. 1. Each licensee shall submit a report of 1
condition within forty days of the end of the calendar 2
quarter or within any extended time as the director may 3
prescribe. 4
2. The report of condition shall include: 5
(1) Financial information at the licensee level; 6
(2) Nationwide and state -specific money transmission 7
transaction information in every jurisdiction in the United 8
States where the licensee is licensed to e ngage in money 9
transmission; 10
(3) Permissible investments report; 11 HCS SS SB 1359 68
(4) Transaction destination country reporting for 12
money received for transmission, if applicable; and 13
(5) Any other information the director reasonably 14
requires with respect to the licensee. The director is 15
authorized to utilize NMLS for the submission of the report 16
required by subsection 1 of this section and is authorized 17
to update as necessary the requirements of this section to 18
carry out the purposes of sections 3 61.900 to 361.1035 and 19
maintain consistency with NMLS reporting. 20
3. The information required under subdivision (4) of 21
subsection 2 of this section shall be included only in a 22
report of condition submitted within forty -five days of the 23
end of the fourth calendar quarter. 24
361.960. 1. Each licensee shall, within ninety days 1
after the end of each fiscal year or within any extended 2
time as the director may prescribe, file with the director: 3
(1) An audited financial statemen t of the licensee for 4
the fiscal year prepared in accordance with United States 5
generally accepted accounting principles; and 6
(2) Any other information as the director may 7
reasonably require. 8
2. The audited financial statement shall be prep ared 9
by an independent certified public accountant or independent 10
public accountant who is satisfactory to the director. 11
3. The audited financial statements shall include or 12
be accompanied by a certificate of opinion of the 13
independent certified public accountant or independent 14
public accountant that is satisfactory in form and content 15
to the director. If the certificate or opinion is 16
qualified, the director may order the licensee to take any 17
action as the director may find necessary to enabl e the 18 HCS SS SB 1359 69
independent certified public accountant or independent 19
public accountant to remove the qualification. 20
361.963. 1. Each licensee shall submit a report of 1
authorized delegates within forty -five days of the end of 2
the calendar quarter. The director is authorized to utilize 3
NMLS for the submission of the report required under this 4
section, provided that such functionality is consistent with 5
the requirements of this section. 6
2. The authorized delegate report shall include , at a 7
minimum, each authorized delegate's: 8
(1) Company legal name; 9
(2) Taxpayer employer identification number; 10
(3) Principal provider identifier; 11
(4) Physical address, if any; 12
(5) Mailing address; 13
(6) Any business conducted in other states; 14
(7) Any fictitious or trade name; 15
(8) Contact person name, phone number, and email; 16
(9) Start date as licensee's authorized delegate; 17
(10) End date acting as licensee's authorized 18
delegate, if applicable; an d 19
(11) Any other information the director reasonably 20
requires with respect to the authorized delegate. 21
361.966. 1. A licensee shall file a report with the 1
director within one business day after the licensee has 2
reason to know of the occurrence of any of the following 3
events: 4
(1) The filing of a petition by or against the 5
licensee under the United States Bankruptcy Code, 11 U.S.C. 6
Section 101-110, as amended or recodified from time to time, 7
for bankruptcy or reorganiza tion; 8 HCS SS SB 1359 70
(2) The filing of a petition by or against the 9
licensee for receivership, the commencement of any other 10
judicial or administrative proceeding for its dissolution or 11
reorganization, or the making of a general assignment for 12
the benefit of its creditors; or 13
(3) The commencement of a proceeding to revoke or 14
suspend its license in a state or country in which the 15
licensee engages in business or is licensed. 16
2. A licensee shall notify the director within three 17
business days after th e licensee has reason to know that: 18
(1) The licensee or a key individual or person in 19
control of the licensee, has been convicted of, or pled 20
guilty or nolo contendere to a felony involving an act of 21
fraud, dishonesty, a breach of trust, or money laundering; or 22
(2) An authorized delegate has been convicted of, or 23
pled guilty or nolo contendere to, a felony involving an act 24
of fraud, dishonesty, a breach of trust, or money laundering. 25
361.969. A licensee and an authorized delegate shall 1
file all reports required by federal currency reporting, 2
record keeping, and suspicious activity reporting 3
requirements as set forth in the Bank Secrecy Act and other 4
federal and state laws pertaining to money laundering. The 5
timely filing of a complete and accurate report required 6
under this section with the appropriate federal agency is 7
deemed compliant with the requirements of this section. 8
361.972. 1. A licensee shall maintain the following 1
records for determining its compliance with sections 361.900 2
to 361.1035 for at least three years: 3
(1) A record of each outstanding money transmission 4
obligation sold; 5 HCS SS SB 1359 71
(2) A general ledger posted at least monthly 6
containing all asset, liability, capital, inc ome, and 7
expense accounts; 8
(3) Bank statements and bank reconciliation records; 9
(4) Records of outstanding money transmission 10
obligations; 11
(5) Records of each outstanding money transmission 12
obligation paid within the three -year period; 13
(6) A list of the last known names and addresses of 14
all of the licensee's authorized delegates; and 15
(7) Any other records the director reasonably requires 16
by rule. 17
2. The items specified in subsection 1 of this section 18
may be maintained in any form of record. 19
3. Records specified in subsection 1 of this section 20
may be maintained outside this state if the records are made 21
accessible to the director on seven business days' notice 22
that is sent in a record. 23
4. All records maintained by the licensee as required 24
in subsections 1 to 3 of this section are open to inspection 25
by the director under subsection 1 of section 361.921. 26
361.975. 1. As used in this section, "remit" means to 1
make direct payments of m oney to a licensee or its 2
representative authorized to receive money or to deposit 3
money in a bank in an account specified by the licensee. 4
2. Before a licensee is authorized to conduct business 5
through an authorized delegate, or allows a person t o act as 6
the licensee's authorized delegate, the licensee shall: 7
(1) Adopt, and update as necessary, written policies 8
and procedures reasonably designed to ensure that the 9
licensee's authorized delegates comply with applicable state 10
and federal law; 11 HCS SS SB 1359 72
(2) Enter into a written contract that complies with 12
subsection 4 of this section; and 13
(3) Conduct a reasonable risk -based background 14
investigation sufficient for the licensee to determine 15
whether the authorized delegate has complied and will likely 16
comply with applicable state and federal law. 17
3. An authorized delegate shall operate in full 18
compliance with sections 361.900 to 361.1035. 19
4. The written contract required under subsection 2 of 20
this section shall be signed by t he licensee and the 21
authorized delegate and, at a minimum, shall: 22
(1) Appoint the person signing the contract as the 23
licensee's authorized delegate with the authority to conduct 24
money transmission on behalf of the licensee; 25
(2) Set forth the nature and scope of the relationship 26
between the licensee and the authorized delegate and the 27
respective rights and responsibilities of the parties; 28
(3) Require the authorized delegate to agree to fully 29
comply with all applicable state and federa l laws, rules, 30
and regulations pertaining to money transmission, including 31
sections 361.900 to 361.1035 and regulations implementing 32
sections 361.900 to 361.1035, relevant provisions of the 33
Bank Secrecy Act, and the USA PATRIOT Act; 34
(4) Require the authorized delegate to remit and 35
handle money and monetary value in accordance with the terms 36
of the contract between the licensee and the authorized 37
delegate; 38
(5) Impose a trust on money and monetary value net of 39
fees received for money trans mission for the benefit of the 40
licensee; 41
(6) Require the authorized delegate to prepare and 42
maintain records as required by sections 361.900 to 361.1035 43 HCS SS SB 1359 73
or regulations implementing sections 361.900 to 361.1035, or 44
as reasonably requested by the d irector; 45
(7) Acknowledge that the authorized delegate consents 46
to examination or investigation by the director; 47
(8) State that the licensee is subject to regulation 48
by the director and that, as part of that regulation, the 49
director may suspend or revoke an authorized delegate 50
designation or require the licensee to terminate an 51
authorized delegate designation; and 52
(9) Acknowledge receipt of the written policies and 53
procedures required under subdivision (1) of subsection 1 of 54
this section. 55
5. If the licensee's license is suspended, revoked, 56
surrendered, or expired, the licensee shall, within five 57
business days, provide documentation to the director that 58
the licensee has notified all applicable authorized 59
delegates of the lice nsee whose names are in a record filed 60
with the directors of the suspension, revocation, surrender, 61
or expiration of a license. Upon suspension, revocation, 62
surrender, or expiration of a license, applicable authorized 63
delegates shall immediately cease to provide money 64
transmission as an authorized delegate of the licensee. 65
6. An authorized delegate of a licensee holds in trust 66
for the benefit of the licensee all money net of fees 67
received from money transmission. If any authorized 68
delegate commingles any funds received from money 69
transmission with any other funds or property owned or 70
controlled by the authorized delegate, all commingled funds 71
and other property shall be considered held in trust in 72
favor of the licensee in an amount equal to the amount of 73
money net of fees received from money transmission. 74 HCS SS SB 1359 74
7. An authorized delegate shall not use a subdelegate 75
to conduct money transmission on behalf of a licensee. 76
361.978. A person shall not engage in the business of 1
money transmission on behalf of a person not licensed under 2
sections 361.900 to 361.1035 or not exempt under sections 3
361.909 and 361.912. A person that engages in such activity 4
provides money transmission to the same extent as if the 5
person were a licensee and shall be jointly and severally 6
liable with the unlicensed or nonexempt person. 7
361.981. 1. The circuit court in an action brought by 1
a licensee shall have jurisdiction to grant appropriate 2
equitable or legal relief, including without limitation 3
prohibiting the authorized delegate from directly or 4
indirectly acting as an authorized delegate for any licensee 5
in this state and the payment of restitution, damages, or 6
other monetary relief, if the circuit court finds t hat an 7
authorized delegate failed to remit money in accordance with 8
the written contract required by subsection 2 of section 9
361.1275 or as otherwise directed by the licensee or 10
required by law. 11
2. If the circuit court issues an order prohibiting a 12
person from acting as an authorized delegate for any 13
licensee under subsection 1 of this section, the licensee 14
that brought the action shall report the order to the 15
director within thirty days and shall report the order 16
through NMLS within ninety d ays. 17
3. An authorized delegate who holds money in trust for 18
the benefit of a licensee and knowingly fails to remit more 19
than one thousand dollars of such money is guilty of a class 20
E felony. 21
4. An authorized delegate who holds money in trust for 22
the benefit of a licensee and knowingly fails to remit no 23 HCS SS SB 1359 75
more than one thousand dollars of such money is guilty of a 24
class A misdemeanor. 25
361.984. 1. Every licensee shall forward all money 1
received for transmission in accorda nce with the terms of 2
the agreement between the licensee and the sender unless the 3
licensee has a reasonable belief or a reasonable basis to 4
believe that the sender may be a victim of fraud or that a 5
crime or violation of law, rule, or regulation has o ccurred, 6
is occurring, or may occur. 7
2. If a licensee fails to forward money received for 8
transmission in accordance with this section, the licensee 9
shall respond to inquiries by the sender with the reason for 10
the failure unless providing a respo nse would violate a 11
state or federal law, rule, or regulation. 12
361.987. 1. This section shall not apply to: 1
(1) Money received for transmission subject to the 2
federal Remittance Rule, 12 CFR Part 1005, Subpart B, as 3
amended or recodified from time to time; or 4
(2) Money received for transmission under a written 5
agreement between the licensee and payee to process payments 6
for goods or services provided by the payee. 7
2. Every licensee shall refund to the sender, with in 8
ten days of receipt of the sender's written request for a 9
refund, any and all money received for transmission unless 10
any of the following occurs: 11
(1) The money has been forwarded within ten days of 12
the date on which the money was received for transmission; 13
(2) Instructions have been given committing an 14
equivalent amount of money to the person designated by the 15
sender within ten days of the date on which the money was 16
received for transmission; 17 HCS SS SB 1359 76
(3) The agreement between the licens ee and the sender 18
instructs the licensee to forward the money at a time that 19
is beyond ten days of the date on which the money was 20
received for transmission. If funds have not yet been 21
forwarded in accordance with the terms of the agreement 22
between the licensee and the sender, the licensee shall 23
issue a refund in accordance with the other provisions of 24
this section; 25
(4) The refund is requested for a transaction that the 26
licensee has not completed based on a reasonable belief or a 27
reasonable basis to believe that a crime or violation of 28
law, rule, or regulation has occurred, is occurring, or may 29
occur; or 30
(5) The refund request does not enable the licensee to: 31
(a) Identify the sender's name and address or 32
telephone number; or 33
(b) Identify the particular transaction to be refunded 34
in the event the sender has multiple transactions 35
outstanding. 36
361.990. 1. This section shall not apply to: 1
(1) Money received for transmission subject to the 2
federal Remittance Rule, 12 CFR Part 1005, Subpart B, as 3
amended or recodified from time to time; 4
(2) Money received for transmission that is not 5
primarily for personal, family, or household purposes; 6
(3) Money received for transmission under a writt en 7
agreement between the licensee and payee to process payments 8
for goods or services provided by the payee; or 9
(4) Payroll processing services. 10
2. For purposes of this section, "receipt" means a 11
paper receipt, electronic record, or other wr itten 12
confirmation. For a transaction conducted in person, the 13 HCS SS SB 1359 77
receipt may be provided electronically if the sender 14
requests or agrees to receive an electronic receipt. For a 15
transaction conducted electronically or by phone, a receipt 16
may be provided electronically. All electronic receipts 17
shall be provided in a retainable form. 18
3. (1) Every licensee or its authorized delegate 19
shall provide the sender a receipt for money received for 20
transmission. The receipt shall contain the following 21
information, as applicable: 22
(a) The name of the sender; 23
(b) The name of the designated recipient; 24
(c) The date of the transaction; 25
(d) The unique transaction or identification number; 26
(e) The name of the licensee, NMLS unique identifier, 27
the licensee's business address, and the licensee's customer 28
service telephone number; 29
(f) The amount of the transaction in United States 30
dollars; 31
(g) Any fee charged by the licensee to the sender for 32
the transaction; and 33
(h) Any taxes collected by the licensee from the 34
sender for the transaction. 35
(2) The receipt required by this section shall be in 36
English and in the language principally used by the licensee 37
or authorized delegate to advertise, solicit, or negotia te, 38
either orally or in writing, for a transaction conducted in 39
person, electronically, or by phone, if other than English. 40
361.996. 1. A licensee that provides payroll 1
processing services shall: 2
(1) Issue reports to clients d etailing client payroll 3
obligations in advance of the payroll funds being deducted 4
from an account; and 5 HCS SS SB 1359 78
(2) Make available worker paystubs or an equivalent 6
statement to workers. 7
2. Subsection 1 of this section shall not apply to a 8
licensee providing payroll processing services if the 9
licensee's client designates the intended recipients to the 10
licensee and is responsible for providing the disclosures 11
required by subdivision (2) of subsection 1 of this section. 12
3. A licensee may appoin t an agent to provide payroll 13
processing services for which the agent would otherwise need 14
to be licensed, provided that: 15
(1) There is a written agreement between the licensee 16
and the agent that directs the agent to provide payroll 17
processing services on the licensee's behalf; 18
(2) The licensee holds the agent out to employees and 19
other licensees as providing payroll processing services on 20
the licensee's behalf; and 21
(3) The licensee's obligation to the payee, including 22
an employee or any other party entitled to receive funds, 23
from the payroll processing services provided by the agent 24
shall not be extinguished if the agent fails to remit the 25
funds to the proper recipient. 26
361.999. 1. A licensee under sections 361.900 to 1
361.1035 shall maintain at all times a tangible net worth of 2
the greater of one hundred thousand dollars or three percent 3
of total assets for the first one hundred million dollars, 4
two percent of additional assets for one hundred million 5
dollars to one billion dollars, and one -half of one percent 6
of additional assets for over one billion dollars. 7
2. Tangible net worth shall be demonstrated at initial 8
application by the applicant's most recent audited or 9
unaudited financial statement s under subdivision (6) of 10
subsection 2 of section 361.936. 11 HCS SS SB 1359 79
3. Notwithstanding the provisions of this section, the 12
director shall have the authority, for good cause shown, to 13
exempt, in part or in whole, from the requirements of this 14
section any applicant or licensee. 15
361.1002. 1. An applicant for a money transmission 1
license shall provide, and a licensee at all times shall 2
maintain, security consisting of a surety bond in a form 3
satisfactory to the director. 4
2. The amount of the required security shall be: 5
(1) The greater of one hundred thousand dollars or an 6
amount equal to one hundred percent of the licensee's 7
average daily money transmission liability in this state 8
calculated for the most recently complete d three-month 9
period, up to a maximum of five hundred thousand dollars; or 10
(2) In the event that the licensee's tangible net 11
worth exceeds ten percent of the total assets, a surety bond 12
of one hundred thousand dollars. 13
3. A licensee that maintains a bond in the maximum 14
amount provided for in subsection 2 of this section shall 15
not be required to calculate its average daily money 16
transmission liability in this state for purposes of this 17
section. 18
361.1005. 1. A licensee shall maintain at all times 1
permissible investments that have a market value computed in 2
accordance with United States generally accepted accounting 3
principles of not less than the aggregate amount of all of 4
its outstanding money transmission obligatio ns. 5
2. Except for permissible investments enumerated in 6
subsection 1 of section 361.1008, the director, with respect 7
to any licensee, may by rule limit the extent to which a 8
specific investment maintained by a licensee within a class 9
of permissible investments may be considered a permissible 10 HCS SS SB 1359 80
investment if the specific investment represents undue risk 11
to customers not reflected in the market value of 12
investments. 13
3. Permissible investments, even if commingled with 14
other assets of the lice nsee, are held in trust for the 15
benefit of the purchasers and holders of the licensee's 16
outstanding money transmission obligations in the event of 17
insolvency, the filing of a petition by or against the 18
licensee under the United States Bankruptcy Code, 11 U.S.C. 19
Section 101-110, as amended or recodified from time to time, 20
for bankruptcy or reorganization, the filing of a petition 21
by or against the licensee for receivership, the 22
commencement of any other judicial or administrative 23
proceeding for its dissolution or reorganization, or in the 24
event of an action by a creditor against the licensee who is 25
not a beneficiary of the statutory trust. No permissible 26
investments impressed with a trust under this subsection 27
shall be subject to attachment, lev y of execution, or 28
sequestration by order of any court, except for a 29
beneficiary of the statutory trust. 30
4. Upon the establishment of a statutory trust in 31
accordance with subsection 3 of this section or when any 32
funds are drawn on a letter of cre dit under subdivision (4) 33
of subsection 1 of section 361.1008, the director shall 34
notify the applicable regulator of each state in which the 35
licensee is licensed to engage in money transmission, if 36
any, of the establishment of the trust or the funds dr awn on 37
the letter of credit, as applicable. Notice shall be deemed 38
satisfied if performed under a multistate agreement or 39
through NMLS. Funds drawn on a letter of credit, and any 40
other permissible investments held in trust for the benefit 41
of the purchasers and holders of the licensee's outstanding 42 HCS SS SB 1359 81
money transmission obligations, are deemed held in trust for 43
the benefit of such purchasers and holders on a pro rata and 44
equitable basis in accordance with statutes under which 45
permissible investments are required to be held in this 46
state, and other states, as applicable. Any statutory trust 47
established under this subsection shall be terminated upon 48
extinguishment of all of the licensee's outstanding money 49
transmission obligations. 50
5. The director by rule or by order may allow other 51
types of investments that the director determines are of 52
sufficient liquidity and quality to be a permissible 53
investment. The director is authorized to participate in 54
efforts with other state regulators to det ermine that other 55
types of investments are of sufficient liquidity and quality 56
to be a permissible investment. 57
361.1008. 1. The following investments are 1
permissible under section 361.1005: 2
(1) Cash, including demand deposits, savings deposits, 3
and funds in such accounts held for the benefit of the 4
licensee's customers in a federally insured depository 5
financial institution, and cash equivalents, including 6
automated clearinghouse items in transit to the licensee and 7
automated clearinghouse items or international wires in 8
transit to a payee, cash in transit via armored car, cash in 9
smart safes, cash in licensee -owned locations, debit card or 10
credit card funded transmission receivables owed by any 11
bank, or money market mu tual funds rated AAA by Standard & 12
Poor's, or the equivalent from any eligible rating service; 13
(2) Certificates of deposit or senior debt obligations 14
of an insured depository institution, as defined under the 15
Federal Deposit Insurance Act, 12 U.S. C. Section 1813, as 16
amended or recodified from time to time, or as defined under 17 HCS SS SB 1359 82
the federal Credit Union Act, 12 U.S.C. Section 1781, as 18
amended or recodified from time to time; 19
(3) An obligation of the United States or a 20
commission, agency, or instrumentality thereof; an 21
obligation that is guaranteed fully as to principal and 22
interest by the United States; or an obligation of a state 23
or a governmental subdivision, agency, or instrumentality 24
thereof; 25
(4) One hundred percent of the suret y bond provided 26
for under section 361.1002 that exceeds the average daily 27
money transmission liability in this state; and 28
(5) The full drawable amount of an irrevocable standby 29
letter of credit for which the stated beneficiary is the 30
director that stipulates that the beneficiary need draw only 31
a sight draft under the letter of credit and present it to 32
obtain funds up to the letter of credit amount within seven 33
days of presentation of the items required by paragraph (d) 34
of this subdivision. The letter of credit shall: 35
(a) Be issued by a federally insured depository 36
financial institution, a foreign bank that is authorized 37
under federal law to maintain a federal agency or federal 38
branch office in a state or states, or a foreign bank that 39
is authorized under state law to maintain a branch in a 40
state that: 41
a. Bears an eligible rating or whose parent company 42
bears an eligible rating; and 43
b. Is regulated, supervised, and examined by United 44
States federal or state authorities h aving regulatory 45
authority over banks, credit unions, and trust companies; 46
(b) Be irrevocable, unconditional, and indicate that 47
it is not subject to any condition or qualifications outside 48
of the letter of credit; 49 HCS SS SB 1359 83
(c) Not contain references to any other agreements, 50
documents, or entities, or otherwise provide for any 51
security interest in the licensee; and 52
(d) Contain an issue date and expiration date, and 53
expressly provide for automatic extension, without a written 54
amendment, for an additional period of one year from the 55
present or each future expiration date unless the issuer of 56
the letter of credit notifies the director in writing by 57
certified or registered mail or courier mail or other 58
receipted means, at least sixty days prio r to any expiration 59
date, that the irrevocable letter of credit will not be 60
extended. 61
2. In the event of any notice of expiration or 62
nonextension of a letter of credit issued under subdivision 63
(5) of subsection 1 of this section, the licensee sha ll be 64
required to demonstrate to the satisfaction of the director, 65
fifteen days prior to expiration, that the licensee 66
maintains and will maintain permissible investments in 67
accordance with subsection 1 of section 361.1005 upon the 68
expiration of the letter of credit. If the licensee is not 69
able to do so, the director may draw on the letter of credit 70
in an amount up to the amount necessary to meet the 71
licensee's requirements to maintain permissible investments 72
in accordance with subsection 1 of sec tion 361.1005. Any 73
such draw shall be offset against the licensee's outstanding 74
money transmission obligations. The drawn funds shall be 75
held in trust by the director or the director's designated 76
agent, to the extent authorized by law, as agent for t he 77
benefit of the purchasers and holders of the licensee's 78
outstanding money transmission obligations. 79
3. The letter of credit shall provide that the issuer 80
of the letter of credit will honor, at sight, a presentation 81 HCS SS SB 1359 84
made by the beneficiary to t he issuer of the following 82
documents on or prior to the expiration date of the letter 83
of credit: 84
(1) The original letter of credit, including any 85
amendments; and 86
(2) A written statement from the beneficiary stating 87
that any of the following events have occurred: 88
(a) The filing of a petition by or against the 89
licensee under the United States Bankruptcy Code, 11 U.S.C. 90
Sections 101-110, as amended or recodified from time to 91
time, for bankruptcy or reorganization; 92
(b) The filing of a petition by or against the 93
licensee for receivership, or the commencement of any other 94
judicial or administrative proceeding for its dissolution or 95
reorganization; 96
(c) The seizure of assets of a licensee by the 97
director under an emergency or der issued in accordance with 98
applicable law, on the basis of an action, violation, or 99
condition that has caused or is likely to cause the 100
insolvency of the licensee; or 101
(d) The beneficiary has received notice of expiration 102
or nonextension of a l etter of credit and the licensee 103
failed to demonstrate to the satisfaction of the beneficiary 104
that the licensee will maintain permissible investments in 105
accordance with subsection 1 of section 361.1005 upon the 106
expiration or nonextension of the letter of credit. 107
4. The director may designate an agent to serve on the 108
director's behalf as beneficiary to a letter of credit so 109
long as the agent and letter of credit meet requirements 110
established by the director. The director's agent may serve 111
as agent for multiple licensing authorities for a single 112
irrevocable letter of credit if the proceeds of the drawable 113 HCS SS SB 1359 85
amount for the purposes of this subsection are assigned to 114
the director. 115
5. The director is authorized to participate in 116
multistate processes designed to facilitate the issuance and 117
administration of letters of credit including, but not 118
limited to, services provided by the NMLS, State Regulatory 119
Registry LLC, or other third parties. 120
6. Unless permitted by the director by rule or by 121
order to exceed the limit as set forth herein, the following 122
investments are permissible under section 361.1005 to the 123
extent specified: 124
(1) Receivables that are payable to a licensee from 125
its authorized delegates in the ordinary course of business 126
that are less than seven days old, up to fifty percent of 127
the aggregate value of the licensee's total permissible 128
investments. Of the receivables permissible under this 129
subdivision, receivables that are payable to a licensee from 130
a single authorized delegate in the ordinary course of 131
business shall not exceed ten percent of the aggregate value 132
of the licensee's total permissible investments; 133
(2) The following investments, up to twenty percent 134
per category and combined up to fifty per cent of the 135
aggregate value of the licensee's total permissible 136
investments: 137
(a) A short-term investment bearing an eligible 138
rating. For purposes of this paragraph, "short -term" means 139
up to six months; 140
(b) Commercial paper bearing an eligi ble rating; 141
(c) A bill, note, bond, or debenture bearing an 142
eligible rating; 143
(d) United States triparty repurchase agreements 144
collateralized at one hundred percent or more with United 145 HCS SS SB 1359 86
States government or agency securities, municipal bonds, or 146
other securities bearing an eligible rating; 147
(e) Money market mutual funds rated less than "AAA" 148
and equal to or higher than "A -" by Standard & Poor's, or 149
the equivalent from any other eligible rating service; and 150
(f) A mutual fund or oth er investment fund composed 151
solely and exclusively of one or more permissible 152
investments listed in subdivisions (1) to (3) of subsection 153
1 of this section; and 154
(3) Cash, including demand deposits, savings deposits, 155
and funds in such accounts hel d for the benefit of the 156
licensee's customers, at foreign depository institutions to 157
ten percent of the aggregate value of the licensee's total 158
permissible investments if the licensee has received a 159
satisfactory rating in its most recent examination an d the 160
foreign depository institution: 161
(a) Has an eligible rating; 162
(b) Is registered under the Foreign Account Tax 163
Compliance Act; 164
(c) Is not located in any country subject to sanctions 165
from the Office of Foreign Asset Control; and 166
(d) Is not located in a high risk or noncooperative 167
jurisdiction as designated by the Financial Action Task 168
Force. 169
361.1011. 1. The director may suspend or revoke a 1
license or order a licensee to revoke the designation of an 2
authorized delegate if: 3
(1) The licensee violates sections 361.900 to 361.1035 4
or a rule adopted or an order issued under sections 361.900 5
to 361.1035; 6
(2) The licensee does not cooperate with an 7
examination or investigation by the director; 8 HCS SS SB 1359 87
(3) The licensee engages in fraud, intentional 9
misrepresentation, or gross negligence; 10
(4) An authorized delegate is convicted of, or enters 11
a plea of guilty or nolo contendere to a felony involving an 12
act of fraud, dishonesty, a breach of trus t, or money 13
laundering, or violates a rule adopted or an order issued 14
under sections 361.900 to 361.1035 as a result of the 15
licensee's willful misconduct or willful blindness; 16
(5) The competence, experience, character, or general 17
fitness of the licensee, authorized delegate, person in 18
control of a licensee, key individual, or responsible person 19
of the authorized delegate indicates that it is not in the 20
public interest to permit the person to provide money 21
transmission; 22
(6) The licensee engages in an unsafe or unsound 23
practice; 24
(7) The licensee is insolvent, suspends payment of its 25
obligations, or makes a general assignment for the benefit 26
of its creditors; or 27
(8) The licensee does not remove an authorized 28
delegate after the director issues and serves upon the 29
licensee a final order including a finding that the 30
authorized delegate has violated sections 361.900 to 31
361.1035. 32
2. In determining whether a licensee is engaging in an 33
unsafe or unsound practice, the direct or may consider the 34
size and condition of the licensee's money transmission, the 35
magnitude of the loss, the gravity of the violation of 36
sections 361.900 to 361.1035, and the previous conduct of 37
the person involved. 38 HCS SS SB 1359 88
361.1014. 1. The director may issue an order 1
suspending or revoking the designation of an authorized 2
delegate, if the director finds that: 3
(1) The authorized delegate violated sections 361.900 4
to 361.1035 or a rule adopted or an order issued under 5
sections 361.900 to 361.1035; 6
(2) The authorized delegate did not cooperate with an 7
examination or investigation by the director; 8
(3) The authorized delegate engaged in fraud, 9
intentional misrepresentation, or gross negligence; 10
(4) The authorized delegate has been convicted of, or 11
pled guilty or nolo contendere to a felony involving an act 12
of fraud, dishonesty, a breach of trust, or money laundering; 13
(5) The competence, experience, character, or general 14
fitness of the authorized delegate or a person in control of 15
the authorized delegate indicates that it is not in the 16
public interest to permit the authorized delegate to provide 17
money transmission; or 18
(6) The authorized delegate is engaging in an unsafe 19
or unsound practice. 20
2. In determining whether an authorized delegate is 21
engaging in an unsafe or unsound practice, the director may 22
consider the size and condition of the authorized delegate's 23
provision of money transmission, the magnitude of the loss, 24
the gravity of the viol ation of sections 361.900 to 361.1035 25
or a rule adopted or order issued under sections 361.900 to 26
361.1035, and the previous conduct of the authorized 27
delegate. 28
3. An authorized delegate may apply for relief from a 29
suspension or revocation of des ignation as an authorized 30
delegate according to procedures prescribed by the director. 31 HCS SS SB 1359 89
361.1017. 1. If the director determines that a 1
violation of sections 361.900 to 361.1035 or of a rule 2
adopted or an order issued under sections 3 61.900 to 3
361.1035 by a licensee or authorized delegate is likely to 4
cause immediate and irreparable harm to the licensee, its 5
customers, or the public as a result of the violation, or 6
cause insolvency or significant dissipation of assets of the 7
licensee, the director may issue an order requiring the 8
licensee or authorized delegate to cease and desist from the 9
violation. The order becomes effective upon service to the 10
licensee or authorized delegate. 11
2. The director may issue an order against a licensee 12
to cease and desist from providing money transmission 13
through an authorized delegate that is the subject of a 14
separate order by the director. 15
3. An order to cease and desist remains effective and 16
enforceable pending the completion of an administrative 17
proceeding under chapter 536. 18
4. A licensee or an authorized delegate that is served 19
with an order to cease and desist may petition the circuit 20
court with jurisdiction for a judicial order setting aside, 21
limiting, or suspending the enforcement, operation, or 22
effectiveness of the order pending the completion of an 23
administrative proceeding under chapter 536. 24
5. An order to cease and desist expires unless the 25
director commences an administrative proceeding under 26
chapter 536 within ten days after it is issued. 27
361.1020. The director may enter into a consent order 1
at any time with a person to resolve a matter arising under 2
sections 361.900 to 361.1035 or a rule adopted or order 3
issued under sections 36 1.900 to 361.1035. A consent order 4
shall be signed by the person to whom it is issued or by the 5 HCS SS SB 1359 90
person's authorized representative and shall indicate 6
agreement with the terms contained in the order. A consent 7
order may provide that it does not consti tute an admission 8
by a person that sections 361.900 to 361.1035 or a rule 9
adopted or an order issued under sections 361.900 to 10
361.1035 has been violated. 11
361.1023. 1. A person that intentionally makes a 1
false statement, misreprese ntation, or false certification 2
in a record filed or required to be maintained under 3
sections 361.900 to 361.1035 or that intentionally makes a 4
false entry or omits a material entry in such a record is 5
guilty of a class E felony. 6
2. A person that knowingly engages in an activity for 7
which a license is required under sections 361.900 to 8
361.1035 without being licensed under sections 361.900 to 9
361.1035 and that receives more than five hundred dollars in 10
compensation within a thirty -day period for this activity is 11
guilty of a class E felony. 12
3. A person that knowingly engages in an activity for 13
which a license is required under sections 361.900 to 14
361.1035 without being licensed under sections 361.900 to 15
361.1035 and that receives no mo re than five hundred dollars 16
in compensation within a thirty -day period for this activity 17
is guilty of a class A misdemeanor. 18
361.1026. The director may assess a civil penalty 1
against a person that violates sections 361.900 to 361.10 35 2
or a rule adopted or an order issued under sections 361.900 3
to 361.1035 in an amount not to exceed one thousand dollars 4
per day for each day the violation is outstanding, plus this 5
state's costs and expenses for the investigation and 6
prosecution of the matter, including reasonable attorney's 7
fees. 8 HCS SS SB 1359 91
361.1029. 1. If the director has reason to believe 1
that a person has violated or is violating section 361.930, 2
the director may issue an order to show cause why an order 3
to cease and desist shall not be issued requiring that the 4
person cease and desist from the violation of section 5
361.930. 6
2. In an emergency, the director may petition the 7
circuit court with jurisdiction for the issuance of a 8
temporary restraining order un der the rules of civil 9
procedure. 10
3. An order to cease and desist becomes effective upon 11
service to the person. 12
4. An order to cease and desist remains effective and 13
enforceable pending the completion of an administrative 14
proceeding under chapter 536. 15
5. A person that is served with an order to cease and 16
desist for violating section 361.930 may petition the 17
circuit court with jurisdiction for a judicial order setting 18
aside, limiting, or suspending the enforcement, operation, 19
or effectiveness of the order pending the completion of an 20
administrative proceeding under chapter 536. 21
6. An order to cease and desist expires unless the 22
director commences an administrative proceeding within ten 23
days after it is issued. 24
361.1032. In applying and construing sections 361.900 1
to 361.1035, consideration shall be given to the need to 2
promote uniformity of the law with respect to its subject 3
matter among states that enact it. 4
361.1035. 1. A person licensed in this state to 1
engage in the business of money transmission shall not be 2
subject to the provisions of sections 361.900 to 361.1035 to 3
the extent that they conflict with current law or establish 4 HCS SS SB 1359 92
new requirements not imposed under current law, until such 5
time as the licensee renews the licensee's current license. 6
2. Notwithstanding subsection 1 of this section, a 7
licensee shall be required only to amend its authorized 8
delegate contracts for contracts entered into or amended 9
after the effective date or the completion of any transition 10
period contemplated under subsection 1 of this section. 11
Nothing herein shall be construed as limiting an authorized 12
delegate's obligations to operate in full compliance with 13
sections 361.900 to 361.10 35 as required by subsection 3 of 14
section 361.975. 15
362.245. 1. The affairs and business of the 1
corporation shall be managed by a board of directors, 2
consisting of not less than five nor more than thirty -five 3
stockholders who shall be elected annually; except, that 4
trust companies in existence on October 13, 1967, may 5
continue to divide the directors into three classes of equal 6
number, as near as may be, and to elect one class each year 7
for three-year terms. Notwithstanding any provision of this 8
chapter to the contrary, a director who is not a stockholder 9
shall have all the rights, privileges, and duties of a 10
director who is a stockholder. 11
2. Each director shall be a citizen of the United 12
States, and except for a private trust company as described 13
under section 361.160, at least a majority of the directors 14
must be residents of this state at the time of their 15
election and during their continuance in office; provided, 16
however, that if a director actually resides within a radius 17
of one hundred miles of the banking house of said bank or 18
trust company, even though his or her residence be in 19
another state adjoining and contiguous to the state of 20
Missouri, he or she shall for the purposes of this section 21 HCS SS SB 1359 93
be considered as a resident of this state and in the event 22
such director shall be a nonresident of the state of 23
Missouri he or she shall upon his or her election as a 24
director file with the president of the banking house or 25
such other chief executive [office] officer as otherwise 26
permitted by this chapter written consent to service of 27
legal process upon him in his or her capacity as a director 28
by service of the legal process upon the president as though 29
the same were personally served upon the director in 30
Missouri. 31
3. If at a time when not more than a majority of the 32
directors are residents of this state, except for a private 33
trust company as described under section 361.160, any 34
director shall cease to be a resident of this state or 35
adjoining state as [defined] described in subsection 2 of 36
this section, he or she shall forthwith cease to be a 37
director of the bank or trust company and his or her office 38
shall be vacant. 39
4. No person shall be a director in any bank or trust 40
company against whom suc h bank or trust company shall hold a 41
judgment. 42
5. Cumulative voting shall only be permitted at any 43
meeting of the members or stockholders in electing directors 44
when it is provided for in the articles of incorporation or 45
bylaws. 46
362.1010. Sections 362.1010 to [362.1115] 362.1117 1
shall be known and may be cited as the "Missouri Family 2
Trust Company Act". 3
362.1015. For purposes of sections 362.1010 to 1
[362.1115] 362.1117, the following terms mean: 2
(1) "Authorized representative", if a family trust 3
company is organized as a corporation, then an officer or 4 HCS SS SB 1359 94
director of the family trust company or, if a family trust 5
company is organized as a limited liability company, then a 6
manager, officer, or member of the family trust company; 7
(2) "Collateral kinship", a relationship that is not 8
lineal but stems from a common ancestor; 9
(3) "Controlling stockholder or member", an individual 10
who owns or has the ability or power to directly or 11
indirectly vote ten percent or more of the outstanding 12
shares, membership interest, or membership units of the 13
family trust company; 14
(4) "Designated relative", a common ancestor of a 15
family, either living or deceased, who is so designated in a 16
family trust company's initial registration application and 17
any annual registration report; 18
(5) "Director", the director of the Missouri division 19
of finance; 20
(6) "Director's designee", an attorney -at-law or a 21
certified public accountant designated by the director under 22
subsection 1 of section 362.1085; 23
(7) "Engage in trust company business with the general 24
public", any sales, solicitations, arrangements, agreements, 25
or transactions to provide trust or other business services, 26
whether for a fee, commission, or any other type of 27
remuneration, with any person who is not a family member or 28
any sole proprietorship, partnership, limited liability 29
company, joint venture, association, corporation, trust, 30
estate, business trust, or other company that is not one 31
hundred percent owned by one or more family members; 32
[(6)] (8) "Family affiliate", a company or other 33
entity wholly and exclusively owned by, directly or 34
indirectly, and operated for the sole benefit of: 35
(a) One or more family mem bers; or 36 HCS SS SB 1359 95
(b) Charitable foundations, charitable trusts, or 37
other charitable entities if such foundation, trust, or 38
entity is funded exclusively by one or more family members; 39
[(7)] (9) "Family member": 40
(a) A designated relative; 41
(b) Any person within the tenth degree of lineal 42
kinship of a designated relative; 43
(c) Any person within the ninth degree of collateral 44
kinship to a designated relative; 45
(d) The spouse of any person who qualifies under 46
paragraphs (a) through (c) of this subdivision; 47
(e) Any former spouse of any person who qualifies 48
under paragraphs (a) through (c) of this subdivision; 49
(f) The probate estate of any person who qualified as 50
a family member under paragraphs (a) through (e) of this 51
subdivision; 52
(g) A family affiliate; 53
(h) An irrevocable trust funded exclusively by one or 54
more family members of which all permissible distributees, 55
as defined under subdivision (16) of section 456.1 -103, 56
qualify under paragraphs (a) through (g) of this subdivision 57
or are charitable foundations, charitable trusts, or other 58
charitable entities; 59
(i) An irrevocable trust of which one or more family 60
members are the only permissible distributees; or 61
(j) A revocable trust of which on e or more family 62
members are the sole settlors. 63
For purposes of this subdivision, a legally adopted person 64
shall be treated as a natural child of the adoptive parents; 65
a stepchild shall be treated as a natural child of the 66
family member who is or was t he stepparent of that child; 67 HCS SS SB 1359 96
and a foster child or an individual who was a minor when a 68
family member became his or her legal guardian shall be 69
treated as a natural child of the family member appointed as 70
foster parent or guardian. Degrees of kinship are 71
calculated by adding the number of steps from the designated 72
relative through each person to the family member either 73
directly in case of lineal kinship or through the common 74
ancestor in the case of collateral kinship; 75
[(8)] (10) "Family trust company", a corporation or 76
limited liability company organized or qualified to do 77
business in this state that is wholly owned and exclusively 78
controlled by, directly or indirectly, one or more family 79
members, excluding any former spouse of a family m ember; 80
that operates for the exclusive benefit of a family member 81
regardless of whether compensation is received or 82
anticipated; and that does not engage in trust company 83
business with the general public or otherwise hold itself 84
out as a trustee for h ire by advertisement, solicitation, or 85
other means. The term "family trust company" shall include 86
foreign family trust companies unless context indicates 87
otherwise; 88
[(9)] (11) "Family trust company affiliated party": 89
(a) A director, officer, manager, employee, or 90
controlling stockholder or member of a family trust company; 91
or 92
(b) A stockholder, member, or any other person as 93
determined by the [secretary] director who participates in 94
the affairs of a family trust company; 95
[(10)] (12) "Foreign family trust company", a family 96
trust company that: 97
(a) Is licensed by the District of Columbia or a state 98
in the United States other than this state; 99 HCS SS SB 1359 97
(b) Has its principal place of business in the 100
District of Columbia or a state in the United States other 101
than this state; 102
(c) Is operated in accordance with family or private 103
trust company laws of the District of Columbia or of the 104
state in which it is licensed; 105
(d) Is subject to statutory or regulatory mandated 106
oversight by the District of Columbia or state in which the 107
principal place of business is located; and 108
(e) Is not owned by or a subsidiary of a corporation, 109
limited liability company, or other business entity that is 110
organized in or licensed by any foreign country; 111
[(11)] (13) "Lineal kinship", a relationship in the 112
direct line of ascent or descent from a designated relative; 113
[(12)] (14) "Officer", an individual, regardless of 114
whether the individual has an official title or receive s a 115
salary or other compensation, who may participate in the 116
major policy-making functions of a family trust company 117
other than as a director. The term shall not include an 118
individual who may have an official title and exercises 119
discretion in the per formance of duties and functions but 120
who does not participate in determining the major policies 121
of the family trust company and whose decisions are limited 122
by policy standards established by other officers, 123
regardless of whether the policy standards ha ve been adopted 124
by the board of directors. The chair of the board of 125
directors, the president, the chief executive officer, the 126
chief financial officer, the senior trust officer, all 127
executive vice presidents of a family trust company, and all 128
managers if organized as a limited liability company are 129
presumed to be officers unless such officer is excluded, 130
other than in the capacity of a director, by resolution of 131 HCS SS SB 1359 98
the board of directors or members or by the bylaws or 132
operating agreement of the fami ly trust company from 133
participating in major policy -making functions of the family 134
trust company, and such excluded officer does not actually 135
participate therein; 136
[(13)] (15) "Organizational instrument", the articles 137
of incorporation for a corpor ation or the articles of 138
organization for a limited liability company, as they may be 139
amended or supplemented from time to time; 140
[(14)] (16) "Principal place of business", the 141
physical location where officers of a family trust company 142
direct, control, and coordinate the trust company's 143
activities; 144
[(15)] (17) "Principal place of operations", the 145
physical location in this state where a foreign family trust 146
company stores and maintains its books and records 147
pertaining to operations in this state; 148
[(16)] (18) "Qualified beneficiary", the same meaning 149
as defined under subdivision (21) of section 456.1 -103; 150
[(17)] (19) "Registered agent", a business or 151
individual designated by a family trust company to receive 152
service of process on behalf of the family trust company; 153
[(18)] (20) "Reports of examinations, operations, or 154
conditions", records submitted to the [secretary] director 155
or prepared by the [secretary] director as part of the 156
[secretary's] director's duties performed under sections 157
362.1010 to 362.1117; 158
[(19)"Secretary", the secretary of state for the state 159
of Missouri; 160
(20)"Secretary's designee", an attorney -at-law or a 161
certified public accountant designated by the secretary 162
under subsection 1 of sec tion 362.1085;] 163 HCS SS SB 1359 99
(21) "Working papers", the records of the procedures 164
followed, tests performed, information obtained, and 165
conclusions reached in an investigation under sections 166
362.1010 to 362.1117. The term shall also include books and 167
records. 168
362.1030. 1. There is hereby established in the state 1
treasury the "Family Trust Company Fund", which shall 2
consist of all fees collected by the [secretary] director 3
from family trust companies registering as provided in this 4
section. The state treasurer shall be custodian of the 5
fund. In accordance with sections 30.170 and 30.180, the 6
state treasurer may approve disbursements. The fund shall 7
be a dedicated fund, and moneys in the fund shall be used 8
solely to support the [secretary's] director's role and 9
fulfillment of duties under sections 362.1010 to 362.1117. 10
Notwithstanding the provisions of section 33.080 to the 11
contrary, any moneys remaining in the fund at the end of the 12
biennium that exceed twenty thousand dolla rs shall revert to 13
the credit of the general revenue fund. The state treasurer 14
shall invest moneys in the fund in the same manner as other 15
funds are invested. Any interest and moneys earned on such 16
investments shall be credited to the fund. 17
2. A family trust company that is not a foreign family 18
trust company shall not conduct business in this state 19
unless such family trust company: 20
(1) [Files its organizational instrument with the 21
secretary] Files with the director, an initial registrat ion 22
application in a format prescribed by the director, a one - 23
time original filing fee of five thousand dollars, the 24
proposed organizational instruments to be filed with the 25
secretary of state, and all required filing fees ; and 26 HCS SS SB 1359 100
(2) [Pays a one-time original filing fee of five 27
thousand dollars to the secretary ] Receives from the 28
director an order approving the application, instruction as 29
to who shall file the order, the proposed organizational 30
instruments and all required filing fees with the s ecretary 31
of state[; and 32
(3) Registers by filing with the secretary an initial 33
registration application in a format prescribed by the 34
secretary]. 35
A family trust company that is not a foreign family trust 36
company that is, as of August 28, 2024, a r egistered family 37
trust company in good standing with the secretary of state 38
shall be deemed to have complied with the requirements of 39
subsection 2 of section 362.1030. 40
3. A foreign family trust company shall not conduct 41
business in this state unl ess such foreign family trust 42
company: 43
(1) [Pays a one-time original filing fee of five 44
thousand dollars to the secretary ] Files with the director, 45
an initial registration application in a format prescribed 46
by the director, a one -time original filing fee of five 47
thousand dollars, the proposed application for a certificate 48
of authority if a corporation or application for 49
registration if a limited liability company to be filed with 50
the secretary of state, and all required filing fees ; and 51
(2) [Registers by filing with the secretary an initial 52
registration application in a format prescribed by the 53
secretary] Receives from the director an order approving the 54
application, instruction as to who shall file the order, the 55
proposed application for a certificate of authority if a 56
corporation, or application for registration if a limited 57 HCS SS SB 1359 101
liability company, to be filed with the secretary of state 58
and all required filing fees [; and 59
(3) If such foreign family trust company is a 60
corporation, files an application for a certificate of 61
authority or, if such foreign family trust company is a 62
limited liability company, files an application for 63
registration]. 64
A foreign family trust company that is, as of August 28, 65
2024, a registered family t rust company in good standing 66
with the secretary of state shall be deemed to have complied 67
with the requirements of subsection 3 of section 362.1030. 68
4. The [secretary] director shall deposit all family 69
trust company filing fees into the family tr ust company fund 70
established under subsection 1 of this section. 71
5. A foreign family trust company application shall be 72
submitted on a form prescribed by the [secretary] director 73
and be signed, under penalty of perjury, by an authorized 74
representative. At a minimum, the application shall include: 75
(1) A statement attesting that the foreign family 76
trust company: 77
(a) Will comply with the provisions of sections 78
362.1010 to 362.1117; and 79
(b) Is in compliance with the family trust c ompany 80
laws and regulations of the jurisdiction of its 81
incorporation or organization; 82
(2) The current telephone number and street address of: 83
(a) The foreign family trust company's principal place 84
of business in the jurisdiction of its incor poration or 85
organization; 86
(b) The foreign family trust company's principal place 87
of operations; and 88 HCS SS SB 1359 102
(c) Any other offices located within this state; 89
(3) The name and current street address in this state 90
of its registered agent; 91
(4) A certified copy of a certificate of good 92
standing, or an equivalent document, authenticated by the 93
official having custody of records in the jurisdiction where 94
the foreign family trust company is incorporated or 95
organized; 96
(5) Satisfactory proof, as determined by the 97
[secretary] director, that the foreign family trust company 98
is organized in a manner similar to a Missouri family trust 99
company and is in compliance with the family trust company 100
laws and regulations of the jurisdiction in whi ch the 101
foreign family trust company was incorporated or organized; 102
and 103
(6) Any other information reasonably [and customarily] 104
required by the [secretary of foreign corporations or 105
foreign limited liability companies seeking to qualify to 106
conduct business in this state ] director. 107
362.1035. 1. No family trust company shall be 1
organized or operated with a capital account of less than 2
two hundred fifty thousand dollars. The full amount of the 3
initial capital account of a fami ly trust company shall 4
consist of one or more asset groups described under 5
subsection 1 of section 362.1070, exclusive of all 6
organization expenses. 7
2. A family trust company shall maintain: 8
(1) A physical office in this state where original or 9
true copies, including electronic copies, of all material 10
business records and accounts of the family trust company 11
may be accessed and are readily available for examination by 12
the [secretary] director. A family trust company may also 13 HCS SS SB 1359 103
maintain one or more branch offices within or outside of 14
this state; 15
(2) A registered agent who maintains an office in this 16
state; 17
(3) All applicable state and local business licenses, 18
charters, and permits; and 19
(4) A deposit account with a state -chartered or 20
national financial institution that has a principal or 21
branch office in this state. 22
3. In addition to the requirements of subsection 2 of 23
this section, a foreign family trust company shall also: 24
(1) Be in good standing in the j urisdiction in which 25
it is incorporated or organized; and 26
(2) Stay in compliance with the family trust company 27
laws and regulations of such jurisdiction. 28
362.1040. 1. One or more persons may subscribe to an 1
organizational instrument in writing for the purpose of 2
forming a family trust company, subject to the conditions 3
prescribed by law. 4
2. The organizational instrument of a family trust 5
company shall set forth all of the information required 6
under chapter 347 or 351, as applicable, and the following: 7
(1) The name of the company, which shall distinguish 8
the company from any other nonfamily trust company or family 9
trust company formed or engaging in business in this state. 10
If the word "trust" is included in th e name, it shall be 11
immediately preceded by the word "family" so as to 12
distinguish the entity from a nonfamily trust company 13
operating under this chapter. This subdivision shall not 14
apply to a foreign family trust company using a fictitious 15
name that is registered and maintained in this state 16
pursuant to the requirements administered by the secretary 17 HCS SS SB 1359 104
of state and that distinguishes the foreign family trust 18
company from a nonfamily trust company authorized to operate 19
under this chapter; 20
(2) A statement that the purpose for which the company 21
is formed is to engage in any and all activities permitted 22
under sections 362.1010 to 362.1117; and 23
(3) A statement affirming that the family trust 24
company shall not engage in trust company busines s with the 25
general public. 26
3. The term "trust company" in the name adopted by a 27
family trust company shall not be deemed to violate section 28
362.425. 29
362.1055. 1. A family trust company shall file an 1
annual registration report with, and shall pay an annual 2
filing fee of one thousand dollars to, the [secretary] 3
director. 4
2. The annual registration report filed by a family 5
trust company that is not a foreign family trust company 6
shall include: 7
(1) A statement by an authorized representative 8
verifying that the family trust company is in compliance 9
with the provisions of sections 362.1010 to 362.1117 and 10
with applicable federal laws including, but not limited to, 11
anti-money laundering and customer -identification rules or 12
regulations; 13
(2) The name of the company's designated relative and 14
the street address for its principal place of business; and 15
(3) Any other information reasonably [and customarily] 16
required by the [secretary of general business cor porations 17
in connection with filing their annual registration reports ] 18
director. 19 HCS SS SB 1359 105
3. The annual registration report filed by a foreign 20
family trust company shall include: 21
(1) A statement by an authorized representative 22
verifying that the for eign family trust company is in 23
compliance with the provisions of sections 362.1010 to 24
362.1117, with the family trust company laws and regulations 25
of the jurisdiction in which it was incorporated or 26
organized, and with applicable federal laws includin g, but 27
not limited to, anti -money laundering and customer - 28
identification rules or regulations; 29
(2) The current telephone number and street address of 30
the foreign family trust company's principal place of 31
business in the jurisdiction in which it w as incorporated or 32
organized; 33
(3) The current telephone number and street address of 34
the foreign family trust company's principal place of 35
operations; 36
(4) The current telephone number and address of the 37
physical location of any other office s located in this state; 38
(5) The name and current street address in this state 39
of the trust company's registered agent; 40
(6) Documentation, to the satisfaction of the 41
[secretary] director, showing that the foreign family trust 42
company is in compliance with the family trust company laws 43
and regulations of the jurisdiction in which it was 44
incorporated or organized; and 45
(7) Any other information reasonably [and customarily] 46
required by the [secretary of general business corporations 47
in connection with filing their annual registration reports ] 48
director. 49 HCS SS SB 1359 106
4. An annual registration report shall be submitted on 50
a form prescribed by the [secretary] director and signed 51
under penalty of perjury by an authorized representative. 52
362.1060. 1. A family trust company may, but only for 1
family members: 2
(1) Act as a sole or copersonal representative, 3
executor, or administrator for a probate estate within or 4
outside this state; 5
(2) Act as an attorney-in-fact or agent under a power 6
of attorney; 7
(3) Except as provided under section 362.1065, act 8
within or outside this state as a sole fiduciary or 9
cofiduciary, including acting as a trustee, advisory agent, 10
assignee, assignee for the benefit of c reditors, 11
authenticating agent, bailee, bond or indenture trustee, 12
conservator, conversion agent, custodian, escrow agent, 13
fiscal or paying agent, financial advisor, guardian, 14
investment advisor or manager, managing agent, purchase 15
agent, receiver, registrar, safekeeping or subscription 16
agent, transfer agent for entities other than public 17
companies, warrant agent, or other similar capacity 18
generally performed by a corporate trustee. In so acting, 19
the family trust company may possess, purchase, sel l, 20
invest, reinvest, safekeep, or otherwise manage or 21
administer the real or personal property of family members; 22
(4) Exercise the powers of a corporation or limited 23
liability company incorporated or organized under the laws 24
of this state, or qua lified to transact business as a 25
foreign corporation or limited liability company under the 26
laws of this state that are reasonably necessary to enable 27
the trust company to fully exercise a power conferred under 28 HCS SS SB 1359 107
sections 362.1010 to 362.1117 in accordan ce with commonly 29
accepted customs and usages; 30
(5) Delegate duties and powers, including investment 31
and management functions under section 469.909, in 32
accordance with the powers granted to a trustee under 33
chapter 456 or other applicable law and re tain agents, 34
attorneys, accountants, investment advisors, or other 35
individuals or entities to advise or assist the family trust 36
company in the exercise of its powers and duties under 37
sections 362.1010 to 362.1117 and chapter 456. Such 38
exercise of power may include, but is not limited to, 39
retaining a bank trust department or a public trust company 40
other than another family trust company; and 41
(6) Perform all acts necessary to exercise the powers 42
enumerated in this section or authorized under se ctions 43
362.1010 to 362.1117 and other applicable laws of this state. 44
2. A foreign family trust company that has complied 45
with section 362.1030 and is in good standing in the 46
jurisdiction in which it is incorporated or organized may 47
exercise all the trust powers in this state that a Missouri 48
family trust company may exercise. 49
362.1085. 1. The [secretary] director may designate 1
an attorney-at-law or a certified public accountant to 2
examine or investigate, or assist in the exa mination of, a 3
family trust company. 4
2. The [secretary] director or the [secretary's] 5
director's designee may examine or investigate a family 6
trust company at any time the [secretary] director deems 7
necessary to determine if the family trust comp any engaged 8
in an act prohibited under section 362.1065 or 362.1080 and, 9
if a family trust company engaged in such act, to determine 10
whether any other applicable law was violated. 11 HCS SS SB 1359 108
3. The [secretary] director or the [secretary's] 12
director's designee may examine the books and records of a 13
foreign family trust company at any time the [secretary] 14
director deems necessary to determine if such foreign family 15
trust company is in compliance with sections 362.1010 to 16
362.1117. In connection with an ex amination of the books 17
and records of the trust company, the [secretary] director 18
or the [secretary's] director's designee may rely upon the 19
most recent examination report, review, certification 20
letters, or similar documentation issued by the agency 21
supervising the foreign family trust company in the 22
jurisdiction in which the foreign family trust company is 23
incorporated or organized. The examination by the 24
[secretary] director or the [secretary's] director's 25
designee of the books and records of a foreign family trust 26
company shall be, to the extent practicable, limited to 27
books and records of operations in this state. 28
4. For each examination or investigation of a family 29
trust company under this section, the family trust company 30
shall pay the costs of the examination or investigation. As 31
used in this subsection, the term "costs" means the salary 32
of and travel expenses incurred by any individual that are 33
directly attributable to the examination or investigation of 34
the family trust compa ny. The mailing of payment for costs 35
incurred shall be postmarked within thirty days after the 36
receipt of a notice that states the costs are due. The 37
[secretary] director may levy a late payment of up to one 38
hundred dollars per day for each day that a payment is 39
overdue unless waived for good cause. However, if the late 40
payment of costs is intentional, the [secretary] director 41
may levy an administrative fine of up to one thousand 42
dollars per day for each day the payment is overdue. 43 HCS SS SB 1359 109
5. The [secretary] director may establish by rule the 44
requirements and records necessary to demonstrate conformity 45
with sections 362.1010 to 362.1117 by a family trust company. 46
362.1090. 1. The [secretary] director or the 1
[secretary's] director's designee may issue and serve upon a 2
family trust company or family trust company affiliated 3
party a notice of charges if the [secretary] director or the 4
[secretary's] director's designee has reason to believe that 5
such company, family trust comp any affiliated party, or 6
individual named therein is engaging in or has engaged in 7
any of the following acts: 8
(1) The family trust company fails to satisfy the 9
requirements of a family trust company or foreign family 10
trust company under sections 362.1010 to 362.1117; 11
(2) A violation of section 362.1035, 362.1040, 12
362.1050, 362.1055, 362.1060, or 362.1080; 13
(3) A violation of any rule of the [secretary] 14
director; 15
(4) A violation of any order of the [secretary] 16
director; 17
(5) A breach of any written agreement with the 18
[secretary] director; 19
(6) A prohibited act or practice under section 20
362.1065; 21
(7) A willful failure to provide information or 22
documents to the [secretary] director upon written request; 23
(8) An act of commission or omission that is 24
judicially determined by a court of competent jurisdiction 25
to be a breach of trust or fiduciary duty; or 26
(9) A violation of state or federal law related to 27
anti-money laundering, customer identification, o r any 28
related rule or regulation. 29 HCS SS SB 1359 110
2. The notice of charges shall contain a statement of 30
facts and notice of opportunity for a hearing. 31
3. If no hearing is requested within thirty days after 32
the date of service of the notice of charges or if a hearing 33
is held and the [secretary] director or [secretary's] 34
director's designee finds that any of the charges are true, 35
the [secretary] director or [secretary's] director's 36
designee may enter an order directing the family trust 37
company, family trust company affiliated party, or the 38
individual named in the notice of charges to cease and 39
desist such conduct and to take corrective action. 40
4. A contested or default cease and desist order is 41
effective when reduced to writing and served upon the family 42
trust company, family trust company affiliated party, or the 43
individual named therein. An uncontested cease and desist 44
order is effective as agreed. 45
5. If the [secretary] director or the [secretary's] 46
director's designee finds that condu ct described under 47
subsection 1 of this section is likely to cause substantial 48
prejudice to members, shareholders, beneficiaries of 49
fiduciary accounts of the family trust company, or 50
beneficiaries of services rendered by the family trust 51
company, the [secretary] director or the [secretary's] 52
director's designee may issue an emergency cease and desist 53
order requiring the family trust company, family trust 54
company affiliated party, or individual named therein to 55
immediately cease and desist from enga ging in the conduct 56
stated and to take corrective action. The emergency order 57
is effective immediately upon service of a copy of the order 58
upon the family trust company or family trust company 59
affiliated party and shall remain effective for ninety 60
days. If the [secretary] director or the [secretary's] 61 HCS SS SB 1359 111
director's designee begins nonemergency cease and desist 62
proceedings under subsection 1 of this section, the 63
emergency order shall remain effective until the conclusion 64
of the proceedings under this section. 65
6. A family trust company shall have ninety days to 66
wind up its affairs after entry of any order to cease and 67
desist from operating as a family trust company. If a 68
family trust company that is not a foreign family trust 69
company is still operating after ninety days, the 70
[secretary] director or the [secretary's] director's 71
designee may seek an order from a circuit court for the 72
annulment or dissolution of the company. If a foreign 73
family trust company is still operating after ninety days, 74
the [secretary] director or the [secretary's] director's 75
designee may seek an injunction from a circuit court 76
restraining the company from continuing to operate in this 77
state. 78
362.1095. If a family trust company fails to submi t 1
within the prescribed period its annual registration report 2
or any other report required by sections 362.1010 to 3
362.1117 or rule, the [secretary] director may impose a fine 4
of up to one hundred dollars for each day that the annual 5
registration report or other report is overdue. Failure to 6
provide the annual registration report within sixty days 7
after the end of the calendar year shall automatically 8
result in termination of the registration of a family trust 9
company. A family trust company may have its registration 10
automatically reinstated by submitting to the [secretary] 11
director, on or before August thirty -first of the calendar 12
year in which the annual registration report is due, the 13
company's annual registration report, a five hundred dol lar 14
late fee, and the amount of any fine imposed by the 15 HCS SS SB 1359 112
[secretary] director under this section. A family trust 16
company that fails to renew or reinstate its registration 17
shall wind up its affairs on or before November thirtieth of 18
the calendar year in which such failure occurs. 19
362.1100. 1. The [secretary] director or the 1
[secretary's] director's designee may issue and serve upon a 2
family trust company and a family trust company affiliated 3
party a notice of charges if the [secretary] director or the 4
[secretary's] director's designee has reason to believe that 5
the family trust company affiliated party is engaging or has 6
engaged in conduct that: 7
(1) Demonstrates that the family trust company does 8
not satisfy the requirem ents of a family trust company or of 9
a foreign family trust company under sections 362.1010 to 10
362.1117; 11
(2) Is a prohibited act or practice under section 12
362.1065; 13
(3) Violates section 362.1035, 362.1040, 362.1050, 14
362.1055, 362.1060, or 3 62.1080; 15
(4) Violates any other law involving fraud or moral 16
turpitude that constitutes a felony; 17
(5) Violates a state or federal law related to anti - 18
money laundering, customer identification, or any related 19
rule or regulation; 20
(6) Is a willful violation of a rule of the 21
[secretary] director; 22
(7) Is a willful violation of an order of the 23
[secretary] director; 24
(8) Is a willful breach of a written agreement with 25
the [secretary] director; or 26
(9) Is an act of commission or omission or a practice 27
that the [secretary] director or the [secretary's] 28 HCS SS SB 1359 113
director's designee has reason to believe is a breach of 29
trust or fiduciary duty. 30
2. The notice of charges shall contain a statement of 31
facts and notice of opportunity for a hearing. 32
3. If no hearing is requested within thirty days after 33
the date of service of the notice of charges or if a hearing 34
is held and the [secretary] director or [secretary's] 35
director's designee finds that any of the charges in the 36
notice of charges are true, the [secretary] director or 37
[secretary's] director's designee may enter an order that 38
removes the family trust company affiliated party from the 39
family trust company or that restricts or prohibits the 40
family trust company affili ated party from participating in 41
the affairs of the family trust company. 42
4. A contested or default order of removal is 43
effective when reduced to writing and served upon the family 44
trust company and the family trust company affiliated 45
party. An uncontested order of removal is effective as 46
agreed. 47
5. (1) The chief executive officer of a family trust 48
company or the person holding the equivalent office shall 49
promptly notify the [secretary] director if such person has 50
actual knowledge that a family trust company affiliated 51
party is charged with a felony in a state or federal court. 52
(2) If a family trust company affiliated party is 53
charged with a felony in a state or federal court or, in a 54
court of a foreign country with which the U nited States 55
maintains diplomatic relations, is charged with an offense 56
that involves a violation of law relating to fraud, currency 57
transaction reporting, money laundering, theft, or moral 58
turpitude and such offense is equivalent to a felony charge 59
under state or federal law, then the [secretary] director or 60 HCS SS SB 1359 114
the [secretary's] director's designee may enter an emergency 61
order that suspends the family trust company affiliated 62
party or that restricts or prohibits participation by such 63
party in the affairs of the family trust company effective 64
upon service of the order on the company and such family 65
trust company affiliated party. 66
(3) The order shall contain notice of opportunity for 67
a hearing, at which the family trust company affiliated 68
party may request a postsuspension hearing to show that 69
continued service to or participation in the affairs of the 70
family trust company does not pose a threat to the interests 71
of the family trust company. In accordance with applicable 72
rules, the [secretary] director or [secretary's] director's 73
designee shall notify the family trust company affiliated 74
party whether the order suspending or prohibiting the family 75
trust company affiliated party from participating in the 76
affairs of the family trust company will be rescinded or 77
otherwise modified. The emergency order shall remain in 78
effect, unless otherwise modified by the [secretary] 79
director or [secretary's] director's designee, until the 80
criminal charge is disposed. The emergency order shall 81
dissolve upon the final, unappealed dismissal of all charges 82
against or the acquittal of the family trust company 83
affiliated party. Such occurrences shall not prohibit the 84
[secretary] director or the [secretary's] director's 85
designee from instituting procee dings under subsection 1 of 86
this section. If the family trust company affiliated party 87
charged is convicted or pleads guilty or nolo contendere, 88
regardless of adjudication, the emergency order shall become 89
final. 90
6. No family trust company affil iated party removed 91
from office under this section shall be eligible for 92 HCS SS SB 1359 115
reinstatement to such office or to any other official 93
position in a family trust company or financial institution 94
in this state except with the written consent of the 95
[secretary] director. A family trust company affiliated 96
party who is removed, restricted, or prohibited from 97
participation in the affairs of a family trust company under 98
this section may petition the [secretary] director for 99
modification or termination of such r emoval, restriction, or 100
prohibition. 101
7. The resignation, termination of employment or 102
participation, or separation from a family trust company of 103
the family trust company affiliated party shall not affect 104
the jurisdiction and authority of the [secretary] director 105
or the [secretary's] director's designee to issue a notice 106
and proceed under this section against the family trust 107
company affiliated party if such notice is served within six 108
years of the date such person ceased to be a family trust 109
company affiliated party. 110
362.1105. 1. The books and records of a family trust 1
company are confidential and shall be made available for 2
inspection and examination only: 3
(1) To the [secretary] director or the [secretary's] 4
director's authorized representative; 5
(2) To any person authorized to act for the family 6
trust company; 7
(3) As compelled by a court, pursuant to a subpoena 8
issued in accordance with state or federal law. Before the 9
production of the books and records, the party seeking 10
production shall agree to reimburse the company for the 11
reasonable costs and fees incurred in compliance with the 12
production. If the parties disagree on the amount of 13
reimbursement, the party seeking the records may request the 14 HCS SS SB 1359 116
court that issued the subpoena to set the amount of 15
reimbursement; 16
(4) Pursuant to a subpoena held by any federal or 17
state law enforcement or prosecutorial instrumentality 18
authorized to investigate suspected criminal activity; 19
(5) As authorized by, if a corporation, the board of 20
directors or, if a limited liability company, the managers; 21
or 22
(6) As provided under subsection 2 of this section. 23
2. (1) If a corporation, each customer and 24
stockholder, or if a limited liability company, each member 25
has the right to inspect the books and records of a family 26
trust company as they pertain to such person's accounts or 27
the determination of such person's voting rights. 28
(2) The books and records pertaining to customers, 29
members, and stockholders of a family trust company shall be 30
kept confidential by the company and its directors, 31
managers, officers, and employees. The books and records of 32
customers, members, and stockholders shall not be released 33
except upon the express authorization of the customer as to 34
his or her own accounts or a stockholder or member regarding 35
his or her voting rights. However, information may be 36
released without the authorization of a customer, member, or 37
shareholder in a manner prescribed by t he board of directors 38
of a corporation or managers of a limited liability company 39
for the purposes of verifying or corroborating the existence 40
or amount of a customer's account if such information is 41
reasonably provided to meet the needs of commerce an d to 42
ensure accurate credit information. Notwithstanding this 43
subdivision, this subsection shall not prohibit a family 44
trust company from disclosing financial information as 45
permitted under 15 U.S.C. Section 6802, as amended. 46 HCS SS SB 1359 117
(3) The willful unlawful disclosure of confidential 47
information in violation of this section shall be a class E 48
felony. 49
(4) This subsection shall not apply to a foreign 50
family trust company. The laws of the jurisdiction in which 51
a foreign family trust company was incorporated or organized 52
govern the rights of its customers, members, and 53
stockholders to inspect its books and records. 54
3. For purposes of this section, the term "books and 55
records" shall include, but is not limited to, the initial 56
registration documents of a family trust company under 57
section 362.1030 and the annual registration report made by 58
a family trust company under section 362.1055. 59
362.1110. 1. A family trust company shall keep at its 1
principal place of business or principal place of operations: 2
(1) Full and complete records of the names and 3
residences of all its shareholders or members; 4
(2) The number of shares or membership units held by 5
each, as applicable; and 6
(3) The ownership percentage o f each shareholder or 7
member. 8
The records are subject to inspection by all shareholders or 9
members of the family trust company and the [secretary] 10
director or the [secretary's] director's authorized 11
representative during the normal business hours of th e 12
family trust company. A current list of shareholders or 13
members shall be made available to the [secretary] director 14
or the [secretary's] director's authorized representative 15
for their inspection and, upon the request of the 16
[secretary] director, shall be submitted to the [secretary] 17
director. 18 HCS SS SB 1359 118
2. The [secretary] director shall retain for at least 19
ten years: 20
(1) Examination reports; 21
(2) Investigatory records; 22
(3) The organizational instrument of a family trust 23
company; and 24
(4) The annual registration reports filed by a family 25
trust company. 26
3. A copy of any document on file with the [secretary] 27
director that is certified by the [secretary] director as a 28
true copy may be introduced in evidence as if it were the 29
original. The [secretary] director shall establish a 30
schedule of fees for preparing true copies of documents. 31
4. Orders issued by courts or administrative law 32
judges for the production of confidential records or 33
information shall provide for ins pection in camera by the 34
court or the administrative law judge. If the court or 35
administrative law judge determines that the documents 36
requested are relevant or would likely lead to the discovery 37
of admissible evidence, the documents shall be subject to 38
further orders by the court or the administrative law judge 39
to protect the confidentiality thereof. An order directing 40
the release of information shall be immediately reviewable, 41
and a petition by the [secretary] director for review of the 42
order shall automatically stay any further proceedings in a 43
trial court or administrative hearing until the disposition 44
of the petition by the reviewing court. If any other party 45
files a petition for review, such filing shall stay 46
proceedings only upon an or der of the reviewing court. 47
362.1115. 1. The following information held by the 1
[secretary] director is confidential and exempt from chapter 2
610: 3 HCS SS SB 1359 119
(1) Any personal identifying information appearing in 4
records relating to a regis tration or an annual 5
certification of a family trust company; 6
(2) Any personal identifying information appearing in 7
records relating to an examination of a family trust company; 8
(3) Any personal identifying information appearing in 9
reports of examinations, operations, or conditions of a 10
family trust company, including working papers; 11
(4) Any portion of a list of names of the shareholders 12
or members of a family trust company; 13
(5) Information received by the [secretary] director 14
from a person from another state or nation or the federal 15
government that is otherwise confidential or exempt under 16
the laws of such state or nation or under federal law; and 17
(6) An emergency cease and desist order issued under 18
section 362.1090 until the emergency order is made 19
permanent, unless the [secretary] director finds that such 20
confidentiality will result in substantial risk of financial 21
loss to the public. 22
2. Information made confidential and exempt under 23
subsection 1 of this sec tion may be disclosed by the 24
[secretary] director to: 25
(1) The authorized representative or representatives 26
of the family trust company under examination. The 27
authorized representative or representatives shall be 28
identified in a resolution or by written consent of the 29
board of directors if a corporation or the managers if a 30
limited liability company; 31
(2) A fidelity insurance company upon written consent 32
of the family trust company's board of directors if a 33
corporation or its managers if a limited liability company; 34 HCS SS SB 1359 120
(3) An independent auditor upon written consent of the 35
family trust company's board of directors if a corporation 36
or its managers if a limited liability company; 37
(4) A liquidator, receiver, or conservator if 38
appointed. However, any portion of the information that 39
discloses the identity of a bondholder, customer, family 40
member, member, or stockholder shall be redacted by the 41
[secretary] director before releasing such information; 42
(5) Any other state, fede ral, or foreign agency 43
responsible for the regulation or supervision of family 44
trust companies; 45
(6) A law enforcement agency in the furtherance of 46
such agency's official duties and responsibilities; 47
(7) The appropriate law enforcement or pro secutorial 48
agency for the purpose of reporting any suspected criminal 49
activity; or 50
(8) Comply with a legislative subpoena. A legislative 51
body or committee that receives records or information 52
pursuant to such subpoena shall maintain the confiden tial 53
status of such records or information. However, in a case 54
involving the investigation of charges against a public 55
official subject to impeachment or removal, records or 56
information may be disclosed to the extent necessary as 57
determined by the le gislative body or committee. 58
3. This section shall not prevent or restrict the 59
publication of: 60
(1) A report required by federal law; or 61
(2) The name of the family trust company and the 62
address of its registered agent. 63
4. The willful disclosure of information made 64
confidential and exempt by this section is a class E felony. 65 HCS SS SB 1359 121
362.1116. The [secretary] director may issue forms and 1
orders and, after notice and comment, may adopt and amend 2
rules necessary or approp riate to carry out the provisions 3
of sections 362.1010 to 362.1117 and may repeal rules and 4
forms. 5
362.1117. 1. Except as otherwise provided in sections 1
362.1010 to 362.1117, any interested person aggrieved by any 2
order of the [secretary] director or [secretary's] 3
director's designee under any provision of sections 362.1010 4
to 362.1117 shall be entitled to a hearing before the 5
[secretary] director or the [secretary's] director's 6
authorized representative in accordance with the p rovisions 7
of chapter 536. A cease and desist order issued by the 8
[secretary] director or [secretary's] director's designee is 9
subject to judicial review in accordance with the provisions 10
of chapter 536 in the circuit court of Cole County. 11
2. A rule adopted under sections 362.1010 to 362.1117 12
is subject to judicial review in accordance with the 13
provisions of chapter 536 in the circuit court of Cole 14
County. 15
374.190. 1. The director shall examine and inquire 1
into all violations of the insurance laws of the state, and 2
inquire into and investigate the business of insurance 3
transacted in this state by any insurance agent, broker, 4
agency or insurance company. 5
2. He or any of his duly appointed agents may compel 6
the attendance before him, and may examine, under oath, the 7
directors, officers, agents, employees, solicitors, 8
attorneys or any other person, in reference to the 9
condition, affairs, management of the business, or any 10
matters relating thereto. He may administer oaths or 11
affirmations, and shall have power to summon and compel the 12 HCS SS SB 1359 122
attendance of witnesses, and to require and compel the 13
production of records, books, papers, contracts or other 14
documents, if necessary. 15
3. The director may make and conduct the investigation 16
in person, or he may appoint one or more persons to make and 17
conduct the same for him. If made by another than the 18
director in person, the person duly appointed by the 19
director shall have the same powers as above granted to the 20
director. A certificate of appointment, under the official 21
seal of the director, shall be sufficient authority and 22
evidence thereof for the person or persons to act. For the 23
purpose of making the investigations, or having the same 24
made, the director may employ the necessary clerical, 25
actuarial and other assistance. 26
4. Notwithstanding any provision of law to the 27
contrary, the confidentiality provisions of section 374.205, 28
including subdivision (5) of subsection 3 of section 29
374.205, and subsectio n 4 of section 374.205, shall apply to 30
all reports, working papers, recorded information, 31
documents, and copies thereof, produced by, obtained by, or 32
disclosed to the director or any other person in the course 33
of any market conduct investigation or mar ket conduct action. 34
374.192. 1. Notwithstanding any provision of law to 1
the contrary, a regulated entity shall have not less than 2
thirty calendar days to submit any record or material 3
requested by the department. This subsection shall not 4
apply to requests for records or materials by the division 5
of consumer affairs or to requests for information on forms 6
submitted under section 375.920. 7
2. Notwithstanding any provision of law to the 8
contrary, any record or document, regar dless of physical 9
form or characteristic, maintained beyond the record 10 HCS SS SB 1359 123
retention period specified in section 374.205 shall not be 11
subject to request or review by the director unless the 12
director has substantial and competent evidence that the 13
regulated entity has willfully engaged in an act or omission 14
constituting a level four or five violation of the laws of 15
this state relating to insurance, including this chapter, 16
chapter 354, and chapters 375 to 385, or has been convicted 17
of any felony related to the business of insurance, in which 18
case the director may request or review records or documents 19
maintained beyond the record retention period specified in 20
section 374.205 that directly relate to the violation or 21
conviction. 22
3. A regulated entity may establish its own internal 23
standards, practices, methods, or procedures that are the 24
same as or exceed the requirements set forth by law or 25
rule. The department shall not impose any civil penalty, 26
forfeiture, or order on a regulated entity sol ely for 27
failing to comply with its own internal standards, 28
practices, methods, or procedures unless such failure also 29
violates a law or rule. 30
375.020. 1. Beginning January 1, 2008, each insurance 1
producer, unless exempt pursuant to section 375.016, 2
licensed to sell insurance in this state shall successfully 3
complete courses of study as required by this section. Any 4
person licensed to act as an insurance producer shall, 5
during each two years, attend courses or programs of 6
instruction or attend seminars equivalent to a minimum of 7
sixteen hours of instruction. Of the sixteen hours' 8
training required in this subsection, the hours need not be 9
divided equally among the lines of authority in which the 10
producer has qualified. The courses or programs attended by 11
the producer during each two -year period shall include 12 HCS SS SB 1359 124
instruction on Missouri law, products offered in any line of 13
authority in which the producer is qualified, producers' 14
duties and obligations to the department, and business 15
ethics, including sales suitability. Course credit shall be 16
given to members of the general assembly as determined by 17
the department. 18
2. Subject to approval by the director, the courses or 19
programs of instruction which shall be deemed t o meet the 20
director's standards for continuing educational requirements 21
shall include, but not be limited to, the following: 22
(1) American College Courses (CLU, ChFC); 23
(2) Life Underwriters Training Council (LUTC); 24
(3) Certified Insurance Counselor (CIC); 25
(4) Chartered Property and Casualty Underwriter (CPCU); 26
(5) Insurance Institute of America (IIA); 27
(6) Any other professional financial designation 28
approved by the director by rule; 29
(7) An insurance-related course taught by an 30
accredited college or university or qualified instructor who 31
has taught a course of insurance law at such institution; 32
(8) A course or program of instruction or seminar 33
developed or sponsored by any authorized insurer, recognized 34
producer association or insurance trade association, or any 35
other entity engaged in the business of providing education 36
courses to producers. A local producer group may also be 37
approved if the instructor receives no compensation for 38
services. 39
3. A person teaching any approved course of 40
instruction or lecturing at any approved seminar shall 41
qualify for the same number of classroom hours as would be 42
granted to a person taking and successfully completing such 43
course, seminar or program. 44 HCS SS SB 1359 125
4. Excess hours accumulated during any two -year period 45
may be carried forward to the two -year period immediately 46
following the two-year period in which the course, program 47
or seminar was held. 48
5. For good cause shown, the director may grant an 49
extension of time during which the educational requirements 50
imposed by this section may be completed, but such extension 51
of time shall not exceed the period of one calendar year. 52
The director may grant an individual waiver of the mandatory 53
continuing education requirement upon a showing by the 54
licensee that it is not feasible for the licensee to satisfy 55
the requirements prior to the renewal date. Waivers may be 56
granted for reasons including, but not limited to: 57
(1) Serious physical injury or illnes s; 58
(2) Active duty in the armed services for an extended 59
period of time; 60
(3) Residence outside the United States; or 61
(4) The licensee is at least seventy years of age. 62
6. Every person subject to the provisions of this 63
section shall furnish in a form satisfactory to the 64
director, written certification as to the courses, programs 65
or seminars of instruction taken and successfully completed 66
by such person. Every provider of continuing education 67
courses authorized in this state sha ll, within thirty 68
working days of a licensed producer completing its approved 69
course, provide certification to the director of the 70
completion in a format prescribed by the director. 71
7. The provisions of this section shall not apply to 72
those natural persons holding licenses for any kind or kinds 73
of insurance for which an examination is not required by the 74
law of this state, nor shall they apply to any limited lines 75 HCS SS SB 1359 126
insurance producer license or restricted license as the 76
director may exempt. 77
8. The provisions of this section shall not apply to a 78
life insurance producer who is limited by the terms of a 79
written agreement with the insurer to transact only specific 80
life insurance policies having an initial face amount of 81
[fifteen] twenty thousand dollars or less, or annuities 82
having an initial face amount of [fifteen] twenty thousand 83
dollars or less, that are designated by the purchaser for 84
the payment of funeral or burial expenses. The director may 85
require the insurer entering into the written agreements 86
with the insurance producers pursuant to this subsection to 87
certify as to the representations of the insurance producers. 88
9. Rules and regulations necessary to implement and 89
administer this section shall be promulgated by the 90
director, including, but not limited to, rules and 91
regulations regarding the following: 92
(1) Course content and hour credits: the insurance 93
advisory board established by section 375.019 shall be 94
utilized by the director to assist him in determinin g 95
acceptable content of courses, programs and seminars to 96
include classroom equivalency; 97
(2) Filing fees for course approval: every applicant 98
seeking approval by the director of a continuing education 99
course under this section shall pay to the d irector a filing 100
fee of fifty dollars per course. Fees shall be waived for 101
state and local insurance producer groups. Such fee shall 102
accompany any application form required by the director. 103
Courses shall be approved for a period of no more than one 104
year. Applicants holding courses intended to be offered for 105
a longer period must reapply for approval. Courses approved 106
by the director prior to August 28, 1993, for which 107 HCS SS SB 1359 127
continuous certification is sought should be resubmitted for 108
approval sixty days before the anniversary date of the 109
previous approval. 110
10. All funds received pursuant to the provisions of 111
this section shall be transmitted by the director to the 112
department of revenue for deposit in the state treasury to 113
the credit of the insurance dedicated fund. All 114
expenditures necessitated by this section shall be paid from 115
funds appropriated from the insurance dedicated fund by the 116
legislature. 117
375.1183. 1. Contracts reinsuring policies of life or 1
health insurance or annuities referred to in section 2
375.1178 issued by a ceding insurer that has been placed in 3
conservation or rehabilitation proceedings under sections 4
375.1150 to 375.1246 shall be continued or terminated under 5
the terms and conditions of each c ontract and the provisions 6
of this section. 7
2. Contracts reinsuring policies of life or health 8
insurance or annuities referred to in section 375.1178 9
issued by a ceding insurer that has been placed into 10
liquidation under sections 375.1150 to 375. 1246 shall be 11
continued, subject to the provisions of this section, unless: 12
(1) The contracts were terminated pursuant to their 13
terms prior to the date of the order of liquidation; or 14
(2) The contracts were terminated pursuant to the 15
order of liquidation, in which case the provisions of 16
subsection 9 of this section shall apply. 17
3. (1) At any time within one hundred eighty days of 18
the date of the order of liquidation, a guaranty association 19
covering policies of life or health insuran ce or annuities 20
referred to in section 375.1178, in whole or in part, may 21
elect to assume the rights and obligations of the ceding 22 HCS SS SB 1359 128
insurer that relate to the policies or annuities under any 23
one or more reinsurance contracts between the ceding insurer 24
and its reinsurers. Any such assumption shall be effective 25
as of the date of the order of liquidation. The election 26
shall be made by the guaranty association or the national 27
organization of life and health insurance guaranty 28
associations on its behal f by sending written notice, return 29
receipt requested, to the affected reinsurers. 30
(2) To facilitate the decision, the receiver and each 31
affected reinsurer shall make available upon request to the 32
guaranty association or to the national organizati on of life 33
and health insurance guaranty associations on its behalf: 34
(a) Copies of in-force reinsurance contracts and all 35
related files and records relevant to the determination of 36
whether such contracts should be assumed; and 37
(b) Notices of any defaults under the reinsurance 38
contracts or any known event or condition which with the 39
passage of time could become a default under the reinsurance 40
contracts. 41
(3) Paragraphs (a) through (d) of this subdivision 42
shall apply to reinsurance con tracts so assumed by a 43
guaranty association: 44
(a) The guaranty association shall be responsible for 45
all unpaid premiums due under the reinsurance contracts, for 46
periods both before and after the date of the order of 47
liquidation, and shall be respo nsible for the performance of 48
all other obligations to be performed after the date of the 49
order of liquidation. 50
(b) The guaranty association shall be entitled to any 51
amounts payable by the reinsurer under the reinsurance 52
contracts with respect to losses or events that occur in 53
periods on or after the date of the order of liquidation. 54 HCS SS SB 1359 129
(c) Within thirty days following the date of the 55
guaranty association's election to assume a reinsurance 56
contract, the guaranty association and the reinsurer shall 57
calculate the balance due to or from the guaranty 58
association under each reinsurance contract as of the date 59
of such election, and the guaranty association or reinsurer 60
shall pay any remaining balance due the other within thirty - 61
five days of the date of such election. Any disputes over 62
the amounts due to either the guaranty association or the 63
reinsurer shall be resolved by arbitration pursuant to the 64
terms of the affected reinsurance contract or, if the 65
contract contains no arbitration clau se, pursuant to the 66
provisions of subdivision (3) of subsection 9 of this 67
section. 68
(d) If the guaranty association, or receiver on behalf 69
of such guaranty association, within sixty days of the date 70
of the guaranty association's election to assume a 71
reinsurance contract, pays the unpaid premiums due for 72
periods both before and after the date of such election that 73
are due pursuant to the reinsurance contract, the reinsurer 74
shall not be entitled to terminate the reinsurance contract 75
for failure to pay premiums, and shall not be entitled to 76
set off any unpaid amounts due under other contracts, or 77
unpaid amounts due from parties other than the guaranty 78
association, against amounts due such guaranty association. 79
4. If a receiver continues p olicies of life or health 80
insurance or annuities referred to in section 375.1178 in 81
force following an order of liquidation, and the policies or 82
annuities are not covered in whole or in part by one or more 83
guaranty associations, the receiver may, withi n one hundred 84
eighty days of the date of the order of liquidation, elect 85
to assume the rights and obligations of the ceding insurer 86 HCS SS SB 1359 130
under any one or more of the reinsurance contracts that 87
relate to the policies or annuities, provided the contracts 88
have not been terminated as set forth in subsection 2 of 89
this section. The election shall be made by sending written 90
notice, return receipt requested, to the affected 91
reinsurers. In that event, payment of premiums on the 92
reinsurance contracts for the po licies and annuities, for 93
periods both before and after the date of the order of 94
liquidation, shall be chargeable against the estate as a 95
class 1 administrative expense. Amounts paid by the 96
reinsurer on account of losses on the policies and annuities 97
shall be to the estate of the ceding insurer. 98
5. During the period from the date of the order of 99
liquidation until the date the guaranty association or the 100
receiver elects to assume the rights and obligations of the 101
ceding insurer under any one o r more of the reinsurance 102
contracts that relate to the policies or annuities as 103
provided for in subsection 3 or 4 of this section, the 104
guaranty association, the receiver, and the reinsurer shall 105
not have any rights or obligations under any reinsurance 106
contract that is eligible for assumption by such association 107
or the receiver. 108
6. (1) If the guaranty association or the receiver, 109
as the case may be, has timely elected to assume a 110
reinsurance contract pursuant to subsection 3 or 4 of this 111
section, as applicable, the parties' rights and obligations 112
shall be governed by the provisions of subsection 3 or 4 of 113
this section, as applicable. 114
(2) Where the guaranty association covering policies 115
of life or health insurance or annuities referred to in 116
section 375.1178 or the receiver, as the case may be, does 117
not timely elect to assume a reinsurance contract pursuant 118 HCS SS SB 1359 131
to subsection 3 or 4 of this section, as applicable, the 119
reinsurance contract shall be terminated retroactively 120
effective on the date of the order of liquidation and 121
subsection 9 of this section shall apply. 122
7. When policies of life or health insurance or 123
annuities referred to in section 375.1178, or the 124
obligations of the guaranty association with respect 125
thereto, are transferred to an assuming insurer, reinsurance 126
on the policies or annuities may also be transferred by the 127
guaranty association, in the case of contracts assumed under 128
subsection 3 of this section, or the receiver, in the case 129
of contracts assumed und er subsection 4 of this section, 130
subject to the following: 131
(1) Unless the reinsurer and the assuming insurer 132
agree otherwise, the reinsurance contract transferred shall 133
not cover any new policies or annuities in addition to those 134
transferred; 135
(2) The obligations described in subsections 3 and 4 136
of this section shall no longer apply with respect to 137
matters arising after the effective date of the transfer; and 138
(3) Notice shall be given in writing, return receipt 139
requested, by the tran sferring party to the affected 140
reinsurer not less than thirty days prior to the effective 141
date of the transfer. 142
8. The provisions of this section shall, to the extent 143
provided in sections 375.1150 to 375.1246, supersede the 144
provisions of any law or of any affected reinsurance 145
contract that provides for or requires any payment of 146
reinsurance proceeds, on account of losses or events that 147
occur in periods after the date of the order of liquidation, 148
to the receiver of the ceding insurer or any oth er person. 149
The receiver shall remain entitled to any amounts payable by 150 HCS SS SB 1359 132
the reinsurer under the reinsurance contracts with respect 151
to losses or events that occur in periods prior to the date 152
of the order of liquidation, subject to provisions of 153
sections 375.1150 to 375.1246 including applicable setoff 154
provisions. 155
9. When a reinsurance contract is terminated pursuant 156
to sections 375.1150 to 375.1246, the reinsurer and the 157
receiver shall commence a mandatory negotiation procedure in 158
accordance with this subsection: 159
(1) No later than thirty days after the date of 160
termination, each party shall appoint an actuary to 161
determine an estimated sum due as a result of the 162
termination of the reinsurance contract calculated in a way 163
expected to make the parties economically indifferent as to 164
whether the reinsurance contract continues or terminates, 165
giving due regard to the economic effects of the 166
insolvency. The sum shall take into account the present 167
value of future cash flows expected under the reinsurance 168
contract and be based on a gross premium valuation of net 169
liability using current assumptions that reflect post - 170
insolvency experience expectations, with no additional 171
margins, net of any amounts payable and receivable, with a 172
market value adjustment to reflect premature sale of assets 173
to fund the settlement; 174
(2) Within ninety days of the date of termination, 175
each party shall provide the other party with its estimate 176
of the sum due as a result of the termination of the 177
reinsurance contract, together with all relevant documents 178
and other information supporting the estimate. The parties 179
shall make a good faith effort to reach agreement on the sum 180
due; 181 HCS SS SB 1359 133
(3) If the parties are unable to reach agreement 182
within ninety days following the submission of materials 183
required in subdivision (2) of this subsection, either party 184
may initiate arbitration proceedings as provided in the 185
reinsurance contract. In the event that the reinsurance 186
contract does not contain an arbitration clause, either 187
party may initiate arbitration pursuant to this subdivision 188
by providing the other party with a written demand for 189
arbitration. The arbitration shall be conducted pursuant to 190
the following procedures: 191
(a) Venue for the arbitratio n shall be within the 192
county of the court's jurisdiction pursuant to section 193
375.1154, or another location agreed to by the parties; 194
(b) Within thirty days of the responding party's 195
receipt of the arbitration demand, each party shall appoint 196
an arbitrator who is a disinterested active or retired 197
officer or executive of a life or health insurance or 198
reinsurance company, or other professional with no less than 199
ten years' experience in or relating to the field of life or 200
health insurance or reins urance. The two arbitrators shall 201
appoint an independent, impartial, disinterested umpire who 202
is an active or retired officer or executive of a life or 203
health insurance or reinsurance company, or other 204
professional with no less than ten years' experie nce in the 205
field of life or health insurance or reinsurance. If the 206
arbitrators are unable to agree on an umpire, each 207
arbitrator shall provide the other with the names of three 208
qualified individuals, each arbitrator shall strike two 209
names from the other's list, and the umpire shall be chosen 210
by drawing lots from the remaining individuals; 211
(c) Within sixty days following the appointment of the 212
umpire, the parties shall, unless otherwise ordered by the 213 HCS SS SB 1359 134
panel, submit to the arbitration panel th eir estimates of 214
the sum due as a result of the termination of the 215
reinsurance contract, together with all relevant documents 216
and other information supporting the estimate; 217
(d) The time periods set forth in these paragraphs may 218
be extended upon mutual agreement of the parties; 219
(e) The panel shall have all powers necessary to 220
conduct the arbitration proceedings in a fair and 221
appropriate manner, including the power to request 222
additional information from the parties, authorize 223
discovery, hold hearings, and hear testimony. The panel 224
also may appoint independent actuarial experts, the expense 225
of which shall be shared equally between the parties; 226
(4) An arbitration panel considering the matters set 227
forth in this subsection shall apply the standards set forth 228
in this subsection and shall issue a written award 229
specifying a net settlement amount due from one party or the 230
other as a result of the termination of the reinsurance 231
contract. The receivership court shall confirm that award 232
absent proof of statutory grounds for vacating or modifying 233
arbitration awards under the Federal Arbitration Act; 234
(5) If the net settlement amount agreed or awarded 235
pursuant to this subsection is payable by the reinsurer, the 236
reinsurer shall pay the amount due to the estate subject to 237
any applicable set-off under section 375.1198. If the net 238
settlement amount agreed or awarded pursuant to this 239
subsection is payable by the ceding insurer, the reinsurer 240
shall be deemed to have a timely filed cl aim against the 241
estate for that amount, which claim shall be paid pursuant 242
to the priority established in subsection 5 of section 243
375.1218. The affected guaranty associations shall not be 244
entitled to receive the net settlement amount, except to the 245 HCS SS SB 1359 135
extent they are entitled to share in the estate assets as 246
creditors of the estate, and shall have no responsibility 247
for the net settlement amount. 248
10. Except as otherwise provided in this section, 249
nothing in this section shall alter or modify the t erms and 250
conditions of any reinsurance contract. Nothing in this 251
section shall abrogate or limit any rights of any reinsurer 252
to claim that it is entitled to rescind a reinsurance 253
contract. Nothing in this section shall give a policyholder 254
or beneficiary an independent cause of action against a 255
reinsurer that is not otherwise set forth in the reinsurance 256
contract. Nothing in this section shall limit or affect any 257
guaranty association's rights as a creditor of the estate 258
against the assets of the estate. Nothing in this section 259
shall apply to reinsurance contracts covering property or 260
casualty risks. 261
11. This section and subdivision (10) of subsection 1 262
of section 376.734 shall be construed together in a manner 263
that is consistent with ea ch other and with the purpose 264
provided for in section 376.715. 265
376.427. 1. As used in this section, the following 1
terms mean: 2
(1) "Health benefit plan", as such term is defined in 3
section 376.1350. The term health benefit pla n shall also 4
include a prepaid dental plan, as defined in section 354.700; 5
(2) "Health care services", medical, surgical, dental, 6
podiatric, pharmaceutical, chiropractic, licensed ambulance 7
service, and optometric services; 8
(3) "Health carrier" or "carrier", as such term is 9
defined in section 376.1350. The term health carrier or 10
carrier shall also include a prepaid dental plan 11
corporation, as defined in section 354.700; 12 HCS SS SB 1359 136
(4) "Insured", any person entitled to benefits under a 13
contract of accident and sickness insurance, or medical - 14
payment insurance issued as a supplement to liability 15
insurance but not including any other coverages contained in 16
a liability or a workers' compensation policy, issued by an 17
insurer; 18
(5) "Insurer", any person, reciprocal exchange, 19
interinsurer, fraternal benefit society, health services 20
corporation, self-insured group arrangement to the extent 21
not prohibited by federal law, prepaid dental plan 22
corporation as defined in section 354.700, or any o ther 23
legal entity engaged in the business of insurance; 24
(6) "Provider", a physician, hospital, dentist, 25
podiatrist, chiropractor, pharmacy, licensed ambulance 26
service, or optometrist, licensed by this state. 27
2. Upon receipt of an assignment of benefits made by 28
the insured to a provider, the insurer shall issue the 29
instrument of payment for a claim for payment for health 30
care services in the name of the provider. All claims shall 31
be paid within thirty days of the receipt by the insurer of 32
all documents reasonably needed to determine the claim. 33
3. Nothing in this section shall preclude an insurer 34
from voluntarily issuing an instrument of payment in the 35
single name of the provider. 36
4. Except as provided in subsection 5 of this section, 37
this section shall not require any insurer, health services 38
corporation, prepaid dental plan as defined in section 39
354.700, health maintenance corporation or preferred 40
provider organization which directly contracts with certain 41
members of a class of providers for the delivery of health 42
care services to issue payment as provided pursuant to this 43 HCS SS SB 1359 137
section to those members of the class which do not have a 44
contract with the insurer. 45
5. When a patient's health benefit plan does not 46
include or require payment to out -of-network providers for 47
all or most covered services, which would otherwise be 48
covered if the patient received such services from a 49
provider in the health benefit plan's network, including but 50
not limited to health maintena nce organization plans, as 51
such term is defined in section 354.400, or a health benefit 52
plan offered by a carrier consistent with subdivision (19) 53
of section 376.426, payment for all services shall be made 54
directly to the providers when the health carr ier has 55
authorized such services to be received from a provider 56
outside the health benefit plan's network. 57
6. Payments made to providers under this section shall 58
be subject to the provisions of section 376.383. Entities 59
that are not currently su bject to the provisions of section 60
376.383 shall have a delayed effective date of January 1, 61
2026 to be subject to such provisions. 62
376.1345. 1. As used in this section, unless the 1
context clearly indicates otherwise, terms shall ha ve the 2
same meaning as ascribed to them in section 376.1350. 3
2. No health carrier, nor any entity acting on behalf 4
of a health carrier, shall restrict methods of reimbursement 5
to health care providers for health care services to a 6
reimbursement method requiring the provider to pay a fee, 7
discount the amount of their claim for reimbursement, or 8
remit any other form of remuneration in order to redeem the 9
amount of their claim for reimbursement. 10
3. (1) If a health carrier [initiates or changes] 11
proposes to initiate or change the method used to reimburse 12
a health care provider to a method of reimbursement that 13 HCS SS SB 1359 138
will require the health care provider to pay a fee, discount 14
the amount of its claim for reimbursement, or remit any 15
other form of remuneration to the health carrier or any 16
entity acting on behalf of the health carrier in order to 17
redeem the amount of its claim for reimbursement, as 18
described in subsection 2 of this section, the health 19
carrier or an entity acting on its behalf s hall first 20
receive approval from the health care provider before 21
reimbursing the health care provider with such payment 22
method. 23
(2) If a health carrier is currently reimbursing a 24
health care provider with a payment method described in 25
subsection 2 of this section, the health care provider may 26
send one notice to the health carrier for all the health 27
care provider's patients covered by such health carrier 28
stating that the health care provider declines to be 29
reimbursed with a payment method desc ribed in subsection 2 30
of this section. Such notice shall remain in effect for the 31
duration of the contract unless the health care provider 32
requests otherwise in the manner described in paragraph (b) 33
of subdivision (3) of this subsection. All payments made by 34
the health carrier to the health care provider after receipt 35
of the notice declining to be reimbursed with a payment 36
method described in subsection 2 of this section shall not 37
require the health care provider to pay a fee, discount the 38
amount of the provider's claim for reimbursement, or remit 39
any other form of remuneration in order to redeem the amount 40
of the provider's claim for reimbursement. 41
(3) A health carrier that proposes to reimburse a 42
health care provider with a payment meth od described in 43
subsection 2 of this section shall : 44 HCS SS SB 1359 139
[(1)] (a) Notify such health care provider of the fee, 45
discount, or other remuneration required to receive 46
reimbursement through the new or different reimbursement 47
method; and 48
[(2)] (b) In such notice, provide clear instructions 49
to the health care provider as to how to select [an 50
alternative] the payment method described in subsection 2 of 51
this section, and upon request by the health care provider 52
such [alternative] payment method shall be [used] allowed to 53
reimburse the provider until the provider requests otherwise. 54
4. A health carrier shall allow the provider to select 55
to be reimbursed by an electronic funds transfer through the 56
Automated Clearing House Network as required pu rsuant to 45 57
C.F.R. Sections 162.925, 162.1601, and 162.1602, and if the 58
provider makes such selection, the health carrier shall use 59
such reimbursement method to reimburse the provider until 60
the provider requests otherwise. 61
5. An amount a health carrier claims was overpaid to a 62
provider may only be collected, withheld, or recouped from 63
the provider, or third party that submitted the provider's 64
claim under the third party's provider identification 65
number, to whom the overpaid amount was origina lly paid. 66
The notice of withholding or recoupment by a health carrier 67
shall also inform the provider or third party of the health 68
care service, date of service, and patient for which the 69
recoupment is being made. 70
6. Violation of this section sha ll be deemed an unfair 71
trade practice under sections 375.930 to 375.948. 72
379.1640. 1. As used in this section, the following 1
terms shall mean: 2
(1) "Department", the department of commerce and 3
insurance; 4 HCS SS SB 1359 140
(2) "Director", the director of the department of 5
commerce and insurance; 6
(3) "Limited lines self-service storage insurance 7
producer", an owner, operator, lessor, or sublessor of a 8
self-service storage facility, or an agent or other person 9
authorized to manage th e facility, duly licensed by the 10
department of commerce and insurance; 11
(4) "Offer and disseminate", provide general 12
information, including a description of the coverage and 13
price, as well as process the application, collect premiums, 14
and perform other nonlicensable activities permitted by the 15
state; 16
(5) "Self-service storage insurance", insurance 17
coverage for the loss of, or damage to, tangible personal 18
property in a self-service storage facility as defined in 19
section 415.405 or in trans it during the rental period. 20
2. Notwithstanding any other provision of law: 21
(1) Individuals may offer and disseminate self -service 22
storage insurance on behalf of and under the control of a 23
limited lines self-service storage insurance producer only 24
if the following conditions are met: 25
(a) The limited lines self -service storage insurance 26
producer provides to purchasers of self -service storage 27
insurance: 28
a. A description of the material terms or the actual 29
material terms of the in surance coverage; 30
b. A description of the process for filing a claim; 31
c. A description of the review or cancellation process 32
for the self-service storage insurance coverage; and 33
d. The identity and contact information of the insurer 34
and any third-party administrator or supervising entity 35
authorized to act on behalf of the insurer; 36 HCS SS SB 1359 141
(b) At the time of licensure, the limited lines self - 37
service storage insurance producer shall establish and 38
maintain a register on a form prescribed b y the director of 39
each individual that offers self -service storage insurance 40
on the limited lines self -service storage insurance 41
producer's behalf. The register shall be maintained and 42
updated annually by the limited lines self -service storage 43
insurance producer and shall include the name, address, and 44
contact information of the limited lines self -service 45
storage insurance producer and an officer or person who 46
directs or controls the limited lines self -service storage 47
insurance producer's operatio ns, and the self-service 48
storage facility's federal tax identification number. The 49
limited lines self-service storage insurance producer shall 50
submit such register within thirty days upon request by the 51
department. The limited lines self -service storage 52
insurance producer shall also certify that each individual 53
listed on the self-service storage register complies with 18 54
U.S.C. Section 1033; 55
(c) The limited lines self -service storage insurance 56
producer serves as or has designated one of its employees 57
who is a licensed individual producer as a person 58
responsible for the business entity's compliance with the 59
self-service storage insurance laws, rules, and regulations 60
of this state; 61
(d) An individual applying for a limited lines self - 62
service storage insurance producer license shall make 63
application to the director on the specified application and 64
declare under penalty of refusal, suspension or revocation 65
of the license that the statements made on the application 66
are true, correct and complete to the best of the knowledge 67 HCS SS SB 1359 142
and belief of the applicant. Before approving the 68
application, the director shall find that the individual: 69
a. Is at least eighteen years of age; 70
b. Has not committed any act that is a ground for 71
denial, suspension, or revocation set forth in section 72
375.141; 73
c. Has paid a license fee in the sum of one hundred 74
dollars; and 75
d. Has completed a qualified training program 76
regarding self-service storage insurance policies, which has 77
been filed with and approved by the director; 78
(e) Individuals applying for limited lines self - 79
service storage insurance producer licenses shall be exempt 80
from examination. The director may require any documents 81
reasonably necessary to verify the informa tion contained in 82
an application. Within thirty working days after the change 83
of any information submitted on the application, the self - 84
service storage insurance producer shall notify the director 85
of the change. No fee shall be charged for any such 86
change. If the director has taken no action within twenty - 87
five working days of receipt of an application, the 88
application shall be deemed approved and the applicant may 89
act as a licensed self -service storage insurance producer, 90
unless the applicant ha s indicated a conviction for a felony 91
or a crime involving moral turpitude; 92
(f) The limited lines self -service storage insurance 93
producer requires each employee and authorized 94
representative of the self -service storage insurance 95
producer whose duties include offering and disseminating 96
self-service storage insurance to receive a program of 97
instruction or training provided or authorized by the 98
insurer or supervising entity that has been reviewed and 99 HCS SS SB 1359 143
approved by the director. The training material shall, at a 100
minimum, contain instructions on the types of insurance 101
offered, ethical sales practices, and required disclosures 102
to prospective customers; 103
(2) Any individual offering or disseminating self - 104
service storage insurance shall provide to prospective 105
purchasers brochures or other written materials that: 106
(a) Provide the identity and contact information of 107
the insurer and any third -party administrator or supervising 108
entity authorized to act on behalf of the insurer; 109
(b) Explain that the purchase of self -service storage 110
insurance is not required in order to lease self -storage 111
units; 112
(c) Explain that an unlicensed self -service storage 113
operator is permitted to provide general information about 114
the insurance offered by the self-service storage operator, 115
including a description of the coverage and price, but is 116
not qualified or authorized to answer technical questions 117
about the terms and conditions of the insurance offered by 118
the self-service storage operator or to ev aluate the 119
adequacy of the customer's existing insurance coverage; and 120
(d) Disclose that self-service storage insurance may 121
provide duplication of coverage already provided by an 122
occupant's, homeowner's, renter's, or other source of 123
coverage; 124
(3) A limited lines self -service storage producer's 125
employee or authorized representative, who is not licensed 126
as an insurance producer, may not: 127
(a) Evaluate or interpret the technical terms, 128
benefits, and conditions of the offered self -service storage 129
insurance coverage; 130 HCS SS SB 1359 144
(b) Evaluate or provide advice concerning a 131
prospective purchaser's existing insurance coverage; or 132
(c) Hold themselves or itself out as a licensed 133
insurer, licensed producer, or insurance expert; 134
(4) If self-service storage insurance is offered to 135
the customer, premium or other charges specifically 136
applicable to self-service storage insurance shall be listed 137
as a separate amount and apart from other charges relating 138
to the lease and/or procurement of a self-service storage 139
unit on all documentation pertinent to the transaction. 140
3. Notwithstanding any other provision of law, a 141
limited lines self-service storage insurance provider whose 142
insurance-related activities, and those of its employees and 143
authorized representatives, are limited to offering and 144
disseminating self-service storage insurance on behalf of 145
and under the direction of a limited lines self -service 146
storage insurance producer meeting the conditions stated in 147
this section is auth orized to do so and receive related 148
compensation, upon registration by the limited lines self - 149
service storage insurance producer as described in paragraph 150
(b) of subdivision (1) of subsection 2 of this section. 151
4. Self-service storage insurance ma y be provided 152
under an individual policy or under a group or master policy. 153
5. Limited lines self-service storage insurance 154
producers, operators, employees and authorized 155
representatives offering and disseminating self -service 156
storage insurance under the limited lines self -service 157
storage insurance producer license shall be subject to the 158
provisions of chapters 374 and 375, except as provided for 159
in this section. 160
6. Limited lines self-service storage insurance 161
producers, operators, emplo yees and authorized 162 HCS SS SB 1359 145
representatives may offer and disseminate self -service 163
storage insurance policies in an amount not to exceed [five] 164
fifteen thousand dollars of coverage per customer per 165
storage unit. 166
7. The director may promulgate rules to ef fectuate 167
this section. Any rule or portion of a rule, as that term 168
is defined in section 536.010, that is created under the 169
authority delegated in this section shall become effective 170
only if it complies with and is subject to all of the 171
provisions of chapter 536 and, if applicable, section 172
536.028. This section and chapter 536 are nonseverable and 173
if any of the powers vested with the general assembly 174
pursuant to chapter 536 to review, to delay the effective 175
date, or to disapprove and annul a rule are subsequently 176
held unconstitutional, then the grant of rulemaking 177
authority and any rule proposed or adopted after August 28, 178
2016, shall be invalid and void. 179
380.621. 1. This section shall be known and may be 1
cited as the "Protecting Missouri's Mutual Insurance 2
Companies Act". 3
2. As used in this section, the following terms shall 4
mean: 5
(1) "Adequate reinsurance", commercially available 6
reinsurance as deemed appropriate by the board of directors 7
of the company; 8
(2) "Unlimited aggregate reinsurance", aggregate 9
reinsurance coverage where the losses covered by the 10
reinsurer are not limited. 11
3. Notwithstanding any provision of law to the 12
contrary, the authority expressly granted in this chapter 13
shall be the sole authority granted to the department over 14
any Missouri mutual insurance company operating under the 15 HCS SS SB 1359 146
provisions of this chapter, provided that any provisions 16
regarding premium taxation set forth in chapter 148 that are 17
applicable to Missouri m utual insurance companies shall 18
remain applicable to Missouri mutual insurance companies and 19
further, provided that chapter 382 shall remain applicable 20
to any Missouri mutual insurance company that is a member 21
of, or is seeking to become a member of, a n "insurance 22
holding company system", as that term is defined in section 23
382.010, provided that any examination authorized by chapter 24
382 shall comply with subsections 6 and 7 of this section 25
where a Missouri mutual insurance company owns, in whole or 26
part, an affiliate subject to examination. The department 27
shall not require any company operating under the provisions 28
of this chapter to waive any rights, benefits, or 29
requirements specified in this chapter, nor shall it confer 30
favorable treatment i n exchange for, nor condition the 31
granting of any exception upon, any company conceding 32
additional regulatory oversight by the department. If the 33
department and any company operating under the provisions of 34
this chapter have entered into any agreement in which the 35
department has received concessions including, but not 36
limited to, additional regulatory oversight beyond the 37
authority expressly granted in this chapter, such agreement 38
as it relates to the department's authority is void upon the 39
enactment of this section, but such agreement shall remain 40
in full force and effect for the stated duration of the 41
agreement as it relates to any benefits, allowances, or 42
exemptions granted to the company by the agreement. 43
4. (1) Notwithstanding any pr ovision of law to the 44
contrary, nothing in this chapter nor any regulation 45
promulgated by the department including, but not limited to, 46
any regulation promulgated under sections 374.045, 380.021, 47 HCS SS SB 1359 147
380.271, and 380.561, shall require or be construed to 48
require any company operating under the provisions of this 49
chapter to acquire or carry reinsurance greater than 50
adequate reinsurance including, but not limited to, 51
unlimited aggregate reinsurance. Nothing in this section 52
shall be construed to limit th e option of an offer of 53
unlimited aggregate reinsurance. 54
(2) Missouri mutual insurance companies operating 55
under the provisions of this chapter shall annually file the 56
following with the director no later than March first of 57
each calendar year: 58
(a) Documentation from the reinsurer or broker of its 59
reinsurance program, such as the reinsurance coverage 60
summary or other similar documentation; and 61
(b) A resolution from the company's board of directors 62
stating that: 63
a. The board has reviewed the terms of the reinsurance 64
obtained by the company and believes it is sufficient to 65
protect the financial stability of the company for the 66
upcoming calendar year; 67
b. The board agrees to notify the director within 68
fifteen days after a ny event, or as soon as practicable 69
thereafter if adverse development occurs to trigger this 70
notification, that is expected to exceed the company's 71
aggregate or catastrophe attachment point or could cause the 72
company's reinsurance coverage to be exhaus ted; and 73
c. The board agrees to notify the director within 74
fifteen days after the company identifies liquidity concerns 75
that could impact the company's ability to pay claims or 76
determines that the company's surplus is less than its 77
admitted assets minus liabilities plus the reserve fund or 78 HCS SS SB 1359 148
adequate guaranty fund required by section 380.021 or 79
380.271, as applicable. 80
5. Notwithstanding any provision of law to the 81
contrary including, but not limited to, the provisions of 82
section 380.321, the director shall not have the authority 83
to hold a hearing regarding a proposed merger of companies 84
operating pursuant to the provisions of this chapter unless 85
the director has substantial and competent evidence to 86
believe the proposed merger will prej udice the interests of 87
the policyholders of the companies. The director shall have 88
fifteen business days to review the petition for merger and, 89
upon substantial and competent evidence to believe the 90
proposed merger will prejudice the interests of the 91
policyholders of the companies, send a written notice of a 92
hearing regarding the proposed merger. The written notice 93
of hearing shall itemize the reasons why the director 94
believes the proposed merger will prejudice the 95
policyholders of the companies and shall include the date of 96
a hearing regarding the proposed merger no earlier than 97
thirty days and no later than sixty days after the notice of 98
hearing is received by the companies involved in the 99
proposed merger. 100
6. All working papers, record ed information, 101
documents, and copies thereof, produced by, obtained by, or 102
disclosed to the department or any other person in the 103
course of an examination made under this chapter shall be 104
confidential and not subject to subpoena and shall not be 105
made public by the department or shared with any other 106
person, except as follows: 107
(1) Upon adoption, the director may open the final 108
examination report for public inspection; 109 HCS SS SB 1359 149
(2) The director may disclose the content of an 110
examination report, pr eliminary examination report or 111
results, or any matter relating thereto, to the insurance 112
department of this or any other state or country, or to law 113
enforcement officials of this or any other state or agency 114
of the federal government at any time, so l ong as such 115
agency or office receiving the report or matters relating 116
thereto agrees in writing to hold it confidential and in a 117
manner consistent with this section; and 118
(3) In the event the director determines that legal or 119
regulatory action is appropriate as a result of any 120
examination, he or she may initiate any proceedings or 121
actions as provided by law. 122
7. (1) Notwithstanding the provisions of section 123
380.491, the department shall not charge a rate for 124
examinations in excess of a re asonable fee. A reasonable fee 125
is determined by the average market rate typically charged 126
by third-party vendors for such services. 127
(2) At any time after notification of the commencement 128
of an examination and through its completion, a company may 129
request on a prospective basis that the department's monthly 130
examination billing statements include the following 131
additional details: 132
(a) Hours billed for an examination shall be recorded 133
in a billing statement provided to the company each month 134
that sets forth the time spent, using fifteen -minute 135
increments, for each billing examiner multiplied by the 136
applicable hourly rate; 137
(b) Billing statements shall include a short and 138
concise statement of the work performed during the month to 139
which the billing statement applies by the billing examiner 140
for each period of time spent on the examination; 141 HCS SS SB 1359 150
(c) The hourly rate for a department employee shall be 142
listed on the billing statement and shall include the 143
employee's salary, benefits, an d other expenses of the 144
examination; 145
(d) The hourly rate for a third -party vendor shall be 146
the lowest and best hourly rate obtained by the department 147
by and through the state procurement process; and 148
(e) Billing statements shall also include any other 149
expenses or the examination, including travel expenses, as 150
allowed by section 380.491. 151
(3) At any time after notification of the commencement 152
of an examination and through its completion, a company may 153
request a scheduling conference w ith the department to 154
discuss the following: 155
(a) The purpose and scope of the examination; 156
(b) The estimated costs of the examination; 157
(c) The types of information that the company will be 158
asked to produce; 159
(d) The most efficient means of conducting the 160
examination; and 161
(e) Any alternative approaches in conducting the 162
examination that would be more convenient, less burdensome, 163
or less expensive for the company while still providing for 164
an effective examination by the depa rtment. 165
(4) (a) No more than thirty days after the scheduling 166
conference, the department shall provide the company with a 167
detailed written budget estimate for the examination that 168
shall, for each forthcoming phase of the examination: 169
a. Identify the individuals or firms performing the 170
examination and their daily or hourly rates; 171
b. Provide an estimate of travel, lodging, meal, and 172
other administrative or supply costs; and 173 HCS SS SB 1359 151
c. Estimate the length of time necessary to conduct on - 174
site and off-site examination activities. 175
(b) Within fifteen days of receipt of a budget 176
estimate under paragraph (a) of this subdivision, the 177
company and the department shall have an additional 178
discussion regarding the most efficient means of con ducting 179
the examination and producing information. If necessary, 180
revisions of the budget estimate shall be made. 181
(c) The time periods under paragraphs (a) and (b) of 182
this subdivision may be extended if the company and the 183
department mutually agr ee to the extension. 184
(d) At any time during the examination, the department 185
shall hold another scheduling conference with the company in 186
accordance with the provisions of this subsection and 187
provide a revised budget estimate as set forth in paragr aph 188
(a) of this subdivision if: 189
a. The department determines that the cost of the 190
examination will exceed the stated estimated budget by more 191
than ten percent; or 192
b. There is a material change in staffing. 193
380.631. 1. This section applies to any company 1
operating under the provisions of this chapter. 2
2. Notwithstanding any provision of law to the 3
contrary including, but not limited to, the definition of 4
"insolvent" under section 375.1152, a company operating 5
under the provisions of this chapter is "insolvent" as such 6
term is used in sections 375.1150 to 375.1246, if it is 7
unable to pay its obligations when they are due, or if its 8
admitted assets do not exceed its liabilities plus the 9
reserve fund or adequate guaranty fund required by section 10
380.021 or 380.271, as applicable. 11 HCS SS SB 1359 152
3. Notwithstanding any provision of law to the 12
contrary including, but not limited to, the specific 13
exception under subdivision (1) of subsection 2 of section 14
375.1150, the provisions of sections 375.1150 to 375.1246 15
shall apply to all companies operating under the provisions 16
of this chapter, except that such companies shall not be 17
subject to sections 375.1160 to 375.1164. Sections 375.570 18
to 375.750 shall apply to such proc eedings. 19
4. Notwithstanding any provision of law to the 20
contrary including, but not limited to, the definition of 21
"insolvent insurer" under section 375.772, a company 22
operating under the provisions of this chapter is an 23
"insolvent insurer" as suc h term is used in sections 375.771 24
to 375.779, upon the entry of a final order of liquidation 25
with a finding of insolvency by a court of competent 26
jurisdiction under the applicable provisions of sections 27
375.1150 to 375.1246, unless such order of liqui dation has 28
been stayed or been the subject of a writ of supersedeas or 29
other comparable order. 30
408.035. Notwithstanding the provisions of any other 1
law to the contrary, it is lawful for the parties to agree 2
in writing to any rate of interest, fees, and other terms 3
and conditions in connection with any: 4
(1) Loan to a corporation, general partnership, 5
limited partnership or limited liability company; 6
(2) Extension of credit primarily for agricultural, 7
business, or commercial purposes; 8
(3) Real estate loan, other than residential real 9
estate loans [and loans of less than five thousand dollars 10
secured by real estate used for an agricultural activity ]; or 11
(4) Loan of five thousand dollars or more secured 12
solely by certificates of stock, bonds, bills of exchange, 13 HCS SS SB 1359 153
certificates of deposit, warehouse receipts, or bills of 14
lading pledged as collateral for the repayment of such loans. 15
408.140. 1. No further or other charge or amount 1
whatsoever shall be directly or indirectly charged, 2
contracted for or received for interest, service charges or 3
other fees as an incident to any such extension of credit 4
except as provided and regulated by sections 367.100 to 5
367.200 and except: 6
(1) On loans for thirty days or longer which are other 7
than "open-end credit" as such term is defined in the 8
federal Consumer Credit Protection Act and regulations 9
thereunder, a fee, not to exceed ten percent of the 10
principal amount loaned not to exceed one hund red dollars 11
may be charged by the lender; however, no such fee shall be 12
permitted on any extension, refinance, restructure or 13
renewal of any such loan, unless any investigation is made 14
on the application to extend, refinance, restructure or 15
renew the loan; 16
(2) The lawful fees actually and necessarily paid out 17
by the lender to any public officer for filing, recording, 18
or releasing in any public office any instrument securing 19
the loan, and reasonable and bona fide third -party fees 20
incurred for remote or electronic filing, which fees may be 21
collected when the loan is made or at any time thereafter; 22
however, premiums for insurance in lieu of perfecting a 23
security interest required by the lender may be charged if 24
the premium does not exceed the fees which would otherwise 25
be payable; 26
(3) If the contract so provides, a charge for late 27
payment on each installment or minimum payment in default 28
for a period of not less than fifteen days in an amount not 29
to exceed five percent of each instal lment due or the 30 HCS SS SB 1359 154
minimum payment due or fifteen dollars, whichever is 31
greater, not to exceed fifty dollars. If the contract so 32
provides, a charge for late payment on each twenty -five 33
dollars or less installment in default for a period of not 34
less than fifteen days shall not exceed five dollars; 35
(4) If the contract so provides, a charge for late 36
payment for a single payment note in default for a period of 37
not less than fifteen days in an amount not to exceed five 38
percent of the payment due; pr ovided that, the late charge 39
for a single payment note shall not exceed fifty dollars; 40
(5) Charges or premiums for insurance written in 41
connection with any loan against loss of or damage to 42
property or against liability arising out of ownership or 43
use of property as provided in section 367.170; however, 44
notwithstanding any other provision of law, with the consent 45
of the borrower, such insurance may cover property all or 46
part of which is pledged as security for the loan, and 47
charges or premiums for insurance providing life, health, 48
accident, or involuntary unemployment coverage; 49
(6) Reasonable towing costs and expenses of retaking, 50
holding, preparing for sale, and selling any personal 51
property in accordance with the uniform commercial c ode - 52
secured transactions, sections 400.9 -101 to 400.9-809; 53
(7) A reasonable service fee not to exceed the amount 54
permitted under subdivision (2) of subsection 6 of section 55
570.120 for any check, draft, order, or like instrument that 56
is returned unpaid by a financial institution, plus an 57
amount equal to the actual fees charged by the financial 58
institution for each check, draft, order, or like instrument 59
returned unpaid; 60
(8) If the contract or promissory note, signed by the 61
borrower, provides for attorney fees, and if it is necessary 62 HCS SS SB 1359 155
to bring suit, such attorney fees may not exceed fifteen 63
percent of the amount due and payable under such contract or 64
promissory note, together with any court costs assessed. 65
The attorney fees shall only be applicable where the 66
contract or promissory note is referred for collection to an 67
attorney, and is not handled by a salaried employee of the 68
holder of the contract; 69
(9) If the open-end credit contract is tied to a 70
transaction account in a dep ository institution, such 71
account is in the institution's assets and such contract 72
provides for loans of thirty -one days or longer which are 73
"open-end credit", as such term is defined in the federal 74
Consumer Credit Protection Act and regulations thereu nder, 75
the creditor may charge a credit advance fee of up to the 76
lesser of seventy-five dollars or ten percent of the credit 77
advanced from time to time from the line of credit; such 78
credit advance fee may be added to the open -end credit 79
outstanding along with any interest, and shall not be 80
considered the unlawful compounding of interest as specified 81
under section 408.120; 82
(10) A deficiency waiver addendum, guaranteed asset 83
protection, or a similar product purchased as part of a loan 84
transaction with collateral and at the borrower's consent, 85
provided the cost of the product is disclosed in the loan 86
contract, is reasonable, and the requirements of section 87
408.380 are met; 88
(11) A convenience fee for payments using an 89
alternative payment channel that accepts a debit or credit 90
card not present transaction, nonface -to-face payment, 91
provided that: 92
(a) The person making the payment is notified of the 93
convenience fee; and 94 HCS SS SB 1359 156
(b) The fee is fixed or flat, except that the fee may 95
vary based upon method of payment used ; and 96
(12) A charge equal to the cost of the credit report . 97
2. Other provisions of law to the contrary 98
notwithstanding, an open -end credit contract under which a 99
credit card is issued by a company, financial institution, 100
savings and loan or other credit issuing company whose 101
credit card operations are located in Missouri may charge an 102
annual fee, provided that no finance charge shall be 103
assessed on new purchases other than cash advances if such 104
purchases are paid for within twenty -five days of the date 105
of the periodic statement therefor. 106
3. Notwithstanding any other provision of law to the 107
contrary, in addition to charges allowed pursuant to section 108
408.100, an open-end credit contract provided b y a company, 109
financial institution, savings and loan or other credit 110
issuing company which is regulated pursuant to this chapter 111
may charge an annual fee not to exceed fifty dollars. 112
427.300. 1. This section shall be known, and may be 1
cited as, the "Commercial Financing Disclosure Law". 2
2. For purposes of this section, the following terms 3
mean: 4
(1) "Account"; 5
(a) Includes: 6
a. A right to payment of a monetary obligation, 7
regardless of whether earned by perfo rmance, for one of the 8
following: 9
(i) Property that has been or is to be sold, leased, 10
licensed, assigned, or otherwise disposed of; 11
(ii) Services rendered or to be rendered; 12
(iii) A policy of insurance issued or to be issued; 13
(iv) A secondary obligation incurred or to be incurred; 14 HCS SS SB 1359 157
(v) Energy provided or to be provided; 15
(vi) The use or hire of a vessel under a charter or 16
other contract; 17
(vii) Arising out of the use of a credit or charge 18
card or information conta ined on or for use with the card; or 19
(viii) As winnings in a lottery or other game of 20
chance operated or sponsored by a state, governmental unit 21
of a state, or person licensed or authorized to operate the 22
game by a state or governmental unit of a state; and 23
b. Health-care-insurance receivables; and 24
(b) Does not include: 25
a. Rights to payment evidenced by chattel paper or an 26
instrument; 27
b. Commercial tort claims; 28
c. Deposit accounts; 29
d. Investment property; 30
e. Letter-of-credit rights or letters of credit; or 31
f. Rights to payment for moneys or funds advanced or 32
sold, other than rights arising out of the use of a credit 33
or charge card or information contained on or for use with 34
the card; 35
(2) "Accounts receivable purchase transaction", any 36
transaction in which the business forwards or otherwise 37
sells to the provider all or a portion of the business's 38
accounts or payment intangibles at a discount to their 39
expected value. The provider's characte rization of an 40
accounts receivable purchase transaction as a purchase is 41
conclusive that the accounts receivable purchase transaction 42
is not a loan or a transaction for the use, forbearance, or 43
detention of money; 44
(3) "Broker", any person who, fo r compensation or the 45
expectation of compensation, obtains a commercial financing 46 HCS SS SB 1359 158
transaction or an offer for a commercial financing 47
transaction from a third party that would, if executed, be 48
binding upon that third party and communicates that offer to 49
a business located in this state. The term "broker" 50
excludes a provider, or any individual or entity whose 51
compensation is not based or dependent on the terms of the 52
specific commercial financing transaction obtained or 53
offered; 54
(4) "Business", an individual or group of individuals, 55
sole proprietorship, corporation, limited liability company, 56
trust, estate, cooperative, association, or limited or 57
general partnership engaged in a business activity; 58
(5) "Business purpose transaction", an y transaction 59
where the proceeds are provided to a business or are 60
intended to be used to carry on a business and not for 61
personal, family, or household purposes. For purposes of 62
determining whether a transaction is a business purpose 63
transaction, the provider may rely on any written statement 64
of intended purpose signed by the business. The statement 65
may be a separate statement or may be contained in an 66
application, agreement, or other document signed by the 67
business or the business owner or owne rs; 68
(6) "Commercial financing facility", a provider's plan 69
for purchasing multiple accounts receivable from the 70
recipient over a period of time pursuant to an agreement 71
that sets forth the terms and conditions governing the use 72
of the facility; 73
(7) "Commercial financing transaction", any commercial 74
loan, accounts receivable purchase transaction, commercial 75
open-end credit plan or each to the extent the transaction 76
is a business purpose transaction; 77 HCS SS SB 1359 159
(8) "Commercial loan", a loan to a business, whether 78
secured or unsecured; 79
(9) "Commercial open-end credit plan", commercial 80
financing extended by any provider under a plan in which: 81
(a) The provider reasonably contemplates repeat 82
transactions; and 83
(b) The amount of financing that may be extended to 84
the business during the term of the plan, up to any limit 85
set by the provider, is generally made available to the 86
extent that any outstanding balance is repaid; 87
(10) "Depository institution", any of the following: 88
(a) A bank, trust company, or industrial loan company 89
doing business under the authority of, or in accordance 90
with, a license, certificate, or charter issued by the 91
United States, this state, or any other state, district, 92
territory, or commonwealt h of the United States that is 93
authorized to transact business in this state; 94
(b) A federally chartered savings and loan 95
association, federal savings bank, or federal credit union 96
that is authorized to transact business in this state; or 97
(c) A savings and loan association, savings bank, or 98
credit union organized under the laws of this or any other 99
state that is authorized to transact business in this state; 100
(11) "General intangible", any personal property, 101
including things in action, other than accounts, chattel 102
paper, commercial tort claims, deposit accounts, documents, 103
goods, instruments, investment property, letter -of-credit 104
rights, letters of credit, money, and oil, gas, or other 105
minerals before extraction. "General intangible" also 106
includes payment intangibles and software; 107 HCS SS SB 1359 160
(12) "Payment intangible", a general intangible under 108
which the account debtor's principal obligation is a 109
monetary obligation; 110
(13) "Provider", a person who consummates more than 111
five commercial financing transactions to a business located 112
in this state in any calendar year. "Provider" also 113
includes a person that enters into a written agreement with 114
a depository institution to arrange for the extension of a 115
commercial financing transac tion by the depository 116
institution to a business via an online lending platform 117
administered by the person. The fact that a provider 118
extends a specific offer for a commercial financing 119
transaction on behalf of a depository institution shall not 120
be construed to mean that the provider engaged in lending or 121
financing or originated that loan or financing. 122
3. (1) A provider that consummates a commercial 123
financing transaction shall disclose the terms of the 124
commercial financing transaction as requ ired by this 125
section. The disclosures shall be provided at or before 126
consummation of the transaction. Only one disclosure is 127
required for each commercial financing transaction, and a 128
disclosure is not required as a result of the modification, 129
forbearance, or change to a consummated commercial financing 130
transaction. 131
(2) A provider shall disclose the following in 132
connection with each commercial financing transaction: 133
(a) The total amount of funds provided to the business 134
under the terms of the commercial financing transaction 135
agreement. This disclosure shall be labeled "Total Amount 136
of Funds Provided"; 137
(b) The total amount of funds disbursed to the 138
business under the terms of the commercial financing 139 HCS SS SB 1359 161
transaction, if less than t he total amount of funds 140
provided, as a result of any fees deducted or withheld at 141
disbursement and any amount paid to a third party on behalf 142
of the business. This disclosure shall be labeled "Total 143
Amount of Funds Disbursed"; 144
(c) The total amount to be paid to the provider 145
pursuant to the commercial financing transaction agreement. 146
This disclosure shall be labeled "Total of Payments"; 147
(d) The total dollar cost of the commercial financing 148
transaction under the terms of the agreement, d erived by 149
subtracting the total amount of funds provided from the 150
total of payments. This calculation shall include any fees 151
or charges deducted by the provider from the "Total Amount 152
of Funds Provided". This disclosure shall be labeled "Total 153
Dollar Cost of Financing"; 154
(e) The manner, frequency, and amount of each 155
payment. This disclosure shall be labeled "Payments". If 156
the payments may vary, the provider shall instead disclose 157
the manner, frequency, and the estimated amount of the 158
initial payment labeled "Estimated Payments" and the 159
commercial financing transaction agreement shall include a 160
description of the methodology for calculating any variable 161
payment and the circumstances when payments may vary; 162
(f) A statement of whether there are any costs or 163
discounts associated with prepayment of the commercial 164
financing product including a reference to the paragraph in 165
the agreement that creates the contractual rights of the 166
parties related to prepayment. This disclosure shall be 167
labeled "Prepayment"; and 168
(3) A provider that consummates a commercial financing 169
facility may provide disclosures of this subsection which 170
are based on an example of a transaction that could occur 171 HCS SS SB 1359 162
under the agreement. The example shall be based on an 172
accounts receivable total face amount owed of ten thousand 173
dollars. Only one disclosure is required for each 174
commercial financing facility, and a disclosure is not 175
required as result of a modification, forbearance, or change 176
to the facility. A new disclosure is not required each time 177
accounts receivable are purchased under the facility. 178
4. The provisions of this section shall not apply to 179
the following: 180
(1) A provider that is a depository institution or a 181
subsidiary or affiliate ; 182
(2) A provider that is a service corporation to a 183
depository institution that is: 184
(a) Owned and controlled by a depository institution; 185
and 186
(b) Regulated by a federal banking agency; 187
(3) A provider that is a lender regulated und er the 188
federal Farm Credit Act, 12 U.S.C. Section 2001, et seq.; 189
(4) A commercial financing transaction that is: 190
(a) Secured by real property; 191
(b) A lease; or 192
(c) A purchase money obligation that is incurred as 193
all or part of the price of the collateral or for value 194
given to enable the business to acquire rights in or the use 195
of the collateral if the value is in fact so used; 196
(5) A commercial financing transaction in which the 197
recipient is a motor vehicle dealer or an affi liate of such 198
a dealer, or a vehicle rental company, or an affiliate of 199
such a company, pursuant to a commercial loan or commercial 200
open-end credit plan of at least fifty thousand dollars or a 201
commercial financing transaction offered by a person in 202
connection with the sale or lease of products or services 203 HCS SS SB 1359 163
that such person manufactures, licenses, or distributes, or 204
whose parent company or any of its directly or indirectly 205
owned and controlled subsidiaries manufactures, licenses, or 206
distributes; 207
(6) A commercial financing transaction that is a 208
factoring transaction, purchase, sale, advance, or similar 209
of accounts receivable owed to a health care provider 210
because of a patient's personal injury treated by the health 211
care provider; 212
(7) A provider that is licensed as a money transmitter 213
in accordance with a license, certificate, or charter issued 214
by this state or any other state, district, territory, or 215
commonwealth of the United States; 216
(8) A provider that consummates no more than five 217
commercial financing transactions in this state in a twelve - 218
month period; or 219
(9) A commercial financing transaction of more than 220
five hundred thousand dollars. 221
5. (1) No person shall engage in business as a broker 222
within this state for compensation, unless prior to 223
conducting such business, the person has filed a 224
registration with the division of finance within the 225
department of commerce and insurance and has on file a good 226
and sufficient bond as specified in this subsection. The 227
registration shall be effective upon receipt by the division 228
of finance of a completed registration form and the required 229
registration fee, and shall remain effective until the time 230
of renewal. 231
(2) After filing an initial registration form, a 232
broker shall file, on or before January thirty -first of each 233
year, a renewal registration form along with the required 234
renewal registration fee. 235 HCS SS SB 1359 164
(3) The broker shall pay a one -hundred-dollar 236
registration fee upon the filing of an initial registrati on 237
and a fifty-dollar renewal registration fee upon the filing 238
of a renewal registration. 239
(4) The registration form required by this subsection 240
shall include the following: 241
(a) The name of the broker; 242
(b) The name in which the broker i s transacted if 243
different from that stated in paragraph (a) of this 244
subdivision; 245
(c) The address of the broker's principal office, 246
which may be outside this state; 247
(d) Whether any officer, director, manager, operator, 248
or principal of the br oker has been convicted of a felony 249
involving an act of fraud, dishonesty, breach of trust, or 250
money laundering; and 251
(e) The name and address in this state of a designated 252
agent upon whom service of process may be made. 253
(5) If information in a registration form changes or 254
otherwise becomes inaccurate after filing, the broker shall 255
not be required to file a further registration form prior to 256
the time of renewal. 257
(6) Every broker shall obtain a surety bond issued by 258
a surety company authorized to do business in this state. 259
The amount of the bond shall be ten thousand dollars. The 260
bond shall be in favor of the state of Missouri. Any person 261
damaged by the broker's breach of contract or of any 262
obligation arising therefrom, or by an y violation of this 263
section, may bring an action against the bond to recover 264
damages suffered. The aggregate liability of the surety 265
shall be only for actual damages and in no event shall 266
exceed the amount of the bond. 267 HCS SS SB 1359 165
(7) Employees regularly em ployed by a broker who has 268
complied with this subsection shall not be required to file 269
a registration or obtain a surety bond when acting within 270
the scope of their employment for the broker. 271
6. (1) Any person who violates any provision of this 272
section shall be punished by a fine of five hundred dollars 273
per incident, not to exceed twenty thousand dollars for all 274
aggregated violations arising from the use of the 275
transaction documentation or materials found to be in 276
violation of this section. Any person who violates any 277
provision of this section after receiving written notice of 278
a prior violation from the attorney general shall be 279
punished by a fine of one thousand dollars per incident, not 280
to exceed fifty thousand dollars for all aggregated 281
violations arising from the use of the transaction 282
documentation or materials found to be in violation of this 283
section. 284
(2) Violation of any provision of this section shall 285
not affect the enforceability or validity of the underlying 286
agreement. 287
(3) This section shall not create a private right of 288
action against any person or other entity based upon 289
compliance or noncompliance with its provisions. 290
(4) Authority to enforce compliance with this section 291
is vested exclusively in the att orney general of this state. 292
7. The requirements of subsections 3 and 5 of this 293
section shall take effect upon either: 294
(1) Six months after the division of finance finalizes 295
promulgating rules, if the division intends to promulgate 296
rules; or 297
(2) February 28, 2025, if the division does not intend 298
to promulgate rules. 299 HCS SS SB 1359 166
8. The division of finance may promulgate rules 300
implementing this section. If the division of finance 301
intends to promulgate rules, it shall declare its intent to 302
do so no later than February 28, 2025. Any rule or portion 303
of a rule, as that term is defined in section 536.010, that 304
is created under the authority delegated in this section 305
shall become effective only if it complies with and is 306
subject to all of th e provisions of chapter 536 and, if 307
applicable, section 536.028. This section and chapter 536 308
are nonseverable and if any of the powers vested with the 309
general assembly pursuant to chapter 536 to review, to delay 310
the effective date, or to disapprove a nd annul a rule are 311
subsequently held unconstitutional, then the grant of 312
rulemaking authority and any rule proposed or adopted after 313
August 28, 2024, shall be invalid and void. 314
442.210. 1. The certificate of acknowledgment shall 1
state the act of acknowledgment, and that the person making 2
the same was personally known to at least one judge of the 3
court, or to the officer granting the certificate, to be the 4
person whose name is subscribed to the instrument as a party 5
thereto, or was proved to be such by at least two witnesses, 6
whose names and places of residence shall be inserted in the 7
certificate; and the following forms of acknowledgment may 8
be used in the case of conveyances or other written 9
instruments affecting real esta te; and any acknowledgment so 10
taken and certificate shall be sufficient to satisfy all 11
requirements of law relating to the execution or recording 12
of such instruments (begin in all cases by a caption, 13
specifying the state and place where the acknowledgm ent is 14
taken): 15
(1) In case of natural persons acting in their own 16
right 17 HCS SS SB 1359 167
On this ______ day of ______, 20______, before 18
me personally appeared A B (or A B and C D), to 19
me known to be the person (or persons) described 20
in and who executed the foreg oing instrument, 21
and acknowledged that he (or they) executed the 22
same as his (or their) free act and deed. 23
(2) In the case of natural persons acting by attorney 24
On this ______ day of ______, 20______, before 25
me personally appeared A B, to me known to be 26
the person who executed the foregoing instrument 27
in behalf of C D, and acknowledged that he 28
executed the same as the free act and deed of C 29
D. 30
(3) In the case of corporations or joint stock 31
associations 32
On this ______ day of ______, 20___ ___, before 33
me appeared A B, to me personally known, who, 34
being by me duly sworn (or affirmed) did say 35
that he is the president (or other officer or 36
agent of the corporation or association), of 37
(describing the corporation or association), and 38
that the seal affixed to foregoing instrument is 39
the corporate seal of said corporation (or 40
association), and that said instrument was 41
signed and sealed in behalf of said corporation 42
(or association) by authority of its board of 43
directors (or trustees), and said A B 44
acknowledged said instrument to be the free act 45
and deed of said corporation (or association). 46
2. In case the corporation or association has no 47
corporate seal, omit the words "the seal affixed to said 48
instrument is the corporate seal of said corporation (or 49 HCS SS SB 1359 168
association), and that", and add at the end of the affidavit 50
clause the words "and that said corporation (or association) 51
has no corporate seal". 52
3. (In all cases add signature and title of the 53
officer taking the acknowledgme nt.) 54
[4.When a married woman unites with her husband in the 55
execution of any such instrument, and acknowledges the same 56
in one of the forms above sanctioned, she shall be described 57
in the acknowledgment as his wife, but in all other respects 58
her acknowledgment shall be taken and certified as if she 59
were sole; and no separate examination of a married woman in 60
respect to the execution of any release or dower, or other 61
instrument affecting real estate, shall be required. ] 62
456.950. 1. As used in this section, "qualified 1
spousal trust" means a trust: 2
(1) The settlors of which are married to each other at 3
the time of the creation of the trust; and 4
(2) The terms of which provide that during the joint 5
lives of the settlors or the life of the sole surviving 6
settlor all property transferred to, or held by, the trustee 7
are: 8
(a) Held and administered in one trust for the benefit 9
of both settlors, which may be revocable by either settlor 10
or both settlors while ei ther or both are alive, and by one 11
settlor after the death or incapacity of the other, and each 12
settlor having the right to receive distributions of income 13
or principal, whether mandatory or within the discretion of 14
the trustee, from the entire trust f or the joint lives of 15
the settlors and for the survivor's life; or 16
(b) Held and administered in two or more separate 17
shares of one trust for the benefit of each or both of the 18
settlors, with the trust revocable by each settlor with 19 HCS SS SB 1359 169
respect to that settlor's separate share of that trust 20
without the participation or consent of the other settlor, 21
and each settlor having the right to receive distributions 22
of income or principal, whether mandatory or within the 23
discretion of the trustee, from that settlor's separate 24
share for that settlor's life; or 25
(c) Held and administered under the terms and 26
conditions contained in paragraphs (a) and (b) of this 27
subdivision. 28
2. A qualified spousal trust may contain any other 29
trust terms that are n ot inconsistent with the provisions of 30
this section, including, without limitation, a discretionary 31
power to distribute trust property to a person in addition 32
to a settlor. 33
3. All property at any time held in a qualified 34
spousal trust, without re gard to how such property was 35
titled prior to it being so held [,]: 36
(1) Shall have the same immunity from the claims of a 37
separate creditor of either settlor as if such property were 38
held outside the trust by the settlors as tenants by the 39
entirety, unless otherwise provided in writing by the 40
settlor or settlors who transferred such property to the 41
trust, and such property shall be treated for that purpose, 42
including without limitation, federal and state bankruptcy 43
laws, as tenants by entirety property[. Property held in a 44
qualified spousal trust ]; 45
(2) With the exception of any written financial 46
obligations, written guarantees, or secured or unsecured 47
transactions executed by the settlors and held in a 48
qualified spousal trust, shall continue to be immune and 49
exempt from attachment during the life of the surviving 50
settlor to the extent the property was held in a qualified 51 HCS SS SB 1359 170
spousal trust prior to the death of the first settlor and 52
remains in a qualified spousal trust. This includes any 53
property appreciation; and 54
(3) Shall cease to receive immunity from the claims of 55
creditors upon the dissolution of marriage of the settlors 56
by a court. 57
4. As used in this section, "property" means any 58
interest in any type of property h eld in a qualified spousal 59
trust, the income thereon, and any property into which such 60
interest, proceeds, or income may be converted. 61
5. Upon the death of each settlor, all property held 62
by the trustee of the qualified spousal trust shall be 63
distributed as directed by the then current terms of the 64
governing instrument of such trust. Upon the death of the 65
first settlor to die, if immediately prior to death the 66
predeceased settlor's interest in the qualified spousal 67
trust was then held or deemed to be held in such settlor's 68
separate share, the property held in such settlor's separate 69
share may pass into an irrevocable trust for the benefit of 70
the surviving settlor or other beneficiary upon such terms 71
as the governing instrument shall direct , including without 72
limitation a spendthrift provision as provided in section 73
456.5-502. Property may be held in or transferred to a 74
settlor's joint or separate share of a trust: 75
(1) By designation under the current terms of the 76
governing instrument of such trust; 77
(2) According to the specific titling of property or 78
other designation that refers to such joint or separate 79
share of such trust; or 80
(3) By designation to the trustee as the owner as 81
provided in section 456.1 -113. 82 HCS SS SB 1359 171
6. The respective rights of settlors who are married 83
to each other in any property for purposes of a dissolution 84
of the settlors' marriage shall not be affected or changed 85
by reason of the transfer of that property to, or its 86
subsequent administration a s an asset of, a qualified 87
spousal trust during the marriage of the settlors, unless 88
both settlors expressly agree otherwise in writing. 89
7. No transfer to a qualified spousal trust shall 90
avoid or defeat the Missouri uniform fraudulent transfer act 91
in chapter 428. 92
8. This section shall apply to all trusts which 93
fulfill the criteria set forth in this section for a 94
qualified spousal trust regardless of whether such trust was 95
created before, on, or after August 28, 2011. 96
[95.280. 1. Subject to the provisions of 1
section 110.030, the city council, at its 2
regular meetings in July of each year, may 3
receive sealed proposals for the deposit of the 4
city funds from banking institutions doing 5
business within the city that desi re to be 6
selected as the depositary of the funds of the 7
city. Notice that bids will be received shall 8
be published by the city clerk not less than one 9
nor more than four weeks before the meeting, in 10
some newspaper published in the city. Any 11
banking institution doing business in the city, 12
desiring to bid, shall deliver to the city 13
clerk, on or before the day of the meeting, a 14
sealed proposal stating the rate percent upon 15
daily balances that the banking institution 16
offers to pay to the city for t he privilege of 17
being the depositary of the funds of the city 18
for the year next ensuing the date of the 19
meeting; or, in the event that the selection is 20
made for a less term than one year, as herein 21
provided, then for the time between the date of 22
the bid and the next regular time for the 23
selection of a depositary. It is a misdemeanor 24 HCS SS SB 1359 172
for the city clerk or other person to disclose 25
directly or indirectly the amount of any bid to 26
any person before the selection of the 27
depositary. 28
2. Notwithstanding the provisions of 29
subsection 1 of this section to the contrary, 30
the city council of any third class city with a 31
population of more than fifteen thousand and 32
less than nineteen thousand that is located in 33
any county of the fourth classification w ith a 34
population of more than forty thousand and less 35
than forty-eight thousand three hundred, or of 36
any city of the third classification with more 37
than ten thousand five hundred but less than ten 38
thousand six hundred inhabitants may receive 39
sealed proposals for the deposit of city funds 40
from banking institutions doing business within 41
the city at any of the regular meetings of such 42
city. The city shall send notice of bids to 43
each banking institution in the city by regular 44
mail at the time the no tice is published in the 45
newspaper in subsection 1 of this section. The 46
banking institution selected as the depositary 47
shall be offered a depositary contract for a 48
maximum of two years. Any such city shall 49
follow the bid procedure established in 50
subsection 1 of this section, except as 51
otherwise provided in this subsection. ] 52
[95.285. 1. Except as provided in 1
subsection 2 of this section, upon the opening 2
of the sealed proposals submitted, the city 3
council shall select as the depositary of the 4
funds of the city the banking institution 5
offering to pay to the city the largest amount 6
for the privilege; except that the council may 7
reject any or all bids. Within five days after 8
the selection of the depositary, the banking 9
institution selected shall deposit the 10
securities as required by sections 110.010 and 11
110.020. The rights and duties of the parties 12
to the depositary contract are as provided in 13
section 110.010. 14 HCS SS SB 1359 173
2. Notwithstanding any provision of 15
section 95.280 or this section to the contrary, 16
the contract term for any city of the third 17
classification with more than ten thousand five 18
hundred but less than ten thousand six hundred 19
inhabitants shall begin on the first day of 20
August following the receipt of the bid 21
proposals.] 22
[95.355. Boards of aldermen in cities of 1
the fourth class, at their first regular 2
meetings in the months of January, April, July 3
and October of each year, may select a 4
depositary for the funds of their respective 5
cities, for the length of time and under the 6
rules and regulations that are provided and 7
prescribed by ordinance therefor. The rights 8
and duties of the parties to the depositary 9
contract are as provided in section 110.010. 10
The deposits shall be secur ed by deposit of 11
securities as required by sections 110.010 and 12
110.020. The depositary shall be a banking 13
institution doing business within the city. If 14
such depositary cannot be selected, or such 15
satisfactory arrangements made, the boards of 16
aldermen may invest the moneys upon the terms 17
and under the conditions provided by law for the 18
loaning of county and school moneys. ] 19
[361.700. 1. Sections 361.700 to 361.727 1
shall be known and may be cited as the "Sale of 2
Checks Law". 3
2. For the purposes of sections 361.700 to 4
361.727, the following terms mean: 5
(1) "Check", any instrument for the 6
transmission or payment of money and shall also 7
include any electronic means of transmitting or 8
paying money; 9
(2) "Director", the director of the 10
division of finance; 11
(3) "Licensee", any person duly licensed 12
by the director pursuant to sections 361.700 to 13
361.727; 14
(4) "Person", any individual, partnership, 15
association, trust or corporation. ] 16 HCS SS SB 1359 174
[361.705. 1. No person shall issue checks 1
in this state for a consideration without first 2
obtaining a license from the director; provided, 3
however, that sections 361.700 to 361.727 shall 4
not apply to the receipt of money by an 5
incorporated telegraph company at any office or 6
agency of such company for immediate 7
transmission by telegraph nor to any bank, trust 8
company, savings and loan association, credit 9
union, or agency of the United States government. 10
2. Any person who violates any of the 11
provisions of sections 361.700 to 361.727 or 12
attempts to sell or issue checks without having 13
first obtained a license from the director shall 14
be deemed guilty of a class A misdemeanor. ] 15
[361.707. 1. Each application for a 1
license pursuant to sections 361.700 to 361.727 2
shall be in writing and under oath to the 3
director in such form as he may prescribe. The 4
application shall state the full name and 5
business address of: 6
(1) The proprietor, if the applicant is an 7
individual; 8
(2) Every member, if the applicant is a 9
partnership or association; 10
(3) The corporation and each officer and 11
director thereof, if the applicant is a 12
corporation. 13
2. Each application for a license shall be 14
accompanied by an investigation fee of three 15
hundred dollars. If the license is granted the 16
investigation fee shall be applied to the 17
license fee for the first year. No 18
investigation fee shall be refunded. ] 19
[361.711. Each application for a license 1
shall be accompanied by a corporate surety bond 2
in the principal sum of one hundred thousand 3
dollars. The bond shall be in form satisfactory 4
to the director and shall be issued by a bonding 5
company or insurance company authorized to do 6
business in this state, to secure the faithful 7
performance of the obligations of the applicant 8
and the agents and subagents of the applicant 9 HCS SS SB 1359 175
with respect to the receipt, transmission, and 10
payment of money in connection with the sale or 11
issuance of checks and also t o pay the costs 12
incurred by the division to remedy any breach of 13
the obligations of the applicant subject to the 14
bond or to pay examination costs of the division 15
owed and not paid by the applicant. Upon 16
license renewal, the required amount of bond 17
shall be as follows: 18
(1) For all licensees selling payment 19
instruments or stored value cards, five times 20
the high outstanding balance from the previous 21
year with a minimum of one hundred thousand 22
dollars and a maximum of one million dollars; 23
(2) For all licensees receiving money for 24
transmission, five times the greatest amount 25
transmitted in a single day during the previous 26
year with a minimum of one hundred thousand 27
dollars and a maximum of one million dollars. 28
If in the opinion of the director the bond shall 29
at any time appear to be inadequate, insecure, 30
exhausted, or otherwise doubtful, additional 31
bond in form and with surety satisfactory to the 32
director shall be filed within fifteen days 33
after notice of the requirement is given to the 34
licensee by the director. An applicant or 35
licensee may, in lieu of filing any bond 36
required under this section, provide the 37
director with an irrevocable letter of credit, 38
as defined in section 400.5 -103, issued by any 39
state or federal financi al institution. 40
Whenever in the director's judgment it is 41
necessary or expedient, the director may perform 42
a special examination of any person licensed 43
under sections 361.700 to 361.727 with all 44
authority under section 361.160 as though the 45
licensee were a bank. The cost of such 46
examination shall be paid by the licensee. ] 47
[361.715. 1. Upon the filing of the 1
application, the filing of a certified audit, 2
the payment of the investigation fee and the 3
approval by the director of the necessary bond, 4
the director shall cause, investigate, and 5 HCS SS SB 1359 176
determine whether the character, responsibility, 6
and general fitness of the principals of the 7
applicant or any affiliates are such as to 8
command confidence and warrant belief that the 9
business of the applicant will be conducted 10
honestly and efficiently and that the applicant 11
is in compliance with all other applicable state 12
and federal laws. If satisfied, the director 13
shall issue to the applicant a license pursuant 14
to the provisions of sections 361.700 to 15
361.727. In processing a renewal license, the 16
director shall require the same information and 17
follow the same procedures described in this 18
subsection. 19
2. Each licensee shall pay to the director 20
before the issuance of the l icense, and annually 21
thereafter on or before April fifteenth of each 22
year, a license fee of four hundred dollars. 23
3. The director may assess a reasonable 24
charge, not to exceed four hundred dollars, for 25
any application to amend and reissue an exis ting 26
license.] 27
[361.718. Every licensee shall at all 1
times have on demand deposit in a federally 2
insured depository institution or in the form of 3
cash on hand or in the hands of his agents or in 4
readily marketable securities an amo unt equal to 5
all outstanding unpaid checks sold by him or his 6
agents in Missouri, in addition to the amount of 7
his bond. Upon demand by the director, 8
licensees must immediately provide proof of such 9
funds or securities. The director may make such 10
demand as often as reasonably necessary and 11
shall make such demand to each licensee, without 12
prior notice, at least twice each license year. ] 13
[361.720. Each licensee may conduct 1
business at one or more locations within this 2
state and by means of employees, agents, 3
subagents or representatives as such licensee 4
may designate. No license under sections 5
361.700 to 361.727 shall be required of any such 6
employee, agent, subagent or representative who 7
sells checks in behalf of a licens ee. Each such 8 HCS SS SB 1359 177
agent, subagent or representative shall upon 9
demand transfer and deliver to the licensee the 10
proceeds of the sale of licensee's checks less 11
the fees, if any, due such agent, subagent or 12
representative.] 13
[361.723. Each licensee shall file with 1
the director annually on or before April 2
fifteenth of each year a statement listing the 3
locations of the offices of the licensee and the 4
names and locations of the agents or subagents 5
authorized by the licensee to engage in the sale 6
of checks of which the licensee is the issuer.] 7
[361.725. The director may at any time 1
suspend or revoke a license, for any reason he 2
might refuse to grant a license, for failure to 3
pay an annual fee or for a violation of a ny 4
provision of sections 361.700 to 361.727. No 5
license shall be denied, revoked or suspended 6
except on ten days' notice to the applicant or 7
licensee. Upon receipt of such notice the 8
applicant or licensee may, within five days of 9
such receipt, make written demand for a 10
hearing. The director shall thereafter hear and 11
determine the matter in accordance with the 12
provisions of chapter 536. ] 13
[361.727. The director shall issue 1
regulations necessary to carry out the intent 2
and purposes of sections 361.700 to 361.727, 3
pursuant to the provisions of section 361.105 4
and chapter 536.] 5
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