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Missouri Senate Bill SB1359

Missouri 2024 Regular Session

Missouri Senate Bill SB1359 Compare Versions

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1-
2-EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3-and is intended to be omitted in the law.
41 SECONDREGULARSESSION
5-[TRULY AGREED TO AND FINALLY PASSED ]
62 HOUSECOMMITTEESUBSTITUTEFOR
73 SENATESUBSTITUTEFOR
84 SENATEBILLNO.1359
95 102NDGENERALASSEMBLY
10-2024
11-5286H.07T
6+5286H.07C DANARADEMANMILLER,ChiefClerk
127 ANACT
13-To repeal sections 95.280, 95.285, 95.355, 205.160, 205.165, 205.190, 208.151, 303.425, 303.430,
14-303.440, 361.700, 361.705, 361.707, 361.711, 361.715, 361.718, 361.720, 361.723,
15-361.725, 361.727, 362.245, 362.1010, 362.1015, 362.1030, 362.1035, 362.1040,
16-362.1055, 362.1060, 362.1085, 362.1090, 362.1095, 362.1100, 362.1105, 362.1110,
17-362.1115, 362.1116, 362.1117, 374.190, 375.020, 376.427, 376.1345, 379.1640,
18-408.035, 408.140, 442.210, and 456.950, RSMo, and to enact in lieu thereof eighty-
19-four new sections relating to financial institutions, with penalty provisions.
20-
8+Torepealsections208.151,303.425,303.430,303.440,361.700,361.705,361.707,361.711,
9+361.715,361.718,361.720,361.723,361.725,361.727,374.190,379.1640,408.035,
10+408.140,and442.210,RSMo,andtoenactinlieuthereoffifty-ninenewsections
11+relatingtofinancialinstitutions,withpenaltyprovisions.
2112 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
22- Section A. Sections 95.280, 95.285, 95.355, 205.160, 1
23-205.165, 205.190, 208.151, 303.425, 303.430, 303.440, 361.700, 2
24-361.705, 361.707, 361.711, 361.715, 361.718, 361.720, 361.72 3, 3
25-361.725, 361.727, 362.245, 362.1010, 362.1015, 362.1030, 4
26-362.1035, 362.1040, 362.1055, 362.1060, 362.1085, 362.1090, 5
27-362.1095, 362.1100, 362.1105, 362.1110, 362.1115, 362.1116, 6
28-362.1117, 374.190, 375.020, 376.427, 376.1345, 379.1640, 7
29-408.035, 408.140, 442.210, and 456.950, RSMo, are repealed and 8
30-eighty-four new sections enacted in lieu thereof, to be known 9
31-as sections 110.075, 205.160, 205.165, 205.190, 208.151, 10
32-303.425, 303.430, 303.440, 361.900, 361.903, 361.906, 361.909, 11
33-361.912, 361.915, 361.918, 361 .921, 361.924, 361.927, 361.930, 12
34-361.933, 361.936, 361.939, 361.942, 361.945, 361.948, 361.951, 13 HCS SS SB 1359 2
35-361.954, 361.957, 361.960, 361.963, 361.966, 361.969, 361.972, 14
36-361.975, 361.978, 361.981, 361.984, 361.987, 361.990, 361.996, 15
37-361.999, 361.1002, 361.1005, 361.1 008, 361.1011, 361.1014, 16
38-361.1017, 361.1020, 361.1023, 361.1026, 361.1029, 361.1032, 17
39-361.1035, 362.245, 362.1010, 362.1015, 362.1030, 362.1035, 18
40-362.1040, 362.1055, 362.1060, 362.1085, 362.1090, 362.1095, 19
41-362.1100, 362.1105, 362.1110, 362.1115, 362.1116, 36 2.1117, 20
42-374.190, 374.192, 375.020, 375.1183, 376.427, 376.1345, 21
43-379.1640, 380.621, 380.631, 408.035, 408.140, 427.300, 442.210, 22
44-and 456.950, to read as follows:23
45- 110.075. 1. As used in this section, the following 1
46-terms shall mean: 2
47- (1) "Depository", banking institution headquartered in 3
48-or maintaining a full -service branch in this state which is 4
49-selected by a municipality to hold and manage public funds; 5
50- (2) "Governing body", any city council, board of 6
51-aldermen, or board of trustees; 7
52- (3) "Municipal depositories", any state -chartered or 8
53-federally chartered banking institution as defined in 9
54-Article IV, Section 15 of the Constitution of Missouri; 10
55- (4) "Municipality", any city or village in this state; 11
56- (5) "Public funds", funds owned or controlled by a 12
57-municipality, including tax revenues, fees, grants, and 13
58-other sources of income. 14
59- 2. All municipalities shall select depositories 15
60-through a competitive process in accordance with the 16
61-provisions in this section. The governing body of each 17
62-municipality shall develop and publish a request for 18
63-proposals which shall outline the requirements for selecting 19
64-one or more municipal depositories. Such requirements shall 20
65-address or include the following matters: 21 HCS SS SB 1359 3
66- (1) The municipality shall use due diligence for 22
67-determining the financial stability and soundness of the 23
68-depository based on publicly available financial reports and 24
69-other public sources; 25
70- (2) Safe custody and liquidity of public funds, 26
71-including deposit insurance coverage and pledge of 27
72-collateral or investment in appropriate government 28
73-securities as authorized for public funds; 29
74- (3) Interest rates and fees offered; 30
75- (4) Services offered, including online banking, cash 31
76-management, deposit sw eep and repurchase accounts, 32
77-investment in a common trust fund in eligible securities for 33
78-municipalities and political subdivisions, and other banking 34
79-service options; 35
80- (5) Compliance with all applicable state and federal 36
81-banking regulations; 37
82- (6) Convenient and efficient treasury functions, 38
83-including if the location of the depository institution 39
84-shall be required to be located within the municipality or 40
85-in the same county as the municipality. 41
86- 3. Banking institutions interested in bec oming the 42
87-municipal depository shall respond to the municipality's 43
88-request for proposals within the time frame specified by the 44
89-municipality in the request. 45
90- 4. The governing body shall evaluate the proposals 46
91-based on the criteria outlined in the request for proposals 47
92-and select a banking institution that best meets the 48
93-municipality's needs and objectives. 49
94- 5. The selected banking institution shall enter into a 50
95-contract with the municipality outlining the terms and 51
96-conditions of the deposi tory relationship, including, but 52 HCS SS SB 1359 4
97-not limited to, the interest rates, fees, and services to be 53
98-provided. 54
99- 6. Municipalities shall maintain records of the 55
100-selection process, including all proposals received by the 56
101-municipality for a period of two y ears. 57
102- 205.160. The county commissions of the several 1
103-counties of this state, both within and outside such 2
104-counties, except in counties of the third or fourth 3
105-classification (other than the county in which the hospital 4
106-is located) where there already exists a hospital organized 5
107-pursuant to [chapters 96,] chapter 205 [or 206]; provided, 6
108-however, that this exception shall not prohibit the 7
109-continuation of existing activities otherwise allowed by 8
110-law, are hereby authorized, as provide d in sections 205.160 9
111-to 205.340, to establish, construct, equip, improve, extend, 10
112-repair and maintain public hospitals and engage in health 11
113-care activities, and may issue bonds therefor as authorized 12
114-by the general law governing the incurring of indeb tedness 13
115-by counties. 14
116- 205.165. 1. The board of trustees of any hospital 1
117-authorized under this subsection and organized under the 2
118-provisions of sections 205.160 to 205.340 may invest [up to 3
119-fifteen percent of their ] its funds not required for 4
120-immediate disbursement in obligations or for the operation 5
121-of the hospital as follows: 6
122- (1) Up to fifteen percent of such funds into: 7
123- (a) Any mutual [fund, in the form of an investment 8
124-company, in which shareholders combine money t o invest in a 9
125-variety of] funds that invest in stocks, bonds, or real 10
126-estate, or any combination thereof; 11
127- (b) Stocks[,]; 12
128- (c) Bonds[, and] that have: 13 HCS SS SB 1359 5
129- a. One of the five highest long -term ratings or the 14
130-highest short-term rating issued by a nationally recognized 15
131-rating agency; and 16
132- b. A final maturity of ten years or less; 17
133- (d) Money-market investments; or 18
134- (e) Any combination of investments described in 19
135-paragraphs (a) to (d) of this subdivision; 20
136- (2) Up to thirty-five percent of such funds into: 21
137- (a) Mutual funds that invest in stocks, bonds, or real 22
138-estate, or any combination thereof; 23
139- (b) Bonds that meet the rating and maturity 24
140-requirements of paragraph (c) of subdivision (1) of this 25
141-subsection; 26
142- (c) Money-market investments; or 27
143- (d) Any combination of investments described in 28
144-paragraphs (a) to (c) of this subdivision; and 29
145- (3) The remaining percentage into any investment in 30
146-which the state treasurer is allowed to invest . 31
147- 2. The provisions of this section shall only apply if 32
148-the hospital[: 33
149- (1) Is located within a county of the first 34
150-classification with more than one hundred fifty thousand but 35
151-fewer than two hundred thousand inhabitants; and 36
152- (2)] receives less than [one] three percent of its 37
153-annual revenues from county or state taxes. 38
154- 205.190. 1. The trustees shall, within ten days after 1
155-their appointment or election, qualify by taking the oath of 2
156-civil officers and organize as a board of hos pital trustees 3
157-by the election of one of their number as chairman, one as 4
158-secretary, one as treasurer, and by the election of such 5
159-other officers as they may deem necessary. 6 HCS SS SB 1359 6
160- 2. No trustee shall receive any compensation for his 7
161-or her services performed, but a trustee may receive 8
162-reimbursement for any cash expenditures actually made for 9
163-personal expenses incurred as such trustee, and an itemized 10
164-statement of all such expenses and money paid out shall be 11
165-made under oath by each of such trustees and filed with the 12
166-secretary and allowed only by the affirmative vote of all of 13
167-the trustees present at a meeting of the board. 14
168- 3. The board of hospital trustees shall make and adopt 15
169-such bylaws, rules and regulations for its own guidance and 16
170-for the government of the hospital as may be deemed 17
171-expedient for the economic and equitable conduct thereof, 18
172-not inconsistent with sections 205.160 to 205.340 and the 19
173-ordinances of the city or town wherein such public hospital 20
174-is located. The board shall provide by regulation for the 21
175-bonding of the chief executive officer and may require a 22
176-bond of the treasurer of the board and of any employee of 23
177-the hospital as it deems necessary. The costs of all bonds 24
178-required shall be paid out of the hospital fu nd. Except as 25
179-provided in subsection 4 of this section, it shall have the 26
180-exclusive control of the deposit, investment, and 27
181-expenditure of all moneys collected to the credit of the 28
182-hospital fund, and of the purchase of site or sites, the 29
183-purchase or construction of any hospital buildings, and of 30
184-the supervision, care and custody of the grounds, rooms or 31
185-buildings purchased, constructed, leased or set apart for 32
186-that purpose; provided, that all moneys received for such 33
187-hospital shall be credited to the hospital and deposited 34
188-into the depositary thereof for the sole use of such 35
189-hospital in accordance with the provisions of sections 36
190-205.160 to 205.340. All funds received by each such 37
191-hospital shall be paid out only upon warrants ordered drawn 38 HCS SS SB 1359 7
192-by the treasurer of the board of trustees of said county 39
193-upon the properly authenticated vouchers of the hospital 40
194-board. 41
195- 4. The trustees shall have authority, both within and 42
196-outside the county, except in counties of the third or 43
197-fourth classification (other than the county in which the 44
198-hospital is located) where there already exists a hospital 45
199-organized pursuant to [chapters 96,] chapter 205 [or 206]; 46
200-provided that this exception shall not prohibit the 47
201-continuation of existing activities otherwi se allowed by 48
202-law, to operate, maintain and manage a hospital and hospital 49
203-facilities, and to make and enter into contracts, for the 50
204-use, operation or management of a hospital or hospital 51
205-facilities; to engage in health care activities; to make and 52
206-enter into leases of equipment and real property, a hospital 53
207-or hospital facilities, as lessor or lessee, regardless of 54
208-the duration of such lease; provided that any lease of 55
209-substantially all of the hospital, as the term "hospital" is 56
210-defined in section 197.020, wherein the board of trustees is 57
211-lessor shall be entered into only with the approval of the 58
212-county commission wherein such hospital is located and 59
213-provided that in a county of the second, third or fourth 60
214-classification, the income to such cou nty from such lease of 61
215-substantially all of the hospital shall be appropriated to 62
216-provide health care services in the county; and further to 63
217-provide rules and regulations for the operation, management 64
218-or use of a hospital or hospital facilities. Any agreement 65
219-entered into pursuant to this subsection pertaining to the 66
220-lease of the hospital, as herein defined, shall have a 67
221-definite termination date as negotiated by the parties, but 68
222-this shall not preclude the trustees from entering into a 69
223-renewal of the agreement with the same or other parties 70 HCS SS SB 1359 8
224-pertaining to the same or other subjects upon such terms and 71
225-conditions as the parties may agree. Notwithstanding any 72
226-other law to the contrary, the county commission in any 73
227-noncharter county of the first classification wherein such 74
228-hospital is located may separately negotiate and enter into 75
229-contractual agreements with the lessee as a condition of 76
230-approval of any lease authorized pursuant to this subsection. 77
231- 5. The board of hospital trustees shall have power to 78
232-appoint a suitable chief executive officer and necessary 79
233-assistants and fix their compensation, and shall also have 80
234-power to remove such appointees; and shall in general carry 81
235-out the spirit and intent of sections 205.160 to 205.340 in 82
236-establishing and maintaining a county public hospital. 83
237- 6. The board of hospital trustees may establish and 84
238-operate a day care center to provide care exclusively for 85
239-the children of the hospital's employees. A day care center 86
240-established by the boa rd shall be licensed pursuant to the 87
241-provisions of sections 210.201 to 210.245. The operation of 88
242-a day care center shall be paid for by fees or charges, 89
243-established by the board, and collected from the hospital 90
244-employees who use its services. The board, however, is 91
245-authorized to receive any private donations or grants from 92
246-agencies of the federal government intended for the support 93
247-of the day care center. 94
248- 7. The board of hospital trustees shall hold meetings 95
249-at least once each month, shall k eep a complete record of 96
250-all its proceedings; and three members of the board shall 97
251-constitute a quorum for the transaction of business. 98
252- 8. One of the trustees shall visit and examine the 99
253-hospital at least twice each month and the board shall, 100
254-during the first week in January of each year, file with the 101
255-county commission of the county a report of its proceedings 102 HCS SS SB 1359 9
256-with reference to such hospital and a statement of all 103
257-receipts and expenditures during the year; and shall at such 104
258-time certify the amount necessary to maintain and improve 105
259-the hospital for the ensuing year. 106
260- 208.151. 1. Medical assistance on behalf of needy 1
261-persons shall be known as "MO HealthNet". For the purpose 2
262-of paying MO HealthNet benefits and to comply wi th Title 3
263-XIX, Public Law 89-97, 1965 amendments to the federal Social 4
264-Security Act (42 U.S.C. Section 301, et seq.) as amended, 5
265-the following needy persons shall be eligible to receive MO 6
266-HealthNet benefits to the extent and in the manner 7
267-hereinafter provided: 8
268- (1) All participants receiving state supplemental 9
269-payments for the aged, blind and disabled; 10
270- (2) All participants receiving aid to families with 11
271-dependent children benefits, including all persons under 12
272-nineteen years of age who wou ld be classified as dependent 13
273-children except for the requirements of subdivision (1) of 14
274-subsection 1 of section 208.040. Participants eligible 15
275-under this subdivision who are participating in treatment 16
276-court, as defined in section 478.001, shall have their 17
277-eligibility automatically extended sixty days from the time 18
278-their dependent child is removed from the custody of the 19
279-participant, subject to approval of the Centers for Medicare 20
280-and Medicaid Services; 21
281- (3) All participants receiving blind pe nsion benefits; 22
282- (4) All persons who would be determined to be eligible 23
283-for old age assistance benefits, permanent and total 24
284-disability benefits, or aid to the blind benefits under the 25
285-eligibility standards in effect December 31, 1973, or less 26
286-restrictive standards as established by rule of the family 27
287-support division, who are sixty -five years of age or over 28 HCS SS SB 1359 10
288-and are patients in state institutions for mental diseases 29
289-or tuberculosis; 30
290- (5) All persons under the age of twenty -one years who 31
291-would be eligible for aid to families with dependent 32
292-children except for the requirements of subdivision (2) of 33
293-subsection 1 of section 208.040, and who are residing in an 34
294-intermediate care facility, or receiving active treatment as 35
295-inpatients in psychia tric facilities or programs, as defined 36
296-in 42 U.S.C. Section 1396d, as amended; 37
297- (6) All persons under the age of twenty -one years who 38
298-would be eligible for aid to families with dependent 39
299-children benefits except for the requirement of deprivation 40
300-of parental support as provided for in subdivision (2) of 41
301-subsection 1 of section 208.040; 42
302- (7) All persons eligible to receive nursing care 43
303-benefits; 44
304- (8) All participants receiving family foster home or 45
305-nonprofit private child -care institution care, subsidized 46
306-adoption benefits and parental school care wherein state 47
307-funds are used as partial or full payment for such care; 48
308- (9) All persons who were participants receiving old 49
309-age assistance benefits, aid to the permanently and totally 50
310-disabled, or aid to the blind benefits on December 31, 1973, 51
311-and who continue to meet the eligibility requirements, 52
312-except income, for these assistance categories, but who are 53
313-no longer receiving such benefits because of the 54
314-implementation of Title XV I of the federal Social Security 55
315-Act, as amended; 56
316- (10) Pregnant women who meet the requirements for aid 57
317-to families with dependent children, except for the 58
318-existence of a dependent child in the home; 59 HCS SS SB 1359 11
319- (11) Pregnant women who meet the requirem ents for aid 60
320-to families with dependent children, except for the 61
321-existence of a dependent child who is deprived of parental 62
322-support as provided for in subdivision (2) of subsection 1 63
323-of section 208.040; 64
324- (12) Pregnant women or infants under one ye ar of age, 65
325-or both, whose family income does not exceed an income 66
326-eligibility standard equal to one hundred eighty -five 67
327-percent of the federal poverty level as established and 68
328-amended by the federal Department of Health and Human 69
329-Services, or its succ essor agency; 70
330- (13) Children who have attained one year of age but 71
331-have not attained six years of age who are eligible for 72
332-medical assistance under 6401 of P.L. 101 -239 (Omnibus 73
333-Budget Reconciliation Act of 1989) (42 U.S.C. Sections 1396a 74
334-to 1396b). The family support division shall use an income 75
335-eligibility standard equal to one hundred thirty -three 76
336-percent of the federal poverty level established by the 77
337-Department of Health and Human Services, or its successor 78
338-agency; 79
339- (14) Children who have attained six years of age but 80
340-have not attained nineteen years of age. For children who 81
341-have attained six years of age but have not attained 82
342-nineteen years of age, the family support division shall use 83
343-an income assessment methodology which prov ides for 84
344-eligibility when family income is equal to or less than 85
345-equal to one hundred percent of the federal poverty level 86
346-established by the Department of Health and Human Services, 87
347-or its successor agency. As necessary to provide MO 88
348-HealthNet coverage under this subdivision, the department of 89
349-social services may revise the state MO HealthNet plan to 90
350-extend coverage under 42 U.S.C. Section 91 HCS SS SB 1359 12
351-1396a(a)(10)(A)(i)(III) to children who have attained six 92
352-years of age but have not attained nineteen years of age as 93
353-permitted by paragraph (2) of subsection (n) of 42 U.S.C. 94
354-Section 1396d using a more liberal income assessment 95
355-methodology as authorized by paragraph (2) of subsection (r) 96
356-of 42 U.S.C. Section 1396a; 97
357- (15) The family support division sha ll not establish a 98
358-resource eligibility standard in assessing eligibility for 99
359-persons under subdivision (12), (13) or (14) of this 100
360-subsection. The MO HealthNet division shall define the 101
361-amount and scope of benefits which are available to 102
362-individuals eligible under each of the subdivisions (12), 103
363-(13), and (14) of this subsection, in accordance with the 104
364-requirements of federal law and regulations promulgated 105
365-thereunder; 106
366- (16) Notwithstanding any other provisions of law to 107
367-the contrary, ambulato ry prenatal care shall be made 108
368-available to pregnant women during a period of presumptive 109
369-eligibility pursuant to 42 U.S.C. Section 1396r -1, as 110
370-amended; 111
371- (17) A child born to a woman eligible for and 112
372-receiving MO HealthNet benefits under this sect ion on the 113
373-date of the child's birth shall be deemed to have applied 114
374-for MO HealthNet benefits and to have been found eligible 115
375-for such assistance under such plan on the date of such 116
376-birth and to remain eligible for such assistance for a 117
377-period of time determined in accordance with applicable 118
378-federal and state law and regulations so long as the child 119
379-is a member of the woman's household and either the woman 120
380-remains eligible for such assistance or for children born on 121
381-or after January 1, 1991, the w oman would remain eligible 122
382-for such assistance if she were still pregnant. Upon 123 HCS SS SB 1359 13
383-notification of such child's birth, the family support 124
384-division shall assign a MO HealthNet eligibility 125
385-identification number to the child so that claims may be 126
386-submitted and paid under such child's identification number; 127
387- (18) Pregnant women and children eligible for MO 128
388-HealthNet benefits pursuant to subdivision (12), (13) or 129
389-(14) of this subsection shall not as a condition of 130
390-eligibility for MO HealthNet benefits be required to apply 131
391-for aid to families with dependent children. The family 132
392-support division shall utilize an application for 133
393-eligibility for such persons which eliminates information 134
394-requirements other than those necessary to apply for MO 135
395-HealthNet benefits. The division shall provide such 136
396-application forms to applicants whose preliminary income 137
397-information indicates that they are ineligible for aid to 138
398-families with dependent children. Applicants for MO 139
399-HealthNet benefits under subdivision (1 2), (13) or (14) of 140
400-this subsection shall be informed of the aid to families 141
401-with dependent children program and that they are entitled 142
402-to apply for such benefits. Any forms utilized by the 143
403-family support division for assessing eligibility under this 144
404-chapter shall be as simple as practicable; 145
405- (19) Subject to appropriations necessary to recruit 146
406-and train such staff, the family support division shall 147
407-provide one or more full -time, permanent eligibility 148
408-specialists to process applications for MO HealthNet 149
409-benefits at the site of a health care provider, if the 150
410-health care provider requests the placement of such 151
411-eligibility specialists and reimburses the division for the 152
412-expenses including but not limited to salaries, benefits, 153
413-travel, training, telephone, supplies, and equipment of such 154
414-eligibility specialists. The division may provide a health 155 HCS SS SB 1359 14
415-care provider with a part -time or temporary eligibility 156
416-specialist at the site of a health care provider if the 157
417-health care provider requests the placement of such an 158
418-eligibility specialist and reimburses the division for the 159
419-expenses, including but not limited to the salary, benefits, 160
420-travel, training, telephone, supplies, and equipment, of 161
421-such an eligibility specialist. The division may seek to 162
422-employ such eligibility specialists who are otherwise 163
423-qualified for such positions and who are current or former 164
424-welfare participants. The division may consider training 165
425-such current or former welfare participants as eligibility 166
426-specialists for this program; 167
427- (20) Pregnant women who are eligible for, have applied 168
428-for and have received MO HealthNet benefits under 169
429-subdivision (2), (10), (11) or (12) of this subsection shall 170
430-continue to be considered eligible for all pregnancy -related 171
431-and postpartum MO HealthNet benefits provided under section 172
432-208.152 until the end of the sixty -day period beginning on 173
433-the last day of their pregnancy. Pregnant women receiving 174
434-mental health treatment for postpartum depression or related 175
435-mental health conditions within sixty days of giving birth 176
436-shall, subject to appropriations and any necessary federal 177
437-approval, be eligible for MO HealthNet benefits for mental 178
438-health services for the treatment of postpartum depression 179
439-and related mental health condition s for up to twelve 180
440-additional months. Pregnant women receiving substance abuse 181
441-treatment within sixty days of giving birth shall, subject 182
442-to appropriations and any necessary federal approval, be 183
443-eligible for MO HealthNet benefits for substance abuse 184
444-treatment and mental health services for the treatment of 185
445-substance abuse for no more than twelve additional months, 186
446-as long as the woman remains adherent with treatment. The 187 HCS SS SB 1359 15
447-department of mental health and the department of social 188
448-services shall seek any necessary waivers or state plan 189
449-amendments from the Centers for Medicare and Medicaid 190
450-Services and shall develop rules relating to treatment plan 191
451-adherence. No later than fifteen months after receiving any 192
452-necessary waiver, the department of ment al health and the 193
453-department of social services shall report to the house of 194
454-representatives budget committee and the senate 195
455-appropriations committee on the compliance with federal cost 196
456-neutrality requirements; 197
457- (21) Case management services for p regnant women and 198
458-young children at risk shall be a covered service. To the 199
459-greatest extent possible, and in compliance with federal law 200
460-and regulations, the department of health and senior 201
461-services shall provide case management services to pregnant 202
462-women by contract or agreement with the department of social 203
463-services through local health departments organized under 204
464-the provisions of chapter 192 or chapter 205 or a city 205
465-health department operated under a city charter or a 206
466-combined city-county health department or other department 207
467-of health and senior services designees. To the greatest 208
468-extent possible the department of social services and the 209
469-department of health and senior services shall mutually 210
470-coordinate all services for pregnant women and children with 211
471-the crippled children's program, the prevention of 212
472-intellectual disability and developmental disability program 213
473-and the prenatal care program administered by the department 214
474-of health and senior services. The department of social 215
475-services shall by regulation establish the methodology for 216
476-reimbursement for case management services provided by the 217
477-department of health and senior services. For purposes of 218
478-this section, the term "case management" shall mean those 219 HCS SS SB 1359 16
479-activities of local pub lic health personnel to identify 220
480-prospective MO HealthNet -eligible high-risk mothers and 221
481-enroll them in the state's MO HealthNet program, refer them 222
482-to local physicians or local health departments who provide 223
483-prenatal care under physician protocol and who participate 224
484-in the MO HealthNet program for prenatal care and to ensure 225
485-that said high-risk mothers receive support from all private 226
486-and public programs for which they are eligible and shall 227
487-not include involvement in any MO HealthNet prepaid, case - 228
488-managed programs; 229
489- (22) By January 1, 1988, the department of social 230
490-services and the department of health and senior services 231
491-shall study all significant aspects of presumptive 232
492-eligibility for pregnant women and submit a joint report on 233
493-the subject, including projected costs and the time needed 234
494-for implementation, to the general assembly. The department 235
495-of social services, at the direction of the general 236
496-assembly, may implement presumptive eligibility by 237
497-regulation promulgated pursuant to c hapter 207; 238
498- (23) All participants who would be eligible for aid to 239
499-families with dependent children benefits except for the 240
500-requirements of paragraph (d) of subdivision (1) of section 241
501-208.150; 242
502- (24) (a) All persons who would be determined to be 243
503-eligible for old age assistance benefits under the 244
504-eligibility standards in effect December 31, 1973, as 245
505-authorized by 42 U.S.C. Section 1396a(f), or less 246
506-restrictive methodologies as contained in the MO HealthNet 247
507-state plan as of January 1, 2005; except that, on or after 248
508-July 1, 2005, less restrictive income methodologies, as 249
509-authorized in 42 U.S.C. Section 1396a(r)(2), may be used to 250 HCS SS SB 1359 17
510-change the income limit if authorized by annual 251
511-appropriation; 252
512- (b) All persons who would be determined t o be eligible 253
513-for aid to the blind benefits under the eligibility 254
514-standards in effect December 31, 1973, as authorized by 42 255
515-U.S.C. Section 1396a(f), or less restrictive methodologies 256
516-as contained in the MO HealthNet state plan as of January 1, 257
517-2005, except that less restrictive income methodologies, as 258
518-authorized in 42 U.S.C. Section 1396a(r)(2), shall be used 259
519-to raise the income limit to one hundred percent of the 260
520-federal poverty level; 261
521- (c) All persons who would be determined to be eligible 262
522-for permanent and total disability benefits under the 263
523-eligibility standards in effect December 31, 1973, as 264
524-authorized by 42 U.S.C. Section 1396a(f); or less 265
525-restrictive methodologies as contained in the MO HealthNet 266
526-state plan as of January 1, 2005; except that, on or after 267
527-July 1, 2005, less restrictive income methodologies, as 268
528-authorized in 42 U.S.C. Section 1396a(r)(2), may be used to 269
529-change the income limit if authorized by annual 270
530-appropriations. Eligibility standards for permanent and 271
531-total disability benefits shall not be limited by age; 272
532- (25) Persons who have been diagnosed with breast or 273
533-cervical cancer and who are eligible for coverage pursuant 274
534-to 42 U.S.C. Section 1396a(a)(10)(A)(ii)(XVIII). Such 275
535-persons shall be eligible durin g a period of presumptive 276
536-eligibility in accordance with 42 U.S.C. Section 1396r -1. A 277
537-person who receives a breast or cervical cancer screening 278
538-service of a type that is within the scope of screening 279
539-services under Title XV of the Public Health Servic e Act (42 280
540-U.S.C. Section 300k et seq.) and who otherwise meets the 281
541-eligibility requirements for medical assistance for 282 HCS SS SB 1359 18
542-treatment of breast or cervical cancer as provided under 283
543-this subdivision is eligible for medical assistance under 284
544-this subdivision regardless of whether the screening service 285
545-was provided by a provider who receives or uses funds under 286
546-that title; 287
547- (26) Persons who are in foster care under the 288
548-responsibility of the state of Missouri on the date such 289
549-persons attained the age of eighteen years, or at any time 290
550-during the thirty-day period preceding their eighteenth 291
551-birthday, or persons who received foster care for at least 292
552-six months in another state, are residing in Missouri, and 293
553-are at least eighteen years of age, without re gard to income 294
554-or assets, if such persons: 295
555- (a) Are under twenty-six years of age; 296
556- (b) Are not eligible for coverage under another 297
557-mandatory coverage group; and 298
558- (c) Were covered by Medicaid while they were in foster 299
559-care; 300
560- (27) Any homeless child or homeless youth, as those 301
561-terms are defined in section 167.020, subject to approval of 302
562-a state plan amendment by the Centers for Medicare and 303
563-Medicaid Services; 304
564- (28) (a) Subject to approval of any necessary state 305
565-plan amendments or waivers, beginning on July 6, 2023, 306
566-pregnant women who are eligible for, have applied for, and 307
567-have received MO HealthNet benefits under subdivision (2), 308
568-(10), (11), or (12) of this subsection shall be eligible for 309
569-medical assistance during the pr egnancy and during the 310
570-twelve-month period that begins on the last day of the 311
571-woman's pregnancy and ends on the last day of the month in 312
572-which such twelve-month period ends, consistent with the 313
573-provisions of 42 U.S.C. Section 1396a(e)(16). The 314 HCS SS SB 1359 19
574-department shall submit a state plan amendment to the 315
575-Centers for Medicare and Medicaid Services when the number 316
576-of ineligible MO HealthNet participants removed from the 317
577-program in 2023 pursuant to section 208.239 exceeds the 318
578-projected number of beneficiarie s likely to enroll in 319
579-benefits in 2023 under this subdivision and subdivision (2) 320
580-of subsection 6 of section 208.662, as determined by the 321
581-department, by at least one hundred individuals; 322
582- (b) The provisions of this subdivision shall remain in 323
583-effect for any period of time during which the federal 324
584-authority under 42 U.S.C. Section 1396a(e)(16), as amended, 325
585-or any successor statutes or implementing regulations, is in 326
586-effect. 327
587- 2. Rules and regulations to implement this section 328
588-shall be promulgated in accordance with chapter 536. Any 329
589-rule or portion of a rule, as that term is defined in 330
590-section 536.010, that is created under the authority 331
591-delegated in this section shall become effective only if it 332
592-complies with and is subject to all of th e provisions of 333
593-chapter 536 and, if applicable, section 536.028. This 334
594-section and chapter 536 are nonseverable and if any of the 335
595-powers vested with the general assembly pursuant to chapter 336
596-536 to review, to delay the effective date or to disapprove 337
597-and annul a rule are subsequently held unconstitutional, 338
598-then the grant of rulemaking authority and any rule proposed 339
599-or adopted after August 28, 2002, shall be invalid and void. 340
600- 3. After December 31, 1973, and before April 1, 1990, 341
601-any family eligible for assistance pursuant to 42 U.S.C. 342
602-Section 601, et seq., as amended, in at least three of the 343
603-last six months immediately preceding the month in which 344
604-such family became ineligible for such assistance because of 345
605-increased income from employment shall, while a member of 346 HCS SS SB 1359 20
606-such family is employed, remain eligible for MO HealthNet 347
607-benefits for four calendar months following the month in 348
608-which such family would otherwise be determined to be 349
609-ineligible for such assistance because of income and 350
610-resource limitation. After April 1, 1990, any family 351
611-receiving aid pursuant to 42 U.S.C. Section 601, et seq., as 352
612-amended, in at least three of the six months immediately 353
613-preceding the month in which such family becomes ineligible 354
614-for such aid, because of hours of employment or income from 355
615-employment of the caretaker relative, shall remain eligible 356
616-for MO HealthNet benefits for six calendar months following 357
617-the month of such ineligibility as long as such family 358
618-includes a child as provided in 42 U.S.C. Section 1396r-6. 359
619-Each family which has received such medical assistance 360
620-during the entire six -month period described in this section 361
621-and which meets reporting requirements and income tests 362
622-established by the division and continues to include a child 363
623-as provided in 42 U.S.C. Section 1396r -6 shall receive MO 364
624-HealthNet benefits without fee for an additional six 365
625-months. The MO HealthNet division may provide by rule and 366
626-as authorized by annual appropriation the scope of MO 367
627-HealthNet coverage to be gr anted to such families. 368
628- 4. When any individual has been determined to be 369
629-eligible for MO HealthNet benefits, such medical assistance 370
630-will be made available to him or her for care and services 371
631-furnished in or after the third month before the month in 372
632-which he made application for such assistance if such 373
633-individual was, or upon application would have been, 374
634-eligible for such assistance at the time such care and 375
635-services were furnished; provided, further, that such 376
636-medical expenses remain unpaid. 377 HCS SS SB 1359 21
637- 5. The department of social services may apply to the 378
638-federal Department of Health and Human Services for a MO 379
639-HealthNet waiver amendment to the Section 1115 demonstration 380
640-waiver or for any additional MO HealthNet waivers necessary 381
641-not to exceed one million dollars in additional costs to the 382
642-state, unless subject to appropriation or directed by 383
643-statute, but in no event shall such waiver applications or 384
644-amendments seek to waive the services of a rural health 385
645-clinic or a federally qualified heal th center as defined in 386
646-42 U.S.C. Section 1396d(l)(1) and (2) or the payment 387
647-requirements for such clinics and centers as provided in 42 388
648-U.S.C. Section 1396a(a)(15) and 1396a(bb) unless such waiver 389
649-application is approved by the oversight committee cre ated 390
650-in section 208.955. A request for such a waiver so 391
651-submitted shall only become effective by executive order not 392
652-sooner than ninety days after the final adjournment of the 393
653-session of the general assembly to which it is submitted, 394
654-unless it is disapproved within sixty days of its submission 395
655-to a regular session by a senate or house resolution adopted 396
656-by a majority vote of the respective elected members 397
657-thereof, unless the request for such a waiver is made 398
658-subject to appropriation or directed by statute. 399
659- 6. Notwithstanding any other provision of law to the 400
660-contrary, in any given fiscal year, any persons made 401
661-eligible for MO HealthNet benefits under subdivisions (1) to 402
662-(22) of subsection 1 of this section shall only be eligible 403
663-if annual appropriations are made for such eligibility. 404
664-This subsection shall not apply to classes of individuals 405
665-listed in 42 U.S.C. Section 1396a(a)(10)(A)(i). 406
666- 7. (1) Notwithstanding any provision of law to the 407
667-contrary, a military service member, or a n immediate family 408
668-member residing with such military service member, who is a 409 HCS SS SB 1359 22
669-legal resident of this state and is eligible for MO 410
670-HealthNet developmental disability services, shall have his 411
671-or her eligibility for MO HealthNet developmental disability 412
672-services temporarily suspended for any period of time during 413
673-which such person temporarily resides outside of this state 414
674-for reasons relating to military service, but shall have his 415
675-or her eligibility immediately restored upon returning to 416
676-this state to reside. 417
677- (2) Notwithstanding any provision of law to the 418
678-contrary, if a military service member, or an immediate 419
679-family member residing with such military service member, is 420
680-not a legal resident of this state, but would otherwise be 421
681-eligible for MO HealthNet developmental disability services, 422
682-such individual shall be deemed eligible for MO HealthNet 423
683-developmental disability services for the duration of any 424
684-time in which such individual is temporarily present in this 425
685-state for reasons relatin g to military service. 426
686- 303.425. 1. (1) There is hereby created within the 1
687-department of revenue the motor vehicle financial 2
688-responsibility enforcement and compliance incentive 3
689-program. The department of revenue may enter into 4
690-contractual agreements with third -party vendors to 5
691-facilitate the necessary technology and equipment, 6
692-maintenance thereof, and associated program management 7
693-services. 8
694- (2) The department of revenue or a third -party vendor 9
695-shall utilize technology to compare vehicle registration 10
696-information with the financial responsibility information 11
697-accessible through the system. The department of revenue 12
698-shall utilize this information to identify motorists who are 13
699-in violation of the motor vehicle financial re sponsibility 14
700-law. The department of revenue may offer offenders under 15 HCS SS SB 1359 23
701-this program the option of pretrial diversion as an 16
702-alternative to statutory fines or reinstatement fees 17
703-prescribed under the motor vehicle financial responsibility 18
704-law as a method of encouraging compliance and discouraging 19
705-recidivism. 20
706- (3) The department of revenue or third -party vendors 21
707-shall not use any data collected from or technology 22
708-associated with any automated motor vehicle financial 23
709-responsibility enforcement syst em. For purposes of this 24
710-subdivision, "motor vehicle financial responsibility 25
711-enforcement system" means a device consisting of a camera or 26
712-cameras and vehicle sensor or sensors installed to record 27
713-motor vehicle financial responsibility violations. 28
714- (4) All fees paid to or collected by third -party 29
715-vendors under sections 303.420 to 303.440 may come from 30
716-violator diversion fees generated by the pretrial diversion 31
717-option established under this section. 32
718- 2. The department of revenue may authori ze law 33
719-enforcement agencies or third -party vendors to use 34
720-technology to collect data for the investigation, detection, 35
721-analysis, and enforcement of the motor vehicle financial 36
722-responsibility law. 37
723- 3. The department of revenue may authorize traffic 38
724-enforcement officers or third -party vendors to administer 39
725-the processing and issuance of notices of violation, the 40
726-collection of fees for a violation of the motor vehicle 41
727-financial responsibility law, or the referral of cases for 42
728-prosecution, under t he program. 43
729- 4. Access to the system shall be restricted to 44
730-qualified agencies and the third -party vendors with which 45
731-the department of revenue contracts for purposes of the 46
732-program, provided that any third -party vendor with which a 47 HCS SS SB 1359 24
733-contract is executed to provide necessary technology, 48
734-equipment, or maintenance for the program shall be 49
735-authorized as necessary to collaborate for required updates 50
736-and maintenance of system software. 51
737- 5. For purposes of the program, any data collected and 52
738-matched to a corresponding vehicle insurance record as 53
739-verified through the system, and any Missouri vehicle 54
740-registration database, may be used to identify violations of 55
741-the motor vehicle financial responsibility law. Such 56
742-corresponding data shall constit ute evidence of the 57
743-violations. 58
744- 6. Except as otherwise provided in this section, the 59
745-department of revenue shall suspend, in accordance with 60
746-section 303.041, the registration of any motor vehicle that 61
747-is determined under the program to be in viol ation of the 62
748-motor vehicle financial responsibility law. 63
749- 7. The department of revenue shall send to an owner 64
750-whose vehicle is identified under the program as being in 65
751-violation of the motor vehicle financial responsibility law 66
752-a notice that the vehicle's registration may be suspended 67
753-unless the owner, within thirty days, provides proof of 68
754-financial responsibility for the vehicle or proof, in a form 69
755-specified by the department of revenue, that the owner has a 70
756-pending criminal charge for a viola tion of the motor vehicle 71
757-financial responsibility law. The notice shall include 72
758-information on steps an individual may take to obtain proof 73
759-of financial responsibility and a web address to a page on 74
760-the department of revenue's website where informati on on 75
761-obtaining proof of financial responsibility shall be 76
762-provided. If proof of financial responsibility or a pending 77
763-criminal charge is not provided within the time allotted, 78
764-the department of revenue shall provide a notice of 79 HCS SS SB 1359 25
765-suspension and suspen d the vehicle's registration in 80
766-accordance with section 303.041, or shall send a notice of 81
767-vehicle registration suspension, clearly specifying the 82
768-reason and statutory grounds for the suspension and the 83
769-effective date of the suspension, the right of th e vehicle 84
770-owner to request a hearing, the procedure for requesting a 85
771-hearing, and the date by which that request for a hearing 86
772-must be made, as well as informing the owner that the matter 87
773-will be referred for prosecution if a satisfactory response 88
774-is not received in the time allotted, informing the owner 89
775-that the minimum penalty for the violation is three hundred 90
776-dollars [and four license points ], and offering the owner 91
777-participation in a pretrial diversion option to preclude 92
778-referral for prosecuti on and registration suspension under 93
779-sections 303.420 to 303.440. The notice of vehicle 94
780-registration suspension shall give a period of thirty -three 95
781-days from mailing for the vehicle owner to respond, and 96
782-shall be deemed received three days after maili ng. If no 97
783-request for a hearing or agreement to participate in the 98
784-diversion option is received by the department of revenue 99
785-prior to the date provided on the notice of vehicle 100
786-registration suspension, the director shall suspend the 101
787-vehicle's registration, effective immediately, and refer the 102
788-case to the appropriate prosecuting attorney. If an 103
789-agreement by the vehicle owner to participate in the 104
790-diversion option is received by the department of revenue 105
791-prior to the effective date provided on the notice of 106
792-vehicle registration suspension, then upon payment of a 107
793-diversion participation fee not to exceed two hundred 108
794-dollars, agreement to secure proof of financial 109
795-responsibility within the time provided on the notice of 110
796-suspension, and agreement that such financial responsibility 111 HCS SS SB 1359 26
797-shall be maintained for a minimum of two years, no points 112
798-shall be assessed to the vehicle owner's driver's license 113
799-under section 302.302 and the department of revenue shall 114
800-not take further action against the vehicle owner under 115
801-sections 303.420 to 303.440, subject to compliance with the 116
802-terms of the pretrial diversion option. The department of 117
803-revenue shall suspend the vehicle registration of, and shall 118
804-refer the case to the appropriate prosecuting attorney for 119
805-prosecution of, participating vehicle owners who violate the 120
806-terms of the pretrial diversion option. If a request for 121
807-hearing is received by the department of revenue prior to 122
808-the effective date provided on the notice of vehicle 123
809-registration suspensi on, then for all purposes other than 124
810-eligibility for participation in the diversion option, the 125
811-effective date of the suspension shall be stayed until a 126
812-final order is issued following the hearing. The department 127
813-of revenue shall suspend the registrat ion of vehicles 128
814-determined under the final order to have violated the motor 129
815-vehicle financial responsibility law, and shall refer the 130
816-case to the appropriate prosecuting attorney for 131
817-prosecution. Notices under this subsection shall be mailed 132
818-to the vehicle owner at the last known address shown on the 133
819-department of revenue's records. The department of revenue 134
820-or its third-party vendor shall issue receipts for the 135
821-collection of diversion participation fees. Except as 136
822-otherwise provided in subsecti on 1 of this section, all such 137
823-fees shall be deposited into the motor vehicle financial 138
824-responsibility verification and enforcement fund established 139
825-in section 303.422. A vehicle owner whose registration has 140
826-been suspended under sections 303.420 to 30 3.440 may obtain 141
827-reinstatement of the registration upon providing proof of 142
828-financial responsibility and payment to the department of 143 HCS SS SB 1359 27
829-revenue of a nonrefundable reinstatement fee equal to the 144
830-fee that would be applicable under subsection 2 of section 145
831-303.042 if the registration had been suspended under section 146
832-303.041. 147
833- 8. Data collected or retained under the program shall 148
834-not be used by any entity for purposes other than 149
835-enforcement of the motor vehicle financial responsibility 150
836-law. Data collected and stored by law enforcement under the 151
837-program shall be considered evidence if noncompliance with 152
838-the motor vehicle financial responsibility law is 153
839-confirmed. The evidence, and an affidavit stating that the 154
840-evidence and system have identified a particular vehicle as 155
841-being in violation of the motor vehicle financial 156
842-responsibility law, shall constitute probable cause for 157
843-prosecution and shall be forwarded in accordance with 158
844-subsection 7 of this section to the appropriate prosecuting 159
845-attorney. 160
846- 9. Owners of vehicles identified under the program as 161
847-being in violation of the motor vehicle financial 162
848-responsibility law shall be provided with options for 163
849-disputing such claims which do not require appearance at any 164
850-state or local court of l aw, or administrative facility. 165
851-Any person who presents timely proof that he or she was in 166
852-compliance with the motor vehicle financial responsibility 167
853-law at the time of the alleged violation shall be entitled 168
854-to dismissal of the charge with no assessm ent of fees or 169
855-fines. Proof provided by a vehicle owner to the department 170
856-of revenue that the vehicle was in compliance at the time of 171
857-the suspected violation of the motor vehicle financial 172
858-responsibility law shall be recorded in the system 173
859-established by the department of revenue under section 174
860-303.430. 175 HCS SS SB 1359 28
861- 10. The collection of data pursuant to this section 176
862-shall be done in a manner that prohibits any bias towards a 177
863-specific community, race, gender, or socioeconomic status of 178
864-vehicle owner. 179
865- 11. Law enforcement agencies, third -party vendors, or 180
866-other entities authorized to operate under the program shall 181
867-not sell data collected or retained under the program for 182
868-any purpose or share it for any purpose not expressly 183
869-authorized in this sec tion. All data shall be secured and 184
870-any third-party vendor or other entity authorized to operate 185
871-under the program may be liable for any data security breach. 186
872- 12. The department of revenue shall not take action 187
873-under sections 303.420 to 303.440 a gainst vehicles 188
874-registered as fleet vehicles under section 301.032, or 189
875-against vehicles known to the department of revenue to be 190
876-insured under a policy of commercial auto coverage, as such 191
877-term is defined in subdivision (10) of subsection 2 of 192
878-section 303.430. 193
879- 13. Following one year after the implementation of the 194
880-program, and every year thereafter for a period of five 195
881-years, the department of revenue shall provide a report to 196
882-the president pro tempore of the senate, the speaker of the 197
883-house of representatives, the chairs of the house and senate 198
884-committees with jurisdictions over insurance or 199
885-transportation matters, and the chairs of the house budget 200
886-and senate appropriations committees. The report shall 201
887-include an evaluation of program o perations, information as 202
888-to the costs of the program incurred by the department of 203
889-revenue, insurers, and the public, information as to the 204
890-effectiveness of the program in reducing the number of 205
891-uninsured motor vehicles, and anonymized demographic 206
892-information including the race and zip code of vehicle 207 HCS SS SB 1359 29
893-owners identified under the program as being in violation of 208
894-the motor vehicle financial responsibility law, and may 209
895-include any additional information and recommendations for 210
896-improvement of the prog ram deemed appropriate by the 211
897-department of revenue. The department of revenue may, by 212
898-rule, require the state, counties, and municipalities to 213
899-provide information in order to complete the report. 214
900- 14. The department of revenue may promulgate rule s as 215
901-necessary for the implementation of this section. Any rule 216
902-or portion of a rule, as that term is defined in section 217
903-536.010, that is created under the authority delegated in 218
904-this section shall become effective only if it complies with 219
905-and is subject to all of the provisions of chapter 536 and, 220
906-if applicable, section 536.028. This section and chapter 221
907-536 are nonseverable and if any of the powers vested with 222
908-the general assembly pursuant to chapter 536 to review, to 223
909-delay the effective date, o r to disapprove and annul a rule 224
910-are subsequently held unconstitutional, then the grant of 225
911-rulemaking authority and any rule proposed or adopted after 226
912-August 28, 2023, shall be invalid and void. 227
913- 303.430. 1. The department of revenue shall establish 1
914-and maintain a web-based system for the verification of 2
915-motor vehicle financial responsibility, shall provide access 3
916-to insurance reporting data and vehicle registration and 4
917-financial responsibility data, and shall require motor 5
918-vehicle insurers to establish functionality for the 6
919-verification system, as provided in sections 303.420 to 7
920-303.440. The verification system, including any exceptions 8
921-as provided for in sections 303.420 to 303.440 or in the 9
922-implementation guide developed t o support the program, shall 10
923-supersede any existing verification system, and shall be the 11 HCS SS SB 1359 30
924-sole system used for the purpose of verifying financial 12
925-responsibility required under this chapter. 13
926- 2. The system established pursuant to subsection 1 of 14
927-this section shall be subject to the following: 15
928- (1) The verification system shall transmit requests to 16
929-insurers for verification of motor vehicle insurance 17
930-coverage via web services established by the insurers 18
931-through the internet in compliance with the specifications 19
932-and standards of the Insurance Industry Committee on Motor 20
933-Vehicle Administration, or "IICMVA". Insurance company 21
934-systems shall respond to each request with a prescribed 22
935-response upon evaluation of the data provided in the 23
936-request. The system shall include appropriate protections 24
937-to secure its data against unauthorized access, and the 25
938-department of revenue shall maintain a historical record of 26
939-the system data for a period of no more than twelve months 27
940-from the date of all requ ests and responses. The system 28
941-shall be used for verification of the financial 29
942-responsibility required under this chapter. The system 30
943-shall be accessible to authorized personnel of the 31
944-department of revenue, the courts, law enforcement 32
945-personnel, and other entities authorized by the state as 33
946-permitted by state or federal privacy laws, and it shall be 34
947-interfaced, wherever appropriate, with existing state 35
948-systems. The system shall include information enabling the 36
949-department of revenue to submit in quiries to insurers 37
950-regarding motor vehicle insurance which are consistent with 38
951-insurance industry and IICMVA recommendations, 39
952-specifications, and standards by using the following data 40
953-elements for greater matching accuracy: insurer National 41
954-Association of Insurance Commissioners, or "NAIC", company 42
955-code; vehicle identification number; policy number; 43 HCS SS SB 1359 31
956-verification date; or as otherwise described in the 44
957-specifications and standards of the IICMVA. The department 45
958-of revenue shall promulgate rules to offer insurers who 46
959-insure one thousand or fewer vehicles within this state an 47
960-alternative method for verifying motor vehicle insurance 48
961-coverage in lieu of web services, and to provide for the 49
962-verification of financial responsibility when financial 50
963-responsibility is proven to the department to be maintained 51
964-by means other than a policy of motor vehicle insurance. 52
965-Insurers shall not be required to verify insurance coverage 53
966-for vehicles registered in other jurisdictions; 54
967- (2) The verification sys tem shall respond to each 55
968-request within a time period established by the department 56
969-of revenue. An insurer's system shall respond within the 57
970-time period prescribed by the IICMVA's specifications and 58
971-standards. Insurer systems shall be permitted reas onable 59
972-system downtime for maintenance and other work with advance 60
973-notice to the department of revenue. Insurers shall not be 61
974-subject to enforcement fees or other sanctions under such 62
975-circumstances, or when systems are not available because of 63
976-emergency, outside attack, or other unexpected outages not 64
977-planned by the insurer and reasonably outside its control; 65
978- (3) The system shall assist in identifying violations 66
979-of the motor vehicle financial responsibility law in the 67
980-most effective way possi ble. Responses to individual 68
981-insurance verification requests shall have no bearing on 69
982-whether insurance coverage is determined to be in force at 70
983-the time of a claim. Claims shall be individually 71
984-investigated to determine the existence of coverage. 72
985-Nothing in sections 303.420 to 303.440 shall prohibit the 73
986-department of revenue from contracting with a third -party 74
987-vendor or vendors who have successfully implemented similar 75 HCS SS SB 1359 32
988-systems in other states to assist in establishing and 76
989-maintaining this verif ication system; 77
990- (4) The department of revenue shall consult with 78
991-representatives of the insurance industry and may consult 79
992-with third-party vendors to determine the objectives, 80
993-details, and deadlines related to the system by 81
994-establishment of an a dvisory council. Members of the 82
995-advisory council shall serve in an advisory capacity in 83
996-matters pertaining to the administration of sections 303.420 84
997-to 303.440, as the department of revenue may request. The 85
998-advisory council shall expire one year afte r implementation 86
999-of the program. The advisory council shall consist of 87
1000-voting members comprised of: 88
1001- (a) The director of the department of commerce and 89
1002-insurance, or his or her designee, who shall serve as chair; 90
1003- (b) Two representatives of t he department of revenue, 91
1004-to be appointed by the director of the department of revenue; 92
1005- (c) One representative of the department of commerce 93
1006-and insurance, to be appointed by the director of the 94
1007-department of commerce and insurance; 95
1008- (d) Three representatives of insurance companies, to 96
1009-be appointed by the director of the department of commerce 97
1010-and insurance; 98
1011- (e) One representative from the Missouri Insurance 99
1012-Coalition; 100
1013- (f) One representative chosen by the National 101
1014-Association of Mutual Insurance Companies; 102
1015- (g) One representative chosen by the American Property 103
1016-and Casualty Insurance Association; 104
1017- (h) One representative chosen by the Missouri 105
1018-Independent Agents Association; and 106 HCS SS SB 1359 33
1019- (i) Such other representatives as may be appointed by 107
1020-the director of the department of commerce and insurance; 108
1021- (5) The department of revenue shall publish for 109
1022-comment, and then issue, a detailed implementation guide for 110
1023-its online verification system; 111
1024- (6) The department of revenue and its third -party 112
1025-vendors, if any, shall each maintain a contact person for 113
1026-insurers during the establishment, implementation, and 114
1027-operation of the system; 115
1028- (7) If the department of revenue has reason to believe 116
1029-a vehicle owner does not maintain financial responsibility 117
1030-as required under this chapter, it may also request an 118
1031-insurer to verify the existence of such financial 119
1032-responsibility in a form approved by the department of 120
1033-revenue. In addition, insurers shall cooperate with the 121
1034-department of revenue in establishing and maintaining the 122
1035-verification system established under this section, and 123
1036-shall provide motor vehicle insurance policy status 124
1037-information as provided in the rules promulgated by the 125
1038-department of revenue; 126
1039- (8) Every property and casualty insurance company 127
1040-licensed to issue motor vehicle insurance or authorized to 128
1041-do business in this state shall comply with sections 303.420 129
1042-to 303.440, and corresponding rules promulgated by the 130
1043-department of revenue, for the verification of such 131
1044-insurance for every vehicle insured by that company in this 132
1045-state; 133
1046- (9) Insurers shall maintain a historical record of 134
1047-insurance data for a minimum period of six months from the 135
1048-date of policy inception or policy change fo r the purpose of 136
1049-historical verification inquiries; 137 HCS SS SB 1359 34
1050- (10) For the purposes of this section, "commercial 138
1051-auto coverage" shall mean any coverage provided to an 139
1052-insured, regardless of number of vehicles or entities 140
1053-covered, under a commercial coverag e form and rated from a 141
1054-commercial manual approved by the department of commerce and 142
1055-insurance. Sections 303.420 to 303.440 shall not apply to 143
1056-vehicles insured under commercial auto coverage; however, 144
1057-insurers of such vehicles may participate on a vol untary 145
1058-basis, and vehicle owners may provide proof at or subsequent 146
1059-to the time of vehicle registration that a vehicle is 147
1060-insured under commercial auto coverage, which the department 148
1061-of revenue shall record in the system; 149
1062- (11) Insurers shall provide commercial or fleet 150
1063-automobile customers with evidence reflecting that the 151
1064-vehicle is insured under a commercial or fleet automobile 152
1065-liability policy. Sufficient evidence shall include an 153
1066-insurance identification card clearly marked with a suitabl e 154
1067-identifier such as "commercial auto insurance identification 155
1068-card", "fleet auto insurance identification card", or other 156
1069-clear identification that the vehicle is insured under a 157
1070-fleet or commercial policy; 158
1071- (12) Notwithstanding any provision of sections 303.420 159
1072-to 303.440, insurers shall be immune from civil and 160
1073-administrative liability for good faith efforts to comply 161
1074-with the terms of sections 303.420 to 303.440; 162
1075- (13) Nothing in this section shall prohibit an insurer 163
1076-from using the services of a third-party vendor for 164
1077-facilitating the verification system required under sections 165
1078-303.420 to 303.440. 166
1079- 3. The department of revenue shall promulgate rules as 167
1080-necessary for the implementation of sections 303.420 to 168
1081-303.440. Any rule or portion of a rule, as that term is 169 HCS SS SB 1359 35
1082-defined in section 536.010, that is created under the 170
1083-authority delegated in this section shall become effective 171
1084-only if it complies with and is subject to all of the 172
1085-provisions of chapter 536 and, if applicable, s ection 173
1086-536.028. This section and chapter 536 are nonseverable and 174
1087-if any of the powers vested with the general assembly 175
1088-pursuant to chapter 536 to review, to delay the effective 176
1089-date, or to disapprove and annul a rule are subsequently 177
1090-held unconstitutional, then the grant of rulemaking 178
1091-authority and any rule proposed or adopted after August 28, 179
1092-2023, shall be invalid and void. 180
1093- 303.440. The verification system established under 1
1094-section 303.430 shall be installed and fully operati onal [on 2
1095-January 1, 2025] no later than December 31, 2027, or as soon 3
1096-as technologically possible following the development and 4
1097-maintenance of a modernized, integrated system for the 5
1098-titling of vehicles, issuance and renewal of vehicle 6
1099-registrations, issuance and renewal of driver's licenses and 7
1100-identification cards, and perfection and release of liens 8
1101-and encumbrances on vehicles, to be funded by the motor 9
1102-vehicle administration technology fund as created in section 10
1103-301.558, following an appropria te testing or pilot period of 11
1104-not less than nine months. Until the successful completion 12
1105-of the testing or pilot period in the judgment of the 13
1106-director of the department of revenue, no enforcement action 14
1107-shall be taken based on the system, including b ut not 15
1108-limited to action taken under the program established under 16
1109-section 303.425. 17
1110- 361.900. Sections 361.900 to 361.1035 shall be known 1
1111-and may be cited as the "Money Transmission Modernization 2
1112-Act of 2024". 3 HCS SS SB 1359 36
1113- 361.903. Sections 361.900 to 361.1035 are designed to 1
1114-replace existing state money transmission laws currently 2
1115-codified in law and to: 3
1116- (1) Ensure states may coordinate in all areas of 4
1117-regulation, licensing, and supervision to eliminate 5
1118-unnecessary regulatory burden and more effectively utilize 6
1119-regulator resources; 7
1120- (2) Protect the public from financial crime; 8
1121- (3) Standardize the types of activities that are 9
1122-subject to licensing or otherwise exempt from licensing; and 10
1123- (4) Modernize safety and soundness requirements to 11
1124-ensure customer funds are protected in an environment that 12
1125-supports innovative and competitive business practices. 13
1126- 361.906. For purposes of sections 361.900 to 361.1035, 1
1127-the following terms shall mean: 2
1128- (1) "Acting in concert", persons knowingly acting 3
1129-together with a common goal of jointly acquiring control of 4
1130-a licensee, regardless of whether under an express agreement; 5
1131- (2) "Authorized delegate", a person that a licensee 6
1132-designates to engage in money transmission on behalf of the 7
1133-licensee; 8
1134- (3) "Average daily money transmission liability", the 9
1135-amount of the licensee's outstanding money transmission 10
1136-obligations in this state at the end of each day in a given 11
1137-period of time, added together, and divided by the total 12
1138-number of days in the given period of time. For purposes of 13
1139-calculating average daily money transmission liability under 14
1140-sections 361.900 to 361.1035 for any licensee required to do 15
1141-so, the given period of time shall be the quarters ending 16
1142-March thirty-first, June thirtieth, September thirtieth, and 17
1143-December thirty-first; 18 HCS SS SB 1359 37
1144- (4) "Bank Secrecy Act", the Bank Secrecy Act, 31 19
1145-U.S.C. Section 5311 et seq., and its implementing 20
1146-regulations, as amended and recodi fied from time to time; 21
1147- (5) "Closed loop stored value", stored value that is 22
1148-redeemable by the issuer only for goods or services provided 23
1149-by the issuer or its affiliate or franchisees of the issuer 24
1150-or its affiliate, except to the extent required b y 25
1151-applicable law to be redeemable in cash for its cash value; 26
1152- (6) "Control": 27
1153- (a) The power to vote, directly or indirectly, at 28
1154-least twenty-five percent of the outstanding voting shares 29
1155-or voting interests of a licensee or person in control of a 30
1156-licensee; 31
1157- (b) The power to elect or appoint a majority of key 32
1158-individuals or executive officers, managers, directors, 33
1159-trustees, or other persons exercising managerial authority 34
1160-of a person in control of a licensee; or 35
1161- (c) The power to exercise, directly or indirectly, a 36
1162-controlling influence over the management or policies of a 37
1163-licensee or person in control of a licensee. 38
1164-A person is presumed to exercise a controlling influence if 39
1165-the person holds the power to vote, directly or indir ectly, 40
1166-at least ten percent of the outstanding voting shares or 41
1167-voting interests of a licensee or person in control of a 42
1168-licensee. A person presumed to exercise a controlling 43
1169-influence as defined under this subdivision can rebut the 44
1170-presumption of control if the person is a passive investor. 45
1171-For purposes of determining the percentage of a person 46
1172-controlled by any other person, the person's interest shall 47
1173-be aggregated with the interest of any other immediate 48
1174-family member, including the person's spouse, parents, 49 HCS SS SB 1359 38
1175-children, siblings, mothers - and fathers-in-law, sons- and 50
1176-daughters-in-law, brothers- and sisters-in-law, and any 51
1177-other person who shares such person's home; 52
1178- (7) "Director", the director of the Missouri division 53
1179-of finance; 54
1180- (8) "Eligible rating", a credit rating of any of the 55
1181-three highest rating categories provided by an eligible 56
1182-rating service. Each category may include rating category 57
1183-modifiers such as "plus" or "minus" for Standard and Poor's 58
1184-or the equivalent for any other eligible rating service; 59
1185- (9) "Eligible rating service", any nationally 60
1186-recognized statistical rating organization (NRSRO) as 61
1187-defined by the United States Securities and Exchange 62
1188-Commission and any other organization designated by rule or 63
1189-order; 64
1190- (10) "Federally insured depository financial 65
1191-institution", a bank, credit union, savings and loan 66
1192-association, trust company, savings association, savings 67
1193-bank, industrial bank, or industrial loan company organized 68
1194-under the laws of the United States or any state of the 69
1195-United States if such bank, credit union, savings and loan 70
1196-association, trust company, savings association, savings 71
1197-bank, industrial bank, or industrial loan company has 72
1198-federally insured deposits; 73
1199- (11) "In this state", at a physical location within 74
1200-this state for a transaction requested in person. For a 75
1201-transaction requested electronically or by phone, the 76
1202-provider of money transmission may determine if the person 77
1203-requesting the transaction is in this state by relying on 78
1204-other information provided by the person regarding the 79
1205-location of the individual's residential address or a 80
1206-business entity's principal place of business or other 81 HCS SS SB 1359 39
1207-physical address location, and any records associated with 82
1208-the person that the provider of money transmission may have 83
1209-that indicate such location including, but not limited to, 84
1210-an address associated with an account; 85
1211- (12) "Individual", a natural person; 86
1212- (13) "Key individual", any individual ultimately 87
1213-responsible for establishing or directing policies and 88
1214-procedures of the licensee, such as an executive officer, 89
1215-manager, director, or trustee; 90
1216- (14) "Licensee", a person licensed under sections 91
1217-361.900 to 361.1035; 92
1218- (15) "Material litigation", litigatio n that, according 93
1219-to United States generally accepted accounting principles, 94
1220-is significant to a person's financial health and would be 95
1221-required to be disclosed in the person's annual audited 96
1222-financial statements, report to shareholders, or similar 97
1223-records; 98
1224- (16) "Monetary value", a medium of exchange, 99
1225-regardless of whether redeemable in money; 100
1226- (17) "Money", a medium of exchange that is authorized 101
1227-or adopted by the United States or a foreign government. 102
1228-The term includes a monetary unit of account established by 103
1229-an intergovernmental organization or by agreement between 104
1230-two or more governments; 105
1231- (18) "Money transmission", any of the following: 106
1232- (a) Selling or issuing payment instruments to a person 107
1233-located in this state; 108
1234- (b) Selling or issuing stored value to a person 109
1235-located in this state; or 110
1236- (c) Receiving money for transmission from a person 111
1237-located in this state. 112 HCS SS SB 1359 40
1238-The term includes payroll processing services. The term 113
1239-does not include the provision solely of online or 114
1240-telecommunications services or network access; 115
1241- (19) "Multistate licensing process", any agreement 116
1242-entered into by and among state regulators relating to 117
1243-coordinated processing of applications for money 118
1244-transmission licenses, application s for the acquisition of 119
1245-control of a licensee, control determinations, or notice and 120
1246-information requirements for a change of key individuals; 121
1247- (20) "NMLS", the Nationwide Multistate Licensing 122
1248-System and Registry developed by the Conference of Sta te 123
1249-Bank Supervisors and the American Association of Residential 124
1250-Mortgage Regulators and owned and operated by the State 125
1251-Regulatory Registry LLC or any successor or affiliated 126
1252-entity for the licensing and registration of persons in 127
1253-financial services i ndustries; 128
1254- (21) "Outstanding money transmission obligations": 129
1255- (a) Any payment instrument or stored value issued or 130
1256-sold by the licensee to a person located in the United 131
1257-States or reported as sold by an authorized delegate of the 132
1258-licensee to a person that is located in the United States 133
1259-that has not yet been paid or refunded by or for the 134
1260-licensee or escheated in accordance with applicable 135
1261-abandoned property laws; or 136
1262- (b) Any money received for transmission by the 137
1263-licensee or an authorized delegate in the United States from 138
1264-a person located in the United States that has not been 139
1265-received by the payee or refunded to the sender, or 140
1266-escheated in accordance with applicable abandoned property 141
1267-laws. 142 HCS SS SB 1359 41
1268-For purposes of this subdivision, "in the United States" 143
1269-shall include, to the extent applicable, a person in any 144
1270-state, territory, or possession of the United States; the 145
1271-District of Columbia; the Commonwealth of Puerto Rico; or a 146
1272-U.S. military installation that is located in a foreign 147
1273-country; 148
1274- (22) "Passive investor", a person that: 149
1275- (a) Does not have the power to elect a majority of key 150
1276-individuals or executive officers, managers, directors, 151
1277-trustees, or other persons exercising managerial authority 152
1278-of a person in control of a licensee; 153
1279- (b) Is not employed by and does not have any 154
1280-managerial duties of the licensee or person in control of a 155
1281-licensee; 156
1282- (c) Does not have the power to exercise, directly or 157
1283-indirectly, a controlling influence over the management o r 158
1284-policies of a licensee or person in control of a licensee; 159
1285-and 160
1286- (d) Either: 161
1287- a. Attests to paragraphs (a), (b), and (c) of this 162
1288-subdivision, in a form and in a medium prescribed by the 163
1289-director; or 164
1290- b. Commits to the passivity characte ristics of 165
1291-paragraphs (a), (b), and (c) of this subdivision in a 166
1292-written document; 167
1293- (23) "Payment instrument", a written or electronic 168
1294-check, draft, money order, traveler's check, or other 169
1295-written or electronic instrument for the transmission or 170
1296-payment of money or monetary value, regardless of whether 171
1297-negotiable. The term does not include stored value or any 172
1298-instrument that: 173 HCS SS SB 1359 42
1299- (a) Is redeemable by the issuer only for goods or 174
1300-services provided by the issuer or its affiliate or 175
1301-franchisees of the issuer or its affiliate, except to the 176
1302-extent required by applicable law to be redeemable in cash 177
1303-for its cash value; or 178
1304- (b) Is not sold to the public but issued and 179
1305-distributed as part of a loyalty, rewards, or promotional 180
1306-program; 181
1307- (24) "Payroll processing services", receiving money 182
1308-for transmission under a contract with a person to deliver 183
1309-wages or salaries, make payment of payroll taxes to state 184
1310-and federal agencies, make payments relating to employee 185
1311-benefit plans, or make d istributions of other authorized 186
1312-deductions from wages or salaries. The term does not 187
1313-include an employer performing payroll processing services 188
1314-on its own behalf or on behalf of its affiliate or a 189
1315-professional employer organization subject to regulat ion 190
1316-under sections 285.700 to 285.750; 191
1317- (25) "Person", any individual, general partnership, 192
1318-limited partnership, limited liability company, corporation, 193
1319-trust, association, joint stock corporation, or other 194
1320-corporate entity identified by the direc tor; 195
1321- (26) "Receiving money for transmission" or "money 196
1322-received for transmission", receiving money or monetary 197
1323-value in the United States for transmission within or 198
1324-outside the United States by electronic or other means; 199
1325- (27) "Stored value", monetary value representing a 200
1326-claim against the issuer evidenced by an electronic or 201
1327-digital record and that is intended and accepted for use as 202
1328-a means of redemption for money, or monetary value, or 203
1329-payment for goods or services. The term includes, but is 204
1330-not limited to, "prepaid access" as defined under 31 CFR 205 HCS SS SB 1359 43
1331-Section 1010.100, as amended or recodified from time to 206
1332-time. Notwithstanding the provisions of this subdivision, 207
1333-the term does not include a payment instrument or closed 208
1334-loop stored value, or stored value not sold to the public 209
1335-but issued and distributed as part of a loyalty, rewards, or 210
1336-promotional program; 211
1337- (28) "Tangible net worth", the aggregate assets of a 212
1338-licensee excluding all intangible assets, less liabilities, 213
1339-as determined in accordance with United States generally 214
1340-accepted accounting principles. 215
1341- 361.909. Sections 361.900 to 361.1035 shall not apply 1
1342-to: 2
1343- (1) An operator of a payment system to the extent that 3
1344-it provides processing, clearing, or settlement services 4
1345-between or among persons exempted under this section or 5
1346-licensees in connection with wire transfers, credit card 6
1347-transactions, debit card transactions, stored value 7
1348-transactions, automated clearinghouse transfers, or similar 8
1349-funds transfers; 9
1350- (2) A person appointed as an agent of a payee to 10
1351-collect and process a payment from a payer to the payee for 11
1352-goods or services, other than money transmission itself, 12
1353-provided to the payer by the payee, provided that: 13
1354- (a) There exists a written agreement between the payee 14
1355-and the agent directing the agent to collect and process 15
1356-payments from a payer on the payee's behalf; 16
1357- (b) The payee holds the agent out to the public as 17
1358-accepting payments for goods or services on the payee's 18
1359-behalf; and 19
1360- (c) Payment for the goods and services is treated as 20
1361-received by the payee upon receipt by the agent so that the 21
1362-payer's obligation is extinguished and there is no risk of 22 HCS SS SB 1359 44
1363-loss to the payer if the agent fails to remit the fund s to 23
1364-the payee; 24
1365- (3) A person that acts as an intermediary by 25
1366-processing payments between an entity that has directly 26
1367-incurred an outstanding money transmission obligation to a 27
1368-sender and the sender's designated recipient, provided that 28
1369-the entity: 29
1370- (a) Is properly licensed or exempt from licensing 30
1371-requirements under sections 361.900 to 361.1035; 31
1372- (b) Provides a receipt, electronic record, or other 32
1373-written confirmation to the sender identifying the entity as 33
1374-the provider of money tran smission in the transaction; and 34
1375- (c) Bears sole responsibility to satisfy the 35
1376-outstanding money transmission obligation to the sender, 36
1377-including the obligation to make the sender whole in 37
1378-connection with any failure to transmit the funds to the 38
1379-sender's designated recipient; 39
1380- (4) The United States or a department, agency, or 40
1381-instrumentality thereof, or its agent; 41
1382- (5) Money transmission by the United States Postal 42
1383-Service or by an agent of the United States Postal Service; 43
1384- (6) A state, county, city, or any other governmental 44
1385-agency or governmental subdivision or instrumentality of a 45
1386-state, or its agent; 46
1387- (7) A federally insured depository financial 47
1388-institution; bank holding company; office of an 48
1389-international banking corp oration; foreign bank that 49
1390-establishes a federal branch under the International Bank 50
1391-Act, 12 U.S.C. Section 3102, as amended or recodified from 51
1392-time to time; corporation organized under the Bank Service 52
1393-Corporation Act, 12 U.S.C. Sections 1861 -1867, as amended or 53
1394-recodified from time to time; or corporation organized under 54 HCS SS SB 1359 45
1395-the Edge Act, 12 U.S.C. Sections 611 -633, as amended or 55
1396-recodified from time to time, under the laws of a state or 56
1397-the United States; 57
1398- (8) Electronic funds transfer of govern mental benefits 58
1399-for a federal, state, county, or governmental agency by a 59
1400-contractor on behalf of the United States or a department, 60
1401-agency, or instrumentality thereof, or on behalf of a state 61
1402-or governmental subdivision, agency, or instrumentality 62
1403-thereof; 63
1404- (9) A board of trade designated as a contract market 64
1405-under the federal Commodity Exchange Act, 7 U.S.C. Sections 65
1406-1-25, as amended or recodified from time to time, or a 66
1407-person that, in the ordinary course of business, provides 67
1408-clearance and settlement services for a board of trade to 68
1409-the extent of its operation as or for such a board; 69
1410- (10) A registered futures commission merchant under 70
1411-the federal commodities laws to the extent of its operation 71
1412-as such a merchant; 72
1413- (11) A person registered as a securities broker -dealer 73
1414-under federal or state securities laws to the extent of its 74
1415-operation as such a broker -dealer; 75
1416- (12) An individual employed by a licensee, authorized 76
1417-delegate, or any person exempted from the licensing 77
1418-requirements under sections 361.900 to 361.1035 if acting 78
1419-within the scope of employment and under the supervision of 79
1420-the licensee, authorized delegate, or exempted person as an 80
1421-employee and not as an independent contractor; 81
1422- (13) A person expressly appointed as a third -party 82
1423-service provider to or agent of an entity exempt under 83
1424-subdivision (7) of this section solely to the extent that: 84
1425- (a) Such service provider or agent is engaging in 85
1426-money transmission on behalf of and under a written 86 HCS SS SB 1359 46
1427-agreement with the exempt entity that sets forth the 87
1428-specific functions that the service provider or agent is to 88
1429-perform; and 89
1430- (b) The exempt entity assumes all risk of loss and all 90
1431-legal responsibility for satisfying the outstanding money 91
1432-transmission obligations owed to purchasers and holders of 92
1433-the outstanding money transmission obligations upon receipt 93
1434-of the purchaser's or holder's money or monetary value by 94
1435-the service provider or agent. 95
1436- 361.912. The director may require t hat any person 1
1437-claiming to be exempt from licensing under section 361.909 2
1438-provide information and documentation to the director 3
1439-demonstrating that the person qualifies for any claimed 4
1440-exemption. 5
1441- 361.915. 1. In order to carry out th e purposes of 1
1442-sections 361.900 to 361.1035, the director may, subject to 2
1443-the provisions of subsections 1 and 2 of section 361.918: 3
1444- (1) Enter into agreements or relationships with other 4
1445-government officials or federal and state regulatory 5
1446-agencies and regulatory associations in order to improve 6
1447-efficiencies and reduce regulatory burden by standardizing 7
1448-methods or procedures, and sharing resources, records, or 8
1449-related information obtained under sections 361.900 to 9
1450-361.1035; 10
1451- (2) Use, hire, contract, or employ analytical systems, 11
1452-methods, or software to examine or investigate any person 12
1453-subject to sections 361.900 to 361.1035; 13
1454- (3) Accept, from other state or federal government 14
1455-agencies or officials, licensing, examination, or 15
1456-investigation reports made by such other state or federal 16
1457-government agencies or officials; and 17 HCS SS SB 1359 47
1458- (4) Accept audit reports made by an independent 18
1459-certified public accountant or other qualified third -party 19
1460-auditor for an applicant or licensee and incorpora te the 20
1461-audit report in any report of examination or investigation. 21
1462- 2. The director shall have the broad administrative 22
1463-authority to: 23
1464- (1) Administer, interpret, and enforce sections 24
1465-361.900 to 361.1035 and promulgate rules or regulations 25
1466-implementing sections 361.900 to 361.1035; and 26
1467- (2) Recover the cost of administering and enforcing 27
1468-sections 361.900 to 361.1035 by imposing and collecting 28
1469-proportionate and equitable fees and costs associated with 29
1470-applications, examinations, investig ations, and other 30
1471-actions required to achieve the purpose of sections 361.900 31
1472-to 361.1035. 32
1473- 3. The director shall promulgate all necessary rules 33
1474-and regulations for the administration of sections 361.900 34
1475-to 361.1035. Any rule or portion of a rule , as that term is 35
1476-defined in section 536.010, that is created under the 36
1477-authority delegated in this section shall become effective 37
1478-only if it complies with and is subject to all of the 38
1479-provisions of chapter 536 and, if applicable, section 39
1480-536.028. This section and chapter 536 are nonseverable and 40
1481-if any of the powers vested with the general assembly 41
1482-pursuant to chapter 536 to review, to delay the effective 42
1483-date, or to disapprove and annul a rule are subsequently 43
1484-held unconstitutional, then the gra nt of rulemaking 44
1485-authority and any rule proposed or adopted after August 28, 45
1486-2024, shall be invalid and void. 46
1487- 361.918. 1. Except as otherwise provided in 1
1488-subsection 2 of this section, all information or reports 2
1489-obtained by the dire ctor from an applicant, licensee, or 3 HCS SS SB 1359 48
1490-authorized delegate and all information contained in or 4
1491-related to an examination, investigation, operating report, 5
1492-or condition report prepared by, on behalf of, or for the 6
1493-use of the director, or financial stateme nts, balance 7
1494-sheets, or authorized delegate information, shall be 8
1495-confidential and held in accordance with section 361.080. 9
1496- 2. The director may disclose information not otherwise 10
1497-subject to disclosure under subsection 1 of this section to 11
1498-representatives of state or federal agencies who shall 12
1499-confirm in writing that they will maintain the 13
1500-confidentiality of the information. 14
1501- 3. This section does not prohibit the director from 15
1502-disclosing to the public a list of all licensees or the 16
1503-aggregated financial or transactional data concerning those 17
1504-licensees. 18
1505- 361.921. 1. The director may conduct an examination 1
1506-or investigation of a licensee or authorized delegate or 2
1507-otherwise take independent action authorized by sections 3
1508-361.900 to 361.1035 or by a rule adopted or order issued 4
1509-under sections 361.900 to 361.1035 as reasonably necessary 5
1510-or appropriate to administer and enforce sections 361.900 to 6
1511-361.1035, regulations implementing sections 361.900 to 7
1512-361.1035, and other a pplicable law, including the Bank 8
1513-Secrecy Act and the USA PATRIOT Act. The director may: 9
1514- (1) Conduct an examination either onsite or offsite as 10
1515-the director may reasonably require; 11
1516- (2) Conduct an examination in conjunction with an 12
1517-examination conducted by representatives of other state 13
1518-agencies or agencies of another state or of the federal 14
1519-government; 15
1520- (3) Accept the examination report of another state 16
1521-agency or an agency of another state or of the federal 17 HCS SS SB 1359 49
1522-government, or a report p repared by an independent 18
1523-accounting firm, which on being accepted is considered for 19
1524-all purposes as an official report of the director; and 20
1525- (4) Summon and examine under oath a key individual or 21
1526-employee of a licensee or authorized delegate and re quire 22
1527-the person to produce records regarding any matter related 23
1528-to the condition and business of the licensee or authorized 24
1529-delegate. 25
1530- 2. A licensee or authorized delegate shall provide, 26
1531-and the director shall have full and complete access to, al l 27
1532-records the director may reasonably require to conduct a 28
1533-complete examination. The records shall be provided at the 29
1534-location and in the format specified by the director. The 30
1535-director may utilize multistate record production standards 31
1536-and examination procedures if such standards and procedures 32
1537-will reasonably achieve the requirements of this subsection. 33
1538- 3. Unless otherwise directed by the director, a 34
1539-licensee shall pay all costs reasonably incurred in 35
1540-connection with an examination of the l icensee or the 36
1541-licensee's authorized delegates. 37
1542- 361.924. 1. To efficiently and effectively administer 1
1543-and enforce sections 361.900 to 361.1035 and to minimize 2
1544-regulatory burden, the director is authorized to participate 3
1545-in multistate supervisory processes established between 4
1546-states or coordinated through the Conference of State Bank 5
1547-Supervisors, Money Transmitter Regulators Association, and 6
1548-affiliates and successors thereof for all licensees that 7
1549-hold licenses in this state and other states. As a 8
1550-participant in multistate supervision, the director may: 9
1551- (1) Cooperate, coordinate, and share information with 10
1552-other state and federal regulators in accordance with 11
1553-section 361.918; 12 HCS SS SB 1359 50
1554- (2) Enter into written cooperation, coo rdination, or 13
1555-information-sharing contracts or agreements with 14
1556-organizations the membership of which is made up of state or 15
1557-federal governmental agencies; and 16
1558- (3) Cooperate, coordinate, and share information with 17
1559-organizations the membership of w hich is made up of state or 18
1560-federal governmental agencies, provided that the 19
1561-organizations agree in writing to maintain the 20
1562-confidentiality and security of the shared information in 21
1563-accordance with this section. 22
1564- 2. The director shall not waive an d nothing in this 23
1565-section constitutes a waiver of the director's authority to 24
1566-conduct an examination or investigation or otherwise take 25
1567-independent action authorized by sections 361.900 to 26
1568-361.1035 or a rule adopted or order issued under sections 27
1569-361.900 to 361.1035 to enforce compliance with applicable 28
1570-state or federal law. 29
1571- 3. A joint examination or investigation, or acceptance 30
1572-of an examination or investigation report, does not waive an 31
1573-examination assessment provided for in sections 361.900 to 32
1574-361.1035. 33
1575- 361.927. 1. In the event state money transmission 1
1576-jurisdiction is conditioned on a federal law, any 2
1577-inconsistencies between a provision of sections 361.900 to 3
1578-361.1035 and the federal law governing money transmission 4
1579-shall be governed by the applicable federal law to the 5
1580-extent of the inconsistency. 6
1581- 2. In the event of any inconsistencies between 7
1582-sections 361.900 to 361.1035 and a federal law that governs 8
1583-under subsection 1 of this section, the director may pr ovide 9
1584-interpretive guidance that: 10
1585- (1) Identifies the inconsistency; and 11 HCS SS SB 1359 51
1586- (2) Identifies the appropriate means of compliance 12
1587-with federal law. 13
1588- 361.930. 1. A person shall not engage in the business 1
1589-of money transmission or advertise, solicit, or hold itself 2
1590-out as providing money transmission unless the person is 3
1591-licensed under sections 361.900 to 361.1035. 4
1592- 2. Subsection 1 of this section shall not apply to: 5
1593- (1) A person that is an authorized delegate of a 6
1594-person licensed under sections 361.900 to 361.1035 acting 7
1595-within the scope of authority conferred by a written 8
1596-contract with the licensee; or 9
1597- (2) A person that is exempt under section 361.909 and 10
1598-does not engage in money transmission outside the scop e of 11
1599-such exemption. 12
1600- 3. A license issued under section 361.942 shall not be 13
1601-transferable or assignable. 14
1602- 361.933. 1. To establish consistent licensing between 1
1603-this state and other states, the director is authorized to: 2
1604- (1) Implement the licensing provisions of sections 3
1605-361.900 to 361.1035 in a manner that is consistent with 4
1606-other states that have adopted the money transmission 5
1607-modernizations act or multistate licensing processes; and 6
1608- (2) Participate in nationwide protocols for licensing 7
1609-cooperation and coordination among state regulators, 8
1610-provided that such protocols are consistent with sections 9
1611-361.900 to 361.1035. 10
1612- 2. In order to fulfill the purposes of sections 11
1613-361.900 to 361.1035, the director is autho rized to establish 12
1614-relationships or contracts with NMLS, or other entities 13
1615-designated by NMLS or other third parties to enable the 14
1616-director to: 15
1617- (1) Collect and maintain records; 16 HCS SS SB 1359 52
1618- (2) Coordinate multistate licensing processes and 17
1619-supervision processes; 18
1620- (3) Process fees; and 19
1621- (4) Facilitate communication between this state and 20
1622-licensees or other persons subject to sections 361.900 to 21
1623-361.1035. 22
1624- 3. The director is authorized to utilize NMLS for all 23
1625-aspects of licensing in acco rdance with sections 361.900 to 24
1626-361.1035 including, but not limited to, license 25
1627-applications, applications for acquisitions of control, 26
1628-surety bonds, reporting, criminal history background checks, 27
1629-credit checks, fee processing, and examinations. 28
1630- 4. The director is authorized to utilize NMLS forms, 29
1631-processes, and functionalities in accordance with sections 30
1632-361.900 to 361.1035. 31
1633- 5. (1) The director is authorized to establish and 32
1634-adopt, by rule or regulation, requirements for participation 33
1635-by applicants and licensees in NMLS upon the division of 34
1636-finance's determination that each requirement is consistent 35
1637-with law, public interest, and the purposes of this section. 36
1638- (2) Any rule or portion of a rule, as that term is 37
1639-defined in section 536.010, that is created under the 38
1640-authority delegated in this section shall become effective 39
1641-only if it complies with and is subject to all of the 40
1642-provisions of chapter 536 and, if applicable, section 41
1643-536.028. This section and chapter 536 are nonsev erable and 42
1644-if any of the powers vested with the general assembly 43
1645-pursuant to chapter 536 to review, to delay the effective 44
1646-date, or to disapprove and annul a rule are subsequently 45
1647-held unconstitutional, then the grant of rulemaking 46
1648-authority and any rule proposed or adopted after August 28, 47
1649-2024, shall be invalid and void. 48 HCS SS SB 1359 53
1650- 361.936. 1. Applicants for a license shall apply in a 1
1651-form and in a medium as prescribed by the director. Each 2
1652-such form shall contain content as set forth b y rule, 3
1653-regulation, instruction, or procedure of the director and 4
1654-may be changed or updated by the director in accordance with 5
1655-applicable law in order to carry out the purposes of 6
1656-sections 361.900 to 361.1035 and maintain consistency with 7
1657-licensing standards and practices. The application shall 8
1658-state or contain, as applicable: 9
1659- (1) The legal name and residential and business 10
1660-addresses of the applicant and any fictitious or trade name 11
1661-used by the applicant in conducting its business; 12
1662- (2) Whether the applicant has been convicted of, or 13
1663-pled guilty or nolo contendere to, a felony involving an act 14
1664-of fraud, dishonesty, a breach of trust, or money laundering; 15
1665- (3) A description of any money transmission previously 16
1666-provided by the appli cant and the money transmission that 17
1667-the applicant seeks to provide in this state; 18
1668- (4) A list of the applicant's proposed authorized 19
1669-delegates and the locations in this state where the 20
1670-applicant and its authorized delegates propose to engage in 21
1671-money transmission; 22
1672- (5) A list of other states in which the applicant is 23
1673-licensed to engage in money transmission and any license 24
1674-revocations, suspensions, or other disciplinary action taken 25
1675-against the applicant in another state; 26
1676- (6) Information concerning any bankruptcy or 27
1677-receivership proceedings affecting the licensee or a person 28
1678-in control of a licensee; 29
1679- (7) A sample form of contract for authorized 30
1680-delegates, if applicable; 31 HCS SS SB 1359 54
1681- (8) A sample form of payment instrument or stored 32
1682-value, as applicable; 33
1683- (9) The name and address of any federally insured 34
1684-depository financial institution through which the applicant 35
1685-plans to conduct money transmission; 36
1686- (10) A list of any material litigation in which the 37
1687-applicant has been involved in the ten-year period next 38
1688-preceding the submission of the application; and 39
1689- (11) Any other information the director reasonably 40
1690-requires with respect to the applicant. 41
1691- 2. If an applicant is a corporation, limited liability 42
1692-company, partnership, or other legal entity, the applicant 43
1693-shall also provide: 44
1694- (1) The date of the applicant's incorporation or 45
1695-formation and state or country of incorporation or formation; 46
1696- (2) If applicable, a certificate of good standing from 47
1697-the state or country in which the applicant is incorporated 48
1698-or formed; 49
1699- (3) A brief description of the structure or 50
1700-organization of the applicant, including any parents or 51
1701-subsidiaries of the applicant, and whether any parents or 52
1702-subsidiaries are publ icly traded; 53
1703- (4) The legal name, any fictitious or trade name, all 54
1704-business and residential addresses, and the employment, as 55
1705-applicable, in the ten -year period next preceding the 56
1706-submission of the application of each key individual and 57
1707-person in control of the applicant; 58
1708- (5) Whether they have been convicted of, or pled 59
1709-guilty or nolo contendere to, a felony involving an act of 60
1710-fraud, dishonesty, a breach of trust, or money laundering; 61
1711- (6) A copy of audited financial statements of th e 62
1712-applicant for the most recent fiscal year and for the two - 63 HCS SS SB 1359 55
1713-year period next preceding the submission of the application 64
1714-or, if determined to be acceptable to the director, 65
1715-certified unaudited financial statements for the most recent 66
1716-fiscal year or other period acceptable to the director; 67
1717- (7) A certified copy of unaudited financial statements 68
1718-of the applicant for the most recent fiscal quarter; 69
1719- (8) If the applicant is a publicly traded corporation, 70
1720-a copy of the most recent report filed w ith the United 71
1721-States Securities and Exchange Commission under Section 13 72
1722-of the federal Securities Exchange Act of 1934, 15 U.S.C. 73
1723-Section 78m, as amended or recodified from time to time; 74
1724- (9) If the applicant is a wholly owned subsidiary of: 75
1725- (a) A corporation publicly traded in the United 76
1726-States, a copy of audited financial statements for the 77
1727-parent corporation for the most recent fiscal year or a copy 78
1728-of the parent corporation's most recent report filed under 79
1729-Section 13 of the U.S. Secu rities Exchange Act of 1934, 15 80
1730-U.S.C. Section 78m, as amended or recodified from time to 81
1731-time; or 82
1732- (b) A corporation publicly traded outside the United 83
1733-States, a copy of similar documentation filed with the 84
1734-regulator of the parent corporation's d omicile outside the 85
1735-United States; 86
1736- (10) The name and address of the applicant's 87
1737-registered agent in this state; 88
1738- (11) A list of any material litigation in which the 89
1739-applicant has been involved in the ten -year period next 90
1740-preceding the submis sion of the application; and 91
1741- (12) Any other information the director reasonably 92
1742-requires with respect to the applicant. 93 HCS SS SB 1359 56
1743- 3. A nonrefundable application fee and license fee, as 94
1744-determined by the director, shall accompany an application 95
1745-for a license under this section. 96
1746- 4. The director may waive one or more requirements of 97
1747-subsections 1 and 2 of this section or permit an applicant 98
1748-to submit other information in lieu of the required 99
1749-information. 100
1750- 361.939. 1. Any individual in control of a licensee 1
1751-or applicant, any individual that seeks to acquire control 2
1752-of a licensee, and each key individual shall furnish to the 3
1753-director through NMLS the following: 4
1754- (1) The individual's fingerprints for submission to 5
1755-the Federal Bureau of Investigation and the director for 6
1756-purposes of a national criminal history background check 7
1757-unless the person currently resides outside of the United 8
1758-States and has resided outside of the United States for the 9
1759-last ten years; and 10
1760- (2) Personal history and experience in a form and in a 11
1761-medium prescribed by the director, to obtain the following: 12
1762- (a) An independent credit report from a consumer 13
1763-reporting agency unless the individual does not have a 14
1764-Social Security number, in wh ich case this requirement shall 15
1765-be waived; 16
1766- (b) Whether they have been convicted of, or pled 17
1767-guilty or nolo contendere to, a felony involving an act of 18
1768-fraud, dishonesty, a breach of trust, or money laundering; 19
1769-and 20
1770- (c) Information related to any regulatory or 21
1771-administrative action and any civil litigation involving 22
1772-claims of fraud, misrepresentation, conversion, 23
1773-mismanagement of funds, breach of fiduciary duty, or breach 24
1774-of contract. 25 HCS SS SB 1359 57
1775- 2. If the individual has resided outside of the U nited 26
1776-States at any time in the last ten years, the individual 27
1777-shall also provide an investigative background report 28
1778-prepared by an independent search firm that meets the 29
1779-following requirements: 30
1780- (1) At a minimum, the search firm shall: 31
1781- (a) Demonstrate that it has sufficient knowledge and 32
1782-resources and employs accepted and reasonable methodologies 33
1783-to conduct the research for the background report; and 34
1784- (b) Not be affiliated with or have an interest with 35
1785-the individual it is researchin g; and 36
1786- (2) At a minimum, the investigative background report 37
1787-shall be written in the English language and shall contain 38
1788-the following: 39
1789- (a) If available in the individual's current 40
1790-jurisdiction of residency, a comprehensive credit report, or 41
1791-any equivalent information obtained or generated by the 42
1792-independent search firm to accomplish such report, including 43
1793-a search of the court data in the countries, provinces, 44
1794-states, cities, towns, and contiguous areas where the 45
1795-individual resided and w orked; 46
1796- (b) Criminal records information for the past ten 47
1797-years including, but not limited to, felonies, misdemeanors, 48
1798-or similar convictions for violations of law in the 49
1799-countries, provinces, states, cities, towns, and contiguous 50
1800-areas where the individual resided and worked; 51
1801- (c) Employment history; 52
1802- (d) Media history, including an electronic search of 53
1803-national and local publications, wire services, and business 54
1804-applications; and 55
1805- (e) Financial services-related regulatory history 56
1806-including but not limited to, money transmission, 57 HCS SS SB 1359 58
1807-securities, banking, insurance, and mortgage -related 58
1808-industries. 59
1809- 361.942. 1. If an application for an original license 1
1810-under sections 361.900 to 361.1035 appears to include all 2
1811-the items and addresses and all of the matters that are 3
1812-required, the application is complete and the director shall 4
1813-promptly notify the applicant in a record of the date on 5
1814-which the application is determined to be complete, and: 6
1815- (1) The director shall approve or deny the application 7
1816-within one hundred twenty days after the completion date; or 8
1817- (2) If the application is not approved or denied 9
1818-within one hundred twenty days after the completion date: 10
1819- (a) The application is approved; and 11
1820- (b) The license takes effect as of the first business 12
1821-day after expiration of the one -hundred-twenty-day period. 13
1822-The director may for good cause extend the application 14
1823-period. 15
1824- 2. A determination by the director that an application 16
1825-is complete and is accepted for processing means only that 17
1826-the application, on its face, appears to include all of the 18
1827-items, including the criminal background check response from 19
1828-the Federal Bureau of Investigation, and address all of the 20
1829-matters that are requi red, and is not an assessment of the 21
1830-substance of the application or of the sufficiency of the 22
1831-information provided. 23
1832- 3. If an application is filed and considered complete 24
1833-under this section, the director shall investigate the 25
1834-applicant's financia l condition and responsibility, 26
1835-financial and business experience, character, and general 27
1836-fitness. The director may conduct an onsite investigation 28
1837-of the applicant, the reasonable cost of which the applicant 29 HCS SS SB 1359 59
1838-shall pay. The director shall issue a lic ense to an 30
1839-applicant under this section if the director finds that all 31
1840-of the following conditions have been fulfilled: 32
1841- (1) The applicant has complied with the provisions of 33
1842-sections 361.936 and 361.939; and 34
1843- (2) The financial condition and r esponsibility, 35
1844-financial and business experience, competence, character, 36
1845-and general fitness of the applicant; and the competence, 37
1846-experience, character, and general fitness of the key 38
1847-individuals and persons in control of the applicant indicate 39
1848-that it is in the interest of the public to permit the 40
1849-applicant to engage in money transmission. 41
1850- 4. If an applicant avails itself or is otherwise 42
1851-subject to a multistate licensing process: 43
1852- (1) The director shall be authorized to accept the 44
1853-investigation results of a lead investigative state for the 45
1854-purpose of subsection 3 of this section if the lead 46
1855-investigative state has sufficient staffing, expertise, and 47
1856-minimum standards; or 48
1857- (2) If this state is a lead investigative state, the 49
1858-director shall be authorized to investigate the applicant 50
1859-under subsection 3 of this section and the time frames 51
1860-established by agreement through the multistate licensing 52
1861-process, provided however, that in no case shall such time 53
1862-frame be noncompliant with the application period in 54
1863-subdivision (1) of subsection 1 of this section. 55
1864- 5. The director shall issue a formal written notice of 56
1865-the denial of a license application within thirty days of 57
1866-the decision to deny the application. The director shall 58
1867-set forth in the notice of denial the specific reasons for 59
1868-the denial of the application. An applicant whose 60
1869-application is denied by the director under this subsection 61 HCS SS SB 1359 60
1870-may appeal within thirty days after receipt of the written 62
1871-notice of the denial u nder chapter 536. 63
1872- 6. The initial license term shall begin on the day the 64
1873-application is approved. The license shall expire on 65
1874-December thirty-first of the year in which the license term 66
1875-began unless the initial license date is between November 67
1876-first and December thirty -first, in which instance the 68
1877-initial license term shall run through December thirty -first 69
1878-of the following year. 70
1879- 361.945. 1. A license under sections 361.900 to 1
1880-361.1035 shall be renewed annually. An annual renewal fee, 2
1881-to be determined by the director, shall be paid no more than 3
1882-sixty days before the license expiration. The renewal term 4
1883-shall be for a period of one year and shall begin on January 5
1884-first of each year after the initial license term and sh all 6
1885-expire on December thirty -first of the year the renewal term 7
1886-begins. 8
1887- 2. A licensee shall submit a renewal report with the 9
1888-renewal fee, in a form and in a medium prescribed by the 10
1889-director. The renewal report shall state or contain a 11
1890-description of each material change in information submitted 12
1891-by the licensee in its original license application that has 13
1892-not been reported to the director. 14
1893- 3. The director for good cause may grant an extension 15
1894-of the renewal date. 16
1895- 4. The director shall be authorized and encouraged to 17
1896-utilize NMLS to process license renewals, provided that such 18
1897-functionality is consistent with this section. 19
1898- 361.948. 1. If a licensee does not continue to meet 1
1899-the qualifications or satisfy the requirements that apply to 2
1900-an applicant for a new money transmission license, the 3
1901-director may suspend or revoke the licensee's license in 4 HCS SS SB 1359 61
1902-accordance with the procedures established under sections 5
1903-361.900 to 361.1035 or other applicable state law for s uch 6
1904-suspension or revocation. 7
1905- 2. An applicant for a money transmission license shall 8
1906-demonstrate that it meets or will meet, and a money 9
1907-transmission licensee shall at all times meet, the 10
1908-requirements in sections 361.999, 361.1002, and 361.1005. 11
1909- 361.951. 1. Any person, or group of persons acting in 1
1910-concert, seeking to acquire control of a licensee shall 2
1911-obtain the written approval of the director prior to 3
1912-acquiring control. An individual is not deemed to acquire 4
1913-control of a licensee and is not subject to the acquisition 5
1914-of control provisions if that individual becomes a key 6
1915-individual in the ordinary course of business. 7
1916- 2. A person, or group of persons acting in concert, 8
1917-seeking to acquire control of a licensee shall, in 9
1918-cooperation with the licensee: 10
1919- (1) Submit an application in a form and in a medium 11
1920-prescribed by the director; and 12
1921- (2) Submit a nonrefundable fee, to be determined by 13
1922-the director, with the request for approval. 14
1923- 3. Upon request, the director may permit a licensee or 15
1924-a person, or group of persons acting in concert, to submit 16
1925-some or all information required by the director under 17
1926-subdivision (1) of subsection 2 of this section without 18
1927-using NMLS. 19
1928- 4. The application required under subdivision (1) of 20
1929-subsection 2 of this section shall include information 21
1930-required under section 361.939 for any new key individuals 22
1931-that have not previously completed the requirements of 23
1932-section 361.939 for a licensee. 24 HCS SS SB 1359 62
1933- 5. When an application for acquisition of control 25
1934-under this section appears to include all the items and 26
1935-address all of the matters that are required, the 27
1936-application shall be considered complete. The director 28
1937-shall promptly notify the applicant in a record of the date 29
1938-on which the application was determined to be complete, and: 30
1939- (1) The director shall approve or deny the application 31
1940-within sixty days after the completion date; or 32
1941- (2) If the application is not approved or denied 33
1942-within sixty days afte r the completion date: 34
1943- (a) The application is approved; and 35
1944- (b) The person, or group of persons acting in concert, 36
1945-are not prohibited from acquiring control; and 37
1946- (3) The director may for good cause extend the 38
1947-application period. 39
1948- 6. A determination by the director that an application 40
1949-is complete and is accepted for processing means only that 41
1950-the application, on its face, appears to include all of the 42
1951-items and address all of the matters that are required, and 43
1952-is not an assessment of the substance of the application or 44
1953-of the sufficiency of the information provided. 45
1954- 7. If an application is filed and considered complete 46
1955-under subsection 5 of this section, the director shall 47
1956-investigate the financial condition and responsib ility, 48
1957-financial and business experience, character, and general 49
1958-fitness of the person, or group of persons acting in 50
1959-concert, seeking to acquire control. The director shall 51
1960-approve an acquisition of control under this section if the 52
1961-director finds that all of the following conditions have 53
1962-been fulfilled: 54
1963- (1) The requirements of subsections 2 and 4 of this 55
1964-section have been met, as applicable; and 56 HCS SS SB 1359 63
1965- (2) The financial condition and responsibility, 57
1966-financial and business experience, compete nce, character, 58
1967-and general fitness of the person, or group of persons 59
1968-acting in concert, seeking to acquire control and the 60
1969-competence, experience, character, and general fitness of 61
1970-the key individuals and persons that would be in control of 62
1971-the licensee after the acquisition of control indicate that 63
1972-it is in the interest of the public to permit the person, or 64
1973-group of persons acting in concert, to control the licensee. 65
1974- 8. If an applicant avails itself or is otherwise 66
1975-subject to a multistate licensing process: 67
1976- (1) The director is authorized to accept the 68
1977-investigation results of a lead investigative state for the 69
1978-purpose of subsection 7 of this section if the lead 70
1979-investigative state has sufficient staffing, expertise, and 71
1980-minimum standards; or 72
1981- (2) If this state is a lead investigative state, the 73
1982-director is authorized to investigate the applicant under 74
1983-subsection 7 of this section and the time frames established 75
1984-by agreement through the multistate licensing process. 76
1985- 9. The director shall issue a formal written notice of 77
1986-the denial of an application to acquire control within 78
1987-thirty days of the decision to deny the application. The 79
1988-director shall set forth in the notice of denial the 80
1989-specific reasons for the denial o f the application. An 81
1990-applicant whose application is denied by the director under 82
1991-this subsection may appeal within thirty days after receipt 83
1992-of the written notice of the denial under chapter 536. 84
1993- 10. The requirements of subsections 1 and 2 of th is 85
1994-section shall not apply to any of the following: 86
1995- (1) A person that acts as a proxy for the sole purpose 87
1996-of voting at a designated meeting of the shareholders or 88 HCS SS SB 1359 64
1997-holders of voting shares or voting interests of a licensee 89
1998-or a person in control of a licensee; 90
1999- (2) A person that acquires control of a licensee by 91
2000-devise or descent; 92
2001- (3) A person that acquires control of a licensee as a 93
2002-personal representative, custodian, guardian, conservator, 94
2003-or trustee, or as an officer appointed by a court of 95
2004-competent jurisdiction or by operation of law; 96
2005- (4) A person that is exempt under subdivision (7) of 97
2006-section 361.909; 98
2007- (5) A person that the director determines is not 99
2008-subject to subsection 1 of this section based on the public 100
2009-interest; 101
2010- (6) A public offering of securities of a licensee or a 102
2011-person in control of a licensee; or 103
2012- (7) An internal reorganization of a person in control 104
2013-of the licensee where the ultimate person in control of the 105
2014-licensee remains the same. 106
2015- 11. Persons in subdivisions (2), (3), (4), (6), and 107
2016-(7) of subsection 10 of this section in cooperation with the 108
2017-licensee shall notify the director within fifteen days after 109
2018-the acquisition of control. 110
2019- 12. (1) The requirements of subsections 1 and 2 of 111
2020-this section shall not apply to a person that has complied 112
2021-with and received approval to engage in money transmission 113
2022-under sections 361.900 to 361.1035 or was identified as a 114
2023-person in control in a prior application filed with and 115
2024-approved by the director or by another state under a 116
2025-multistate licensing process, provided that: 117
2026- (a) The person has not had a license revoked or 118
2027-suspended or controlled a licensee that has had a license 119 HCS SS SB 1359 65
2028-revoked or suspended while the person was in contro l of the 120
2029-licensee in the previous five years; 121
2030- (b) If the person is a licensee, the person is well 122
2031-managed and has received at least a satisfactory rating for 123
2032-compliance at its most recent examination by another state 124
2033-if such rating was given; 125
2034- (c) The licensee to be acquired is projected to meet 126
2035-the requirements of sections 361.999, 361.1002, and 361.1005 127
2036-after the acquisition of control is completed, and if the 128
2037-person acquiring control is a licensee, that licensee is 129
2038-also projected to me et the requirements of sections 361.999, 130
2039-361.1002, and 361.1005 after the acquisition of control is 131
2040-completed; 132
2041- (d) The licensee to be acquired will not implement any 133
2042-material changes to its business plan as a result of the 134
2043-acquisition of control, and if the person acquiring control 135
2044-is a licensee, that licensee also will not implement any 136
2045-material changes to its business plan as a result of the 137
2046-acquisition of control; and 138
2047- (e) The person provides notice of the acquisition in 139
2048-cooperation with the licensee and attests to paragraphs (a) 140
2049-to (d) of this subdivision in a form and in a medium 141
2050-prescribed by the director. 142
2051- (2) If the notice is not disapproved within thirty 143
2052-days after the date on which the notice was determined to be 144
2053-complete, the notice is deemed approved. 145
2054- 13. Before filing an application for approval to 146
2055-acquire control of a licensee, a person may request in 147
2056-writing a determination from the director as to whether the 148
2057-person would be considered a person in control of a licensee 149
2058-upon consummation of a proposed transaction. If the 150
2059-director determines that the person would not be a person in 151 HCS SS SB 1359 66
2060-control of a licensee, the proposed person and transaction 152
2061-is not subject to the requirements of subsections 1 and 2 of 153
2062-this section. 154
2063- 14. If a multistate licensing process includes a 155
2064-determination under subsection 13 of this section and an 156
2065-applicant avails itself or is otherwise subject to the 157
2066-multistate licensing process: 158
2067- (1) The director is authorized to accept the control 159
2068-determination of a lead investigative state with sufficient 160
2069-staffing, expertise, and minimum standards for the purpose 161
2070-of subsection 13 of this section; or 162
2071- (2) If this state is a lead investigative state, the 163
2072-director is authorized to investigate the applicant under 164
2073-subsection 13 of this section and the time frames 165
2074-established by agreement through the multistate licensing 166
2075-process. 167
2076- 361.954. 1. A licensee adding or replacing any key 1
2077-individual shall: 2
2078- (1) Provide notice in a manner prescribed by the 3
2079-director within fifteen days after the effective date of the 4
2080-key individual's appointment; and 5
2081- (2) Provide information as required by section 361.939 6
2082-within forty-five days of the effective date. 7
2083- 2. Within ninety days of the date on which the notice 8
2084-provided under subsection 1 of this section was determined 9
2085-to be complete, the director may issue a notice of 10
2086-disapproval of a key individual if the competence, 11
2087-experience, character, or integrity of the individual would 12
2088-not be in the best interests of the public or the customers 13
2089-of the licensee to permit the individual to be a key 14
2090-individual of such licensee. 15 HCS SS SB 1359 67
2091- 3. A notice of disapproval shall contain a statement 16
2092-of the basis for disapproval a nd shall be sent to the 17
2093-licensee and the disapproved individual. A licensee may 18
2094-appeal a notice of disapproval under chapter 536 within 19
2095-thirty days after receipt of such notice of disapproval. 20
2096- 4. If the notice provided under subsection 1 of this 21
2097-section is not disapproved within ninety days after the date 22
2098-on which the notice was determined to be complete, the key 23
2099-individual is deemed approved. 24
2100- 5. If a multistate licensing process includes a key 25
2101-individual notice review and disapproval pr ocess under this 26
2102-section and the licensee avails itself or is otherwise 27
2103-subject to the multistate licensing process: 28
2104- (1) The director is authorized to accept the 29
2105-determination of another state if the investigating state 30
2106-has sufficient staffing, e xpertise, and minimum standards 31
2107-for the purpose of this section; or 32
2108- (2) If this state is a lead investigative state, the 33
2109-director is authorized to investigate the applicant under 34
2110-subsection 2 of this section and the time frames established 35
2111-by agreement through the multistate licensing process. 36
2112- 361.957. 1. Each licensee shall submit a report of 1
2113-condition within forty days of the end of the calendar 2
2114-quarter or within any extended time as the director may 3
2115-prescribe. 4
2116- 2. The report of condition shall include: 5
2117- (1) Financial information at the licensee level; 6
2118- (2) Nationwide and state -specific money transmission 7
2119-transaction information in every jurisdiction in the United 8
2120-States where the licensee is licensed to e ngage in money 9
2121-transmission; 10
2122- (3) Permissible investments report; 11 HCS SS SB 1359 68
2123- (4) Transaction destination country reporting for 12
2124-money received for transmission, if applicable; and 13
2125- (5) Any other information the director reasonably 14
2126-requires with respect to the licensee. The director is 15
2127-authorized to utilize NMLS for the submission of the report 16
2128-required by subsection 1 of this section and is authorized 17
2129-to update as necessary the requirements of this section to 18
2130-carry out the purposes of sections 3 61.900 to 361.1035 and 19
2131-maintain consistency with NMLS reporting. 20
2132- 3. The information required under subdivision (4) of 21
2133-subsection 2 of this section shall be included only in a 22
2134-report of condition submitted within forty -five days of the 23
2135-end of the fourth calendar quarter. 24
2136- 361.960. 1. Each licensee shall, within ninety days 1
2137-after the end of each fiscal year or within any extended 2
2138-time as the director may prescribe, file with the director: 3
2139- (1) An audited financial statemen t of the licensee for 4
2140-the fiscal year prepared in accordance with United States 5
2141-generally accepted accounting principles; and 6
2142- (2) Any other information as the director may 7
2143-reasonably require. 8
2144- 2. The audited financial statement shall be prep ared 9
2145-by an independent certified public accountant or independent 10
2146-public accountant who is satisfactory to the director. 11
2147- 3. The audited financial statements shall include or 12
2148-be accompanied by a certificate of opinion of the 13
2149-independent certified public accountant or independent 14
2150-public accountant that is satisfactory in form and content 15
2151-to the director. If the certificate or opinion is 16
2152-qualified, the director may order the licensee to take any 17
2153-action as the director may find necessary to enabl e the 18 HCS SS SB 1359 69
2154-independent certified public accountant or independent 19
2155-public accountant to remove the qualification. 20
2156- 361.963. 1. Each licensee shall submit a report of 1
2157-authorized delegates within forty -five days of the end of 2
2158-the calendar quarter. The director is authorized to utilize 3
2159-NMLS for the submission of the report required under this 4
2160-section, provided that such functionality is consistent with 5
2161-the requirements of this section. 6
2162- 2. The authorized delegate report shall include , at a 7
2163-minimum, each authorized delegate's: 8
2164- (1) Company legal name; 9
2165- (2) Taxpayer employer identification number; 10
2166- (3) Principal provider identifier; 11
2167- (4) Physical address, if any; 12
2168- (5) Mailing address; 13
2169- (6) Any business conducted in other states; 14
2170- (7) Any fictitious or trade name; 15
2171- (8) Contact person name, phone number, and email; 16
2172- (9) Start date as licensee's authorized delegate; 17
2173- (10) End date acting as licensee's authorized 18
2174-delegate, if applicable; an d 19
2175- (11) Any other information the director reasonably 20
2176-requires with respect to the authorized delegate. 21
2177- 361.966. 1. A licensee shall file a report with the 1
2178-director within one business day after the licensee has 2
2179-reason to know of the occurrence of any of the following 3
2180-events: 4
2181- (1) The filing of a petition by or against the 5
2182-licensee under the United States Bankruptcy Code, 11 U.S.C. 6
2183-Section 101-110, as amended or recodified from time to time, 7
2184-for bankruptcy or reorganiza tion; 8 HCS SS SB 1359 70
2185- (2) The filing of a petition by or against the 9
2186-licensee for receivership, the commencement of any other 10
2187-judicial or administrative proceeding for its dissolution or 11
2188-reorganization, or the making of a general assignment for 12
2189-the benefit of its creditors; or 13
2190- (3) The commencement of a proceeding to revoke or 14
2191-suspend its license in a state or country in which the 15
2192-licensee engages in business or is licensed. 16
2193- 2. A licensee shall notify the director within three 17
2194-business days after th e licensee has reason to know that: 18
2195- (1) The licensee or a key individual or person in 19
2196-control of the licensee, has been convicted of, or pled 20
2197-guilty or nolo contendere to a felony involving an act of 21
2198-fraud, dishonesty, a breach of trust, or money laundering; or 22
2199- (2) An authorized delegate has been convicted of, or 23
2200-pled guilty or nolo contendere to, a felony involving an act 24
2201-of fraud, dishonesty, a breach of trust, or money laundering. 25
2202- 361.969. A licensee and an authorized delegate shall 1
2203-file all reports required by federal currency reporting, 2
2204-record keeping, and suspicious activity reporting 3
2205-requirements as set forth in the Bank Secrecy Act and other 4
2206-federal and state laws pertaining to money laundering. The 5
2207-timely filing of a complete and accurate report required 6
2208-under this section with the appropriate federal agency is 7
2209-deemed compliant with the requirements of this section. 8
2210- 361.972. 1. A licensee shall maintain the following 1
2211-records for determining its compliance with sections 361.900 2
2212-to 361.1035 for at least three years: 3
2213- (1) A record of each outstanding money transmission 4
2214-obligation sold; 5 HCS SS SB 1359 71
2215- (2) A general ledger posted at least monthly 6
2216-containing all asset, liability, capital, inc ome, and 7
2217-expense accounts; 8
2218- (3) Bank statements and bank reconciliation records; 9
2219- (4) Records of outstanding money transmission 10
2220-obligations; 11
2221- (5) Records of each outstanding money transmission 12
2222-obligation paid within the three -year period; 13
2223- (6) A list of the last known names and addresses of 14
2224-all of the licensee's authorized delegates; and 15
2225- (7) Any other records the director reasonably requires 16
2226-by rule. 17
2227- 2. The items specified in subsection 1 of this section 18
2228-may be maintained in any form of record. 19
2229- 3. Records specified in subsection 1 of this section 20
2230-may be maintained outside this state if the records are made 21
2231-accessible to the director on seven business days' notice 22
2232-that is sent in a record. 23
2233- 4. All records maintained by the licensee as required 24
2234-in subsections 1 to 3 of this section are open to inspection 25
2235-by the director under subsection 1 of section 361.921. 26
2236- 361.975. 1. As used in this section, "remit" means to 1
2237-make direct payments of m oney to a licensee or its 2
2238-representative authorized to receive money or to deposit 3
2239-money in a bank in an account specified by the licensee. 4
2240- 2. Before a licensee is authorized to conduct business 5
2241-through an authorized delegate, or allows a person t o act as 6
2242-the licensee's authorized delegate, the licensee shall: 7
2243- (1) Adopt, and update as necessary, written policies 8
2244-and procedures reasonably designed to ensure that the 9
2245-licensee's authorized delegates comply with applicable state 10
2246-and federal law; 11 HCS SS SB 1359 72
2247- (2) Enter into a written contract that complies with 12
2248-subsection 4 of this section; and 13
2249- (3) Conduct a reasonable risk -based background 14
2250-investigation sufficient for the licensee to determine 15
2251-whether the authorized delegate has complied and will likely 16
2252-comply with applicable state and federal law. 17
2253- 3. An authorized delegate shall operate in full 18
2254-compliance with sections 361.900 to 361.1035. 19
2255- 4. The written contract required under subsection 2 of 20
2256-this section shall be signed by t he licensee and the 21
2257-authorized delegate and, at a minimum, shall: 22
2258- (1) Appoint the person signing the contract as the 23
2259-licensee's authorized delegate with the authority to conduct 24
2260-money transmission on behalf of the licensee; 25
2261- (2) Set forth the nature and scope of the relationship 26
2262-between the licensee and the authorized delegate and the 27
2263-respective rights and responsibilities of the parties; 28
2264- (3) Require the authorized delegate to agree to fully 29
2265-comply with all applicable state and federa l laws, rules, 30
2266-and regulations pertaining to money transmission, including 31
2267-sections 361.900 to 361.1035 and regulations implementing 32
2268-sections 361.900 to 361.1035, relevant provisions of the 33
2269-Bank Secrecy Act, and the USA PATRIOT Act; 34
2270- (4) Require the authorized delegate to remit and 35
2271-handle money and monetary value in accordance with the terms 36
2272-of the contract between the licensee and the authorized 37
2273-delegate; 38
2274- (5) Impose a trust on money and monetary value net of 39
2275-fees received for money trans mission for the benefit of the 40
2276-licensee; 41
2277- (6) Require the authorized delegate to prepare and 42
2278-maintain records as required by sections 361.900 to 361.1035 43 HCS SS SB 1359 73
2279-or regulations implementing sections 361.900 to 361.1035, or 44
2280-as reasonably requested by the d irector; 45
2281- (7) Acknowledge that the authorized delegate consents 46
2282-to examination or investigation by the director; 47
2283- (8) State that the licensee is subject to regulation 48
2284-by the director and that, as part of that regulation, the 49
2285-director may suspend or revoke an authorized delegate 50
2286-designation or require the licensee to terminate an 51
2287-authorized delegate designation; and 52
2288- (9) Acknowledge receipt of the written policies and 53
2289-procedures required under subdivision (1) of subsection 1 of 54
2290-this section. 55
2291- 5. If the licensee's license is suspended, revoked, 56
2292-surrendered, or expired, the licensee shall, within five 57
2293-business days, provide documentation to the director that 58
2294-the licensee has notified all applicable authorized 59
2295-delegates of the lice nsee whose names are in a record filed 60
2296-with the directors of the suspension, revocation, surrender, 61
2297-or expiration of a license. Upon suspension, revocation, 62
2298-surrender, or expiration of a license, applicable authorized 63
2299-delegates shall immediately cease to provide money 64
2300-transmission as an authorized delegate of the licensee. 65
2301- 6. An authorized delegate of a licensee holds in trust 66
2302-for the benefit of the licensee all money net of fees 67
2303-received from money transmission. If any authorized 68
2304-delegate commingles any funds received from money 69
2305-transmission with any other funds or property owned or 70
2306-controlled by the authorized delegate, all commingled funds 71
2307-and other property shall be considered held in trust in 72
2308-favor of the licensee in an amount equal to the amount of 73
2309-money net of fees received from money transmission. 74 HCS SS SB 1359 74
2310- 7. An authorized delegate shall not use a subdelegate 75
2311-to conduct money transmission on behalf of a licensee. 76
2312- 361.978. A person shall not engage in the business of 1
2313-money transmission on behalf of a person not licensed under 2
2314-sections 361.900 to 361.1035 or not exempt under sections 3
2315-361.909 and 361.912. A person that engages in such activity 4
2316-provides money transmission to the same extent as if the 5
2317-person were a licensee and shall be jointly and severally 6
2318-liable with the unlicensed or nonexempt person. 7
2319- 361.981. 1. The circuit court in an action brought by 1
2320-a licensee shall have jurisdiction to grant appropriate 2
2321-equitable or legal relief, including without limitation 3
2322-prohibiting the authorized delegate from directly or 4
2323-indirectly acting as an authorized delegate for any licensee 5
2324-in this state and the payment of restitution, damages, or 6
2325-other monetary relief, if the circuit court finds t hat an 7
2326-authorized delegate failed to remit money in accordance with 8
2327-the written contract required by subsection 2 of section 9
2328-361.1275 or as otherwise directed by the licensee or 10
2329-required by law. 11
2330- 2. If the circuit court issues an order prohibiting a 12
2331-person from acting as an authorized delegate for any 13
2332-licensee under subsection 1 of this section, the licensee 14
2333-that brought the action shall report the order to the 15
2334-director within thirty days and shall report the order 16
2335-through NMLS within ninety d ays. 17
2336- 3. An authorized delegate who holds money in trust for 18
2337-the benefit of a licensee and knowingly fails to remit more 19
2338-than one thousand dollars of such money is guilty of a class 20
2339-E felony. 21
2340- 4. An authorized delegate who holds money in trust for 22
2341-the benefit of a licensee and knowingly fails to remit no 23 HCS SS SB 1359 75
2342-more than one thousand dollars of such money is guilty of a 24
2343-class A misdemeanor. 25
2344- 361.984. 1. Every licensee shall forward all money 1
2345-received for transmission in accorda nce with the terms of 2
2346-the agreement between the licensee and the sender unless the 3
2347-licensee has a reasonable belief or a reasonable basis to 4
2348-believe that the sender may be a victim of fraud or that a 5
2349-crime or violation of law, rule, or regulation has o ccurred, 6
2350-is occurring, or may occur. 7
2351- 2. If a licensee fails to forward money received for 8
2352-transmission in accordance with this section, the licensee 9
2353-shall respond to inquiries by the sender with the reason for 10
2354-the failure unless providing a respo nse would violate a 11
2355-state or federal law, rule, or regulation. 12
2356- 361.987. 1. This section shall not apply to: 1
2357- (1) Money received for transmission subject to the 2
2358-federal Remittance Rule, 12 CFR Part 1005, Subpart B, as 3
2359-amended or recodified from time to time; or 4
2360- (2) Money received for transmission under a written 5
2361-agreement between the licensee and payee to process payments 6
2362-for goods or services provided by the payee. 7
2363- 2. Every licensee shall refund to the sender, with in 8
2364-ten days of receipt of the sender's written request for a 9
2365-refund, any and all money received for transmission unless 10
2366-any of the following occurs: 11
2367- (1) The money has been forwarded within ten days of 12
2368-the date on which the money was received for transmission; 13
2369- (2) Instructions have been given committing an 14
2370-equivalent amount of money to the person designated by the 15
2371-sender within ten days of the date on which the money was 16
2372-received for transmission; 17 HCS SS SB 1359 76
2373- (3) The agreement between the licens ee and the sender 18
2374-instructs the licensee to forward the money at a time that 19
2375-is beyond ten days of the date on which the money was 20
2376-received for transmission. If funds have not yet been 21
2377-forwarded in accordance with the terms of the agreement 22
2378-between the licensee and the sender, the licensee shall 23
2379-issue a refund in accordance with the other provisions of 24
2380-this section; 25
2381- (4) The refund is requested for a transaction that the 26
2382-licensee has not completed based on a reasonable belief or a 27
2383-reasonable basis to believe that a crime or violation of 28
2384-law, rule, or regulation has occurred, is occurring, or may 29
2385-occur; or 30
2386- (5) The refund request does not enable the licensee to: 31
2387- (a) Identify the sender's name and address or 32
2388-telephone number; or 33
2389- (b) Identify the particular transaction to be refunded 34
2390-in the event the sender has multiple transactions 35
2391-outstanding. 36
2392- 361.990. 1. This section shall not apply to: 1
2393- (1) Money received for transmission subject to the 2
2394-federal Remittance Rule, 12 CFR Part 1005, Subpart B, as 3
2395-amended or recodified from time to time; 4
2396- (2) Money received for transmission that is not 5
2397-primarily for personal, family, or household purposes; 6
2398- (3) Money received for transmission under a writt en 7
2399-agreement between the licensee and payee to process payments 8
2400-for goods or services provided by the payee; or 9
2401- (4) Payroll processing services. 10
2402- 2. For purposes of this section, "receipt" means a 11
2403-paper receipt, electronic record, or other wr itten 12
2404-confirmation. For a transaction conducted in person, the 13 HCS SS SB 1359 77
2405-receipt may be provided electronically if the sender 14
2406-requests or agrees to receive an electronic receipt. For a 15
2407-transaction conducted electronically or by phone, a receipt 16
2408-may be provided electronically. All electronic receipts 17
2409-shall be provided in a retainable form. 18
2410- 3. (1) Every licensee or its authorized delegate 19
2411-shall provide the sender a receipt for money received for 20
2412-transmission. The receipt shall contain the following 21
2413-information, as applicable: 22
2414- (a) The name of the sender; 23
2415- (b) The name of the designated recipient; 24
2416- (c) The date of the transaction; 25
2417- (d) The unique transaction or identification number; 26
2418- (e) The name of the licensee, NMLS unique identifier, 27
2419-the licensee's business address, and the licensee's customer 28
2420-service telephone number; 29
2421- (f) The amount of the transaction in United States 30
2422-dollars; 31
2423- (g) Any fee charged by the licensee to the sender for 32
2424-the transaction; and 33
2425- (h) Any taxes collected by the licensee from the 34
2426-sender for the transaction. 35
2427- (2) The receipt required by this section shall be in 36
2428-English and in the language principally used by the licensee 37
2429-or authorized delegate to advertise, solicit, or negotia te, 38
2430-either orally or in writing, for a transaction conducted in 39
2431-person, electronically, or by phone, if other than English. 40
2432- 361.996. 1. A licensee that provides payroll 1
2433-processing services shall: 2
2434- (1) Issue reports to clients d etailing client payroll 3
2435-obligations in advance of the payroll funds being deducted 4
2436-from an account; and 5 HCS SS SB 1359 78
2437- (2) Make available worker paystubs or an equivalent 6
2438-statement to workers. 7
2439- 2. Subsection 1 of this section shall not apply to a 8
2440-licensee providing payroll processing services if the 9
2441-licensee's client designates the intended recipients to the 10
2442-licensee and is responsible for providing the disclosures 11
2443-required by subdivision (2) of subsection 1 of this section. 12
2444- 3. A licensee may appoin t an agent to provide payroll 13
2445-processing services for which the agent would otherwise need 14
2446-to be licensed, provided that: 15
2447- (1) There is a written agreement between the licensee 16
2448-and the agent that directs the agent to provide payroll 17
2449-processing services on the licensee's behalf; 18
2450- (2) The licensee holds the agent out to employees and 19
2451-other licensees as providing payroll processing services on 20
2452-the licensee's behalf; and 21
2453- (3) The licensee's obligation to the payee, including 22
2454-an employee or any other party entitled to receive funds, 23
2455-from the payroll processing services provided by the agent 24
2456-shall not be extinguished if the agent fails to remit the 25
2457-funds to the proper recipient. 26
2458- 361.999. 1. A licensee under sections 361.900 to 1
2459-361.1035 shall maintain at all times a tangible net worth of 2
2460-the greater of one hundred thousand dollars or three percent 3
2461-of total assets for the first one hundred million dollars, 4
2462-two percent of additional assets for one hundred million 5
2463-dollars to one billion dollars, and one -half of one percent 6
2464-of additional assets for over one billion dollars. 7
2465- 2. Tangible net worth shall be demonstrated at initial 8
2466-application by the applicant's most recent audited or 9
2467-unaudited financial statement s under subdivision (6) of 10
2468-subsection 2 of section 361.936. 11 HCS SS SB 1359 79
2469- 3. Notwithstanding the provisions of this section, the 12
2470-director shall have the authority, for good cause shown, to 13
2471-exempt, in part or in whole, from the requirements of this 14
2472-section any applicant or licensee. 15
2473- 361.1002. 1. An applicant for a money transmission 1
2474-license shall provide, and a licensee at all times shall 2
2475-maintain, security consisting of a surety bond in a form 3
2476-satisfactory to the director. 4
2477- 2. The amount of the required security shall be: 5
2478- (1) The greater of one hundred thousand dollars or an 6
2479-amount equal to one hundred percent of the licensee's 7
2480-average daily money transmission liability in this state 8
2481-calculated for the most recently complete d three-month 9
2482-period, up to a maximum of five hundred thousand dollars; or 10
2483- (2) In the event that the licensee's tangible net 11
2484-worth exceeds ten percent of the total assets, a surety bond 12
2485-of one hundred thousand dollars. 13
2486- 3. A licensee that maintains a bond in the maximum 14
2487-amount provided for in subsection 2 of this section shall 15
2488-not be required to calculate its average daily money 16
2489-transmission liability in this state for purposes of this 17
2490-section. 18
2491- 361.1005. 1. A licensee shall maintain at all times 1
2492-permissible investments that have a market value computed in 2
2493-accordance with United States generally accepted accounting 3
2494-principles of not less than the aggregate amount of all of 4
2495-its outstanding money transmission obligatio ns. 5
2496- 2. Except for permissible investments enumerated in 6
2497-subsection 1 of section 361.1008, the director, with respect 7
2498-to any licensee, may by rule limit the extent to which a 8
2499-specific investment maintained by a licensee within a class 9
2500-of permissible investments may be considered a permissible 10 HCS SS SB 1359 80
2501-investment if the specific investment represents undue risk 11
2502-to customers not reflected in the market value of 12
2503-investments. 13
2504- 3. Permissible investments, even if commingled with 14
2505-other assets of the lice nsee, are held in trust for the 15
2506-benefit of the purchasers and holders of the licensee's 16
2507-outstanding money transmission obligations in the event of 17
2508-insolvency, the filing of a petition by or against the 18
2509-licensee under the United States Bankruptcy Code, 11 U.S.C. 19
2510-Section 101-110, as amended or recodified from time to time, 20
2511-for bankruptcy or reorganization, the filing of a petition 21
2512-by or against the licensee for receivership, the 22
2513-commencement of any other judicial or administrative 23
2514-proceeding for its dissolution or reorganization, or in the 24
2515-event of an action by a creditor against the licensee who is 25
2516-not a beneficiary of the statutory trust. No permissible 26
2517-investments impressed with a trust under this subsection 27
2518-shall be subject to attachment, lev y of execution, or 28
2519-sequestration by order of any court, except for a 29
2520-beneficiary of the statutory trust. 30
2521- 4. Upon the establishment of a statutory trust in 31
2522-accordance with subsection 3 of this section or when any 32
2523-funds are drawn on a letter of cre dit under subdivision (4) 33
2524-of subsection 1 of section 361.1008, the director shall 34
2525-notify the applicable regulator of each state in which the 35
2526-licensee is licensed to engage in money transmission, if 36
2527-any, of the establishment of the trust or the funds dr awn on 37
2528-the letter of credit, as applicable. Notice shall be deemed 38
2529-satisfied if performed under a multistate agreement or 39
2530-through NMLS. Funds drawn on a letter of credit, and any 40
2531-other permissible investments held in trust for the benefit 41
2532-of the purchasers and holders of the licensee's outstanding 42 HCS SS SB 1359 81
2533-money transmission obligations, are deemed held in trust for 43
2534-the benefit of such purchasers and holders on a pro rata and 44
2535-equitable basis in accordance with statutes under which 45
2536-permissible investments are required to be held in this 46
2537-state, and other states, as applicable. Any statutory trust 47
2538-established under this subsection shall be terminated upon 48
2539-extinguishment of all of the licensee's outstanding money 49
2540-transmission obligations. 50
2541- 5. The director by rule or by order may allow other 51
2542-types of investments that the director determines are of 52
2543-sufficient liquidity and quality to be a permissible 53
2544-investment. The director is authorized to participate in 54
2545-efforts with other state regulators to det ermine that other 55
2546-types of investments are of sufficient liquidity and quality 56
2547-to be a permissible investment. 57
2548- 361.1008. 1. The following investments are 1
2549-permissible under section 361.1005: 2
2550- (1) Cash, including demand deposits, savings deposits, 3
2551-and funds in such accounts held for the benefit of the 4
2552-licensee's customers in a federally insured depository 5
2553-financial institution, and cash equivalents, including 6
2554-automated clearinghouse items in transit to the licensee and 7
2555-automated clearinghouse items or international wires in 8
2556-transit to a payee, cash in transit via armored car, cash in 9
2557-smart safes, cash in licensee -owned locations, debit card or 10
2558-credit card funded transmission receivables owed by any 11
2559-bank, or money market mu tual funds rated AAA by Standard & 12
2560-Poor's, or the equivalent from any eligible rating service; 13
2561- (2) Certificates of deposit or senior debt obligations 14
2562-of an insured depository institution, as defined under the 15
2563-Federal Deposit Insurance Act, 12 U.S. C. Section 1813, as 16
2564-amended or recodified from time to time, or as defined under 17 HCS SS SB 1359 82
2565-the federal Credit Union Act, 12 U.S.C. Section 1781, as 18
2566-amended or recodified from time to time; 19
2567- (3) An obligation of the United States or a 20
2568-commission, agency, or instrumentality thereof; an 21
2569-obligation that is guaranteed fully as to principal and 22
2570-interest by the United States; or an obligation of a state 23
2571-or a governmental subdivision, agency, or instrumentality 24
2572-thereof; 25
2573- (4) One hundred percent of the suret y bond provided 26
2574-for under section 361.1002 that exceeds the average daily 27
2575-money transmission liability in this state; and 28
2576- (5) The full drawable amount of an irrevocable standby 29
2577-letter of credit for which the stated beneficiary is the 30
2578-director that stipulates that the beneficiary need draw only 31
2579-a sight draft under the letter of credit and present it to 32
2580-obtain funds up to the letter of credit amount within seven 33
2581-days of presentation of the items required by paragraph (d) 34
2582-of this subdivision. The letter of credit shall: 35
2583- (a) Be issued by a federally insured depository 36
2584-financial institution, a foreign bank that is authorized 37
2585-under federal law to maintain a federal agency or federal 38
2586-branch office in a state or states, or a foreign bank that 39
2587-is authorized under state law to maintain a branch in a 40
2588-state that: 41
2589- a. Bears an eligible rating or whose parent company 42
2590-bears an eligible rating; and 43
2591- b. Is regulated, supervised, and examined by United 44
2592-States federal or state authorities h aving regulatory 45
2593-authority over banks, credit unions, and trust companies; 46
2594- (b) Be irrevocable, unconditional, and indicate that 47
2595-it is not subject to any condition or qualifications outside 48
2596-of the letter of credit; 49 HCS SS SB 1359 83
2597- (c) Not contain references to any other agreements, 50
2598-documents, or entities, or otherwise provide for any 51
2599-security interest in the licensee; and 52
2600- (d) Contain an issue date and expiration date, and 53
2601-expressly provide for automatic extension, without a written 54
2602-amendment, for an additional period of one year from the 55
2603-present or each future expiration date unless the issuer of 56
2604-the letter of credit notifies the director in writing by 57
2605-certified or registered mail or courier mail or other 58
2606-receipted means, at least sixty days prio r to any expiration 59
2607-date, that the irrevocable letter of credit will not be 60
2608-extended. 61
2609- 2. In the event of any notice of expiration or 62
2610-nonextension of a letter of credit issued under subdivision 63
2611-(5) of subsection 1 of this section, the licensee sha ll be 64
2612-required to demonstrate to the satisfaction of the director, 65
2613-fifteen days prior to expiration, that the licensee 66
2614-maintains and will maintain permissible investments in 67
2615-accordance with subsection 1 of section 361.1005 upon the 68
2616-expiration of the letter of credit. If the licensee is not 69
2617-able to do so, the director may draw on the letter of credit 70
2618-in an amount up to the amount necessary to meet the 71
2619-licensee's requirements to maintain permissible investments 72
2620-in accordance with subsection 1 of sec tion 361.1005. Any 73
2621-such draw shall be offset against the licensee's outstanding 74
2622-money transmission obligations. The drawn funds shall be 75
2623-held in trust by the director or the director's designated 76
2624-agent, to the extent authorized by law, as agent for t he 77
2625-benefit of the purchasers and holders of the licensee's 78
2626-outstanding money transmission obligations. 79
2627- 3. The letter of credit shall provide that the issuer 80
2628-of the letter of credit will honor, at sight, a presentation 81 HCS SS SB 1359 84
2629-made by the beneficiary to t he issuer of the following 82
2630-documents on or prior to the expiration date of the letter 83
2631-of credit: 84
2632- (1) The original letter of credit, including any 85
2633-amendments; and 86
2634- (2) A written statement from the beneficiary stating 87
2635-that any of the following events have occurred: 88
2636- (a) The filing of a petition by or against the 89
2637-licensee under the United States Bankruptcy Code, 11 U.S.C. 90
2638-Sections 101-110, as amended or recodified from time to 91
2639-time, for bankruptcy or reorganization; 92
2640- (b) The filing of a petition by or against the 93
2641-licensee for receivership, or the commencement of any other 94
2642-judicial or administrative proceeding for its dissolution or 95
2643-reorganization; 96
2644- (c) The seizure of assets of a licensee by the 97
2645-director under an emergency or der issued in accordance with 98
2646-applicable law, on the basis of an action, violation, or 99
2647-condition that has caused or is likely to cause the 100
2648-insolvency of the licensee; or 101
2649- (d) The beneficiary has received notice of expiration 102
2650-or nonextension of a l etter of credit and the licensee 103
2651-failed to demonstrate to the satisfaction of the beneficiary 104
2652-that the licensee will maintain permissible investments in 105
2653-accordance with subsection 1 of section 361.1005 upon the 106
2654-expiration or nonextension of the letter of credit. 107
2655- 4. The director may designate an agent to serve on the 108
2656-director's behalf as beneficiary to a letter of credit so 109
2657-long as the agent and letter of credit meet requirements 110
2658-established by the director. The director's agent may serve 111
2659-as agent for multiple licensing authorities for a single 112
2660-irrevocable letter of credit if the proceeds of the drawable 113 HCS SS SB 1359 85
2661-amount for the purposes of this subsection are assigned to 114
2662-the director. 115
2663- 5. The director is authorized to participate in 116
2664-multistate processes designed to facilitate the issuance and 117
2665-administration of letters of credit including, but not 118
2666-limited to, services provided by the NMLS, State Regulatory 119
2667-Registry LLC, or other third parties. 120
2668- 6. Unless permitted by the director by rule or by 121
2669-order to exceed the limit as set forth herein, the following 122
2670-investments are permissible under section 361.1005 to the 123
2671-extent specified: 124
2672- (1) Receivables that are payable to a licensee from 125
2673-its authorized delegates in the ordinary course of business 126
2674-that are less than seven days old, up to fifty percent of 127
2675-the aggregate value of the licensee's total permissible 128
2676-investments. Of the receivables permissible under this 129
2677-subdivision, receivables that are payable to a licensee from 130
2678-a single authorized delegate in the ordinary course of 131
2679-business shall not exceed ten percent of the aggregate value 132
2680-of the licensee's total permissible investments; 133
2681- (2) The following investments, up to twenty percent 134
2682-per category and combined up to fifty per cent of the 135
2683-aggregate value of the licensee's total permissible 136
2684-investments: 137
2685- (a) A short-term investment bearing an eligible 138
2686-rating. For purposes of this paragraph, "short -term" means 139
2687-up to six months; 140
2688- (b) Commercial paper bearing an eligi ble rating; 141
2689- (c) A bill, note, bond, or debenture bearing an 142
2690-eligible rating; 143
2691- (d) United States triparty repurchase agreements 144
2692-collateralized at one hundred percent or more with United 145 HCS SS SB 1359 86
2693-States government or agency securities, municipal bonds, or 146
2694-other securities bearing an eligible rating; 147
2695- (e) Money market mutual funds rated less than "AAA" 148
2696-and equal to or higher than "A -" by Standard & Poor's, or 149
2697-the equivalent from any other eligible rating service; and 150
2698- (f) A mutual fund or oth er investment fund composed 151
2699-solely and exclusively of one or more permissible 152
2700-investments listed in subdivisions (1) to (3) of subsection 153
2701-1 of this section; and 154
2702- (3) Cash, including demand deposits, savings deposits, 155
2703-and funds in such accounts hel d for the benefit of the 156
2704-licensee's customers, at foreign depository institutions to 157
2705-ten percent of the aggregate value of the licensee's total 158
2706-permissible investments if the licensee has received a 159
2707-satisfactory rating in its most recent examination an d the 160
2708-foreign depository institution: 161
2709- (a) Has an eligible rating; 162
2710- (b) Is registered under the Foreign Account Tax 163
2711-Compliance Act; 164
2712- (c) Is not located in any country subject to sanctions 165
2713-from the Office of Foreign Asset Control; and 166
2714- (d) Is not located in a high risk or noncooperative 167
2715-jurisdiction as designated by the Financial Action Task 168
2716-Force. 169
2717- 361.1011. 1. The director may suspend or revoke a 1
2718-license or order a licensee to revoke the designation of an 2
2719-authorized delegate if: 3
2720- (1) The licensee violates sections 361.900 to 361.1035 4
2721-or a rule adopted or an order issued under sections 361.900 5
2722-to 361.1035; 6
2723- (2) The licensee does not cooperate with an 7
2724-examination or investigation by the director; 8 HCS SS SB 1359 87
2725- (3) The licensee engages in fraud, intentional 9
2726-misrepresentation, or gross negligence; 10
2727- (4) An authorized delegate is convicted of, or enters 11
2728-a plea of guilty or nolo contendere to a felony involving an 12
2729-act of fraud, dishonesty, a breach of trus t, or money 13
2730-laundering, or violates a rule adopted or an order issued 14
2731-under sections 361.900 to 361.1035 as a result of the 15
2732-licensee's willful misconduct or willful blindness; 16
2733- (5) The competence, experience, character, or general 17
2734-fitness of the licensee, authorized delegate, person in 18
2735-control of a licensee, key individual, or responsible person 19
2736-of the authorized delegate indicates that it is not in the 20
2737-public interest to permit the person to provide money 21
2738-transmission; 22
2739- (6) The licensee engages in an unsafe or unsound 23
2740-practice; 24
2741- (7) The licensee is insolvent, suspends payment of its 25
2742-obligations, or makes a general assignment for the benefit 26
2743-of its creditors; or 27
2744- (8) The licensee does not remove an authorized 28
2745-delegate after the director issues and serves upon the 29
2746-licensee a final order including a finding that the 30
2747-authorized delegate has violated sections 361.900 to 31
2748-361.1035. 32
2749- 2. In determining whether a licensee is engaging in an 33
2750-unsafe or unsound practice, the direct or may consider the 34
2751-size and condition of the licensee's money transmission, the 35
2752-magnitude of the loss, the gravity of the violation of 36
2753-sections 361.900 to 361.1035, and the previous conduct of 37
2754-the person involved. 38 HCS SS SB 1359 88
2755- 361.1014. 1. The director may issue an order 1
2756-suspending or revoking the designation of an authorized 2
2757-delegate, if the director finds that: 3
2758- (1) The authorized delegate violated sections 361.900 4
2759-to 361.1035 or a rule adopted or an order issued under 5
2760-sections 361.900 to 361.1035; 6
2761- (2) The authorized delegate did not cooperate with an 7
2762-examination or investigation by the director; 8
2763- (3) The authorized delegate engaged in fraud, 9
2764-intentional misrepresentation, or gross negligence; 10
2765- (4) The authorized delegate has been convicted of, or 11
2766-pled guilty or nolo contendere to a felony involving an act 12
2767-of fraud, dishonesty, a breach of trust, or money laundering; 13
2768- (5) The competence, experience, character, or general 14
2769-fitness of the authorized delegate or a person in control of 15
2770-the authorized delegate indicates that it is not in the 16
2771-public interest to permit the authorized delegate to provide 17
2772-money transmission; or 18
2773- (6) The authorized delegate is engaging in an unsafe 19
2774-or unsound practice. 20
2775- 2. In determining whether an authorized delegate is 21
2776-engaging in an unsafe or unsound practice, the director may 22
2777-consider the size and condition of the authorized delegate's 23
2778-provision of money transmission, the magnitude of the loss, 24
2779-the gravity of the viol ation of sections 361.900 to 361.1035 25
2780-or a rule adopted or order issued under sections 361.900 to 26
2781-361.1035, and the previous conduct of the authorized 27
2782-delegate. 28
2783- 3. An authorized delegate may apply for relief from a 29
2784-suspension or revocation of des ignation as an authorized 30
2785-delegate according to procedures prescribed by the director. 31 HCS SS SB 1359 89
2786- 361.1017. 1. If the director determines that a 1
2787-violation of sections 361.900 to 361.1035 or of a rule 2
2788-adopted or an order issued under sections 3 61.900 to 3
2789-361.1035 by a licensee or authorized delegate is likely to 4
2790-cause immediate and irreparable harm to the licensee, its 5
2791-customers, or the public as a result of the violation, or 6
2792-cause insolvency or significant dissipation of assets of the 7
2793-licensee, the director may issue an order requiring the 8
2794-licensee or authorized delegate to cease and desist from the 9
2795-violation. The order becomes effective upon service to the 10
2796-licensee or authorized delegate. 11
2797- 2. The director may issue an order against a licensee 12
2798-to cease and desist from providing money transmission 13
2799-through an authorized delegate that is the subject of a 14
2800-separate order by the director. 15
2801- 3. An order to cease and desist remains effective and 16
2802-enforceable pending the completion of an administrative 17
2803-proceeding under chapter 536. 18
2804- 4. A licensee or an authorized delegate that is served 19
2805-with an order to cease and desist may petition the circuit 20
2806-court with jurisdiction for a judicial order setting aside, 21
2807-limiting, or suspending the enforcement, operation, or 22
2808-effectiveness of the order pending the completion of an 23
2809-administrative proceeding under chapter 536. 24
2810- 5. An order to cease and desist expires unless the 25
2811-director commences an administrative proceeding under 26
2812-chapter 536 within ten days after it is issued. 27
2813- 361.1020. The director may enter into a consent order 1
2814-at any time with a person to resolve a matter arising under 2
2815-sections 361.900 to 361.1035 or a rule adopted or order 3
2816-issued under sections 36 1.900 to 361.1035. A consent order 4
2817-shall be signed by the person to whom it is issued or by the 5 HCS SS SB 1359 90
2818-person's authorized representative and shall indicate 6
2819-agreement with the terms contained in the order. A consent 7
2820-order may provide that it does not consti tute an admission 8
2821-by a person that sections 361.900 to 361.1035 or a rule 9
2822-adopted or an order issued under sections 361.900 to 10
2823-361.1035 has been violated. 11
2824- 361.1023. 1. A person that intentionally makes a 1
2825-false statement, misreprese ntation, or false certification 2
2826-in a record filed or required to be maintained under 3
2827-sections 361.900 to 361.1035 or that intentionally makes a 4
2828-false entry or omits a material entry in such a record is 5
2829-guilty of a class E felony. 6
2830- 2. A person that knowingly engages in an activity for 7
2831-which a license is required under sections 361.900 to 8
2832-361.1035 without being licensed under sections 361.900 to 9
2833-361.1035 and that receives more than five hundred dollars in 10
2834-compensation within a thirty -day period for this activity is 11
2835-guilty of a class E felony. 12
2836- 3. A person that knowingly engages in an activity for 13
2837-which a license is required under sections 361.900 to 14
2838-361.1035 without being licensed under sections 361.900 to 15
2839-361.1035 and that receives no mo re than five hundred dollars 16
2840-in compensation within a thirty -day period for this activity 17
2841-is guilty of a class A misdemeanor. 18
2842- 361.1026. The director may assess a civil penalty 1
2843-against a person that violates sections 361.900 to 361.10 35 2
2844-or a rule adopted or an order issued under sections 361.900 3
2845-to 361.1035 in an amount not to exceed one thousand dollars 4
2846-per day for each day the violation is outstanding, plus this 5
2847-state's costs and expenses for the investigation and 6
2848-prosecution of the matter, including reasonable attorney's 7
2849-fees. 8 HCS SS SB 1359 91
2850- 361.1029. 1. If the director has reason to believe 1
2851-that a person has violated or is violating section 361.930, 2
2852-the director may issue an order to show cause why an order 3
2853-to cease and desist shall not be issued requiring that the 4
2854-person cease and desist from the violation of section 5
2855-361.930. 6
2856- 2. In an emergency, the director may petition the 7
2857-circuit court with jurisdiction for the issuance of a 8
2858-temporary restraining order un der the rules of civil 9
2859-procedure. 10
2860- 3. An order to cease and desist becomes effective upon 11
2861-service to the person. 12
2862- 4. An order to cease and desist remains effective and 13
2863-enforceable pending the completion of an administrative 14
2864-proceeding under chapter 536. 15
2865- 5. A person that is served with an order to cease and 16
2866-desist for violating section 361.930 may petition the 17
2867-circuit court with jurisdiction for a judicial order setting 18
2868-aside, limiting, or suspending the enforcement, operation, 19
2869-or effectiveness of the order pending the completion of an 20
2870-administrative proceeding under chapter 536. 21
2871- 6. An order to cease and desist expires unless the 22
2872-director commences an administrative proceeding within ten 23
2873-days after it is issued. 24
2874- 361.1032. In applying and construing sections 361.900 1
2875-to 361.1035, consideration shall be given to the need to 2
2876-promote uniformity of the law with respect to its subject 3
2877-matter among states that enact it. 4
2878- 361.1035. 1. A person licensed in this state to 1
2879-engage in the business of money transmission shall not be 2
2880-subject to the provisions of sections 361.900 to 361.1035 to 3
2881-the extent that they conflict with current law or establish 4 HCS SS SB 1359 92
2882-new requirements not imposed under current law, until such 5
2883-time as the licensee renews the licensee's current license. 6
2884- 2. Notwithstanding subsection 1 of this section, a 7
2885-licensee shall be required only to amend its authorized 8
2886-delegate contracts for contracts entered into or amended 9
2887-after the effective date or the completion of any transition 10
2888-period contemplated under subsection 1 of this section. 11
2889-Nothing herein shall be construed as limiting an authorized 12
2890-delegate's obligations to operate in full compliance with 13
2891-sections 361.900 to 361.10 35 as required by subsection 3 of 14
2892-section 361.975. 15
2893- 362.245. 1. The affairs and business of the 1
2894-corporation shall be managed by a board of directors, 2
2895-consisting of not less than five nor more than thirty -five 3
2896-stockholders who shall be elected annually; except, that 4
2897-trust companies in existence on October 13, 1967, may 5
2898-continue to divide the directors into three classes of equal 6
2899-number, as near as may be, and to elect one class each year 7
2900-for three-year terms. Notwithstanding any provision of this 8
2901-chapter to the contrary, a director who is not a stockholder 9
2902-shall have all the rights, privileges, and duties of a 10
2903-director who is a stockholder. 11
2904- 2. Each director shall be a citizen of the United 12
2905-States, and except for a private trust company as described 13
2906-under section 361.160, at least a majority of the directors 14
2907-must be residents of this state at the time of their 15
2908-election and during their continuance in office; provided, 16
2909-however, that if a director actually resides within a radius 17
2910-of one hundred miles of the banking house of said bank or 18
2911-trust company, even though his or her residence be in 19
2912-another state adjoining and contiguous to the state of 20
2913-Missouri, he or she shall for the purposes of this section 21 HCS SS SB 1359 93
2914-be considered as a resident of this state and in the event 22
2915-such director shall be a nonresident of the state of 23
2916-Missouri he or she shall upon his or her election as a 24
2917-director file with the president of the banking house or 25
2918-such other chief executive [office] officer as otherwise 26
2919-permitted by this chapter written consent to service of 27
2920-legal process upon him in his or her capacity as a director 28
2921-by service of the legal process upon the president as though 29
2922-the same were personally served upon the director in 30
2923-Missouri. 31
2924- 3. If at a time when not more than a majority of the 32
2925-directors are residents of this state, except for a private 33
2926-trust company as described under section 361.160, any 34
2927-director shall cease to be a resident of this state or 35
2928-adjoining state as [defined] described in subsection 2 of 36
2929-this section, he or she shall forthwith cease to be a 37
2930-director of the bank or trust company and his or her office 38
2931-shall be vacant. 39
2932- 4. No person shall be a director in any bank or trust 40
2933-company against whom suc h bank or trust company shall hold a 41
2934-judgment. 42
2935- 5. Cumulative voting shall only be permitted at any 43
2936-meeting of the members or stockholders in electing directors 44
2937-when it is provided for in the articles of incorporation or 45
2938-bylaws. 46
2939- 362.1010. Sections 362.1010 to [362.1115] 362.1117 1
2940-shall be known and may be cited as the "Missouri Family 2
2941-Trust Company Act". 3
2942- 362.1015. For purposes of sections 362.1010 to 1
2943-[362.1115] 362.1117, the following terms mean: 2
2944- (1) "Authorized representative", if a family trust 3
2945-company is organized as a corporation, then an officer or 4 HCS SS SB 1359 94
2946-director of the family trust company or, if a family trust 5
2947-company is organized as a limited liability company, then a 6
2948-manager, officer, or member of the family trust company; 7
2949- (2) "Collateral kinship", a relationship that is not 8
2950-lineal but stems from a common ancestor; 9
2951- (3) "Controlling stockholder or member", an individual 10
2952-who owns or has the ability or power to directly or 11
2953-indirectly vote ten percent or more of the outstanding 12
2954-shares, membership interest, or membership units of the 13
2955-family trust company; 14
2956- (4) "Designated relative", a common ancestor of a 15
2957-family, either living or deceased, who is so designated in a 16
2958-family trust company's initial registration application and 17
2959-any annual registration report; 18
2960- (5) "Director", the director of the Missouri division 19
2961-of finance; 20
2962- (6) "Director's designee", an attorney -at-law or a 21
2963-certified public accountant designated by the director under 22
2964-subsection 1 of section 362.1085; 23
2965- (7) "Engage in trust company business with the general 24
2966-public", any sales, solicitations, arrangements, agreements, 25
2967-or transactions to provide trust or other business services, 26
2968-whether for a fee, commission, or any other type of 27
2969-remuneration, with any person who is not a family member or 28
2970-any sole proprietorship, partnership, limited liability 29
2971-company, joint venture, association, corporation, trust, 30
2972-estate, business trust, or other company that is not one 31
2973-hundred percent owned by one or more family members; 32
2974- [(6)] (8) "Family affiliate", a company or other 33
2975-entity wholly and exclusively owned by, directly or 34
2976-indirectly, and operated for the sole benefit of: 35
2977- (a) One or more family mem bers; or 36 HCS SS SB 1359 95
2978- (b) Charitable foundations, charitable trusts, or 37
2979-other charitable entities if such foundation, trust, or 38
2980-entity is funded exclusively by one or more family members; 39
2981- [(7)] (9) "Family member": 40
2982- (a) A designated relative; 41
2983- (b) Any person within the tenth degree of lineal 42
2984-kinship of a designated relative; 43
2985- (c) Any person within the ninth degree of collateral 44
2986-kinship to a designated relative; 45
2987- (d) The spouse of any person who qualifies under 46
2988-paragraphs (a) through (c) of this subdivision; 47
2989- (e) Any former spouse of any person who qualifies 48
2990-under paragraphs (a) through (c) of this subdivision; 49
2991- (f) The probate estate of any person who qualified as 50
2992-a family member under paragraphs (a) through (e) of this 51
2993-subdivision; 52
2994- (g) A family affiliate; 53
2995- (h) An irrevocable trust funded exclusively by one or 54
2996-more family members of which all permissible distributees, 55
2997-as defined under subdivision (16) of section 456.1 -103, 56
2998-qualify under paragraphs (a) through (g) of this subdivision 57
2999-or are charitable foundations, charitable trusts, or other 58
3000-charitable entities; 59
3001- (i) An irrevocable trust of which one or more family 60
3002-members are the only permissible distributees; or 61
3003- (j) A revocable trust of which on e or more family 62
3004-members are the sole settlors. 63
3005-For purposes of this subdivision, a legally adopted person 64
3006-shall be treated as a natural child of the adoptive parents; 65
3007-a stepchild shall be treated as a natural child of the 66
3008-family member who is or was t he stepparent of that child; 67 HCS SS SB 1359 96
3009-and a foster child or an individual who was a minor when a 68
3010-family member became his or her legal guardian shall be 69
3011-treated as a natural child of the family member appointed as 70
3012-foster parent or guardian. Degrees of kinship are 71
3013-calculated by adding the number of steps from the designated 72
3014-relative through each person to the family member either 73
3015-directly in case of lineal kinship or through the common 74
3016-ancestor in the case of collateral kinship; 75
3017- [(8)] (10) "Family trust company", a corporation or 76
3018-limited liability company organized or qualified to do 77
3019-business in this state that is wholly owned and exclusively 78
3020-controlled by, directly or indirectly, one or more family 79
3021-members, excluding any former spouse of a family m ember; 80
3022-that operates for the exclusive benefit of a family member 81
3023-regardless of whether compensation is received or 82
3024-anticipated; and that does not engage in trust company 83
3025-business with the general public or otherwise hold itself 84
3026-out as a trustee for h ire by advertisement, solicitation, or 85
3027-other means. The term "family trust company" shall include 86
3028-foreign family trust companies unless context indicates 87
3029-otherwise; 88
3030- [(9)] (11) "Family trust company affiliated party": 89
3031- (a) A director, officer, manager, employee, or 90
3032-controlling stockholder or member of a family trust company; 91
3033-or 92
3034- (b) A stockholder, member, or any other person as 93
3035-determined by the [secretary] director who participates in 94
3036-the affairs of a family trust company; 95
3037- [(10)] (12) "Foreign family trust company", a family 96
3038-trust company that: 97
3039- (a) Is licensed by the District of Columbia or a state 98
3040-in the United States other than this state; 99 HCS SS SB 1359 97
3041- (b) Has its principal place of business in the 100
3042-District of Columbia or a state in the United States other 101
3043-than this state; 102
3044- (c) Is operated in accordance with family or private 103
3045-trust company laws of the District of Columbia or of the 104
3046-state in which it is licensed; 105
3047- (d) Is subject to statutory or regulatory mandated 106
3048-oversight by the District of Columbia or state in which the 107
3049-principal place of business is located; and 108
3050- (e) Is not owned by or a subsidiary of a corporation, 109
3051-limited liability company, or other business entity that is 110
3052-organized in or licensed by any foreign country; 111
3053- [(11)] (13) "Lineal kinship", a relationship in the 112
3054-direct line of ascent or descent from a designated relative; 113
3055- [(12)] (14) "Officer", an individual, regardless of 114
3056-whether the individual has an official title or receive s a 115
3057-salary or other compensation, who may participate in the 116
3058-major policy-making functions of a family trust company 117
3059-other than as a director. The term shall not include an 118
3060-individual who may have an official title and exercises 119
3061-discretion in the per formance of duties and functions but 120
3062-who does not participate in determining the major policies 121
3063-of the family trust company and whose decisions are limited 122
3064-by policy standards established by other officers, 123
3065-regardless of whether the policy standards ha ve been adopted 124
3066-by the board of directors. The chair of the board of 125
3067-directors, the president, the chief executive officer, the 126
3068-chief financial officer, the senior trust officer, all 127
3069-executive vice presidents of a family trust company, and all 128
3070-managers if organized as a limited liability company are 129
3071-presumed to be officers unless such officer is excluded, 130
3072-other than in the capacity of a director, by resolution of 131 HCS SS SB 1359 98
3073-the board of directors or members or by the bylaws or 132
3074-operating agreement of the fami ly trust company from 133
3075-participating in major policy -making functions of the family 134
3076-trust company, and such excluded officer does not actually 135
3077-participate therein; 136
3078- [(13)] (15) "Organizational instrument", the articles 137
3079-of incorporation for a corpor ation or the articles of 138
3080-organization for a limited liability company, as they may be 139
3081-amended or supplemented from time to time; 140
3082- [(14)] (16) "Principal place of business", the 141
3083-physical location where officers of a family trust company 142
3084-direct, control, and coordinate the trust company's 143
3085-activities; 144
3086- [(15)] (17) "Principal place of operations", the 145
3087-physical location in this state where a foreign family trust 146
3088-company stores and maintains its books and records 147
3089-pertaining to operations in this state; 148
3090- [(16)] (18) "Qualified beneficiary", the same meaning 149
3091-as defined under subdivision (21) of section 456.1 -103; 150
3092- [(17)] (19) "Registered agent", a business or 151
3093-individual designated by a family trust company to receive 152
3094-service of process on behalf of the family trust company; 153
3095- [(18)] (20) "Reports of examinations, operations, or 154
3096-conditions", records submitted to the [secretary] director 155
3097-or prepared by the [secretary] director as part of the 156
3098-[secretary's] director's duties performed under sections 157
3099-362.1010 to 362.1117; 158
3100- [(19)"Secretary", the secretary of state for the state 159
3101-of Missouri; 160
3102- (20)"Secretary's designee", an attorney -at-law or a 161
3103-certified public accountant designated by the secretary 162
3104-under subsection 1 of sec tion 362.1085;] 163 HCS SS SB 1359 99
3105- (21) "Working papers", the records of the procedures 164
3106-followed, tests performed, information obtained, and 165
3107-conclusions reached in an investigation under sections 166
3108-362.1010 to 362.1117. The term shall also include books and 167
3109-records. 168
3110- 362.1030. 1. There is hereby established in the state 1
3111-treasury the "Family Trust Company Fund", which shall 2
3112-consist of all fees collected by the [secretary] director 3
3113-from family trust companies registering as provided in this 4
3114-section. The state treasurer shall be custodian of the 5
3115-fund. In accordance with sections 30.170 and 30.180, the 6
3116-state treasurer may approve disbursements. The fund shall 7
3117-be a dedicated fund, and moneys in the fund shall be used 8
3118-solely to support the [secretary's] director's role and 9
3119-fulfillment of duties under sections 362.1010 to 362.1117. 10
3120-Notwithstanding the provisions of section 33.080 to the 11
3121-contrary, any moneys remaining in the fund at the end of the 12
3122-biennium that exceed twenty thousand dolla rs shall revert to 13
3123-the credit of the general revenue fund. The state treasurer 14
3124-shall invest moneys in the fund in the same manner as other 15
3125-funds are invested. Any interest and moneys earned on such 16
3126-investments shall be credited to the fund. 17
3127- 2. A family trust company that is not a foreign family 18
3128-trust company shall not conduct business in this state 19
3129-unless such family trust company: 20
3130- (1) [Files its organizational instrument with the 21
3131-secretary] Files with the director, an initial registrat ion 22
3132-application in a format prescribed by the director, a one - 23
3133-time original filing fee of five thousand dollars, the 24
3134-proposed organizational instruments to be filed with the 25
3135-secretary of state, and all required filing fees ; and 26 HCS SS SB 1359 100
3136- (2) [Pays a one-time original filing fee of five 27
3137-thousand dollars to the secretary ] Receives from the 28
3138-director an order approving the application, instruction as 29
3139-to who shall file the order, the proposed organizational 30
3140-instruments and all required filing fees with the s ecretary 31
3141-of state[; and 32
3142- (3) Registers by filing with the secretary an initial 33
3143-registration application in a format prescribed by the 34
3144-secretary]. 35
3145-A family trust company that is not a foreign family trust 36
3146-company that is, as of August 28, 2024, a r egistered family 37
3147-trust company in good standing with the secretary of state 38
3148-shall be deemed to have complied with the requirements of 39
3149-subsection 2 of section 362.1030. 40
3150- 3. A foreign family trust company shall not conduct 41
3151-business in this state unl ess such foreign family trust 42
3152-company: 43
3153- (1) [Pays a one-time original filing fee of five 44
3154-thousand dollars to the secretary ] Files with the director, 45
3155-an initial registration application in a format prescribed 46
3156-by the director, a one -time original filing fee of five 47
3157-thousand dollars, the proposed application for a certificate 48
3158-of authority if a corporation or application for 49
3159-registration if a limited liability company to be filed with 50
3160-the secretary of state, and all required filing fees ; and 51
3161- (2) [Registers by filing with the secretary an initial 52
3162-registration application in a format prescribed by the 53
3163-secretary] Receives from the director an order approving the 54
3164-application, instruction as to who shall file the order, the 55
3165-proposed application for a certificate of authority if a 56
3166-corporation, or application for registration if a limited 57 HCS SS SB 1359 101
3167-liability company, to be filed with the secretary of state 58
3168-and all required filing fees [; and 59
3169- (3) If such foreign family trust company is a 60
3170-corporation, files an application for a certificate of 61
3171-authority or, if such foreign family trust company is a 62
3172-limited liability company, files an application for 63
3173-registration]. 64
3174-A foreign family trust company that is, as of August 28, 65
3175-2024, a registered family t rust company in good standing 66
3176-with the secretary of state shall be deemed to have complied 67
3177-with the requirements of subsection 3 of section 362.1030. 68
3178- 4. The [secretary] director shall deposit all family 69
3179-trust company filing fees into the family tr ust company fund 70
3180-established under subsection 1 of this section. 71
3181- 5. A foreign family trust company application shall be 72
3182-submitted on a form prescribed by the [secretary] director 73
3183-and be signed, under penalty of perjury, by an authorized 74
3184-representative. At a minimum, the application shall include: 75
3185- (1) A statement attesting that the foreign family 76
3186-trust company: 77
3187- (a) Will comply with the provisions of sections 78
3188-362.1010 to 362.1117; and 79
3189- (b) Is in compliance with the family trust c ompany 80
3190-laws and regulations of the jurisdiction of its 81
3191-incorporation or organization; 82
3192- (2) The current telephone number and street address of: 83
3193- (a) The foreign family trust company's principal place 84
3194-of business in the jurisdiction of its incor poration or 85
3195-organization; 86
3196- (b) The foreign family trust company's principal place 87
3197-of operations; and 88 HCS SS SB 1359 102
3198- (c) Any other offices located within this state; 89
3199- (3) The name and current street address in this state 90
3200-of its registered agent; 91
3201- (4) A certified copy of a certificate of good 92
3202-standing, or an equivalent document, authenticated by the 93
3203-official having custody of records in the jurisdiction where 94
3204-the foreign family trust company is incorporated or 95
3205-organized; 96
3206- (5) Satisfactory proof, as determined by the 97
3207-[secretary] director, that the foreign family trust company 98
3208-is organized in a manner similar to a Missouri family trust 99
3209-company and is in compliance with the family trust company 100
3210-laws and regulations of the jurisdiction in whi ch the 101
3211-foreign family trust company was incorporated or organized; 102
3212-and 103
3213- (6) Any other information reasonably [and customarily] 104
3214-required by the [secretary of foreign corporations or 105
3215-foreign limited liability companies seeking to qualify to 106
3216-conduct business in this state ] director. 107
3217- 362.1035. 1. No family trust company shall be 1
3218-organized or operated with a capital account of less than 2
3219-two hundred fifty thousand dollars. The full amount of the 3
3220-initial capital account of a fami ly trust company shall 4
3221-consist of one or more asset groups described under 5
3222-subsection 1 of section 362.1070, exclusive of all 6
3223-organization expenses. 7
3224- 2. A family trust company shall maintain: 8
3225- (1) A physical office in this state where original or 9
3226-true copies, including electronic copies, of all material 10
3227-business records and accounts of the family trust company 11
3228-may be accessed and are readily available for examination by 12
3229-the [secretary] director. A family trust company may also 13 HCS SS SB 1359 103
3230-maintain one or more branch offices within or outside of 14
3231-this state; 15
3232- (2) A registered agent who maintains an office in this 16
3233-state; 17
3234- (3) All applicable state and local business licenses, 18
3235-charters, and permits; and 19
3236- (4) A deposit account with a state -chartered or 20
3237-national financial institution that has a principal or 21
3238-branch office in this state. 22
3239- 3. In addition to the requirements of subsection 2 of 23
3240-this section, a foreign family trust company shall also: 24
3241- (1) Be in good standing in the j urisdiction in which 25
3242-it is incorporated or organized; and 26
3243- (2) Stay in compliance with the family trust company 27
3244-laws and regulations of such jurisdiction. 28
3245- 362.1040. 1. One or more persons may subscribe to an 1
3246-organizational instrument in writing for the purpose of 2
3247-forming a family trust company, subject to the conditions 3
3248-prescribed by law. 4
3249- 2. The organizational instrument of a family trust 5
3250-company shall set forth all of the information required 6
3251-under chapter 347 or 351, as applicable, and the following: 7
3252- (1) The name of the company, which shall distinguish 8
3253-the company from any other nonfamily trust company or family 9
3254-trust company formed or engaging in business in this state. 10
3255-If the word "trust" is included in th e name, it shall be 11
3256-immediately preceded by the word "family" so as to 12
3257-distinguish the entity from a nonfamily trust company 13
3258-operating under this chapter. This subdivision shall not 14
3259-apply to a foreign family trust company using a fictitious 15
3260-name that is registered and maintained in this state 16
3261-pursuant to the requirements administered by the secretary 17 HCS SS SB 1359 104
3262-of state and that distinguishes the foreign family trust 18
3263-company from a nonfamily trust company authorized to operate 19
3264-under this chapter; 20
3265- (2) A statement that the purpose for which the company 21
3266-is formed is to engage in any and all activities permitted 22
3267-under sections 362.1010 to 362.1117; and 23
3268- (3) A statement affirming that the family trust 24
3269-company shall not engage in trust company busines s with the 25
3270-general public. 26
3271- 3. The term "trust company" in the name adopted by a 27
3272-family trust company shall not be deemed to violate section 28
3273-362.425. 29
3274- 362.1055. 1. A family trust company shall file an 1
3275-annual registration report with, and shall pay an annual 2
3276-filing fee of one thousand dollars to, the [secretary] 3
3277-director. 4
3278- 2. The annual registration report filed by a family 5
3279-trust company that is not a foreign family trust company 6
3280-shall include: 7
3281- (1) A statement by an authorized representative 8
3282-verifying that the family trust company is in compliance 9
3283-with the provisions of sections 362.1010 to 362.1117 and 10
3284-with applicable federal laws including, but not limited to, 11
3285-anti-money laundering and customer -identification rules or 12
3286-regulations; 13
3287- (2) The name of the company's designated relative and 14
3288-the street address for its principal place of business; and 15
3289- (3) Any other information reasonably [and customarily] 16
3290-required by the [secretary of general business cor porations 17
3291-in connection with filing their annual registration reports ] 18
3292-director. 19 HCS SS SB 1359 105
3293- 3. The annual registration report filed by a foreign 20
3294-family trust company shall include: 21
3295- (1) A statement by an authorized representative 22
3296-verifying that the for eign family trust company is in 23
3297-compliance with the provisions of sections 362.1010 to 24
3298-362.1117, with the family trust company laws and regulations 25
3299-of the jurisdiction in which it was incorporated or 26
3300-organized, and with applicable federal laws includin g, but 27
3301-not limited to, anti -money laundering and customer - 28
3302-identification rules or regulations; 29
3303- (2) The current telephone number and street address of 30
3304-the foreign family trust company's principal place of 31
3305-business in the jurisdiction in which it w as incorporated or 32
3306-organized; 33
3307- (3) The current telephone number and street address of 34
3308-the foreign family trust company's principal place of 35
3309-operations; 36
3310- (4) The current telephone number and address of the 37
3311-physical location of any other office s located in this state; 38
3312- (5) The name and current street address in this state 39
3313-of the trust company's registered agent; 40
3314- (6) Documentation, to the satisfaction of the 41
3315-[secretary] director, showing that the foreign family trust 42
3316-company is in compliance with the family trust company laws 43
3317-and regulations of the jurisdiction in which it was 44
3318-incorporated or organized; and 45
3319- (7) Any other information reasonably [and customarily] 46
3320-required by the [secretary of general business corporations 47
3321-in connection with filing their annual registration reports ] 48
3322-director. 49 HCS SS SB 1359 106
3323- 4. An annual registration report shall be submitted on 50
3324-a form prescribed by the [secretary] director and signed 51
3325-under penalty of perjury by an authorized representative. 52
3326- 362.1060. 1. A family trust company may, but only for 1
3327-family members: 2
3328- (1) Act as a sole or copersonal representative, 3
3329-executor, or administrator for a probate estate within or 4
3330-outside this state; 5
3331- (2) Act as an attorney-in-fact or agent under a power 6
3332-of attorney; 7
3333- (3) Except as provided under section 362.1065, act 8
3334-within or outside this state as a sole fiduciary or 9
3335-cofiduciary, including acting as a trustee, advisory agent, 10
3336-assignee, assignee for the benefit of c reditors, 11
3337-authenticating agent, bailee, bond or indenture trustee, 12
3338-conservator, conversion agent, custodian, escrow agent, 13
3339-fiscal or paying agent, financial advisor, guardian, 14
3340-investment advisor or manager, managing agent, purchase 15
3341-agent, receiver, registrar, safekeeping or subscription 16
3342-agent, transfer agent for entities other than public 17
3343-companies, warrant agent, or other similar capacity 18
3344-generally performed by a corporate trustee. In so acting, 19
3345-the family trust company may possess, purchase, sel l, 20
3346-invest, reinvest, safekeep, or otherwise manage or 21
3347-administer the real or personal property of family members; 22
3348- (4) Exercise the powers of a corporation or limited 23
3349-liability company incorporated or organized under the laws 24
3350-of this state, or qua lified to transact business as a 25
3351-foreign corporation or limited liability company under the 26
3352-laws of this state that are reasonably necessary to enable 27
3353-the trust company to fully exercise a power conferred under 28 HCS SS SB 1359 107
3354-sections 362.1010 to 362.1117 in accordan ce with commonly 29
3355-accepted customs and usages; 30
3356- (5) Delegate duties and powers, including investment 31
3357-and management functions under section 469.909, in 32
3358-accordance with the powers granted to a trustee under 33
3359-chapter 456 or other applicable law and re tain agents, 34
3360-attorneys, accountants, investment advisors, or other 35
3361-individuals or entities to advise or assist the family trust 36
3362-company in the exercise of its powers and duties under 37
3363-sections 362.1010 to 362.1117 and chapter 456. Such 38
3364-exercise of power may include, but is not limited to, 39
3365-retaining a bank trust department or a public trust company 40
3366-other than another family trust company; and 41
3367- (6) Perform all acts necessary to exercise the powers 42
3368-enumerated in this section or authorized under se ctions 43
3369-362.1010 to 362.1117 and other applicable laws of this state. 44
3370- 2. A foreign family trust company that has complied 45
3371-with section 362.1030 and is in good standing in the 46
3372-jurisdiction in which it is incorporated or organized may 47
3373-exercise all the trust powers in this state that a Missouri 48
3374-family trust company may exercise. 49
3375- 362.1085. 1. The [secretary] director may designate 1
3376-an attorney-at-law or a certified public accountant to 2
3377-examine or investigate, or assist in the exa mination of, a 3
3378-family trust company. 4
3379- 2. The [secretary] director or the [secretary's] 5
3380-director's designee may examine or investigate a family 6
3381-trust company at any time the [secretary] director deems 7
3382-necessary to determine if the family trust comp any engaged 8
3383-in an act prohibited under section 362.1065 or 362.1080 and, 9
3384-if a family trust company engaged in such act, to determine 10
3385-whether any other applicable law was violated. 11 HCS SS SB 1359 108
3386- 3. The [secretary] director or the [secretary's] 12
3387-director's designee may examine the books and records of a 13
3388-foreign family trust company at any time the [secretary] 14
3389-director deems necessary to determine if such foreign family 15
3390-trust company is in compliance with sections 362.1010 to 16
3391-362.1117. In connection with an ex amination of the books 17
3392-and records of the trust company, the [secretary] director 18
3393-or the [secretary's] director's designee may rely upon the 19
3394-most recent examination report, review, certification 20
3395-letters, or similar documentation issued by the agency 21
3396-supervising the foreign family trust company in the 22
3397-jurisdiction in which the foreign family trust company is 23
3398-incorporated or organized. The examination by the 24
3399-[secretary] director or the [secretary's] director's 25
3400-designee of the books and records of a foreign family trust 26
3401-company shall be, to the extent practicable, limited to 27
3402-books and records of operations in this state. 28
3403- 4. For each examination or investigation of a family 29
3404-trust company under this section, the family trust company 30
3405-shall pay the costs of the examination or investigation. As 31
3406-used in this subsection, the term "costs" means the salary 32
3407-of and travel expenses incurred by any individual that are 33
3408-directly attributable to the examination or investigation of 34
3409-the family trust compa ny. The mailing of payment for costs 35
3410-incurred shall be postmarked within thirty days after the 36
3411-receipt of a notice that states the costs are due. The 37
3412-[secretary] director may levy a late payment of up to one 38
3413-hundred dollars per day for each day that a payment is 39
3414-overdue unless waived for good cause. However, if the late 40
3415-payment of costs is intentional, the [secretary] director 41
3416-may levy an administrative fine of up to one thousand 42
3417-dollars per day for each day the payment is overdue. 43 HCS SS SB 1359 109
3418- 5. The [secretary] director may establish by rule the 44
3419-requirements and records necessary to demonstrate conformity 45
3420-with sections 362.1010 to 362.1117 by a family trust company. 46
3421- 362.1090. 1. The [secretary] director or the 1
3422-[secretary's] director's designee may issue and serve upon a 2
3423-family trust company or family trust company affiliated 3
3424-party a notice of charges if the [secretary] director or the 4
3425-[secretary's] director's designee has reason to believe that 5
3426-such company, family trust comp any affiliated party, or 6
3427-individual named therein is engaging in or has engaged in 7
3428-any of the following acts: 8
3429- (1) The family trust company fails to satisfy the 9
3430-requirements of a family trust company or foreign family 10
3431-trust company under sections 362.1010 to 362.1117; 11
3432- (2) A violation of section 362.1035, 362.1040, 12
3433-362.1050, 362.1055, 362.1060, or 362.1080; 13
3434- (3) A violation of any rule of the [secretary] 14
3435-director; 15
3436- (4) A violation of any order of the [secretary] 16
3437-director; 17
3438- (5) A breach of any written agreement with the 18
3439-[secretary] director; 19
3440- (6) A prohibited act or practice under section 20
3441-362.1065; 21
3442- (7) A willful failure to provide information or 22
3443-documents to the [secretary] director upon written request; 23
3444- (8) An act of commission or omission that is 24
3445-judicially determined by a court of competent jurisdiction 25
3446-to be a breach of trust or fiduciary duty; or 26
3447- (9) A violation of state or federal law related to 27
3448-anti-money laundering, customer identification, o r any 28
3449-related rule or regulation. 29 HCS SS SB 1359 110
3450- 2. The notice of charges shall contain a statement of 30
3451-facts and notice of opportunity for a hearing. 31
3452- 3. If no hearing is requested within thirty days after 32
3453-the date of service of the notice of charges or if a hearing 33
3454-is held and the [secretary] director or [secretary's] 34
3455-director's designee finds that any of the charges are true, 35
3456-the [secretary] director or [secretary's] director's 36
3457-designee may enter an order directing the family trust 37
3458-company, family trust company affiliated party, or the 38
3459-individual named in the notice of charges to cease and 39
3460-desist such conduct and to take corrective action. 40
3461- 4. A contested or default cease and desist order is 41
3462-effective when reduced to writing and served upon the family 42
3463-trust company, family trust company affiliated party, or the 43
3464-individual named therein. An uncontested cease and desist 44
3465-order is effective as agreed. 45
3466- 5. If the [secretary] director or the [secretary's] 46
3467-director's designee finds that condu ct described under 47
3468-subsection 1 of this section is likely to cause substantial 48
3469-prejudice to members, shareholders, beneficiaries of 49
3470-fiduciary accounts of the family trust company, or 50
3471-beneficiaries of services rendered by the family trust 51
3472-company, the [secretary] director or the [secretary's] 52
3473-director's designee may issue an emergency cease and desist 53
3474-order requiring the family trust company, family trust 54
3475-company affiliated party, or individual named therein to 55
3476-immediately cease and desist from enga ging in the conduct 56
3477-stated and to take corrective action. The emergency order 57
3478-is effective immediately upon service of a copy of the order 58
3479-upon the family trust company or family trust company 59
3480-affiliated party and shall remain effective for ninety 60
3481-days. If the [secretary] director or the [secretary's] 61 HCS SS SB 1359 111
3482-director's designee begins nonemergency cease and desist 62
3483-proceedings under subsection 1 of this section, the 63
3484-emergency order shall remain effective until the conclusion 64
3485-of the proceedings under this section. 65
3486- 6. A family trust company shall have ninety days to 66
3487-wind up its affairs after entry of any order to cease and 67
3488-desist from operating as a family trust company. If a 68
3489-family trust company that is not a foreign family trust 69
3490-company is still operating after ninety days, the 70
3491-[secretary] director or the [secretary's] director's 71
3492-designee may seek an order from a circuit court for the 72
3493-annulment or dissolution of the company. If a foreign 73
3494-family trust company is still operating after ninety days, 74
3495-the [secretary] director or the [secretary's] director's 75
3496-designee may seek an injunction from a circuit court 76
3497-restraining the company from continuing to operate in this 77
3498-state. 78
3499- 362.1095. If a family trust company fails to submi t 1
3500-within the prescribed period its annual registration report 2
3501-or any other report required by sections 362.1010 to 3
3502-362.1117 or rule, the [secretary] director may impose a fine 4
3503-of up to one hundred dollars for each day that the annual 5
3504-registration report or other report is overdue. Failure to 6
3505-provide the annual registration report within sixty days 7
3506-after the end of the calendar year shall automatically 8
3507-result in termination of the registration of a family trust 9
3508-company. A family trust company may have its registration 10
3509-automatically reinstated by submitting to the [secretary] 11
3510-director, on or before August thirty -first of the calendar 12
3511-year in which the annual registration report is due, the 13
3512-company's annual registration report, a five hundred dol lar 14
3513-late fee, and the amount of any fine imposed by the 15 HCS SS SB 1359 112
3514-[secretary] director under this section. A family trust 16
3515-company that fails to renew or reinstate its registration 17
3516-shall wind up its affairs on or before November thirtieth of 18
3517-the calendar year in which such failure occurs. 19
3518- 362.1100. 1. The [secretary] director or the 1
3519-[secretary's] director's designee may issue and serve upon a 2
3520-family trust company and a family trust company affiliated 3
3521-party a notice of charges if the [secretary] director or the 4
3522-[secretary's] director's designee has reason to believe that 5
3523-the family trust company affiliated party is engaging or has 6
3524-engaged in conduct that: 7
3525- (1) Demonstrates that the family trust company does 8
3526-not satisfy the requirem ents of a family trust company or of 9
3527-a foreign family trust company under sections 362.1010 to 10
3528-362.1117; 11
3529- (2) Is a prohibited act or practice under section 12
3530-362.1065; 13
3531- (3) Violates section 362.1035, 362.1040, 362.1050, 14
3532-362.1055, 362.1060, or 3 62.1080; 15
3533- (4) Violates any other law involving fraud or moral 16
3534-turpitude that constitutes a felony; 17
3535- (5) Violates a state or federal law related to anti - 18
3536-money laundering, customer identification, or any related 19
3537-rule or regulation; 20
3538- (6) Is a willful violation of a rule of the 21
3539-[secretary] director; 22
3540- (7) Is a willful violation of an order of the 23
3541-[secretary] director; 24
3542- (8) Is a willful breach of a written agreement with 25
3543-the [secretary] director; or 26
3544- (9) Is an act of commission or omission or a practice 27
3545-that the [secretary] director or the [secretary's] 28 HCS SS SB 1359 113
3546-director's designee has reason to believe is a breach of 29
3547-trust or fiduciary duty. 30
3548- 2. The notice of charges shall contain a statement of 31
3549-facts and notice of opportunity for a hearing. 32
3550- 3. If no hearing is requested within thirty days after 33
3551-the date of service of the notice of charges or if a hearing 34
3552-is held and the [secretary] director or [secretary's] 35
3553-director's designee finds that any of the charges in the 36
3554-notice of charges are true, the [secretary] director or 37
3555-[secretary's] director's designee may enter an order that 38
3556-removes the family trust company affiliated party from the 39
3557-family trust company or that restricts or prohibits the 40
3558-family trust company affili ated party from participating in 41
3559-the affairs of the family trust company. 42
3560- 4. A contested or default order of removal is 43
3561-effective when reduced to writing and served upon the family 44
3562-trust company and the family trust company affiliated 45
3563-party. An uncontested order of removal is effective as 46
3564-agreed. 47
3565- 5. (1) The chief executive officer of a family trust 48
3566-company or the person holding the equivalent office shall 49
3567-promptly notify the [secretary] director if such person has 50
3568-actual knowledge that a family trust company affiliated 51
3569-party is charged with a felony in a state or federal court. 52
3570- (2) If a family trust company affiliated party is 53
3571-charged with a felony in a state or federal court or, in a 54
3572-court of a foreign country with which the U nited States 55
3573-maintains diplomatic relations, is charged with an offense 56
3574-that involves a violation of law relating to fraud, currency 57
3575-transaction reporting, money laundering, theft, or moral 58
3576-turpitude and such offense is equivalent to a felony charge 59
3577-under state or federal law, then the [secretary] director or 60 HCS SS SB 1359 114
3578-the [secretary's] director's designee may enter an emergency 61
3579-order that suspends the family trust company affiliated 62
3580-party or that restricts or prohibits participation by such 63
3581-party in the affairs of the family trust company effective 64
3582-upon service of the order on the company and such family 65
3583-trust company affiliated party. 66
3584- (3) The order shall contain notice of opportunity for 67
3585-a hearing, at which the family trust company affiliated 68
3586-party may request a postsuspension hearing to show that 69
3587-continued service to or participation in the affairs of the 70
3588-family trust company does not pose a threat to the interests 71
3589-of the family trust company. In accordance with applicable 72
3590-rules, the [secretary] director or [secretary's] director's 73
3591-designee shall notify the family trust company affiliated 74
3592-party whether the order suspending or prohibiting the family 75
3593-trust company affiliated party from participating in the 76
3594-affairs of the family trust company will be rescinded or 77
3595-otherwise modified. The emergency order shall remain in 78
3596-effect, unless otherwise modified by the [secretary] 79
3597-director or [secretary's] director's designee, until the 80
3598-criminal charge is disposed. The emergency order shall 81
3599-dissolve upon the final, unappealed dismissal of all charges 82
3600-against or the acquittal of the family trust company 83
3601-affiliated party. Such occurrences shall not prohibit the 84
3602-[secretary] director or the [secretary's] director's 85
3603-designee from instituting procee dings under subsection 1 of 86
3604-this section. If the family trust company affiliated party 87
3605-charged is convicted or pleads guilty or nolo contendere, 88
3606-regardless of adjudication, the emergency order shall become 89
3607-final. 90
3608- 6. No family trust company affil iated party removed 91
3609-from office under this section shall be eligible for 92 HCS SS SB 1359 115
3610-reinstatement to such office or to any other official 93
3611-position in a family trust company or financial institution 94
3612-in this state except with the written consent of the 95
3613-[secretary] director. A family trust company affiliated 96
3614-party who is removed, restricted, or prohibited from 97
3615-participation in the affairs of a family trust company under 98
3616-this section may petition the [secretary] director for 99
3617-modification or termination of such r emoval, restriction, or 100
3618-prohibition. 101
3619- 7. The resignation, termination of employment or 102
3620-participation, or separation from a family trust company of 103
3621-the family trust company affiliated party shall not affect 104
3622-the jurisdiction and authority of the [secretary] director 105
3623-or the [secretary's] director's designee to issue a notice 106
3624-and proceed under this section against the family trust 107
3625-company affiliated party if such notice is served within six 108
3626-years of the date such person ceased to be a family trust 109
3627-company affiliated party. 110
3628- 362.1105. 1. The books and records of a family trust 1
3629-company are confidential and shall be made available for 2
3630-inspection and examination only: 3
3631- (1) To the [secretary] director or the [secretary's] 4
3632-director's authorized representative; 5
3633- (2) To any person authorized to act for the family 6
3634-trust company; 7
3635- (3) As compelled by a court, pursuant to a subpoena 8
3636-issued in accordance with state or federal law. Before the 9
3637-production of the books and records, the party seeking 10
3638-production shall agree to reimburse the company for the 11
3639-reasonable costs and fees incurred in compliance with the 12
3640-production. If the parties disagree on the amount of 13
3641-reimbursement, the party seeking the records may request the 14 HCS SS SB 1359 116
3642-court that issued the subpoena to set the amount of 15
3643-reimbursement; 16
3644- (4) Pursuant to a subpoena held by any federal or 17
3645-state law enforcement or prosecutorial instrumentality 18
3646-authorized to investigate suspected criminal activity; 19
3647- (5) As authorized by, if a corporation, the board of 20
3648-directors or, if a limited liability company, the managers; 21
3649-or 22
3650- (6) As provided under subsection 2 of this section. 23
3651- 2. (1) If a corporation, each customer and 24
3652-stockholder, or if a limited liability company, each member 25
3653-has the right to inspect the books and records of a family 26
3654-trust company as they pertain to such person's accounts or 27
3655-the determination of such person's voting rights. 28
3656- (2) The books and records pertaining to customers, 29
3657-members, and stockholders of a family trust company shall be 30
3658-kept confidential by the company and its directors, 31
3659-managers, officers, and employees. The books and records of 32
3660-customers, members, and stockholders shall not be released 33
3661-except upon the express authorization of the customer as to 34
3662-his or her own accounts or a stockholder or member regarding 35
3663-his or her voting rights. However, information may be 36
3664-released without the authorization of a customer, member, or 37
3665-shareholder in a manner prescribed by t he board of directors 38
3666-of a corporation or managers of a limited liability company 39
3667-for the purposes of verifying or corroborating the existence 40
3668-or amount of a customer's account if such information is 41
3669-reasonably provided to meet the needs of commerce an d to 42
3670-ensure accurate credit information. Notwithstanding this 43
3671-subdivision, this subsection shall not prohibit a family 44
3672-trust company from disclosing financial information as 45
3673-permitted under 15 U.S.C. Section 6802, as amended. 46 HCS SS SB 1359 117
3674- (3) The willful unlawful disclosure of confidential 47
3675-information in violation of this section shall be a class E 48
3676-felony. 49
3677- (4) This subsection shall not apply to a foreign 50
3678-family trust company. The laws of the jurisdiction in which 51
3679-a foreign family trust company was incorporated or organized 52
3680-govern the rights of its customers, members, and 53
3681-stockholders to inspect its books and records. 54
3682- 3. For purposes of this section, the term "books and 55
3683-records" shall include, but is not limited to, the initial 56
3684-registration documents of a family trust company under 57
3685-section 362.1030 and the annual registration report made by 58
3686-a family trust company under section 362.1055. 59
3687- 362.1110. 1. A family trust company shall keep at its 1
3688-principal place of business or principal place of operations: 2
3689- (1) Full and complete records of the names and 3
3690-residences of all its shareholders or members; 4
3691- (2) The number of shares or membership units held by 5
3692-each, as applicable; and 6
3693- (3) The ownership percentage o f each shareholder or 7
3694-member. 8
3695-The records are subject to inspection by all shareholders or 9
3696-members of the family trust company and the [secretary] 10
3697-director or the [secretary's] director's authorized 11
3698-representative during the normal business hours of th e 12
3699-family trust company. A current list of shareholders or 13
3700-members shall be made available to the [secretary] director 14
3701-or the [secretary's] director's authorized representative 15
3702-for their inspection and, upon the request of the 16
3703-[secretary] director, shall be submitted to the [secretary] 17
3704-director. 18 HCS SS SB 1359 118
3705- 2. The [secretary] director shall retain for at least 19
3706-ten years: 20
3707- (1) Examination reports; 21
3708- (2) Investigatory records; 22
3709- (3) The organizational instrument of a family trust 23
3710-company; and 24
3711- (4) The annual registration reports filed by a family 25
3712-trust company. 26
3713- 3. A copy of any document on file with the [secretary] 27
3714-director that is certified by the [secretary] director as a 28
3715-true copy may be introduced in evidence as if it were the 29
3716-original. The [secretary] director shall establish a 30
3717-schedule of fees for preparing true copies of documents. 31
3718- 4. Orders issued by courts or administrative law 32
3719-judges for the production of confidential records or 33
3720-information shall provide for ins pection in camera by the 34
3721-court or the administrative law judge. If the court or 35
3722-administrative law judge determines that the documents 36
3723-requested are relevant or would likely lead to the discovery 37
3724-of admissible evidence, the documents shall be subject to 38
3725-further orders by the court or the administrative law judge 39
3726-to protect the confidentiality thereof. An order directing 40
3727-the release of information shall be immediately reviewable, 41
3728-and a petition by the [secretary] director for review of the 42
3729-order shall automatically stay any further proceedings in a 43
3730-trial court or administrative hearing until the disposition 44
3731-of the petition by the reviewing court. If any other party 45
3732-files a petition for review, such filing shall stay 46
3733-proceedings only upon an or der of the reviewing court. 47
3734- 362.1115. 1. The following information held by the 1
3735-[secretary] director is confidential and exempt from chapter 2
3736-610: 3 HCS SS SB 1359 119
3737- (1) Any personal identifying information appearing in 4
3738-records relating to a regis tration or an annual 5
3739-certification of a family trust company; 6
3740- (2) Any personal identifying information appearing in 7
3741-records relating to an examination of a family trust company; 8
3742- (3) Any personal identifying information appearing in 9
3743-reports of examinations, operations, or conditions of a 10
3744-family trust company, including working papers; 11
3745- (4) Any portion of a list of names of the shareholders 12
3746-or members of a family trust company; 13
3747- (5) Information received by the [secretary] director 14
3748-from a person from another state or nation or the federal 15
3749-government that is otherwise confidential or exempt under 16
3750-the laws of such state or nation or under federal law; and 17
3751- (6) An emergency cease and desist order issued under 18
3752-section 362.1090 until the emergency order is made 19
3753-permanent, unless the [secretary] director finds that such 20
3754-confidentiality will result in substantial risk of financial 21
3755-loss to the public. 22
3756- 2. Information made confidential and exempt under 23
3757-subsection 1 of this sec tion may be disclosed by the 24
3758-[secretary] director to: 25
3759- (1) The authorized representative or representatives 26
3760-of the family trust company under examination. The 27
3761-authorized representative or representatives shall be 28
3762-identified in a resolution or by written consent of the 29
3763-board of directors if a corporation or the managers if a 30
3764-limited liability company; 31
3765- (2) A fidelity insurance company upon written consent 32
3766-of the family trust company's board of directors if a 33
3767-corporation or its managers if a limited liability company; 34 HCS SS SB 1359 120
3768- (3) An independent auditor upon written consent of the 35
3769-family trust company's board of directors if a corporation 36
3770-or its managers if a limited liability company; 37
3771- (4) A liquidator, receiver, or conservator if 38
3772-appointed. However, any portion of the information that 39
3773-discloses the identity of a bondholder, customer, family 40
3774-member, member, or stockholder shall be redacted by the 41
3775-[secretary] director before releasing such information; 42
3776- (5) Any other state, fede ral, or foreign agency 43
3777-responsible for the regulation or supervision of family 44
3778-trust companies; 45
3779- (6) A law enforcement agency in the furtherance of 46
3780-such agency's official duties and responsibilities; 47
3781- (7) The appropriate law enforcement or pro secutorial 48
3782-agency for the purpose of reporting any suspected criminal 49
3783-activity; or 50
3784- (8) Comply with a legislative subpoena. A legislative 51
3785-body or committee that receives records or information 52
3786-pursuant to such subpoena shall maintain the confiden tial 53
3787-status of such records or information. However, in a case 54
3788-involving the investigation of charges against a public 55
3789-official subject to impeachment or removal, records or 56
3790-information may be disclosed to the extent necessary as 57
3791-determined by the le gislative body or committee. 58
3792- 3. This section shall not prevent or restrict the 59
3793-publication of: 60
3794- (1) A report required by federal law; or 61
3795- (2) The name of the family trust company and the 62
3796-address of its registered agent. 63
3797- 4. The willful disclosure of information made 64
3798-confidential and exempt by this section is a class E felony. 65 HCS SS SB 1359 121
3799- 362.1116. The [secretary] director may issue forms and 1
3800-orders and, after notice and comment, may adopt and amend 2
3801-rules necessary or approp riate to carry out the provisions 3
3802-of sections 362.1010 to 362.1117 and may repeal rules and 4
3803-forms. 5
3804- 362.1117. 1. Except as otherwise provided in sections 1
3805-362.1010 to 362.1117, any interested person aggrieved by any 2
3806-order of the [secretary] director or [secretary's] 3
3807-director's designee under any provision of sections 362.1010 4
3808-to 362.1117 shall be entitled to a hearing before the 5
3809-[secretary] director or the [secretary's] director's 6
3810-authorized representative in accordance with the p rovisions 7
3811-of chapter 536. A cease and desist order issued by the 8
3812-[secretary] director or [secretary's] director's designee is 9
3813-subject to judicial review in accordance with the provisions 10
3814-of chapter 536 in the circuit court of Cole County. 11
3815- 2. A rule adopted under sections 362.1010 to 362.1117 12
3816-is subject to judicial review in accordance with the 13
3817-provisions of chapter 536 in the circuit court of Cole 14
3818-County. 15
3819- 374.190. 1. The director shall examine and inquire 1
3820-into all violations of the insurance laws of the state, and 2
3821-inquire into and investigate the business of insurance 3
3822-transacted in this state by any insurance agent, broker, 4
3823-agency or insurance company. 5
3824- 2. He or any of his duly appointed agents may compel 6
3825-the attendance before him, and may examine, under oath, the 7
3826-directors, officers, agents, employees, solicitors, 8
3827-attorneys or any other person, in reference to the 9
3828-condition, affairs, management of the business, or any 10
3829-matters relating thereto. He may administer oaths or 11
3830-affirmations, and shall have power to summon and compel the 12 HCS SS SB 1359 122
3831-attendance of witnesses, and to require and compel the 13
3832-production of records, books, papers, contracts or other 14
3833-documents, if necessary. 15
3834- 3. The director may make and conduct the investigation 16
3835-in person, or he may appoint one or more persons to make and 17
3836-conduct the same for him. If made by another than the 18
3837-director in person, the person duly appointed by the 19
3838-director shall have the same powers as above granted to the 20
3839-director. A certificate of appointment, under the official 21
3840-seal of the director, shall be sufficient authority and 22
3841-evidence thereof for the person or persons to act. For the 23
3842-purpose of making the investigations, or having the same 24
3843-made, the director may employ the necessary clerical, 25
3844-actuarial and other assistance. 26
3845- 4. Notwithstanding any provision of law to the 27
3846-contrary, the confidentiality provisions of section 374.205, 28
3847-including subdivision (5) of subsection 3 of section 29
3848-374.205, and subsectio n 4 of section 374.205, shall apply to 30
3849-all reports, working papers, recorded information, 31
3850-documents, and copies thereof, produced by, obtained by, or 32
3851-disclosed to the director or any other person in the course 33
3852-of any market conduct investigation or mar ket conduct action. 34
3853- 374.192. 1. Notwithstanding any provision of law to 1
3854-the contrary, a regulated entity shall have not less than 2
3855-thirty calendar days to submit any record or material 3
3856-requested by the department. This subsection shall not 4
3857-apply to requests for records or materials by the division 5
3858-of consumer affairs or to requests for information on forms 6
3859-submitted under section 375.920. 7
3860- 2. Notwithstanding any provision of law to the 8
3861-contrary, any record or document, regar dless of physical 9
3862-form or characteristic, maintained beyond the record 10 HCS SS SB 1359 123
3863-retention period specified in section 374.205 shall not be 11
3864-subject to request or review by the director unless the 12
3865-director has substantial and competent evidence that the 13
3866-regulated entity has willfully engaged in an act or omission 14
3867-constituting a level four or five violation of the laws of 15
3868-this state relating to insurance, including this chapter, 16
3869-chapter 354, and chapters 375 to 385, or has been convicted 17
3870-of any felony related to the business of insurance, in which 18
3871-case the director may request or review records or documents 19
3872-maintained beyond the record retention period specified in 20
3873-section 374.205 that directly relate to the violation or 21
3874-conviction. 22
3875- 3. A regulated entity may establish its own internal 23
3876-standards, practices, methods, or procedures that are the 24
3877-same as or exceed the requirements set forth by law or 25
3878-rule. The department shall not impose any civil penalty, 26
3879-forfeiture, or order on a regulated entity sol ely for 27
3880-failing to comply with its own internal standards, 28
3881-practices, methods, or procedures unless such failure also 29
3882-violates a law or rule. 30
3883- 375.020. 1. Beginning January 1, 2008, each insurance 1
3884-producer, unless exempt pursuant to section 375.016, 2
3885-licensed to sell insurance in this state shall successfully 3
3886-complete courses of study as required by this section. Any 4
3887-person licensed to act as an insurance producer shall, 5
3888-during each two years, attend courses or programs of 6
3889-instruction or attend seminars equivalent to a minimum of 7
3890-sixteen hours of instruction. Of the sixteen hours' 8
3891-training required in this subsection, the hours need not be 9
3892-divided equally among the lines of authority in which the 10
3893-producer has qualified. The courses or programs attended by 11
3894-the producer during each two -year period shall include 12 HCS SS SB 1359 124
3895-instruction on Missouri law, products offered in any line of 13
3896-authority in which the producer is qualified, producers' 14
3897-duties and obligations to the department, and business 15
3898-ethics, including sales suitability. Course credit shall be 16
3899-given to members of the general assembly as determined by 17
3900-the department. 18
3901- 2. Subject to approval by the director, the courses or 19
3902-programs of instruction which shall be deemed t o meet the 20
3903-director's standards for continuing educational requirements 21
3904-shall include, but not be limited to, the following: 22
3905- (1) American College Courses (CLU, ChFC); 23
3906- (2) Life Underwriters Training Council (LUTC); 24
3907- (3) Certified Insurance Counselor (CIC); 25
3908- (4) Chartered Property and Casualty Underwriter (CPCU); 26
3909- (5) Insurance Institute of America (IIA); 27
3910- (6) Any other professional financial designation 28
3911-approved by the director by rule; 29
3912- (7) An insurance-related course taught by an 30
3913-accredited college or university or qualified instructor who 31
3914-has taught a course of insurance law at such institution; 32
3915- (8) A course or program of instruction or seminar 33
3916-developed or sponsored by any authorized insurer, recognized 34
3917-producer association or insurance trade association, or any 35
3918-other entity engaged in the business of providing education 36
3919-courses to producers. A local producer group may also be 37
3920-approved if the instructor receives no compensation for 38
3921-services. 39
3922- 3. A person teaching any approved course of 40
3923-instruction or lecturing at any approved seminar shall 41
3924-qualify for the same number of classroom hours as would be 42
3925-granted to a person taking and successfully completing such 43
3926-course, seminar or program. 44 HCS SS SB 1359 125
3927- 4. Excess hours accumulated during any two -year period 45
3928-may be carried forward to the two -year period immediately 46
3929-following the two-year period in which the course, program 47
3930-or seminar was held. 48
3931- 5. For good cause shown, the director may grant an 49
3932-extension of time during which the educational requirements 50
3933-imposed by this section may be completed, but such extension 51
3934-of time shall not exceed the period of one calendar year. 52
3935-The director may grant an individual waiver of the mandatory 53
3936-continuing education requirement upon a showing by the 54
3937-licensee that it is not feasible for the licensee to satisfy 55
3938-the requirements prior to the renewal date. Waivers may be 56
3939-granted for reasons including, but not limited to: 57
3940- (1) Serious physical injury or illnes s; 58
3941- (2) Active duty in the armed services for an extended 59
3942-period of time; 60
3943- (3) Residence outside the United States; or 61
3944- (4) The licensee is at least seventy years of age. 62
3945- 6. Every person subject to the provisions of this 63
3946-section shall furnish in a form satisfactory to the 64
3947-director, written certification as to the courses, programs 65
3948-or seminars of instruction taken and successfully completed 66
3949-by such person. Every provider of continuing education 67
3950-courses authorized in this state sha ll, within thirty 68
3951-working days of a licensed producer completing its approved 69
3952-course, provide certification to the director of the 70
3953-completion in a format prescribed by the director. 71
3954- 7. The provisions of this section shall not apply to 72
3955-those natural persons holding licenses for any kind or kinds 73
3956-of insurance for which an examination is not required by the 74
3957-law of this state, nor shall they apply to any limited lines 75 HCS SS SB 1359 126
3958-insurance producer license or restricted license as the 76
3959-director may exempt. 77
3960- 8. The provisions of this section shall not apply to a 78
3961-life insurance producer who is limited by the terms of a 79
3962-written agreement with the insurer to transact only specific 80
3963-life insurance policies having an initial face amount of 81
3964-[fifteen] twenty thousand dollars or less, or annuities 82
3965-having an initial face amount of [fifteen] twenty thousand 83
3966-dollars or less, that are designated by the purchaser for 84
3967-the payment of funeral or burial expenses. The director may 85
3968-require the insurer entering into the written agreements 86
3969-with the insurance producers pursuant to this subsection to 87
3970-certify as to the representations of the insurance producers. 88
3971- 9. Rules and regulations necessary to implement and 89
3972-administer this section shall be promulgated by the 90
3973-director, including, but not limited to, rules and 91
3974-regulations regarding the following: 92
3975- (1) Course content and hour credits: the insurance 93
3976-advisory board established by section 375.019 shall be 94
3977-utilized by the director to assist him in determinin g 95
3978-acceptable content of courses, programs and seminars to 96
3979-include classroom equivalency; 97
3980- (2) Filing fees for course approval: every applicant 98
3981-seeking approval by the director of a continuing education 99
3982-course under this section shall pay to the d irector a filing 100
3983-fee of fifty dollars per course. Fees shall be waived for 101
3984-state and local insurance producer groups. Such fee shall 102
3985-accompany any application form required by the director. 103
3986-Courses shall be approved for a period of no more than one 104
3987-year. Applicants holding courses intended to be offered for 105
3988-a longer period must reapply for approval. Courses approved 106
3989-by the director prior to August 28, 1993, for which 107 HCS SS SB 1359 127
3990-continuous certification is sought should be resubmitted for 108
3991-approval sixty days before the anniversary date of the 109
3992-previous approval. 110
3993- 10. All funds received pursuant to the provisions of 111
3994-this section shall be transmitted by the director to the 112
3995-department of revenue for deposit in the state treasury to 113
3996-the credit of the insurance dedicated fund. All 114
3997-expenditures necessitated by this section shall be paid from 115
3998-funds appropriated from the insurance dedicated fund by the 116
3999-legislature. 117
4000- 375.1183. 1. Contracts reinsuring policies of life or 1
4001-health insurance or annuities referred to in section 2
4002-375.1178 issued by a ceding insurer that has been placed in 3
4003-conservation or rehabilitation proceedings under sections 4
4004-375.1150 to 375.1246 shall be continued or terminated under 5
4005-the terms and conditions of each c ontract and the provisions 6
4006-of this section. 7
4007- 2. Contracts reinsuring policies of life or health 8
4008-insurance or annuities referred to in section 375.1178 9
4009-issued by a ceding insurer that has been placed into 10
4010-liquidation under sections 375.1150 to 375. 1246 shall be 11
4011-continued, subject to the provisions of this section, unless: 12
4012- (1) The contracts were terminated pursuant to their 13
4013-terms prior to the date of the order of liquidation; or 14
4014- (2) The contracts were terminated pursuant to the 15
4015-order of liquidation, in which case the provisions of 16
4016-subsection 9 of this section shall apply. 17
4017- 3. (1) At any time within one hundred eighty days of 18
4018-the date of the order of liquidation, a guaranty association 19
4019-covering policies of life or health insuran ce or annuities 20
4020-referred to in section 375.1178, in whole or in part, may 21
4021-elect to assume the rights and obligations of the ceding 22 HCS SS SB 1359 128
4022-insurer that relate to the policies or annuities under any 23
4023-one or more reinsurance contracts between the ceding insurer 24
4024-and its reinsurers. Any such assumption shall be effective 25
4025-as of the date of the order of liquidation. The election 26
4026-shall be made by the guaranty association or the national 27
4027-organization of life and health insurance guaranty 28
4028-associations on its behal f by sending written notice, return 29
4029-receipt requested, to the affected reinsurers. 30
4030- (2) To facilitate the decision, the receiver and each 31
4031-affected reinsurer shall make available upon request to the 32
4032-guaranty association or to the national organizati on of life 33
4033-and health insurance guaranty associations on its behalf: 34
4034- (a) Copies of in-force reinsurance contracts and all 35
4035-related files and records relevant to the determination of 36
4036-whether such contracts should be assumed; and 37
4037- (b) Notices of any defaults under the reinsurance 38
4038-contracts or any known event or condition which with the 39
4039-passage of time could become a default under the reinsurance 40
4040-contracts. 41
4041- (3) Paragraphs (a) through (d) of this subdivision 42
4042-shall apply to reinsurance con tracts so assumed by a 43
4043-guaranty association: 44
4044- (a) The guaranty association shall be responsible for 45
4045-all unpaid premiums due under the reinsurance contracts, for 46
4046-periods both before and after the date of the order of 47
4047-liquidation, and shall be respo nsible for the performance of 48
4048-all other obligations to be performed after the date of the 49
4049-order of liquidation. 50
4050- (b) The guaranty association shall be entitled to any 51
4051-amounts payable by the reinsurer under the reinsurance 52
4052-contracts with respect to losses or events that occur in 53
4053-periods on or after the date of the order of liquidation. 54 HCS SS SB 1359 129
4054- (c) Within thirty days following the date of the 55
4055-guaranty association's election to assume a reinsurance 56
4056-contract, the guaranty association and the reinsurer shall 57
4057-calculate the balance due to or from the guaranty 58
4058-association under each reinsurance contract as of the date 59
4059-of such election, and the guaranty association or reinsurer 60
4060-shall pay any remaining balance due the other within thirty - 61
4061-five days of the date of such election. Any disputes over 62
4062-the amounts due to either the guaranty association or the 63
4063-reinsurer shall be resolved by arbitration pursuant to the 64
4064-terms of the affected reinsurance contract or, if the 65
4065-contract contains no arbitration clau se, pursuant to the 66
4066-provisions of subdivision (3) of subsection 9 of this 67
4067-section. 68
4068- (d) If the guaranty association, or receiver on behalf 69
4069-of such guaranty association, within sixty days of the date 70
4070-of the guaranty association's election to assume a 71
4071-reinsurance contract, pays the unpaid premiums due for 72
4072-periods both before and after the date of such election that 73
4073-are due pursuant to the reinsurance contract, the reinsurer 74
4074-shall not be entitled to terminate the reinsurance contract 75
4075-for failure to pay premiums, and shall not be entitled to 76
4076-set off any unpaid amounts due under other contracts, or 77
4077-unpaid amounts due from parties other than the guaranty 78
4078-association, against amounts due such guaranty association. 79
4079- 4. If a receiver continues p olicies of life or health 80
4080-insurance or annuities referred to in section 375.1178 in 81
4081-force following an order of liquidation, and the policies or 82
4082-annuities are not covered in whole or in part by one or more 83
4083-guaranty associations, the receiver may, withi n one hundred 84
4084-eighty days of the date of the order of liquidation, elect 85
4085-to assume the rights and obligations of the ceding insurer 86 HCS SS SB 1359 130
4086-under any one or more of the reinsurance contracts that 87
4087-relate to the policies or annuities, provided the contracts 88
4088-have not been terminated as set forth in subsection 2 of 89
4089-this section. The election shall be made by sending written 90
4090-notice, return receipt requested, to the affected 91
4091-reinsurers. In that event, payment of premiums on the 92
4092-reinsurance contracts for the po licies and annuities, for 93
4093-periods both before and after the date of the order of 94
4094-liquidation, shall be chargeable against the estate as a 95
4095-class 1 administrative expense. Amounts paid by the 96
4096-reinsurer on account of losses on the policies and annuities 97
4097-shall be to the estate of the ceding insurer. 98
4098- 5. During the period from the date of the order of 99
4099-liquidation until the date the guaranty association or the 100
4100-receiver elects to assume the rights and obligations of the 101
4101-ceding insurer under any one o r more of the reinsurance 102
4102-contracts that relate to the policies or annuities as 103
4103-provided for in subsection 3 or 4 of this section, the 104
4104-guaranty association, the receiver, and the reinsurer shall 105
4105-not have any rights or obligations under any reinsurance 106
4106-contract that is eligible for assumption by such association 107
4107-or the receiver. 108
4108- 6. (1) If the guaranty association or the receiver, 109
4109-as the case may be, has timely elected to assume a 110
4110-reinsurance contract pursuant to subsection 3 or 4 of this 111
4111-section, as applicable, the parties' rights and obligations 112
4112-shall be governed by the provisions of subsection 3 or 4 of 113
4113-this section, as applicable. 114
4114- (2) Where the guaranty association covering policies 115
4115-of life or health insurance or annuities referred to in 116
4116-section 375.1178 or the receiver, as the case may be, does 117
4117-not timely elect to assume a reinsurance contract pursuant 118 HCS SS SB 1359 131
4118-to subsection 3 or 4 of this section, as applicable, the 119
4119-reinsurance contract shall be terminated retroactively 120
4120-effective on the date of the order of liquidation and 121
4121-subsection 9 of this section shall apply. 122
4122- 7. When policies of life or health insurance or 123
4123-annuities referred to in section 375.1178, or the 124
4124-obligations of the guaranty association with respect 125
4125-thereto, are transferred to an assuming insurer, reinsurance 126
4126-on the policies or annuities may also be transferred by the 127
4127-guaranty association, in the case of contracts assumed under 128
4128-subsection 3 of this section, or the receiver, in the case 129
4129-of contracts assumed und er subsection 4 of this section, 130
4130-subject to the following: 131
4131- (1) Unless the reinsurer and the assuming insurer 132
4132-agree otherwise, the reinsurance contract transferred shall 133
4133-not cover any new policies or annuities in addition to those 134
4134-transferred; 135
4135- (2) The obligations described in subsections 3 and 4 136
4136-of this section shall no longer apply with respect to 137
4137-matters arising after the effective date of the transfer; and 138
4138- (3) Notice shall be given in writing, return receipt 139
4139-requested, by the tran sferring party to the affected 140
4140-reinsurer not less than thirty days prior to the effective 141
4141-date of the transfer. 142
4142- 8. The provisions of this section shall, to the extent 143
4143-provided in sections 375.1150 to 375.1246, supersede the 144
4144-provisions of any law or of any affected reinsurance 145
4145-contract that provides for or requires any payment of 146
4146-reinsurance proceeds, on account of losses or events that 147
4147-occur in periods after the date of the order of liquidation, 148
4148-to the receiver of the ceding insurer or any oth er person. 149
4149-The receiver shall remain entitled to any amounts payable by 150 HCS SS SB 1359 132
4150-the reinsurer under the reinsurance contracts with respect 151
4151-to losses or events that occur in periods prior to the date 152
4152-of the order of liquidation, subject to provisions of 153
4153-sections 375.1150 to 375.1246 including applicable setoff 154
4154-provisions. 155
4155- 9. When a reinsurance contract is terminated pursuant 156
4156-to sections 375.1150 to 375.1246, the reinsurer and the 157
4157-receiver shall commence a mandatory negotiation procedure in 158
4158-accordance with this subsection: 159
4159- (1) No later than thirty days after the date of 160
4160-termination, each party shall appoint an actuary to 161
4161-determine an estimated sum due as a result of the 162
4162-termination of the reinsurance contract calculated in a way 163
4163-expected to make the parties economically indifferent as to 164
4164-whether the reinsurance contract continues or terminates, 165
4165-giving due regard to the economic effects of the 166
4166-insolvency. The sum shall take into account the present 167
4167-value of future cash flows expected under the reinsurance 168
4168-contract and be based on a gross premium valuation of net 169
4169-liability using current assumptions that reflect post - 170
4170-insolvency experience expectations, with no additional 171
4171-margins, net of any amounts payable and receivable, with a 172
4172-market value adjustment to reflect premature sale of assets 173
4173-to fund the settlement; 174
4174- (2) Within ninety days of the date of termination, 175
4175-each party shall provide the other party with its estimate 176
4176-of the sum due as a result of the termination of the 177
4177-reinsurance contract, together with all relevant documents 178
4178-and other information supporting the estimate. The parties 179
4179-shall make a good faith effort to reach agreement on the sum 180
4180-due; 181 HCS SS SB 1359 133
4181- (3) If the parties are unable to reach agreement 182
4182-within ninety days following the submission of materials 183
4183-required in subdivision (2) of this subsection, either party 184
4184-may initiate arbitration proceedings as provided in the 185
4185-reinsurance contract. In the event that the reinsurance 186
4186-contract does not contain an arbitration clause, either 187
4187-party may initiate arbitration pursuant to this subdivision 188
4188-by providing the other party with a written demand for 189
4189-arbitration. The arbitration shall be conducted pursuant to 190
4190-the following procedures: 191
4191- (a) Venue for the arbitratio n shall be within the 192
4192-county of the court's jurisdiction pursuant to section 193
4193-375.1154, or another location agreed to by the parties; 194
4194- (b) Within thirty days of the responding party's 195
4195-receipt of the arbitration demand, each party shall appoint 196
4196-an arbitrator who is a disinterested active or retired 197
4197-officer or executive of a life or health insurance or 198
4198-reinsurance company, or other professional with no less than 199
4199-ten years' experience in or relating to the field of life or 200
4200-health insurance or reins urance. The two arbitrators shall 201
4201-appoint an independent, impartial, disinterested umpire who 202
4202-is an active or retired officer or executive of a life or 203
4203-health insurance or reinsurance company, or other 204
4204-professional with no less than ten years' experie nce in the 205
4205-field of life or health insurance or reinsurance. If the 206
4206-arbitrators are unable to agree on an umpire, each 207
4207-arbitrator shall provide the other with the names of three 208
4208-qualified individuals, each arbitrator shall strike two 209
4209-names from the other's list, and the umpire shall be chosen 210
4210-by drawing lots from the remaining individuals; 211
4211- (c) Within sixty days following the appointment of the 212
4212-umpire, the parties shall, unless otherwise ordered by the 213 HCS SS SB 1359 134
4213-panel, submit to the arbitration panel th eir estimates of 214
4214-the sum due as a result of the termination of the 215
4215-reinsurance contract, together with all relevant documents 216
4216-and other information supporting the estimate; 217
4217- (d) The time periods set forth in these paragraphs may 218
4218-be extended upon mutual agreement of the parties; 219
4219- (e) The panel shall have all powers necessary to 220
4220-conduct the arbitration proceedings in a fair and 221
4221-appropriate manner, including the power to request 222
4222-additional information from the parties, authorize 223
4223-discovery, hold hearings, and hear testimony. The panel 224
4224-also may appoint independent actuarial experts, the expense 225
4225-of which shall be shared equally between the parties; 226
4226- (4) An arbitration panel considering the matters set 227
4227-forth in this subsection shall apply the standards set forth 228
4228-in this subsection and shall issue a written award 229
4229-specifying a net settlement amount due from one party or the 230
4230-other as a result of the termination of the reinsurance 231
4231-contract. The receivership court shall confirm that award 232
4232-absent proof of statutory grounds for vacating or modifying 233
4233-arbitration awards under the Federal Arbitration Act; 234
4234- (5) If the net settlement amount agreed or awarded 235
4235-pursuant to this subsection is payable by the reinsurer, the 236
4236-reinsurer shall pay the amount due to the estate subject to 237
4237-any applicable set-off under section 375.1198. If the net 238
4238-settlement amount agreed or awarded pursuant to this 239
4239-subsection is payable by the ceding insurer, the reinsurer 240
4240-shall be deemed to have a timely filed cl aim against the 241
4241-estate for that amount, which claim shall be paid pursuant 242
4242-to the priority established in subsection 5 of section 243
4243-375.1218. The affected guaranty associations shall not be 244
4244-entitled to receive the net settlement amount, except to the 245 HCS SS SB 1359 135
4245-extent they are entitled to share in the estate assets as 246
4246-creditors of the estate, and shall have no responsibility 247
4247-for the net settlement amount. 248
4248- 10. Except as otherwise provided in this section, 249
4249-nothing in this section shall alter or modify the t erms and 250
4250-conditions of any reinsurance contract. Nothing in this 251
4251-section shall abrogate or limit any rights of any reinsurer 252
4252-to claim that it is entitled to rescind a reinsurance 253
4253-contract. Nothing in this section shall give a policyholder 254
4254-or beneficiary an independent cause of action against a 255
4255-reinsurer that is not otherwise set forth in the reinsurance 256
4256-contract. Nothing in this section shall limit or affect any 257
4257-guaranty association's rights as a creditor of the estate 258
4258-against the assets of the estate. Nothing in this section 259
4259-shall apply to reinsurance contracts covering property or 260
4260-casualty risks. 261
4261- 11. This section and subdivision (10) of subsection 1 262
4262-of section 376.734 shall be construed together in a manner 263
4263-that is consistent with ea ch other and with the purpose 264
4264-provided for in section 376.715. 265
4265- 376.427. 1. As used in this section, the following 1
4266-terms mean: 2
4267- (1) "Health benefit plan", as such term is defined in 3
4268-section 376.1350. The term health benefit pla n shall also 4
4269-include a prepaid dental plan, as defined in section 354.700; 5
4270- (2) "Health care services", medical, surgical, dental, 6
4271-podiatric, pharmaceutical, chiropractic, licensed ambulance 7
4272-service, and optometric services; 8
4273- (3) "Health carrier" or "carrier", as such term is 9
4274-defined in section 376.1350. The term health carrier or 10
4275-carrier shall also include a prepaid dental plan 11
4276-corporation, as defined in section 354.700; 12 HCS SS SB 1359 136
4277- (4) "Insured", any person entitled to benefits under a 13
4278-contract of accident and sickness insurance, or medical - 14
4279-payment insurance issued as a supplement to liability 15
4280-insurance but not including any other coverages contained in 16
4281-a liability or a workers' compensation policy, issued by an 17
4282-insurer; 18
4283- (5) "Insurer", any person, reciprocal exchange, 19
4284-interinsurer, fraternal benefit society, health services 20
4285-corporation, self-insured group arrangement to the extent 21
4286-not prohibited by federal law, prepaid dental plan 22
4287-corporation as defined in section 354.700, or any o ther 23
4288-legal entity engaged in the business of insurance; 24
4289- (6) "Provider", a physician, hospital, dentist, 25
4290-podiatrist, chiropractor, pharmacy, licensed ambulance 26
4291-service, or optometrist, licensed by this state. 27
4292- 2. Upon receipt of an assignment of benefits made by 28
4293-the insured to a provider, the insurer shall issue the 29
4294-instrument of payment for a claim for payment for health 30
4295-care services in the name of the provider. All claims shall 31
4296-be paid within thirty days of the receipt by the insurer of 32
4297-all documents reasonably needed to determine the claim. 33
4298- 3. Nothing in this section shall preclude an insurer 34
4299-from voluntarily issuing an instrument of payment in the 35
4300-single name of the provider. 36
4301- 4. Except as provided in subsection 5 of this section, 37
4302-this section shall not require any insurer, health services 38
4303-corporation, prepaid dental plan as defined in section 39
4304-354.700, health maintenance corporation or preferred 40
4305-provider organization which directly contracts with certain 41
4306-members of a class of providers for the delivery of health 42
4307-care services to issue payment as provided pursuant to this 43 HCS SS SB 1359 137
4308-section to those members of the class which do not have a 44
4309-contract with the insurer. 45
4310- 5. When a patient's health benefit plan does not 46
4311-include or require payment to out -of-network providers for 47
4312-all or most covered services, which would otherwise be 48
4313-covered if the patient received such services from a 49
4314-provider in the health benefit plan's network, including but 50
4315-not limited to health maintena nce organization plans, as 51
4316-such term is defined in section 354.400, or a health benefit 52
4317-plan offered by a carrier consistent with subdivision (19) 53
4318-of section 376.426, payment for all services shall be made 54
4319-directly to the providers when the health carr ier has 55
4320-authorized such services to be received from a provider 56
4321-outside the health benefit plan's network. 57
4322- 6. Payments made to providers under this section shall 58
4323-be subject to the provisions of section 376.383. Entities 59
4324-that are not currently su bject to the provisions of section 60
4325-376.383 shall have a delayed effective date of January 1, 61
4326-2026 to be subject to such provisions. 62
4327- 376.1345. 1. As used in this section, unless the 1
4328-context clearly indicates otherwise, terms shall ha ve the 2
4329-same meaning as ascribed to them in section 376.1350. 3
4330- 2. No health carrier, nor any entity acting on behalf 4
4331-of a health carrier, shall restrict methods of reimbursement 5
4332-to health care providers for health care services to a 6
4333-reimbursement method requiring the provider to pay a fee, 7
4334-discount the amount of their claim for reimbursement, or 8
4335-remit any other form of remuneration in order to redeem the 9
4336-amount of their claim for reimbursement. 10
4337- 3. (1) If a health carrier [initiates or changes] 11
4338-proposes to initiate or change the method used to reimburse 12
4339-a health care provider to a method of reimbursement that 13 HCS SS SB 1359 138
4340-will require the health care provider to pay a fee, discount 14
4341-the amount of its claim for reimbursement, or remit any 15
4342-other form of remuneration to the health carrier or any 16
4343-entity acting on behalf of the health carrier in order to 17
4344-redeem the amount of its claim for reimbursement, as 18
4345-described in subsection 2 of this section, the health 19
4346-carrier or an entity acting on its behalf s hall first 20
4347-receive approval from the health care provider before 21
4348-reimbursing the health care provider with such payment 22
4349-method. 23
4350- (2) If a health carrier is currently reimbursing a 24
4351-health care provider with a payment method described in 25
4352-subsection 2 of this section, the health care provider may 26
4353-send one notice to the health carrier for all the health 27
4354-care provider's patients covered by such health carrier 28
4355-stating that the health care provider declines to be 29
4356-reimbursed with a payment method desc ribed in subsection 2 30
4357-of this section. Such notice shall remain in effect for the 31
4358-duration of the contract unless the health care provider 32
4359-requests otherwise in the manner described in paragraph (b) 33
4360-of subdivision (3) of this subsection. All payments made by 34
4361-the health carrier to the health care provider after receipt 35
4362-of the notice declining to be reimbursed with a payment 36
4363-method described in subsection 2 of this section shall not 37
4364-require the health care provider to pay a fee, discount the 38
4365-amount of the provider's claim for reimbursement, or remit 39
4366-any other form of remuneration in order to redeem the amount 40
4367-of the provider's claim for reimbursement. 41
4368- (3) A health carrier that proposes to reimburse a 42
4369-health care provider with a payment meth od described in 43
4370-subsection 2 of this section shall : 44 HCS SS SB 1359 139
4371- [(1)] (a) Notify such health care provider of the fee, 45
4372-discount, or other remuneration required to receive 46
4373-reimbursement through the new or different reimbursement 47
4374-method; and 48
4375- [(2)] (b) In such notice, provide clear instructions 49
4376-to the health care provider as to how to select [an 50
4377-alternative] the payment method described in subsection 2 of 51
4378-this section, and upon request by the health care provider 52
4379-such [alternative] payment method shall be [used] allowed to 53
4380-reimburse the provider until the provider requests otherwise. 54
4381- 4. A health carrier shall allow the provider to select 55
4382-to be reimbursed by an electronic funds transfer through the 56
4383-Automated Clearing House Network as required pu rsuant to 45 57
4384-C.F.R. Sections 162.925, 162.1601, and 162.1602, and if the 58
4385-provider makes such selection, the health carrier shall use 59
4386-such reimbursement method to reimburse the provider until 60
4387-the provider requests otherwise. 61
4388- 5. An amount a health carrier claims was overpaid to a 62
4389-provider may only be collected, withheld, or recouped from 63
4390-the provider, or third party that submitted the provider's 64
4391-claim under the third party's provider identification 65
4392-number, to whom the overpaid amount was origina lly paid. 66
4393-The notice of withholding or recoupment by a health carrier 67
4394-shall also inform the provider or third party of the health 68
4395-care service, date of service, and patient for which the 69
4396-recoupment is being made. 70
4397- 6. Violation of this section sha ll be deemed an unfair 71
4398-trade practice under sections 375.930 to 375.948. 72
4399- 379.1640. 1. As used in this section, the following 1
4400-terms shall mean: 2
4401- (1) "Department", the department of commerce and 3
4402-insurance; 4 HCS SS SB 1359 140
4403- (2) "Director", the director of the department of 5
4404-commerce and insurance; 6
4405- (3) "Limited lines self-service storage insurance 7
4406-producer", an owner, operator, lessor, or sublessor of a 8
4407-self-service storage facility, or an agent or other person 9
4408-authorized to manage th e facility, duly licensed by the 10
4409-department of commerce and insurance; 11
4410- (4) "Offer and disseminate", provide general 12
4411-information, including a description of the coverage and 13
4412-price, as well as process the application, collect premiums, 14
4413-and perform other nonlicensable activities permitted by the 15
4414-state; 16
4415- (5) "Self-service storage insurance", insurance 17
4416-coverage for the loss of, or damage to, tangible personal 18
4417-property in a self-service storage facility as defined in 19
4418-section 415.405 or in trans it during the rental period. 20
4419- 2. Notwithstanding any other provision of law: 21
4420- (1) Individuals may offer and disseminate self -service 22
4421-storage insurance on behalf of and under the control of a 23
4422-limited lines self-service storage insurance producer only 24
4423-if the following conditions are met: 25
4424- (a) The limited lines self -service storage insurance 26
4425-producer provides to purchasers of self -service storage 27
4426-insurance: 28
4427- a. A description of the material terms or the actual 29
4428-material terms of the in surance coverage; 30
4429- b. A description of the process for filing a claim; 31
4430- c. A description of the review or cancellation process 32
4431-for the self-service storage insurance coverage; and 33
4432- d. The identity and contact information of the insurer 34
4433-and any third-party administrator or supervising entity 35
4434-authorized to act on behalf of the insurer; 36 HCS SS SB 1359 141
4435- (b) At the time of licensure, the limited lines self - 37
4436-service storage insurance producer shall establish and 38
4437-maintain a register on a form prescribed b y the director of 39
4438-each individual that offers self -service storage insurance 40
4439-on the limited lines self -service storage insurance 41
4440-producer's behalf. The register shall be maintained and 42
4441-updated annually by the limited lines self -service storage 43
4442-insurance producer and shall include the name, address, and 44
4443-contact information of the limited lines self -service 45
4444-storage insurance producer and an officer or person who 46
4445-directs or controls the limited lines self -service storage 47
4446-insurance producer's operatio ns, and the self-service 48
4447-storage facility's federal tax identification number. The 49
4448-limited lines self-service storage insurance producer shall 50
4449-submit such register within thirty days upon request by the 51
4450-department. The limited lines self -service storage 52
4451-insurance producer shall also certify that each individual 53
4452-listed on the self-service storage register complies with 18 54
4453-U.S.C. Section 1033; 55
4454- (c) The limited lines self -service storage insurance 56
4455-producer serves as or has designated one of its employees 57
4456-who is a licensed individual producer as a person 58
4457-responsible for the business entity's compliance with the 59
4458-self-service storage insurance laws, rules, and regulations 60
4459-of this state; 61
4460- (d) An individual applying for a limited lines self - 62
4461-service storage insurance producer license shall make 63
4462-application to the director on the specified application and 64
4463-declare under penalty of refusal, suspension or revocation 65
4464-of the license that the statements made on the application 66
4465-are true, correct and complete to the best of the knowledge 67 HCS SS SB 1359 142
4466-and belief of the applicant. Before approving the 68
4467-application, the director shall find that the individual: 69
4468- a. Is at least eighteen years of age; 70
4469- b. Has not committed any act that is a ground for 71
4470-denial, suspension, or revocation set forth in section 72
4471-375.141; 73
4472- c. Has paid a license fee in the sum of one hundred 74
4473-dollars; and 75
4474- d. Has completed a qualified training program 76
4475-regarding self-service storage insurance policies, which has 77
4476-been filed with and approved by the director; 78
4477- (e) Individuals applying for limited lines self - 79
4478-service storage insurance producer licenses shall be exempt 80
4479-from examination. The director may require any documents 81
4480-reasonably necessary to verify the informa tion contained in 82
4481-an application. Within thirty working days after the change 83
4482-of any information submitted on the application, the self - 84
4483-service storage insurance producer shall notify the director 85
4484-of the change. No fee shall be charged for any such 86
4485-change. If the director has taken no action within twenty - 87
4486-five working days of receipt of an application, the 88
4487-application shall be deemed approved and the applicant may 89
4488-act as a licensed self -service storage insurance producer, 90
4489-unless the applicant ha s indicated a conviction for a felony 91
4490-or a crime involving moral turpitude; 92
4491- (f) The limited lines self -service storage insurance 93
4492-producer requires each employee and authorized 94
4493-representative of the self -service storage insurance 95
4494-producer whose duties include offering and disseminating 96
4495-self-service storage insurance to receive a program of 97
4496-instruction or training provided or authorized by the 98
4497-insurer or supervising entity that has been reviewed and 99 HCS SS SB 1359 143
4498-approved by the director. The training material shall, at a 100
4499-minimum, contain instructions on the types of insurance 101
4500-offered, ethical sales practices, and required disclosures 102
4501-to prospective customers; 103
4502- (2) Any individual offering or disseminating self - 104
4503-service storage insurance shall provide to prospective 105
4504-purchasers brochures or other written materials that: 106
4505- (a) Provide the identity and contact information of 107
4506-the insurer and any third -party administrator or supervising 108
4507-entity authorized to act on behalf of the insurer; 109
4508- (b) Explain that the purchase of self -service storage 110
4509-insurance is not required in order to lease self -storage 111
4510-units; 112
4511- (c) Explain that an unlicensed self -service storage 113
4512-operator is permitted to provide general information about 114
4513-the insurance offered by the self-service storage operator, 115
4514-including a description of the coverage and price, but is 116
4515-not qualified or authorized to answer technical questions 117
4516-about the terms and conditions of the insurance offered by 118
4517-the self-service storage operator or to ev aluate the 119
4518-adequacy of the customer's existing insurance coverage; and 120
4519- (d) Disclose that self-service storage insurance may 121
4520-provide duplication of coverage already provided by an 122
4521-occupant's, homeowner's, renter's, or other source of 123
4522-coverage; 124
4523- (3) A limited lines self -service storage producer's 125
4524-employee or authorized representative, who is not licensed 126
4525-as an insurance producer, may not: 127
4526- (a) Evaluate or interpret the technical terms, 128
4527-benefits, and conditions of the offered self -service storage 129
4528-insurance coverage; 130 HCS SS SB 1359 144
4529- (b) Evaluate or provide advice concerning a 131
4530-prospective purchaser's existing insurance coverage; or 132
4531- (c) Hold themselves or itself out as a licensed 133
4532-insurer, licensed producer, or insurance expert; 134
4533- (4) If self-service storage insurance is offered to 135
4534-the customer, premium or other charges specifically 136
4535-applicable to self-service storage insurance shall be listed 137
4536-as a separate amount and apart from other charges relating 138
4537-to the lease and/or procurement of a self-service storage 139
4538-unit on all documentation pertinent to the transaction. 140
4539- 3. Notwithstanding any other provision of law, a 141
4540-limited lines self-service storage insurance provider whose 142
4541-insurance-related activities, and those of its employees and 143
4542-authorized representatives, are limited to offering and 144
4543-disseminating self-service storage insurance on behalf of 145
4544-and under the direction of a limited lines self -service 146
4545-storage insurance producer meeting the conditions stated in 147
4546-this section is auth orized to do so and receive related 148
4547-compensation, upon registration by the limited lines self - 149
4548-service storage insurance producer as described in paragraph 150
4549-(b) of subdivision (1) of subsection 2 of this section. 151
4550- 4. Self-service storage insurance ma y be provided 152
4551-under an individual policy or under a group or master policy. 153
4552- 5. Limited lines self-service storage insurance 154
4553-producers, operators, employees and authorized 155
4554-representatives offering and disseminating self -service 156
4555-storage insurance under the limited lines self -service 157
4556-storage insurance producer license shall be subject to the 158
4557-provisions of chapters 374 and 375, except as provided for 159
4558-in this section. 160
4559- 6. Limited lines self-service storage insurance 161
4560-producers, operators, emplo yees and authorized 162 HCS SS SB 1359 145
4561-representatives may offer and disseminate self -service 163
4562-storage insurance policies in an amount not to exceed [five] 164
4563-fifteen thousand dollars of coverage per customer per 165
4564-storage unit. 166
4565- 7. The director may promulgate rules to ef fectuate 167
4566-this section. Any rule or portion of a rule, as that term 168
4567-is defined in section 536.010, that is created under the 169
4568-authority delegated in this section shall become effective 170
4569-only if it complies with and is subject to all of the 171
4570-provisions of chapter 536 and, if applicable, section 172
4571-536.028. This section and chapter 536 are nonseverable and 173
4572-if any of the powers vested with the general assembly 174
4573-pursuant to chapter 536 to review, to delay the effective 175
4574-date, or to disapprove and annul a rule are subsequently 176
4575-held unconstitutional, then the grant of rulemaking 177
4576-authority and any rule proposed or adopted after August 28, 178
4577-2016, shall be invalid and void. 179
4578- 380.621. 1. This section shall be known and may be 1
4579-cited as the "Protecting Missouri's Mutual Insurance 2
4580-Companies Act". 3
4581- 2. As used in this section, the following terms shall 4
4582-mean: 5
4583- (1) "Adequate reinsurance", commercially available 6
4584-reinsurance as deemed appropriate by the board of directors 7
4585-of the company; 8
4586- (2) "Unlimited aggregate reinsurance", aggregate 9
4587-reinsurance coverage where the losses covered by the 10
4588-reinsurer are not limited. 11
4589- 3. Notwithstanding any provision of law to the 12
4590-contrary, the authority expressly granted in this chapter 13
4591-shall be the sole authority granted to the department over 14
4592-any Missouri mutual insurance company operating under the 15 HCS SS SB 1359 146
4593-provisions of this chapter, provided that any provisions 16
4594-regarding premium taxation set forth in chapter 148 that are 17
4595-applicable to Missouri m utual insurance companies shall 18
4596-remain applicable to Missouri mutual insurance companies and 19
4597-further, provided that chapter 382 shall remain applicable 20
4598-to any Missouri mutual insurance company that is a member 21
4599-of, or is seeking to become a member of, a n "insurance 22
4600-holding company system", as that term is defined in section 23
4601-382.010, provided that any examination authorized by chapter 24
4602-382 shall comply with subsections 6 and 7 of this section 25
4603-where a Missouri mutual insurance company owns, in whole or 26
4604-part, an affiliate subject to examination. The department 27
4605-shall not require any company operating under the provisions 28
4606-of this chapter to waive any rights, benefits, or 29
4607-requirements specified in this chapter, nor shall it confer 30
4608-favorable treatment i n exchange for, nor condition the 31
4609-granting of any exception upon, any company conceding 32
4610-additional regulatory oversight by the department. If the 33
4611-department and any company operating under the provisions of 34
4612-this chapter have entered into any agreement in which the 35
4613-department has received concessions including, but not 36
4614-limited to, additional regulatory oversight beyond the 37
4615-authority expressly granted in this chapter, such agreement 38
4616-as it relates to the department's authority is void upon the 39
4617-enactment of this section, but such agreement shall remain 40
4618-in full force and effect for the stated duration of the 41
4619-agreement as it relates to any benefits, allowances, or 42
4620-exemptions granted to the company by the agreement. 43
4621- 4. (1) Notwithstanding any pr ovision of law to the 44
4622-contrary, nothing in this chapter nor any regulation 45
4623-promulgated by the department including, but not limited to, 46
4624-any regulation promulgated under sections 374.045, 380.021, 47 HCS SS SB 1359 147
4625-380.271, and 380.561, shall require or be construed to 48
4626-require any company operating under the provisions of this 49
4627-chapter to acquire or carry reinsurance greater than 50
4628-adequate reinsurance including, but not limited to, 51
4629-unlimited aggregate reinsurance. Nothing in this section 52
4630-shall be construed to limit th e option of an offer of 53
4631-unlimited aggregate reinsurance. 54
4632- (2) Missouri mutual insurance companies operating 55
4633-under the provisions of this chapter shall annually file the 56
4634-following with the director no later than March first of 57
4635-each calendar year: 58
4636- (a) Documentation from the reinsurer or broker of its 59
4637-reinsurance program, such as the reinsurance coverage 60
4638-summary or other similar documentation; and 61
4639- (b) A resolution from the company's board of directors 62
4640-stating that: 63
4641- a. The board has reviewed the terms of the reinsurance 64
4642-obtained by the company and believes it is sufficient to 65
4643-protect the financial stability of the company for the 66
4644-upcoming calendar year; 67
4645- b. The board agrees to notify the director within 68
4646-fifteen days after a ny event, or as soon as practicable 69
4647-thereafter if adverse development occurs to trigger this 70
4648-notification, that is expected to exceed the company's 71
4649-aggregate or catastrophe attachment point or could cause the 72
4650-company's reinsurance coverage to be exhaus ted; and 73
4651- c. The board agrees to notify the director within 74
4652-fifteen days after the company identifies liquidity concerns 75
4653-that could impact the company's ability to pay claims or 76
4654-determines that the company's surplus is less than its 77
4655-admitted assets minus liabilities plus the reserve fund or 78 HCS SS SB 1359 148
4656-adequate guaranty fund required by section 380.021 or 79
4657-380.271, as applicable. 80
4658- 5. Notwithstanding any provision of law to the 81
4659-contrary including, but not limited to, the provisions of 82
4660-section 380.321, the director shall not have the authority 83
4661-to hold a hearing regarding a proposed merger of companies 84
4662-operating pursuant to the provisions of this chapter unless 85
4663-the director has substantial and competent evidence to 86
4664-believe the proposed merger will prej udice the interests of 87
4665-the policyholders of the companies. The director shall have 88
4666-fifteen business days to review the petition for merger and, 89
4667-upon substantial and competent evidence to believe the 90
4668-proposed merger will prejudice the interests of the 91
4669-policyholders of the companies, send a written notice of a 92
4670-hearing regarding the proposed merger. The written notice 93
4671-of hearing shall itemize the reasons why the director 94
4672-believes the proposed merger will prejudice the 95
4673-policyholders of the companies and shall include the date of 96
4674-a hearing regarding the proposed merger no earlier than 97
4675-thirty days and no later than sixty days after the notice of 98
4676-hearing is received by the companies involved in the 99
4677-proposed merger. 100
4678- 6. All working papers, record ed information, 101
4679-documents, and copies thereof, produced by, obtained by, or 102
4680-disclosed to the department or any other person in the 103
4681-course of an examination made under this chapter shall be 104
4682-confidential and not subject to subpoena and shall not be 105
4683-made public by the department or shared with any other 106
4684-person, except as follows: 107
4685- (1) Upon adoption, the director may open the final 108
4686-examination report for public inspection; 109 HCS SS SB 1359 149
4687- (2) The director may disclose the content of an 110
4688-examination report, pr eliminary examination report or 111
4689-results, or any matter relating thereto, to the insurance 112
4690-department of this or any other state or country, or to law 113
4691-enforcement officials of this or any other state or agency 114
4692-of the federal government at any time, so l ong as such 115
4693-agency or office receiving the report or matters relating 116
4694-thereto agrees in writing to hold it confidential and in a 117
4695-manner consistent with this section; and 118
4696- (3) In the event the director determines that legal or 119
4697-regulatory action is appropriate as a result of any 120
4698-examination, he or she may initiate any proceedings or 121
4699-actions as provided by law. 122
4700- 7. (1) Notwithstanding the provisions of section 123
4701-380.491, the department shall not charge a rate for 124
4702-examinations in excess of a re asonable fee. A reasonable fee 125
4703-is determined by the average market rate typically charged 126
4704-by third-party vendors for such services. 127
4705- (2) At any time after notification of the commencement 128
4706-of an examination and through its completion, a company may 129
4707-request on a prospective basis that the department's monthly 130
4708-examination billing statements include the following 131
4709-additional details: 132
4710- (a) Hours billed for an examination shall be recorded 133
4711-in a billing statement provided to the company each month 134
4712-that sets forth the time spent, using fifteen -minute 135
4713-increments, for each billing examiner multiplied by the 136
4714-applicable hourly rate; 137
4715- (b) Billing statements shall include a short and 138
4716-concise statement of the work performed during the month to 139
4717-which the billing statement applies by the billing examiner 140
4718-for each period of time spent on the examination; 141 HCS SS SB 1359 150
4719- (c) The hourly rate for a department employee shall be 142
4720-listed on the billing statement and shall include the 143
4721-employee's salary, benefits, an d other expenses of the 144
4722-examination; 145
4723- (d) The hourly rate for a third -party vendor shall be 146
4724-the lowest and best hourly rate obtained by the department 147
4725-by and through the state procurement process; and 148
4726- (e) Billing statements shall also include any other 149
4727-expenses or the examination, including travel expenses, as 150
4728-allowed by section 380.491. 151
4729- (3) At any time after notification of the commencement 152
4730-of an examination and through its completion, a company may 153
4731-request a scheduling conference w ith the department to 154
4732-discuss the following: 155
4733- (a) The purpose and scope of the examination; 156
4734- (b) The estimated costs of the examination; 157
4735- (c) The types of information that the company will be 158
4736-asked to produce; 159
4737- (d) The most efficient means of conducting the 160
4738-examination; and 161
4739- (e) Any alternative approaches in conducting the 162
4740-examination that would be more convenient, less burdensome, 163
4741-or less expensive for the company while still providing for 164
4742-an effective examination by the depa rtment. 165
4743- (4) (a) No more than thirty days after the scheduling 166
4744-conference, the department shall provide the company with a 167
4745-detailed written budget estimate for the examination that 168
4746-shall, for each forthcoming phase of the examination: 169
4747- a. Identify the individuals or firms performing the 170
4748-examination and their daily or hourly rates; 171
4749- b. Provide an estimate of travel, lodging, meal, and 172
4750-other administrative or supply costs; and 173 HCS SS SB 1359 151
4751- c. Estimate the length of time necessary to conduct on - 174
4752-site and off-site examination activities. 175
4753- (b) Within fifteen days of receipt of a budget 176
4754-estimate under paragraph (a) of this subdivision, the 177
4755-company and the department shall have an additional 178
4756-discussion regarding the most efficient means of con ducting 179
4757-the examination and producing information. If necessary, 180
4758-revisions of the budget estimate shall be made. 181
4759- (c) The time periods under paragraphs (a) and (b) of 182
4760-this subdivision may be extended if the company and the 183
4761-department mutually agr ee to the extension. 184
4762- (d) At any time during the examination, the department 185
4763-shall hold another scheduling conference with the company in 186
4764-accordance with the provisions of this subsection and 187
4765-provide a revised budget estimate as set forth in paragr aph 188
4766-(a) of this subdivision if: 189
4767- a. The department determines that the cost of the 190
4768-examination will exceed the stated estimated budget by more 191
4769-than ten percent; or 192
4770- b. There is a material change in staffing. 193
4771- 380.631. 1. This section applies to any company 1
4772-operating under the provisions of this chapter. 2
4773- 2. Notwithstanding any provision of law to the 3
4774-contrary including, but not limited to, the definition of 4
4775-"insolvent" under section 375.1152, a company operating 5
4776-under the provisions of this chapter is "insolvent" as such 6
4777-term is used in sections 375.1150 to 375.1246, if it is 7
4778-unable to pay its obligations when they are due, or if its 8
4779-admitted assets do not exceed its liabilities plus the 9
4780-reserve fund or adequate guaranty fund required by section 10
4781-380.021 or 380.271, as applicable. 11 HCS SS SB 1359 152
4782- 3. Notwithstanding any provision of law to the 12
4783-contrary including, but not limited to, the specific 13
4784-exception under subdivision (1) of subsection 2 of section 14
4785-375.1150, the provisions of sections 375.1150 to 375.1246 15
4786-shall apply to all companies operating under the provisions 16
4787-of this chapter, except that such companies shall not be 17
4788-subject to sections 375.1160 to 375.1164. Sections 375.570 18
4789-to 375.750 shall apply to such proc eedings. 19
4790- 4. Notwithstanding any provision of law to the 20
4791-contrary including, but not limited to, the definition of 21
4792-"insolvent insurer" under section 375.772, a company 22
4793-operating under the provisions of this chapter is an 23
4794-"insolvent insurer" as suc h term is used in sections 375.771 24
4795-to 375.779, upon the entry of a final order of liquidation 25
4796-with a finding of insolvency by a court of competent 26
4797-jurisdiction under the applicable provisions of sections 27
4798-375.1150 to 375.1246, unless such order of liqui dation has 28
4799-been stayed or been the subject of a writ of supersedeas or 29
4800-other comparable order. 30
4801- 408.035. Notwithstanding the provisions of any other 1
4802-law to the contrary, it is lawful for the parties to agree 2
4803-in writing to any rate of interest, fees, and other terms 3
4804-and conditions in connection with any: 4
4805- (1) Loan to a corporation, general partnership, 5
4806-limited partnership or limited liability company; 6
4807- (2) Extension of credit primarily for agricultural, 7
4808-business, or commercial purposes; 8
4809- (3) Real estate loan, other than residential real 9
4810-estate loans [and loans of less than five thousand dollars 10
4811-secured by real estate used for an agricultural activity ]; or 11
4812- (4) Loan of five thousand dollars or more secured 12
4813-solely by certificates of stock, bonds, bills of exchange, 13 HCS SS SB 1359 153
4814-certificates of deposit, warehouse receipts, or bills of 14
4815-lading pledged as collateral for the repayment of such loans. 15
4816- 408.140. 1. No further or other charge or amount 1
4817-whatsoever shall be directly or indirectly charged, 2
4818-contracted for or received for interest, service charges or 3
4819-other fees as an incident to any such extension of credit 4
4820-except as provided and regulated by sections 367.100 to 5
4821-367.200 and except: 6
4822- (1) On loans for thirty days or longer which are other 7
4823-than "open-end credit" as such term is defined in the 8
4824-federal Consumer Credit Protection Act and regulations 9
4825-thereunder, a fee, not to exceed ten percent of the 10
4826-principal amount loaned not to exceed one hund red dollars 11
4827-may be charged by the lender; however, no such fee shall be 12
4828-permitted on any extension, refinance, restructure or 13
4829-renewal of any such loan, unless any investigation is made 14
4830-on the application to extend, refinance, restructure or 15
4831-renew the loan; 16
4832- (2) The lawful fees actually and necessarily paid out 17
4833-by the lender to any public officer for filing, recording, 18
4834-or releasing in any public office any instrument securing 19
4835-the loan, and reasonable and bona fide third -party fees 20
4836-incurred for remote or electronic filing, which fees may be 21
4837-collected when the loan is made or at any time thereafter; 22
4838-however, premiums for insurance in lieu of perfecting a 23
4839-security interest required by the lender may be charged if 24
4840-the premium does not exceed the fees which would otherwise 25
4841-be payable; 26
4842- (3) If the contract so provides, a charge for late 27
4843-payment on each installment or minimum payment in default 28
4844-for a period of not less than fifteen days in an amount not 29
4845-to exceed five percent of each instal lment due or the 30 HCS SS SB 1359 154
4846-minimum payment due or fifteen dollars, whichever is 31
4847-greater, not to exceed fifty dollars. If the contract so 32
4848-provides, a charge for late payment on each twenty -five 33
4849-dollars or less installment in default for a period of not 34
4850-less than fifteen days shall not exceed five dollars; 35
4851- (4) If the contract so provides, a charge for late 36
4852-payment for a single payment note in default for a period of 37
4853-not less than fifteen days in an amount not to exceed five 38
4854-percent of the payment due; pr ovided that, the late charge 39
4855-for a single payment note shall not exceed fifty dollars; 40
4856- (5) Charges or premiums for insurance written in 41
4857-connection with any loan against loss of or damage to 42
4858-property or against liability arising out of ownership or 43
4859-use of property as provided in section 367.170; however, 44
4860-notwithstanding any other provision of law, with the consent 45
4861-of the borrower, such insurance may cover property all or 46
4862-part of which is pledged as security for the loan, and 47
4863-charges or premiums for insurance providing life, health, 48
4864-accident, or involuntary unemployment coverage; 49
4865- (6) Reasonable towing costs and expenses of retaking, 50
4866-holding, preparing for sale, and selling any personal 51
4867-property in accordance with the uniform commercial c ode - 52
4868-secured transactions, sections 400.9 -101 to 400.9-809; 53
4869- (7) A reasonable service fee not to exceed the amount 54
4870-permitted under subdivision (2) of subsection 6 of section 55
4871-570.120 for any check, draft, order, or like instrument that 56
4872-is returned unpaid by a financial institution, plus an 57
4873-amount equal to the actual fees charged by the financial 58
4874-institution for each check, draft, order, or like instrument 59
4875-returned unpaid; 60
4876- (8) If the contract or promissory note, signed by the 61
4877-borrower, provides for attorney fees, and if it is necessary 62 HCS SS SB 1359 155
4878-to bring suit, such attorney fees may not exceed fifteen 63
4879-percent of the amount due and payable under such contract or 64
4880-promissory note, together with any court costs assessed. 65
4881-The attorney fees shall only be applicable where the 66
4882-contract or promissory note is referred for collection to an 67
4883-attorney, and is not handled by a salaried employee of the 68
4884-holder of the contract; 69
4885- (9) If the open-end credit contract is tied to a 70
4886-transaction account in a dep ository institution, such 71
4887-account is in the institution's assets and such contract 72
4888-provides for loans of thirty -one days or longer which are 73
4889-"open-end credit", as such term is defined in the federal 74
4890-Consumer Credit Protection Act and regulations thereu nder, 75
4891-the creditor may charge a credit advance fee of up to the 76
4892-lesser of seventy-five dollars or ten percent of the credit 77
4893-advanced from time to time from the line of credit; such 78
4894-credit advance fee may be added to the open -end credit 79
4895-outstanding along with any interest, and shall not be 80
4896-considered the unlawful compounding of interest as specified 81
4897-under section 408.120; 82
4898- (10) A deficiency waiver addendum, guaranteed asset 83
4899-protection, or a similar product purchased as part of a loan 84
4900-transaction with collateral and at the borrower's consent, 85
4901-provided the cost of the product is disclosed in the loan 86
4902-contract, is reasonable, and the requirements of section 87
4903-408.380 are met; 88
4904- (11) A convenience fee for payments using an 89
4905-alternative payment channel that accepts a debit or credit 90
4906-card not present transaction, nonface -to-face payment, 91
4907-provided that: 92
4908- (a) The person making the payment is notified of the 93
4909-convenience fee; and 94 HCS SS SB 1359 156
4910- (b) The fee is fixed or flat, except that the fee may 95
4911-vary based upon method of payment used ; and 96
4912- (12) A charge equal to the cost of the credit report . 97
4913- 2. Other provisions of law to the contrary 98
4914-notwithstanding, an open -end credit contract under which a 99
4915-credit card is issued by a company, financial institution, 100
4916-savings and loan or other credit issuing company whose 101
4917-credit card operations are located in Missouri may charge an 102
4918-annual fee, provided that no finance charge shall be 103
4919-assessed on new purchases other than cash advances if such 104
4920-purchases are paid for within twenty -five days of the date 105
4921-of the periodic statement therefor. 106
4922- 3. Notwithstanding any other provision of law to the 107
4923-contrary, in addition to charges allowed pursuant to section 108
4924-408.100, an open-end credit contract provided b y a company, 109
4925-financial institution, savings and loan or other credit 110
4926-issuing company which is regulated pursuant to this chapter 111
4927-may charge an annual fee not to exceed fifty dollars. 112
4928- 427.300. 1. This section shall be known, and may be 1
4929-cited as, the "Commercial Financing Disclosure Law". 2
4930- 2. For purposes of this section, the following terms 3
4931-mean: 4
4932- (1) "Account"; 5
4933- (a) Includes: 6
4934- a. A right to payment of a monetary obligation, 7
4935-regardless of whether earned by perfo rmance, for one of the 8
4936-following: 9
4937- (i) Property that has been or is to be sold, leased, 10
4938-licensed, assigned, or otherwise disposed of; 11
4939- (ii) Services rendered or to be rendered; 12
4940- (iii) A policy of insurance issued or to be issued; 13
4941- (iv) A secondary obligation incurred or to be incurred; 14 HCS SS SB 1359 157
4942- (v) Energy provided or to be provided; 15
4943- (vi) The use or hire of a vessel under a charter or 16
4944-other contract; 17
4945- (vii) Arising out of the use of a credit or charge 18
4946-card or information conta ined on or for use with the card; or 19
4947- (viii) As winnings in a lottery or other game of 20
4948-chance operated or sponsored by a state, governmental unit 21
4949-of a state, or person licensed or authorized to operate the 22
4950-game by a state or governmental unit of a state; and 23
4951- b. Health-care-insurance receivables; and 24
4952- (b) Does not include: 25
4953- a. Rights to payment evidenced by chattel paper or an 26
4954-instrument; 27
4955- b. Commercial tort claims; 28
4956- c. Deposit accounts; 29
4957- d. Investment property; 30
4958- e. Letter-of-credit rights or letters of credit; or 31
4959- f. Rights to payment for moneys or funds advanced or 32
4960-sold, other than rights arising out of the use of a credit 33
4961-or charge card or information contained on or for use with 34
4962-the card; 35
4963- (2) "Accounts receivable purchase transaction", any 36
4964-transaction in which the business forwards or otherwise 37
4965-sells to the provider all or a portion of the business's 38
4966-accounts or payment intangibles at a discount to their 39
4967-expected value. The provider's characte rization of an 40
4968-accounts receivable purchase transaction as a purchase is 41
4969-conclusive that the accounts receivable purchase transaction 42
4970-is not a loan or a transaction for the use, forbearance, or 43
4971-detention of money; 44
4972- (3) "Broker", any person who, fo r compensation or the 45
4973-expectation of compensation, obtains a commercial financing 46 HCS SS SB 1359 158
4974-transaction or an offer for a commercial financing 47
4975-transaction from a third party that would, if executed, be 48
4976-binding upon that third party and communicates that offer to 49
4977-a business located in this state. The term "broker" 50
4978-excludes a provider, or any individual or entity whose 51
4979-compensation is not based or dependent on the terms of the 52
4980-specific commercial financing transaction obtained or 53
4981-offered; 54
4982- (4) "Business", an individual or group of individuals, 55
4983-sole proprietorship, corporation, limited liability company, 56
4984-trust, estate, cooperative, association, or limited or 57
4985-general partnership engaged in a business activity; 58
4986- (5) "Business purpose transaction", an y transaction 59
4987-where the proceeds are provided to a business or are 60
4988-intended to be used to carry on a business and not for 61
4989-personal, family, or household purposes. For purposes of 62
4990-determining whether a transaction is a business purpose 63
4991-transaction, the provider may rely on any written statement 64
4992-of intended purpose signed by the business. The statement 65
4993-may be a separate statement or may be contained in an 66
4994-application, agreement, or other document signed by the 67
4995-business or the business owner or owne rs; 68
4996- (6) "Commercial financing facility", a provider's plan 69
4997-for purchasing multiple accounts receivable from the 70
4998-recipient over a period of time pursuant to an agreement 71
4999-that sets forth the terms and conditions governing the use 72
5000-of the facility; 73
5001- (7) "Commercial financing transaction", any commercial 74
5002-loan, accounts receivable purchase transaction, commercial 75
5003-open-end credit plan or each to the extent the transaction 76
5004-is a business purpose transaction; 77 HCS SS SB 1359 159
5005- (8) "Commercial loan", a loan to a business, whether 78
5006-secured or unsecured; 79
5007- (9) "Commercial open-end credit plan", commercial 80
5008-financing extended by any provider under a plan in which: 81
5009- (a) The provider reasonably contemplates repeat 82
5010-transactions; and 83
5011- (b) The amount of financing that may be extended to 84
5012-the business during the term of the plan, up to any limit 85
5013-set by the provider, is generally made available to the 86
5014-extent that any outstanding balance is repaid; 87
5015- (10) "Depository institution", any of the following: 88
5016- (a) A bank, trust company, or industrial loan company 89
5017-doing business under the authority of, or in accordance 90
5018-with, a license, certificate, or charter issued by the 91
5019-United States, this state, or any other state, district, 92
5020-territory, or commonwealt h of the United States that is 93
5021-authorized to transact business in this state; 94
5022- (b) A federally chartered savings and loan 95
5023-association, federal savings bank, or federal credit union 96
5024-that is authorized to transact business in this state; or 97
5025- (c) A savings and loan association, savings bank, or 98
5026-credit union organized under the laws of this or any other 99
5027-state that is authorized to transact business in this state; 100
5028- (11) "General intangible", any personal property, 101
5029-including things in action, other than accounts, chattel 102
5030-paper, commercial tort claims, deposit accounts, documents, 103
5031-goods, instruments, investment property, letter -of-credit 104
5032-rights, letters of credit, money, and oil, gas, or other 105
5033-minerals before extraction. "General intangible" also 106
5034-includes payment intangibles and software; 107 HCS SS SB 1359 160
5035- (12) "Payment intangible", a general intangible under 108
5036-which the account debtor's principal obligation is a 109
5037-monetary obligation; 110
5038- (13) "Provider", a person who consummates more than 111
5039-five commercial financing transactions to a business located 112
5040-in this state in any calendar year. "Provider" also 113
5041-includes a person that enters into a written agreement with 114
5042-a depository institution to arrange for the extension of a 115
5043-commercial financing transac tion by the depository 116
5044-institution to a business via an online lending platform 117
5045-administered by the person. The fact that a provider 118
5046-extends a specific offer for a commercial financing 119
5047-transaction on behalf of a depository institution shall not 120
5048-be construed to mean that the provider engaged in lending or 121
5049-financing or originated that loan or financing. 122
5050- 3. (1) A provider that consummates a commercial 123
5051-financing transaction shall disclose the terms of the 124
5052-commercial financing transaction as requ ired by this 125
5053-section. The disclosures shall be provided at or before 126
5054-consummation of the transaction. Only one disclosure is 127
5055-required for each commercial financing transaction, and a 128
5056-disclosure is not required as a result of the modification, 129
5057-forbearance, or change to a consummated commercial financing 130
5058-transaction. 131
5059- (2) A provider shall disclose the following in 132
5060-connection with each commercial financing transaction: 133
5061- (a) The total amount of funds provided to the business 134
5062-under the terms of the commercial financing transaction 135
5063-agreement. This disclosure shall be labeled "Total Amount 136
5064-of Funds Provided"; 137
5065- (b) The total amount of funds disbursed to the 138
5066-business under the terms of the commercial financing 139 HCS SS SB 1359 161
5067-transaction, if less than t he total amount of funds 140
5068-provided, as a result of any fees deducted or withheld at 141
5069-disbursement and any amount paid to a third party on behalf 142
5070-of the business. This disclosure shall be labeled "Total 143
5071-Amount of Funds Disbursed"; 144
5072- (c) The total amount to be paid to the provider 145
5073-pursuant to the commercial financing transaction agreement. 146
5074-This disclosure shall be labeled "Total of Payments"; 147
5075- (d) The total dollar cost of the commercial financing 148
5076-transaction under the terms of the agreement, d erived by 149
5077-subtracting the total amount of funds provided from the 150
5078-total of payments. This calculation shall include any fees 151
5079-or charges deducted by the provider from the "Total Amount 152
5080-of Funds Provided". This disclosure shall be labeled "Total 153
5081-Dollar Cost of Financing"; 154
5082- (e) The manner, frequency, and amount of each 155
5083-payment. This disclosure shall be labeled "Payments". If 156
5084-the payments may vary, the provider shall instead disclose 157
5085-the manner, frequency, and the estimated amount of the 158
5086-initial payment labeled "Estimated Payments" and the 159
5087-commercial financing transaction agreement shall include a 160
5088-description of the methodology for calculating any variable 161
5089-payment and the circumstances when payments may vary; 162
5090- (f) A statement of whether there are any costs or 163
5091-discounts associated with prepayment of the commercial 164
5092-financing product including a reference to the paragraph in 165
5093-the agreement that creates the contractual rights of the 166
5094-parties related to prepayment. This disclosure shall be 167
5095-labeled "Prepayment"; and 168
5096- (3) A provider that consummates a commercial financing 169
5097-facility may provide disclosures of this subsection which 170
5098-are based on an example of a transaction that could occur 171 HCS SS SB 1359 162
5099-under the agreement. The example shall be based on an 172
5100-accounts receivable total face amount owed of ten thousand 173
5101-dollars. Only one disclosure is required for each 174
5102-commercial financing facility, and a disclosure is not 175
5103-required as result of a modification, forbearance, or change 176
5104-to the facility. A new disclosure is not required each time 177
5105-accounts receivable are purchased under the facility. 178
5106- 4. The provisions of this section shall not apply to 179
5107-the following: 180
5108- (1) A provider that is a depository institution or a 181
5109-subsidiary or affiliate ; 182
5110- (2) A provider that is a service corporation to a 183
5111-depository institution that is: 184
5112- (a) Owned and controlled by a depository institution; 185
5113-and 186
5114- (b) Regulated by a federal banking agency; 187
5115- (3) A provider that is a lender regulated und er the 188
5116-federal Farm Credit Act, 12 U.S.C. Section 2001, et seq.; 189
5117- (4) A commercial financing transaction that is: 190
5118- (a) Secured by real property; 191
5119- (b) A lease; or 192
5120- (c) A purchase money obligation that is incurred as 193
5121-all or part of the price of the collateral or for value 194
5122-given to enable the business to acquire rights in or the use 195
5123-of the collateral if the value is in fact so used; 196
5124- (5) A commercial financing transaction in which the 197
5125-recipient is a motor vehicle dealer or an affi liate of such 198
5126-a dealer, or a vehicle rental company, or an affiliate of 199
5127-such a company, pursuant to a commercial loan or commercial 200
5128-open-end credit plan of at least fifty thousand dollars or a 201
5129-commercial financing transaction offered by a person in 202
5130-connection with the sale or lease of products or services 203 HCS SS SB 1359 163
5131-that such person manufactures, licenses, or distributes, or 204
5132-whose parent company or any of its directly or indirectly 205
5133-owned and controlled subsidiaries manufactures, licenses, or 206
5134-distributes; 207
5135- (6) A commercial financing transaction that is a 208
5136-factoring transaction, purchase, sale, advance, or similar 209
5137-of accounts receivable owed to a health care provider 210
5138-because of a patient's personal injury treated by the health 211
5139-care provider; 212
5140- (7) A provider that is licensed as a money transmitter 213
5141-in accordance with a license, certificate, or charter issued 214
5142-by this state or any other state, district, territory, or 215
5143-commonwealth of the United States; 216
5144- (8) A provider that consummates no more than five 217
5145-commercial financing transactions in this state in a twelve - 218
5146-month period; or 219
5147- (9) A commercial financing transaction of more than 220
5148-five hundred thousand dollars. 221
5149- 5. (1) No person shall engage in business as a broker 222
5150-within this state for compensation, unless prior to 223
5151-conducting such business, the person has filed a 224
5152-registration with the division of finance within the 225
5153-department of commerce and insurance and has on file a good 226
5154-and sufficient bond as specified in this subsection. The 227
5155-registration shall be effective upon receipt by the division 228
5156-of finance of a completed registration form and the required 229
5157-registration fee, and shall remain effective until the time 230
5158-of renewal. 231
5159- (2) After filing an initial registration form, a 232
5160-broker shall file, on or before January thirty -first of each 233
5161-year, a renewal registration form along with the required 234
5162-renewal registration fee. 235 HCS SS SB 1359 164
5163- (3) The broker shall pay a one -hundred-dollar 236
5164-registration fee upon the filing of an initial registrati on 237
5165-and a fifty-dollar renewal registration fee upon the filing 238
5166-of a renewal registration. 239
5167- (4) The registration form required by this subsection 240
5168-shall include the following: 241
5169- (a) The name of the broker; 242
5170- (b) The name in which the broker i s transacted if 243
5171-different from that stated in paragraph (a) of this 244
5172-subdivision; 245
5173- (c) The address of the broker's principal office, 246
5174-which may be outside this state; 247
5175- (d) Whether any officer, director, manager, operator, 248
5176-or principal of the br oker has been convicted of a felony 249
5177-involving an act of fraud, dishonesty, breach of trust, or 250
5178-money laundering; and 251
5179- (e) The name and address in this state of a designated 252
5180-agent upon whom service of process may be made. 253
5181- (5) If information in a registration form changes or 254
5182-otherwise becomes inaccurate after filing, the broker shall 255
5183-not be required to file a further registration form prior to 256
5184-the time of renewal. 257
5185- (6) Every broker shall obtain a surety bond issued by 258
5186-a surety company authorized to do business in this state. 259
5187-The amount of the bond shall be ten thousand dollars. The 260
5188-bond shall be in favor of the state of Missouri. Any person 261
5189-damaged by the broker's breach of contract or of any 262
5190-obligation arising therefrom, or by an y violation of this 263
5191-section, may bring an action against the bond to recover 264
5192-damages suffered. The aggregate liability of the surety 265
5193-shall be only for actual damages and in no event shall 266
5194-exceed the amount of the bond. 267 HCS SS SB 1359 165
5195- (7) Employees regularly em ployed by a broker who has 268
5196-complied with this subsection shall not be required to file 269
5197-a registration or obtain a surety bond when acting within 270
5198-the scope of their employment for the broker. 271
5199- 6. (1) Any person who violates any provision of this 272
5200-section shall be punished by a fine of five hundred dollars 273
5201-per incident, not to exceed twenty thousand dollars for all 274
5202-aggregated violations arising from the use of the 275
5203-transaction documentation or materials found to be in 276
5204-violation of this section. Any person who violates any 277
5205-provision of this section after receiving written notice of 278
5206-a prior violation from the attorney general shall be 279
5207-punished by a fine of one thousand dollars per incident, not 280
5208-to exceed fifty thousand dollars for all aggregated 281
5209-violations arising from the use of the transaction 282
5210-documentation or materials found to be in violation of this 283
5211-section. 284
5212- (2) Violation of any provision of this section shall 285
5213-not affect the enforceability or validity of the underlying 286
5214-agreement. 287
5215- (3) This section shall not create a private right of 288
5216-action against any person or other entity based upon 289
5217-compliance or noncompliance with its provisions. 290
5218- (4) Authority to enforce compliance with this section 291
5219-is vested exclusively in the att orney general of this state. 292
5220- 7. The requirements of subsections 3 and 5 of this 293
5221-section shall take effect upon either: 294
5222- (1) Six months after the division of finance finalizes 295
5223-promulgating rules, if the division intends to promulgate 296
5224-rules; or 297
5225- (2) February 28, 2025, if the division does not intend 298
5226-to promulgate rules. 299 HCS SS SB 1359 166
5227- 8. The division of finance may promulgate rules 300
5228-implementing this section. If the division of finance 301
5229-intends to promulgate rules, it shall declare its intent to 302
5230-do so no later than February 28, 2025. Any rule or portion 303
5231-of a rule, as that term is defined in section 536.010, that 304
5232-is created under the authority delegated in this section 305
5233-shall become effective only if it complies with and is 306
5234-subject to all of th e provisions of chapter 536 and, if 307
5235-applicable, section 536.028. This section and chapter 536 308
5236-are nonseverable and if any of the powers vested with the 309
5237-general assembly pursuant to chapter 536 to review, to delay 310
5238-the effective date, or to disapprove a nd annul a rule are 311
5239-subsequently held unconstitutional, then the grant of 312
5240-rulemaking authority and any rule proposed or adopted after 313
5241-August 28, 2024, shall be invalid and void. 314
5242- 442.210. 1. The certificate of acknowledgment shall 1
5243-state the act of acknowledgment, and that the person making 2
5244-the same was personally known to at least one judge of the 3
5245-court, or to the officer granting the certificate, to be the 4
5246-person whose name is subscribed to the instrument as a party 5
5247-thereto, or was proved to be such by at least two witnesses, 6
5248-whose names and places of residence shall be inserted in the 7
5249-certificate; and the following forms of acknowledgment may 8
5250-be used in the case of conveyances or other written 9
5251-instruments affecting real esta te; and any acknowledgment so 10
5252-taken and certificate shall be sufficient to satisfy all 11
5253-requirements of law relating to the execution or recording 12
5254-of such instruments (begin in all cases by a caption, 13
5255-specifying the state and place where the acknowledgm ent is 14
5256-taken): 15
5257- (1) In case of natural persons acting in their own 16
5258-right 17 HCS SS SB 1359 167
5259-On this ______ day of ______, 20______, before 18
5260-me personally appeared A B (or A B and C D), to 19
5261-me known to be the person (or persons) described 20
5262-in and who executed the foreg oing instrument, 21
5263-and acknowledged that he (or they) executed the 22
5264-same as his (or their) free act and deed. 23
5265- (2) In the case of natural persons acting by attorney 24
5266-On this ______ day of ______, 20______, before 25
5267-me personally appeared A B, to me known to be 26
5268-the person who executed the foregoing instrument 27
5269-in behalf of C D, and acknowledged that he 28
5270-executed the same as the free act and deed of C 29
5271-D. 30
5272- (3) In the case of corporations or joint stock 31
5273-associations 32
5274-On this ______ day of ______, 20___ ___, before 33
5275-me appeared A B, to me personally known, who, 34
5276-being by me duly sworn (or affirmed) did say 35
5277-that he is the president (or other officer or 36
5278-agent of the corporation or association), of 37
5279-(describing the corporation or association), and 38
5280-that the seal affixed to foregoing instrument is 39
5281-the corporate seal of said corporation (or 40
5282-association), and that said instrument was 41
5283-signed and sealed in behalf of said corporation 42
5284-(or association) by authority of its board of 43
5285-directors (or trustees), and said A B 44
5286-acknowledged said instrument to be the free act 45
5287-and deed of said corporation (or association). 46
5288- 2. In case the corporation or association has no 47
5289-corporate seal, omit the words "the seal affixed to said 48
5290-instrument is the corporate seal of said corporation (or 49 HCS SS SB 1359 168
5291-association), and that", and add at the end of the affidavit 50
5292-clause the words "and that said corporation (or association) 51
5293-has no corporate seal". 52
5294- 3. (In all cases add signature and title of the 53
5295-officer taking the acknowledgme nt.) 54
5296- [4.When a married woman unites with her husband in the 55
5297-execution of any such instrument, and acknowledges the same 56
5298-in one of the forms above sanctioned, she shall be described 57
5299-in the acknowledgment as his wife, but in all other respects 58
5300-her acknowledgment shall be taken and certified as if she 59
5301-were sole; and no separate examination of a married woman in 60
5302-respect to the execution of any release or dower, or other 61
5303-instrument affecting real estate, shall be required. ] 62
5304- 456.950. 1. As used in this section, "qualified 1
5305-spousal trust" means a trust: 2
5306- (1) The settlors of which are married to each other at 3
5307-the time of the creation of the trust; and 4
5308- (2) The terms of which provide that during the joint 5
5309-lives of the settlors or the life of the sole surviving 6
5310-settlor all property transferred to, or held by, the trustee 7
5311-are: 8
5312- (a) Held and administered in one trust for the benefit 9
5313-of both settlors, which may be revocable by either settlor 10
5314-or both settlors while ei ther or both are alive, and by one 11
5315-settlor after the death or incapacity of the other, and each 12
5316-settlor having the right to receive distributions of income 13
5317-or principal, whether mandatory or within the discretion of 14
5318-the trustee, from the entire trust f or the joint lives of 15
5319-the settlors and for the survivor's life; or 16
5320- (b) Held and administered in two or more separate 17
5321-shares of one trust for the benefit of each or both of the 18
5322-settlors, with the trust revocable by each settlor with 19 HCS SS SB 1359 169
5323-respect to that settlor's separate share of that trust 20
5324-without the participation or consent of the other settlor, 21
5325-and each settlor having the right to receive distributions 22
5326-of income or principal, whether mandatory or within the 23
5327-discretion of the trustee, from that settlor's separate 24
5328-share for that settlor's life; or 25
5329- (c) Held and administered under the terms and 26
5330-conditions contained in paragraphs (a) and (b) of this 27
5331-subdivision. 28
5332- 2. A qualified spousal trust may contain any other 29
5333-trust terms that are n ot inconsistent with the provisions of 30
5334-this section, including, without limitation, a discretionary 31
5335-power to distribute trust property to a person in addition 32
5336-to a settlor. 33
5337- 3. All property at any time held in a qualified 34
5338-spousal trust, without re gard to how such property was 35
5339-titled prior to it being so held [,]: 36
5340- (1) Shall have the same immunity from the claims of a 37
5341-separate creditor of either settlor as if such property were 38
5342-held outside the trust by the settlors as tenants by the 39
5343-entirety, unless otherwise provided in writing by the 40
5344-settlor or settlors who transferred such property to the 41
5345-trust, and such property shall be treated for that purpose, 42
5346-including without limitation, federal and state bankruptcy 43
5347-laws, as tenants by entirety property[. Property held in a 44
5348-qualified spousal trust ]; 45
5349- (2) With the exception of any written financial 46
5350-obligations, written guarantees, or secured or unsecured 47
5351-transactions executed by the settlors and held in a 48
5352-qualified spousal trust, shall continue to be immune and 49
5353-exempt from attachment during the life of the surviving 50
5354-settlor to the extent the property was held in a qualified 51 HCS SS SB 1359 170
5355-spousal trust prior to the death of the first settlor and 52
5356-remains in a qualified spousal trust. This includes any 53
5357-property appreciation; and 54
5358- (3) Shall cease to receive immunity from the claims of 55
5359-creditors upon the dissolution of marriage of the settlors 56
5360-by a court. 57
5361- 4. As used in this section, "property" means any 58
5362-interest in any type of property h eld in a qualified spousal 59
5363-trust, the income thereon, and any property into which such 60
5364-interest, proceeds, or income may be converted. 61
5365- 5. Upon the death of each settlor, all property held 62
5366-by the trustee of the qualified spousal trust shall be 63
5367-distributed as directed by the then current terms of the 64
5368-governing instrument of such trust. Upon the death of the 65
5369-first settlor to die, if immediately prior to death the 66
5370-predeceased settlor's interest in the qualified spousal 67
5371-trust was then held or deemed to be held in such settlor's 68
5372-separate share, the property held in such settlor's separate 69
5373-share may pass into an irrevocable trust for the benefit of 70
5374-the surviving settlor or other beneficiary upon such terms 71
5375-as the governing instrument shall direct , including without 72
5376-limitation a spendthrift provision as provided in section 73
5377-456.5-502. Property may be held in or transferred to a 74
5378-settlor's joint or separate share of a trust: 75
5379- (1) By designation under the current terms of the 76
5380-governing instrument of such trust; 77
5381- (2) According to the specific titling of property or 78
5382-other designation that refers to such joint or separate 79
5383-share of such trust; or 80
5384- (3) By designation to the trustee as the owner as 81
5385-provided in section 456.1 -113. 82 HCS SS SB 1359 171
5386- 6. The respective rights of settlors who are married 83
5387-to each other in any property for purposes of a dissolution 84
5388-of the settlors' marriage shall not be affected or changed 85
5389-by reason of the transfer of that property to, or its 86
5390-subsequent administration a s an asset of, a qualified 87
5391-spousal trust during the marriage of the settlors, unless 88
5392-both settlors expressly agree otherwise in writing. 89
5393- 7. No transfer to a qualified spousal trust shall 90
5394-avoid or defeat the Missouri uniform fraudulent transfer act 91
5395-in chapter 428. 92
5396- 8. This section shall apply to all trusts which 93
5397-fulfill the criteria set forth in this section for a 94
5398-qualified spousal trust regardless of whether such trust was 95
5399-created before, on, or after August 28, 2011. 96
5400- [95.280. 1. Subject to the provisions of 1
5401-section 110.030, the city council, at its 2
5402-regular meetings in July of each year, may 3
5403-receive sealed proposals for the deposit of the 4
5404-city funds from banking institutions doing 5
5405-business within the city that desi re to be 6
5406-selected as the depositary of the funds of the 7
5407-city. Notice that bids will be received shall 8
5408-be published by the city clerk not less than one 9
5409-nor more than four weeks before the meeting, in 10
5410-some newspaper published in the city. Any 11
5411-banking institution doing business in the city, 12
5412-desiring to bid, shall deliver to the city 13
5413-clerk, on or before the day of the meeting, a 14
5414-sealed proposal stating the rate percent upon 15
5415-daily balances that the banking institution 16
5416-offers to pay to the city for t he privilege of 17
5417-being the depositary of the funds of the city 18
5418-for the year next ensuing the date of the 19
5419-meeting; or, in the event that the selection is 20
5420-made for a less term than one year, as herein 21
5421-provided, then for the time between the date of 22
5422-the bid and the next regular time for the 23
5423-selection of a depositary. It is a misdemeanor 24 HCS SS SB 1359 172
5424-for the city clerk or other person to disclose 25
5425-directly or indirectly the amount of any bid to 26
5426-any person before the selection of the 27
5427-depositary. 28
5428- 2. Notwithstanding the provisions of 29
5429-subsection 1 of this section to the contrary, 30
5430-the city council of any third class city with a 31
5431-population of more than fifteen thousand and 32
5432-less than nineteen thousand that is located in 33
5433-any county of the fourth classification w ith a 34
5434-population of more than forty thousand and less 35
5435-than forty-eight thousand three hundred, or of 36
5436-any city of the third classification with more 37
5437-than ten thousand five hundred but less than ten 38
5438-thousand six hundred inhabitants may receive 39
5439-sealed proposals for the deposit of city funds 40
5440-from banking institutions doing business within 41
5441-the city at any of the regular meetings of such 42
5442-city. The city shall send notice of bids to 43
5443-each banking institution in the city by regular 44
5444-mail at the time the no tice is published in the 45
5445-newspaper in subsection 1 of this section. The 46
5446-banking institution selected as the depositary 47
5447-shall be offered a depositary contract for a 48
5448-maximum of two years. Any such city shall 49
5449-follow the bid procedure established in 50
5450-subsection 1 of this section, except as 51
5451-otherwise provided in this subsection. ] 52
5452- [95.285. 1. Except as provided in 1
5453-subsection 2 of this section, upon the opening 2
5454-of the sealed proposals submitted, the city 3
5455-council shall select as the depositary of the 4
5456-funds of the city the banking institution 5
5457-offering to pay to the city the largest amount 6
5458-for the privilege; except that the council may 7
5459-reject any or all bids. Within five days after 8
5460-the selection of the depositary, the banking 9
5461-institution selected shall deposit the 10
5462-securities as required by sections 110.010 and 11
5463-110.020. The rights and duties of the parties 12
5464-to the depositary contract are as provided in 13
5465-section 110.010. 14 HCS SS SB 1359 173
5466- 2. Notwithstanding any provision of 15
5467-section 95.280 or this section to the contrary, 16
5468-the contract term for any city of the third 17
5469-classification with more than ten thousand five 18
5470-hundred but less than ten thousand six hundred 19
5471-inhabitants shall begin on the first day of 20
5472-August following the receipt of the bid 21
5473-proposals.] 22
5474- [95.355. Boards of aldermen in cities of 1
5475-the fourth class, at their first regular 2
5476-meetings in the months of January, April, July 3
5477-and October of each year, may select a 4
5478-depositary for the funds of their respective 5
5479-cities, for the length of time and under the 6
5480-rules and regulations that are provided and 7
5481-prescribed by ordinance therefor. The rights 8
5482-and duties of the parties to the depositary 9
5483-contract are as provided in section 110.010. 10
5484-The deposits shall be secur ed by deposit of 11
5485-securities as required by sections 110.010 and 12
5486-110.020. The depositary shall be a banking 13
5487-institution doing business within the city. If 14
5488-such depositary cannot be selected, or such 15
5489-satisfactory arrangements made, the boards of 16
5490-aldermen may invest the moneys upon the terms 17
5491-and under the conditions provided by law for the 18
5492-loaning of county and school moneys. ] 19
5493- [361.700. 1. Sections 361.700 to 361.727 1
5494-shall be known and may be cited as the "Sale of 2
5495-Checks Law". 3
5496- 2. For the purposes of sections 361.700 to 4
5497-361.727, the following terms mean: 5
5498- (1) "Check", any instrument for the 6
5499-transmission or payment of money and shall also 7
5500-include any electronic means of transmitting or 8
5501-paying money; 9
5502- (2) "Director", the director of the 10
5503-division of finance; 11
5504- (3) "Licensee", any person duly licensed 12
5505-by the director pursuant to sections 361.700 to 13
5506-361.727; 14
5507- (4) "Person", any individual, partnership, 15
5508-association, trust or corporation. ] 16 HCS SS SB 1359 174
5509- [361.705. 1. No person shall issue checks 1
5510-in this state for a consideration without first 2
5511-obtaining a license from the director; provided, 3
5512-however, that sections 361.700 to 361.727 shall 4
5513-not apply to the receipt of money by an 5
5514-incorporated telegraph company at any office or 6
5515-agency of such company for immediate 7
5516-transmission by telegraph nor to any bank, trust 8
5517-company, savings and loan association, credit 9
5518-union, or agency of the United States government. 10
5519- 2. Any person who violates any of the 11
5520-provisions of sections 361.700 to 361.727 or 12
5521-attempts to sell or issue checks without having 13
5522-first obtained a license from the director shall 14
5523-be deemed guilty of a class A misdemeanor. ] 15
5524- [361.707. 1. Each application for a 1
5525-license pursuant to sections 361.700 to 361.727 2
5526-shall be in writing and under oath to the 3
5527-director in such form as he may prescribe. The 4
5528-application shall state the full name and 5
5529-business address of: 6
5530- (1) The proprietor, if the applicant is an 7
5531-individual; 8
5532- (2) Every member, if the applicant is a 9
5533-partnership or association; 10
5534- (3) The corporation and each officer and 11
5535-director thereof, if the applicant is a 12
5536-corporation. 13
5537- 2. Each application for a license shall be 14
5538-accompanied by an investigation fee of three 15
5539-hundred dollars. If the license is granted the 16
5540-investigation fee shall be applied to the 17
5541-license fee for the first year. No 18
5542-investigation fee shall be refunded. ] 19
5543- [361.711. Each application for a license 1
5544-shall be accompanied by a corporate surety bond 2
5545-in the principal sum of one hundred thousand 3
5546-dollars. The bond shall be in form satisfactory 4
5547-to the director and shall be issued by a bonding 5
5548-company or insurance company authorized to do 6
5549-business in this state, to secure the faithful 7
5550-performance of the obligations of the applicant 8
5551-and the agents and subagents of the applicant 9 HCS SS SB 1359 175
5552-with respect to the receipt, transmission, and 10
5553-payment of money in connection with the sale or 11
5554-issuance of checks and also t o pay the costs 12
5555-incurred by the division to remedy any breach of 13
5556-the obligations of the applicant subject to the 14
5557-bond or to pay examination costs of the division 15
5558-owed and not paid by the applicant. Upon 16
5559-license renewal, the required amount of bond 17
5560-shall be as follows: 18
5561- (1) For all licensees selling payment 19
5562-instruments or stored value cards, five times 20
5563-the high outstanding balance from the previous 21
5564-year with a minimum of one hundred thousand 22
5565-dollars and a maximum of one million dollars; 23
5566- (2) For all licensees receiving money for 24
5567-transmission, five times the greatest amount 25
5568-transmitted in a single day during the previous 26
5569-year with a minimum of one hundred thousand 27
5570-dollars and a maximum of one million dollars. 28
5571-If in the opinion of the director the bond shall 29
5572-at any time appear to be inadequate, insecure, 30
5573-exhausted, or otherwise doubtful, additional 31
5574-bond in form and with surety satisfactory to the 32
5575-director shall be filed within fifteen days 33
5576-after notice of the requirement is given to the 34
5577-licensee by the director. An applicant or 35
5578-licensee may, in lieu of filing any bond 36
5579-required under this section, provide the 37
5580-director with an irrevocable letter of credit, 38
5581-as defined in section 400.5 -103, issued by any 39
5582-state or federal financi al institution. 40
5583-Whenever in the director's judgment it is 41
5584-necessary or expedient, the director may perform 42
5585-a special examination of any person licensed 43
5586-under sections 361.700 to 361.727 with all 44
5587-authority under section 361.160 as though the 45
5588-licensee were a bank. The cost of such 46
5589-examination shall be paid by the licensee. ] 47
5590- [361.715. 1. Upon the filing of the 1
5591-application, the filing of a certified audit, 2
5592-the payment of the investigation fee and the 3
5593-approval by the director of the necessary bond, 4
5594-the director shall cause, investigate, and 5 HCS SS SB 1359 176
5595-determine whether the character, responsibility, 6
5596-and general fitness of the principals of the 7
5597-applicant or any affiliates are such as to 8
5598-command confidence and warrant belief that the 9
5599-business of the applicant will be conducted 10
5600-honestly and efficiently and that the applicant 11
5601-is in compliance with all other applicable state 12
5602-and federal laws. If satisfied, the director 13
5603-shall issue to the applicant a license pursuant 14
5604-to the provisions of sections 361.700 to 15
5605-361.727. In processing a renewal license, the 16
5606-director shall require the same information and 17
5607-follow the same procedures described in this 18
5608-subsection. 19
5609- 2. Each licensee shall pay to the director 20
5610-before the issuance of the l icense, and annually 21
5611-thereafter on or before April fifteenth of each 22
5612-year, a license fee of four hundred dollars. 23
5613- 3. The director may assess a reasonable 24
5614-charge, not to exceed four hundred dollars, for 25
5615-any application to amend and reissue an exis ting 26
5616-license.] 27
5617- [361.718. Every licensee shall at all 1
5618-times have on demand deposit in a federally 2
5619-insured depository institution or in the form of 3
5620-cash on hand or in the hands of his agents or in 4
5621-readily marketable securities an amo unt equal to 5
5622-all outstanding unpaid checks sold by him or his 6
5623-agents in Missouri, in addition to the amount of 7
5624-his bond. Upon demand by the director, 8
5625-licensees must immediately provide proof of such 9
5626-funds or securities. The director may make such 10
5627-demand as often as reasonably necessary and 11
5628-shall make such demand to each licensee, without 12
5629-prior notice, at least twice each license year. ] 13
5630- [361.720. Each licensee may conduct 1
5631-business at one or more locations within this 2
5632-state and by means of employees, agents, 3
5633-subagents or representatives as such licensee 4
5634-may designate. No license under sections 5
5635-361.700 to 361.727 shall be required of any such 6
5636-employee, agent, subagent or representative who 7
5637-sells checks in behalf of a licens ee. Each such 8 HCS SS SB 1359 177
5638-agent, subagent or representative shall upon 9
5639-demand transfer and deliver to the licensee the 10
5640-proceeds of the sale of licensee's checks less 11
5641-the fees, if any, due such agent, subagent or 12
5642-representative.] 13
5643- [361.723. Each licensee shall file with 1
5644-the director annually on or before April 2
5645-fifteenth of each year a statement listing the 3
5646-locations of the offices of the licensee and the 4
5647-names and locations of the agents or subagents 5
5648-authorized by the licensee to engage in the sale 6
5649-of checks of which the licensee is the issuer.] 7
5650- [361.725. The director may at any time 1
5651-suspend or revoke a license, for any reason he 2
5652-might refuse to grant a license, for failure to 3
5653-pay an annual fee or for a violation of a ny 4
5654-provision of sections 361.700 to 361.727. No 5
5655-license shall be denied, revoked or suspended 6
5656-except on ten days' notice to the applicant or 7
5657-licensee. Upon receipt of such notice the 8
5658-applicant or licensee may, within five days of 9
5659-such receipt, make written demand for a 10
5660-hearing. The director shall thereafter hear and 11
5661-determine the matter in accordance with the 12
5662-provisions of chapter 536. ] 13
5663- [361.727. The director shall issue 1
5664-regulations necessary to carry out the intent 2
5665-and purposes of sections 361.700 to 361.727, 3
5666-pursuant to the provisions of section 361.105 4
5667-and chapter 536.] 5
5668-
13+SectionA.Sections208.151,303.425,303.430,303.440,361.700,361.705,361.707,
14+2361.711,361.715,361.718,361.720,361.723,361.725,361.727,374.190,379.1640,
15+3408.035,408.140,and442.210,RSMo,arerepealedandfifty-ninenewsectionsenactedin
16+4lieuthereof,tobeknownassections208.151,303.425,303.430,303.440,361.900,361.903,
17+5361.906,361.909,361.912,361.915,361.918,361.921,361.924,361.927,361.930,361.933,
18+6361.936,361.939,361.942,361.945,361.948,361.951,361.954,361.957,361.960,361.963,
19+7361.966,361.969,361.972,361.975,361.978,361.981,361.984,361.987,361.990,361.996,
20+8361.999,361.1002,361.1005,361.1008,361.1011,361.1014,361.1017,361.1020,361.1023,
21+9361.1026,361.1029,361.1032,361.1035,374.190,374.192,375.1183,379.1640,380.621,
22+10380.631,408.035,408.140,427.300,and442.210,toreadasfollows:
23+208.151.1.Medicalassistanceonbehalfofneedypersonsshallbeknownas"MO
24+2HealthNet".ForthepurposeofpayingMOHealthNetbenefitsandtocomplywithTitleXIX,
25+3PublicLaw89-97,1965amendmentstothefederalSocialSecurityAct(42U.S.C.Section
26+4301,etseq.)asamended,thefollowingneedypersonsshallbeeligibletoreceiveMO
27+5HealthNetbenefitstotheextentandinthemannerhereinafterprovided:
28+6 (1)Allparticipantsreceivingstatesupplementalpaymentsfortheaged,blindand
29+7disabled;
30+EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
31+intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 8 (2)Allparticipantsreceivingaidtofamilieswithdependentchildrenbenefits,
32+9includingallpersonsundernineteenyearsofagewhowouldbeclassifiedasdependent
33+10childrenexceptfortherequirementsofsubdivision(1)ofsubsection1ofsection208.040.
34+11Participantseligibleunderthissubdivisionwhoareparticipatingintreatmentcourt,as
35+12definedinsection478.001,shallhavetheireligibilityautomaticallyextendedsixtydaysfrom
36+13thetimetheirdependentchildisremovedfromthecustodyoftheparticipant,subjectto
37+14approvaloftheCentersforMedicareandMedicaidServices;
38+15 (3)Allparticipantsreceivingblindpensionbenefits;
39+16 (4)Allpersonswhowouldbedeterminedtobeeligibleforoldageassistance
40+17benefits,permanentandtotaldisabilitybenefits,oraidtotheblindbenefitsunderthe
41+18eligibilitystandardsineffectDecember31,1973,orlessrestrictivestandardsasestablished
42+19byruleofthefamilysupportdivision,whoaresixty-fiveyearsofageoroverandarepatients
43+20instateinstitutionsformentaldiseasesortuberculosis;
44+21 (5)Allpersonsundertheageoftwenty-oneyearswhowouldbeeligibleforaidto
45+22familieswithdependentchildrenexceptfortherequirementsofsubdivision(2)ofsubsection
46+231ofsection208.040,andwhoareresidinginanintermediatecarefacility,orreceivingactive
47+24treatmentasinpatientsinpsychiatricfacilitiesorprograms,asdefinedin42U.S.C.Section
48+251396d,asamended;
49+26 (6)Allpersonsundertheageoftwenty-oneyearswhowouldbeeligibleforaidto
50+27familieswithdependentchildrenbenefitsexceptfortherequirementofdeprivationof
51+28parentalsupportasprovidedforinsubdivision(2)ofsubsection1ofsection208.040;
52+29 (7)Allpersonseligibletoreceivenursingcarebenefits;
53+30 (8)Allparticipantsreceivingfamilyfosterhomeornonprofitprivatechild-care
54+31institutioncare,subsidizedadoptionbenefitsandparentalschoolcarewhereinstatefundsare
55+32usedaspartialorfullpaymentforsuchcare;
56+33 (9)Allpersonswhowereparticipantsreceivingoldageassistancebenefits,aidtothe
57+34permanentlyandtotallydisabled,oraidtotheblindbenefitsonDecember31,1973,andwho
58+35continuetomeettheeligibilityrequirements,exceptincome,fortheseassistancecategories,
59+36butwhoarenolongerreceivingsuchbenefitsbecauseoftheimplementationofTitleXVIof
60+37thefederalSocialSecurityAct,asamended;
61+38 (10)Pregnantwomenwhomeettherequirementsforaidtofamilieswithdependent
62+39children,exceptfortheexistenceofadependentchildinthehome;
63+40 (11)Pregnantwomenwhomeettherequirementsforaidtofamilieswithdependent
64+41children,exceptfortheexistenceofadependentchildwhoisdeprivedofparentalsupportas
65+42providedforinsubdivision(2)ofsubsection1ofsection208.040;
66+43 (12)Pregnantwomenorinfantsunderoneyearofage,orboth,whosefamilyincome
67+44doesnotexceedanincomeeligibilitystandardequaltoonehundredeighty-fivepercentofthe
68+HCSSSSB1359 2 45federalpovertylevelasestablishedandamendedbythefederalDepartmentofHealthand
69+46HumanServices,oritssuccessoragency;
70+47 (13)Childrenwhohaveattainedoneyearofagebuthavenotattainedsixyearsofage
71+48whoareeligibleformedicalassistanceunder6401ofP.L.101-239(OmnibusBudget
72+49ReconciliationActof1989)(42U.S.C.Sections1396ato1396b).Thefamilysupport
73+50divisionshalluseanincomeeligibilitystandardequaltoonehundredthirty-threepercentof
74+51thefederalpovertylevelestablishedbytheDepartmentofHealthandHumanServices,orits
75+52successoragency;
76+53 (14)Childrenwhohaveattainedsixyearsofagebuthavenotattainednineteenyears
77+54ofage.Forchildrenwhohaveattainedsixyearsofagebuthavenotattainednineteenyears
78+55ofage,thefamilysupportdivisionshalluseanincomeassessmentmethodologywhich
79+56providesforeligibilitywhenfamilyincomeisequaltoorlessthanequaltoonehundred
80+57percentofthefederalpovertylevelestablishedbytheDepartmentofHealthandHuman
81+58Services,oritssuccessoragency.AsnecessarytoprovideMOHealthNetcoverageunderthis
82+59subdivision,thedepartmentofsocialservicesmayrevisethestateMOHealthNetplanto
83+60extendcoverageunder42U.S.C.Section1396a(a)(10)(A)(i)(III)tochildrenwhohave
84+61attainedsixyearsofagebuthavenotattainednineteenyearsofageaspermittedbyparagraph
85+62(2)ofsubsection(n)of42U.S.C.Section1396dusingamoreliberalincomeassessment
86+63methodologyasauthorizedbyparagraph(2)ofsubsection(r)of42U.S.C.Section1396a;
87+64 (15)Thefamilysupportdivisionshallnotestablisharesourceeligibilitystandardin
88+65assessingeligibilityforpersonsundersubdivision(12),(13)or(14)ofthissubsection.The
89+66MOHealthNetdivisionshalldefinetheamountandscopeofbenefitswhichareavailableto
90+67individualseligibleundereachofthesubdivisions(12),(13),and(14)ofthissubsection,in
91+68accordancewiththerequirementsoffederallawandregulationspromulgatedthereunder;
92+69 (16)Notwithstandinganyotherprovisionsoflawtothecontrary,ambulatoryprenatal
93+70careshallbemadeavailabletopregnantwomenduringaperiodofpresumptiveeligibility
94+71pursuantto42U.S.C.Section1396r-1,asamended;
95+72 (17)AchildborntoawomaneligibleforandreceivingMOHealthNetbenefitsunder
96+73thissectiononthedateofthechild'sbirthshallbedeemedtohaveappliedforMOHealthNet
97+74benefitsandtohavebeenfoundeligibleforsuchassistanceundersuchplanonthedateof
98+75suchbirthandtoremaineligibleforsuchassistanceforaperiodoftimedeterminedin
99+76accordancewithapplicablefederalandstatelawandregulationssolongasthechildisa
100+77memberofthewoman'shouseholdandeitherthewomanremainseligibleforsuchassistance
101+78orforchildrenbornonorafterJanuary1,1991,thewomanwouldremaineligibleforsuch
102+79assistanceifshewerestillpregnant.Uponnotificationofsuchchild'sbirth,thefamily
103+80supportdivisionshallassignaMOHealthNeteligibilityidentificationnumbertothechildso
104+81thatclaimsmaybesubmittedandpaidundersuchchild'sidentificationnumber;
105+HCSSSSB1359 3 82 (18)PregnantwomenandchildreneligibleforMOHealthNetbenefitspursuantto
106+83subdivision(12),(13)or(14)ofthissubsectionshallnotasaconditionofeligibilityforMO
107+84HealthNetbenefitsberequiredtoapplyforaidtofamilieswithdependentchildren.The
108+85familysupportdivisionshallutilizeanapplicationforeligibilityforsuchpersonswhich
109+86eliminatesinformationrequirementsotherthanthosenecessarytoapplyforMOHealthNet
110+87benefits.Thedivisionshallprovidesuchapplicationformstoapplicantswhosepreliminary
111+88incomeinformationindicatesthattheyareineligibleforaidtofamilieswithdependent
112+89children.ApplicantsforMOHealthNetbenefitsundersubdivision(12),(13)or(14)ofthis
113+90subsectionshallbeinformedoftheaidtofamilieswithdependentchildrenprogramandthat
114+91theyareentitledtoapplyforsuchbenefits.Anyformsutilizedbythefamilysupportdivision
115+92forassessingeligibilityunderthischaptershallbeassimpleaspracticable;
116+93 (19)Subjecttoappropriationsnecessarytorecruitandtrainsuchstaff,thefamily
117+94supportdivisionshallprovideoneormorefull-time,permanenteligibilityspecialiststo
118+95processapplicationsforMOHealthNetbenefitsatthesiteofahealthcareprovider,ifthe
119+96healthcareproviderrequeststheplacementofsucheligibilityspecialistsandreimbursesthe
120+97divisionfortheexpensesincludingbutnotlimitedtosalaries,benefits,travel,training,
121+98telephone,supplies,andequipmentofsucheligibilityspecialists.Thedivisionmayprovidea
122+99healthcareproviderwithapart-timeortemporaryeligibilityspecialistatthesiteofahealth
123+100careproviderifthehealthcareproviderrequeststheplacementofsuchaneligibilityspecialist
124+101andreimbursesthedivisionfortheexpenses,includingbutnotlimitedtothesalary,benefits,
125+102travel,training,telephone,supplies,andequipment,ofsuchaneligibilityspecialist.The
126+103divisionmayseektoemploysucheligibilityspecialistswhoareotherwisequalifiedforsuch
127+104positionsandwhoarecurrentorformerwelfareparticipants.Thedivisionmayconsider
128+105trainingsuchcurrentorformerwelfareparticipantsaseligibilityspecialistsforthisprogram;
129+106 (20)Pregnantwomenwhoareeligiblefor,haveappliedforandhavereceivedMO
130+107HealthNetbenefitsundersubdivision(2),(10),(11)or(12)ofthissubsectionshallcontinue
131+108tobeconsideredeligibleforallpregnancy-relatedandpostpartumMOHealthNetbenefits
132+109providedundersection208.152untiltheendofthesixty-dayperiodbeginningonthelastday
133+110oftheirpregnancy.Pregnantwomenreceivingmentalhealthtreatmentforpostpartum
134+111depressionorrelatedmentalhealthconditionswithinsixtydaysofgivingbirthshall,subject
135+112toappropriationsandanynecessaryfederalapproval,beeligibleforMOHealthNetbenefits
136+113formentalhealthservicesforthetreatmentofpostpartumdepressionandrelatedmental
137+114healthconditionsforuptotwelveadditionalmonths.Pregnantwomenreceivingsubstance
138+115abusetreatmentwithinsixtydaysofgivingbirthshall,subjecttoappropriationsandany
139+116necessaryfederalapproval,beeligibleforMOHealthNetbenefitsforsubstanceabuse
140+117treatmentandmentalhealthservicesforthetreatmentofsubstanceabusefornomorethan
141+118twelveadditionalmonths,aslongasthewomanremainsadherentwithtreatment.The
142+HCSSSSB1359 4 119departmentofmentalhealthandthedepartmentofsocialservicesshallseekanynecessary
143+120waiversorstateplanamendmentsfromtheCentersforMedicareandMedicaidServicesand
144+121shalldeveloprulesrelatingtotreatmentplanadherence.Nolaterthanfifteenmonthsafter
145+122receivinganynecessarywaiver,thedepartmentofmentalhealthandthedepartmentofsocial
146+123servicesshallreporttothehouseofrepresentativesbudgetcommitteeandthesenate
147+124appropriationscommitteeonthecompliancewithfederalcostneutralityrequirements;
148+125 (21)Casemanagementservicesforpregnantwomenandyoungchildrenatriskshall
149+126beacoveredservice.Tothegreatestextentpossible,andincompliancewithfederallawand
150+127regulations,thedepartmentofhealthandseniorservicesshallprovidecasemanagement
151+128servicestopregnantwomenbycontractoragreementwiththedepartmentofsocialservices
152+129throughlocalhealthdepartmentsorganizedundertheprovisionsofchapter192orchapter
153+130205oracityhealthdepartmentoperatedunderacitycharteroracombinedcity-countyhealth
154+131departmentorotherdepartmentofhealthandseniorservicesdesignees.Tothegreatestextent
155+132possiblethedepartmentofsocialservicesandthedepartmentofhealthandseniorservices
156+133shallmutuallycoordinateallservicesforpregnantwomenandchildrenwiththecrippled
157+134children'sprogram,thepreventionofintellectualdisabilityanddevelopmentaldisability
158+135programandtheprenatalcareprogramadministeredbythedepartmentofhealthandsenior
159+136services.Thedepartmentofsocialservicesshallbyregulationestablishthemethodologyfor
160+137reimbursementforcasemanagementservicesprovidedbythedepartmentofhealthandsenior
161+138services.Forpurposesofthissection,theterm"casemanagement"shallmeanthose
162+139activitiesoflocalpublichealthpersonneltoidentifyprospectiveMOHealthNet-eligiblehigh-
163+140riskmothersandenrolltheminthestate'sMOHealthNetprogram,referthemtolocal
164+141physiciansorlocalhealthdepartmentswhoprovideprenatalcareunderphysicianprotocol
165+142andwhoparticipateintheMOHealthNetprogramforprenatalcareandtoensurethatsaid
166+143high-riskmothersreceivesupportfromallprivateandpublicprogramsforwhichtheyare
167+144eligibleandshallnotincludeinvolvementinanyMOHealthNetprepaid,case-managed
168+145programs;
169+146 (22)ByJanuary1,1988,thedepartmentofsocialservicesandthedepartmentof
170+147healthandseniorservicesshallstudyallsignificantaspectsofpresumptiveeligibilityfor
171+148pregnantwomenandsubmitajointreportonthesubject,includingprojectedcostsandthe
172+149timeneededforimplementation,tothegeneralassembly.Thedepartmentofsocialservices,
173+150atthedirectionofthegeneralassembly,mayimplementpresumptiveeligibilitybyregulation
174+151promulgatedpursuanttochapter207;
175+152 (23)Allparticipantswhowouldbeeligibleforaidtofamilieswithdependent
176+153childrenbenefitsexceptfortherequirementsofparagraph(d)ofsubdivision(1)ofsection
177+154208.150;
178+HCSSSSB1359 5 155 (24)(a)Allpersonswhowouldbedeterminedtobeeligibleforoldageassistance
179+156benefitsundertheeligibilitystandardsineffectDecember31,1973,asauthorizedby42
180+157U.S.C.Section1396a(f),orlessrestrictivemethodologiesascontainedintheMOHealthNet
181+158stateplanasofJanuary1,2005;exceptthat,onorafterJuly1,2005,lessrestrictiveincome
182+159methodologies,asauthorizedin42U.S.C.Section1396a(r)(2),maybeusedtochangethe
183+160incomelimitifauthorizedbyannualappropriation;
184+161 (b)Allpersonswhowouldbedeterminedtobeeligibleforaidtotheblindbenefits
185+162undertheeligibilitystandardsineffectDecember31,1973,asauthorizedby42U.S.C.
186+163Section1396a(f),orlessrestrictivemethodologiesascontainedintheMOHealthNetstate
187+164planasofJanuary1,2005,exceptthatlessrestrictiveincomemethodologies,asauthorizedin
188+16542U.S.C.Section1396a(r)(2),shallbeusedtoraisetheincomelimittoonehundredpercent
189+166ofthefederalpovertylevel;
190+167 (c)Allpersonswhowouldbedeterminedtobeeligibleforpermanentandtotal
191+168disabilitybenefitsundertheeligibilitystandardsineffectDecember31,1973,asauthorized
192+169by42U.S.C.Section1396a(f);orlessrestrictivemethodologiesascontainedintheMO
193+170HealthNetstateplanasofJanuary1,2005;exceptthat,onorafterJuly1,2005,less
194+171restrictiveincomemethodologies,asauthorizedin42U.S.C.Section1396a(r)(2),maybe
195+172usedtochangetheincomelimitifauthorizedbyannualappropriations.Eligibilitystandards
196+173forpermanentandtotaldisabilitybenefitsshallnotbelimitedbyage;
197+174 (25)Personswhohavebeendiagnosedwithbreastorcervicalcancerandwhoare
198+175eligibleforcoveragepursuantto42U.S.C.Section1396a(a)(10)(A)(ii)(XVIII).Such
199+176personsshallbeeligibleduringaperiodofpresumptiveeligibilityinaccordancewith42
200+177U.S.C.Section1396r-1.Apersonwhoreceivesabreastorcervicalcancerscreening
201+178serviceofatypethatiswithinthescopeofscreeningservicesunderTitleXVofthe
202+179PublicHealthServiceAct(42U.S.C.Section300ketseq.)andwhootherwisemeetsthe
203+180eligibilityrequirementsformedicalassistancefortreatmentofbreastorcervicalcancer
204+181asprovidedunderthissubdivisioniseligibleformedicalassistanceunderthis
205+182subdivisionregardlessofwhetherthescreeningservicewasprovidedbyaproviderwho
206+183receivesorusesfundsunderthattitle;
207+184 (26)PersonswhoareinfostercareundertheresponsibilityofthestateofMissourion
208+185thedatesuchpersonsattainedtheageofeighteenyears,oratanytimeduringthethirty-day
209+186periodprecedingtheireighteenthbirthday,orpersonswhoreceivedfostercareforatleastsix
210+187monthsinanotherstate,areresidinginMissouri,andareatleasteighteenyearsofage,
211+188withoutregardtoincomeorassets,ifsuchpersons:
212+189 (a)Areundertwenty-sixyearsofage;
213+190 (b)Arenoteligibleforcoverageunderanothermandatorycoveragegroup;and
214+191 (c)WerecoveredbyMedicaidwhiletheywereinfostercare;
215+HCSSSSB1359 6 192 (27)Anyhomelesschildorhomelessyouth,asthosetermsaredefinedinsection
216+193167.020,subjecttoapprovalofastateplanamendmentbytheCentersforMedicareand
217+194MedicaidServices;
218+195 (28)(a)Subjecttoapprovalofanynecessarystateplanamendmentsorwaivers,
219+196beginningonJuly6,2023,pregnantwomenwhoareeligiblefor,haveappliedfor,andhave
220+197receivedMOHealthNetbenefitsundersubdivision(2),(10),(11),or(12)ofthissubsection
221+198shallbeeligibleformedicalassistanceduringthepregnancyandduringthetwelve-month
222+199periodthatbeginsonthelastdayofthewoman'spregnancyandendsonthelastdayofthe
223+200monthinwhichsuchtwelve-monthperiodends,consistentwiththeprovisionsof42U.S.C.
224+201Section1396a(e)(16).ThedepartmentshallsubmitastateplanamendmenttotheCentersfor
225+202MedicareandMedicaidServiceswhenthenumberofineligibleMOHealthNetparticipants
226+203removedfromtheprogramin2023pursuanttosection208.239exceedstheprojectednumber
227+204ofbeneficiarieslikelytoenrollinbenefitsin2023underthissubdivisionandsubdivision(2)
228+205ofsubsection6ofsection208.662,asdeterminedbythedepartment,byatleastonehundred
229+206individuals;
230+207 (b)Theprovisionsofthissubdivisionshallremainineffectforanyperiodoftime
231+208duringwhichthefederalauthorityunder42U.S.C.Section1396a(e)(16),asamended,orany
232+209successorstatutesorimplementingregulations,isineffect.
233+210 2.Rulesandregulationstoimplementthissectionshallbepromulgatedinaccordance
234+211withchapter536.Anyruleorportionofarule,asthattermisdefinedinsection536.010,that
235+212iscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
236+213complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section
237+214536.028.Thissectionandchapter536arenonseverableandifanyofthepowersvestedwith
238+215thegeneralassemblypursuanttochapter536toreview,todelaytheeffectivedateorto
239+216disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
240+217rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2002,shallbeinvalid
241+218andvoid.
242+219 3.AfterDecember31,1973,andbeforeApril1,1990,anyfamilyeligiblefor
243+220assistancepursuantto42U.S.C.Section601,etseq.,asamended,inatleastthreeofthelast
244+221sixmonthsimmediatelyprecedingthemonthinwhichsuchfamilybecameineligibleforsuch
245+222assistancebecauseofincreasedincomefromemploymentshall,whileamemberofsuch
246+223familyisemployed,remaineligibleforMOHealthNetbenefitsforfourcalendarmonths
247+224followingthemonthinwhichsuchfamilywouldotherwisebedeterminedtobeineligiblefor
248+225suchassistancebecauseofincomeandresourcelimitation.AfterApril1,1990,anyfamily
249+226receivingaidpursuantto42U.S.C.Section601,etseq.,asamended,inatleastthreeofthe
250+227sixmonthsimmediatelyprecedingthemonthinwhichsuchfamilybecomesineligiblefor
251+228suchaid,becauseofhoursofemploymentorincomefromemploymentofthecaretaker
252+HCSSSSB1359 7 229relative,shallremaineligibleforMOHealthNetbenefitsforsixcalendarmonthsfollowing
253+230themonthofsuchineligibilityaslongassuchfamilyincludesachildasprovidedin42
254+231U.S.C.Section1396r-6.Eachfamilywhichhasreceivedsuchmedicalassistanceduringthe
255+232entiresix-monthperioddescribedinthissectionandwhichmeetsreportingrequirementsand
256+233incometestsestablishedbythedivisionandcontinuestoincludeachildasprovidedin42
257+234U.S.C.Section1396r-6shallreceiveMOHealthNetbenefitswithoutfeeforanadditionalsix
258+235months.TheMOHealthNetdivisionmayprovidebyruleandasauthorizedbyannual
259+236appropriationthescopeofMOHealthNetcoveragetobegrantedtosuchfamilies.
260+237 4.WhenanyindividualhasbeendeterminedtobeeligibleforMOHealthNet
261+238benefits,suchmedicalassistancewillbemadeavailabletohimorherforcareandservices
262+239furnishedinorafterthethirdmonthbeforethemonthinwhichhemadeapplicationforsuch
263+240assistanceifsuchindividualwas,oruponapplicationwouldhavebeen,eligibleforsuch
264+241assistanceatthetimesuchcareandserviceswerefurnished;provided,further,thatsuch
265+242medicalexpensesremainunpaid.
266+243 5.ThedepartmentofsocialservicesmayapplytothefederalDepartmentofHealth
267+244andHumanServicesforaMOHealthNetwaiveramendmenttotheSection1115
268+245demonstrationwaiverorforanyadditionalMOHealthNetwaiversnecessarynottoexceed
269+246onemilliondollarsinadditionalcoststothestate,unlesssubjecttoappropriationordirected
270+247bystatute,butinnoeventshallsuchwaiverapplicationsoramendmentsseektowaivethe
271+248servicesofaruralhealthclinicorafederallyqualifiedhealthcenterasdefinedin42U.S.C.
272+249Section1396d(l)(1)and(2)orthepaymentrequirementsforsuchclinicsandcentersas
273+250providedin42U.S.C.Section1396a(a)(15)and1396a(bb)unlesssuchwaiverapplicationis
274+251approvedbytheoversightcommitteecreatedinsection208.955.Arequestforsuchawaiver
275+252sosubmittedshallonlybecomeeffectivebyexecutiveordernotsoonerthanninetydaysafter
276+253thefinaladjournmentofthesessionofthegeneralassemblytowhichitissubmitted,unlessit
277+254isdisapprovedwithinsixtydaysofitssubmissiontoaregularsessionbyasenateorhouse
278+255resolutionadoptedbyamajorityvoteoftherespectiveelectedmembersthereof,unlessthe
279+256requestforsuchawaiverismadesubjecttoappropriationordirectedbystatute.
280+257 6.Notwithstandinganyotherprovisionoflawtothecontrary,inanygivenfiscal
281+258year,anypersonsmadeeligibleforMOHealthNetbenefitsundersubdivisions(1)to(22)of
282+259subsection1ofthissectionshallonlybeeligibleifannualappropriationsaremadeforsuch
283+260eligibility.Thissubsectionshallnotapplytoclassesofindividualslistedin42U.S.C.Section
284+2611396a(a)(10)(A)(i).
285+262 7.(1)Notwithstandinganyprovisionoflawtothecontrary,amilitaryservice
286+263member,oranimmediatefamilymemberresidingwithsuchmilitaryservicemember,whois
287+264alegalresidentofthisstateandiseligibleforMOHealthNetdevelopmentaldisability
288+265services,shallhavehisorhereligibilityforMOHealthNetdevelopmentaldisabilityservices
289+HCSSSSB1359 8 266temporarilysuspendedforanyperiodoftimeduringwhichsuchpersontemporarilyresides
290+267outsideofthisstateforreasonsrelatingtomilitaryservice,butshallhavehisorhereligibility
291+268immediatelyrestoreduponreturningtothisstatetoreside.
292+269 (2)Notwithstandinganyprovisionoflawtothecontrary,ifamilitaryservice
293+270member,oranimmediatefamilymemberresidingwithsuchmilitaryservicemember,isnota
294+271legalresidentofthisstate,butwouldotherwisebeeligibleforMOHealthNetdevelopmental
295+272disabilityservices,suchindividualshallbedeemedeligibleforMOHealthNetdevelopmental
296+273disabilityservicesforthedurationofanytimeinwhichsuchindividualistemporarilypresent
297+274inthisstateforreasonsrelatingtomilitaryservice.
298+303.425.1.(1)Thereisherebycreatedwithinthedepartmentofrevenuethemotor
299+2vehiclefinancialresponsibilityenforcementandcomplianceincentiveprogram.The
300+3departmentofrevenuemayenterintocontractualagreementswiththird-partyvendorsto
301+4facilitatethenecessarytechnologyandequipment,maintenancethereof,andassociated
302+5programmanagementservices.
303+6 (2)Thedepartmentofrevenueorathird-partyvendorshallutilizetechnologyto
304+7comparevehicleregistrationinformationwiththefinancialresponsibilityinformation
305+8accessiblethroughthesystem.Thedepartmentofrevenueshallutilizethisinformationto
306+9identifymotoristswhoareinviolationofthemotorvehiclefinancialresponsibilitylaw.The
307+10departmentofrevenuemayofferoffendersunderthisprogramtheoptionofpretrialdiversion
308+11asanalternativetostatutoryfinesorreinstatementfeesprescribedunderthemotorvehicle
309+12financialresponsibilitylawasamethodofencouragingcomplianceanddiscouraging
310+13recidivism.
311+14 (3)Thedepartmentofrevenueorthird-partyvendorsshallnotuseanydatacollected
312+15fromortechnologyassociatedwithanyautomatedmotorvehiclefinancialresponsibility
313+16enforcementsystem.Forpurposesofthissubdivision,"motorvehiclefinancialresponsibility
314+17enforcementsystem"meansadeviceconsistingofacameraorcamerasandvehiclesensoror
315+18sensorsinstalledtorecordmotorvehiclefinancialresponsibilityviolations.
316+19 (4)Allfeespaidtoorcollectedbythird-partyvendorsundersections303.420to
317+20303.440maycomefromviolatordiversionfeesgeneratedbythepretrialdiversionoption
318+21establishedunderthissection.
319+22 2.Thedepartmentofrevenuemayauthorizelawenforcementagenciesorthird-party
320+23vendorstousetechnologytocollectdatafortheinvestigation,detection,analysis,and
321+24enforcementofthemotorvehiclefinancialresponsibilitylaw.
322+25 3.Thedepartmentofrevenuemayauthorizetrafficenforcementofficersorthird-
323+26partyvendorstoadministertheprocessingandissuanceofnoticesofviolation,thecollection
324+27offeesforaviolationofthemotorvehiclefinancialresponsibilitylaw,orthereferralofcases
325+28forprosecution,undertheprogram.
326+HCSSSSB1359 9 29 4.Accesstothesystemshallberestrictedtoqualifiedagenciesandthethird-party
327+30vendorswithwhichthedepartmentofrevenuecontractsforpurposesoftheprogram,
328+31providedthatanythird-partyvendorwithwhichacontractisexecutedtoprovidenecessary
329+32technology,equipment,ormaintenancefortheprogramshallbeauthorizedasnecessaryto
330+33collaborateforrequiredupdatesandmaintenanceofsystemsoftware.
331+34 5.Forpurposesoftheprogram,anydatacollectedandmatchedtoacorresponding
332+35vehicleinsurancerecordasverifiedthroughthesystem,andanyMissourivehicleregistration
333+36database,maybeusedtoidentifyviolationsofthemotorvehiclefinancialresponsibilitylaw.
334+37Suchcorrespondingdatashallconstituteevidenceoftheviolations.
335+38 6.Exceptasotherwiseprovidedinthissection,thedepartmentofrevenueshall
336+39suspend,inaccordancewithsection303.041,theregistrationofanymotorvehiclethatis
337+40determinedundertheprogramtobeinviolationofthemotorvehiclefinancialresponsibility
338+41law.
339+42 7.Thedepartmentofrevenueshallsendtoanownerwhosevehicleisidentifiedunder
340+43theprogramasbeinginviolationofthemotorvehiclefinancialresponsibilitylawanotice
341+44thatthevehicle'sregistrationmaybesuspendedunlesstheowner,withinthirtydays,provides
342+45proofoffinancialresponsibilityforthevehicleorproof,inaformspecifiedbythedepartment
343+46ofrevenue,thattheownerhasapendingcriminalchargeforaviolationofthemotorvehicle
344+47financialresponsibilitylaw.Thenoticeshallincludeinformationonstepsanindividualmay
345+48taketoobtainproofoffinancialresponsibilityandawebaddresstoapageonthedepartment
346+49ofrevenue'swebsitewhereinformationonobtainingproofoffinancialresponsibilityshallbe
347+50provided.Ifproofoffinancialresponsibilityorapendingcriminalchargeisnotprovided
348+51withinthetimeallotted,thedepartmentofrevenueshallprovideanoticeofsuspensionand
349+52suspendthevehicle'sregistrationinaccordancewithsection303.041,orshallsendanoticeof
350+53vehicleregistrationsuspension,clearlyspecifyingthereasonandstatutorygroundsforthe
351+54suspensionandtheeffectivedateofthesuspension,therightofthevehicleownertorequesta
352+55hearing,theprocedureforrequestingahearing,andthedatebywhichthatrequestfora
353+56hearingmustbemade,aswellasinformingtheownerthatthematterwillbereferredfor
354+57prosecutionifasatisfactoryresponseisnotreceivedinthetimeallotted,informingtheowner
355+58thattheminimumpenaltyfortheviolationisthreehundreddollars[andfourlicensepoints],
356+59andofferingtheownerparticipationinapretrialdiversionoptiontoprecludereferralfor
357+60prosecutionandregistrationsuspensionundersections303.420to303.440.Thenoticeof
358+61vehicleregistrationsuspensionshallgiveaperiodofthirty-threedaysfrommailingforthe
359+62vehicleownertorespond,andshallbedeemedreceivedthreedaysaftermailing.Ifno
360+63requestforahearingoragreementtoparticipateinthediversionoptionisreceivedbythe
361+64departmentofrevenuepriortothedateprovidedonthenoticeofvehicleregistration
362+65suspension,thedirectorshallsuspendthevehicle'sregistration,effectiveimmediately,and
363+HCSSSSB1359 10 66referthecasetotheappropriateprosecutingattorney.Ifanagreementbythevehicleownerto
364+67participateinthediversionoptionisreceivedbythedepartmentofrevenuepriortothe
365+68effectivedateprovidedonthenoticeofvehicleregistrationsuspension,thenuponpaymentof
366+69adiversionparticipationfeenottoexceedtwohundreddollars,agreementtosecureproofof
367+70financialresponsibilitywithinthetimeprovidedonthenoticeofsuspension,andagreement
368+71thatsuchfinancialresponsibilityshallbemaintainedforaminimumoftwoyears,nopoints
369+72shallbeassessedtothevehicleowner'sdriver'slicenseundersection302.302andthe
370+73departmentofrevenueshallnottakefurtheractionagainstthevehicleownerundersections
371+74303.420to303.440,subjecttocompliancewiththetermsofthepretrialdiversionoption.The
372+75departmentofrevenueshallsuspendthevehicleregistrationof,andshallreferthecasetothe
373+76appropriateprosecutingattorneyforprosecutionof,participatingvehicleownerswhoviolate
374+77thetermsofthepretrialdiversionoption.Ifarequestforhearingisreceivedbythe
375+78departmentofrevenuepriortotheeffectivedateprovidedonthenoticeofvehicleregistration
376+79suspension,thenforallpurposesotherthaneligibilityforparticipationinthediversion
377+80option,theeffectivedateofthesuspensionshallbestayeduntilafinalorderisissued
378+81followingthehearing.Thedepartmentofrevenueshallsuspendtheregistrationofvehicles
379+82determinedunderthefinalordertohaveviolatedthemotorvehiclefinancialresponsibility
380+83law,andshallreferthecasetotheappropriateprosecutingattorneyforprosecution.Notices
381+84underthissubsectionshallbemailedtothevehicleowneratthelastknownaddressshownon
382+85thedepartmentofrevenue'srecords.Thedepartmentofrevenueoritsthird-partyvendor
383+86shallissuereceiptsforthecollectionofdiversionparticipationfees.Exceptasotherwise
384+87providedinsubsection1ofthissection,allsuchfeesshallbedepositedintothemotorvehicle
385+88financialresponsibilityverificationandenforcementfundestablishedinsection303.422.A
386+89vehicleownerwhoseregistrationhasbeensuspendedundersections303.420to303.440may
387+90obtainreinstatementoftheregistrationuponprovidingproofoffinancialresponsibilityand
388+91paymenttothedepartmentofrevenueofanonrefundablereinstatementfeeequaltothefee
389+92thatwouldbeapplicableundersubsection2ofsection303.042iftheregistrationhadbeen
390+93suspendedundersection303.041.
391+94 8.Datacollectedorretainedundertheprogramshallnotbeusedbyanyentityfor
392+95purposesotherthanenforcementofthemotorvehiclefinancialresponsibilitylaw.Data
393+96collectedandstoredbylawenforcementundertheprogramshallbeconsideredevidenceif
394+97noncompliancewiththemotorvehiclefinancialresponsibilitylawisconfirmed.The
395+98evidence,andanaffidavitstatingthattheevidenceandsystemhaveidentifiedaparticular
396+99vehicleasbeinginviolationofthemotorvehiclefinancialresponsibilitylaw,shallconstitute
397+100probablecauseforprosecutionandshallbeforwardedinaccordancewithsubsection7ofthis
398+101sectiontotheappropriateprosecutingattorney.
399+HCSSSSB1359 11 102 9.Ownersofvehiclesidentifiedundertheprogramasbeinginviolationofthemotor
400+103vehiclefinancialresponsibilitylawshallbeprovidedwithoptionsfordisputingsuchclaims
401+104whichdonotrequireappearanceatanystateorlocalcourtoflaw,oradministrativefacility.
402+105Anypersonwhopresentstimelyproofthatheorshewasincompliancewiththemotor
403+106vehiclefinancialresponsibilitylawatthetimeoftheallegedviolationshallbeentitledto
404+107dismissalofthechargewithnoassessmentoffeesorfines.Proofprovidedbyavehicle
405+108ownertothedepartmentofrevenuethatthevehiclewasincomplianceatthetimeofthe
406+109suspectedviolationofthemotorvehiclefinancialresponsibilitylawshallberecordedinthe
407+110systemestablishedbythedepartmentofrevenueundersection303.430.
408+111 10.Thecollectionofdatapursuanttothissectionshallbedoneinamannerthat
409+112prohibitsanybiastowardsaspecificcommunity,race,gender,orsocioeconomicstatusof
410+113vehicleowner.
411+114 11.Lawenforcementagencies,third-partyvendors,orotherentitiesauthorizedto
412+115operateundertheprogramshallnotselldatacollectedorretainedundertheprogramforany
413+116purposeorshareitforanypurposenotexpresslyauthorizedinthissection.Alldatashallbe
414+117securedandanythird-partyvendororotherentityauthorizedtooperateundertheprogram
415+118maybeliableforanydatasecuritybreach.
416+119 12.Thedepartmentofrevenueshallnottakeactionundersections303.420to
417+120303.440againstvehiclesregisteredasfleetvehiclesundersection301.032,oragainst
418+121vehiclesknowntothedepartmentofrevenuetobeinsuredunderapolicyofcommercialauto
419+122coverage,assuchtermisdefinedinsubdivision(10)ofsubsection2ofsection303.430.
420+123 13.Followingoneyearaftertheimplementationoftheprogram,andeveryyear
421+124thereafterforaperiodoffiveyears, thedepartmentofrevenueshallprovideareporttothe
422+125presidentprotemporeofthesenate,thespeakerofthehouseofrepresentatives,thechairsof
423+126thehouseandsenatecommitteeswithjurisdictionsoverinsuranceortransportationmatters,
424+127andthechairsofthehousebudgetandsenateappropriationscommittees.Thereportshall
425+128includeanevaluationofprogramoperations,informationastothecostsoftheprogram
426+129incurredbythedepartmentofrevenue,insurers,andthepublic,informationastothe
427+130effectivenessoftheprograminreducingthenumberofuninsuredmotorvehicles,and
428+131anonymizeddemographicinformationincludingtheraceandzipcodeofvehicleowners
429+132identifiedundertheprogramasbeinginviolationofthemotorvehiclefinancialresponsibility
430+133law,andmayincludeanyadditionalinformationandrecommendationsforimprovementof
431+134theprogramdeemedappropriatebythedepartmentofrevenue.Thedepartmentofrevenue
432+135may,byrule,requirethestate,counties,andmunicipalitiestoprovideinformationinorderto
433+136completethereport.
434+137 14.Thedepartmentofrevenuemaypromulgaterulesasnecessaryforthe
435+138implementationofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
436+HCSSSSB1359 12 139536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffective
437+140onlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
438+141section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
439+142vestedwiththegeneralassemblypursuanttochapter536toreview,todelaytheeffective
440+143date,ortodisapproveandannularulearesubsequentlyheldunconstitutional,thenthegrant
441+144ofrulemakingauthorityandanyruleproposedoradoptedafterAugust28,2023,shallbe
442+145invalidandvoid.
443+303.430.1.Thedepartmentofrevenueshallestablishandmaintainaweb-based
444+2systemfortheverificationofmotorvehiclefinancialresponsibility,shallprovideaccessto
445+3insurancereportingdataandvehicleregistrationandfinancialresponsibilitydata,andshall
446+4requiremotorvehicleinsurerstoestablishfunctionalityfortheverificationsystem,as
447+5providedinsections303.420to303.440.Theverificationsystem,includinganyexceptions
448+6asprovidedforinsections303.420to303.440orintheimplementationguidedevelopedto
449+7supporttheprogram,shallsupersedeanyexistingverificationsystem,andshallbethesole
450+8systemusedforthepurposeofverifyingfinancialresponsibilityrequiredunderthischapter.
451+9 2.Thesystemestablishedpursuanttosubsection1ofthissectionshallbesubjectto
452+10thefollowing:
453+11 (1)Theverificationsystemshalltransmitrequeststoinsurersforverificationof
454+12motorvehicleinsurancecoverageviawebservicesestablishedbytheinsurersthroughthe
455+13internetincompliancewiththespecificationsandstandardsoftheInsuranceIndustry
456+14CommitteeonMotorVehicleAdministration,or"IICMVA".Insurancecompanysystems
457+15shallrespondtoeachrequestwithaprescribedresponseuponevaluationofthedataprovided
458+16intherequest.Thesystemshallincludeappropriateprotectionstosecureitsdataagainst
459+17unauthorizedaccess,andthedepartmentofrevenueshallmaintainahistoricalrecordofthe
460+18systemdataforaperiodofnomorethantwelvemonthsfromthedateofallrequestsand
461+19responses.Thesystemshallbeusedforverificationofthefinancialresponsibilityrequired
462+20underthischapter.Thesystemshallbeaccessibletoauthorizedpersonnelofthedepartment
463+21ofrevenue,thecourts,lawenforcementpersonnel,andotherentitiesauthorizedbythestate
464+22aspermittedbystateorfederalprivacylaws,anditshallbeinterfaced,whereverappropriate,
465+23withexistingstatesystems.Thesystemshallincludeinformationenablingthedepartmentof
466+24revenuetosubmitinquiriestoinsurersregardingmotorvehicleinsurancewhichare
467+25consistentwithinsuranceindustryandIICMVArecommendations,specifications,and
468+26standardsbyusingthefollowingdataelementsforgreatermatchingaccuracy:insurer
469+27NationalAssociationofInsuranceCommissioners,or"NAIC",companycode;vehicle
470+28identificationnumber;policynumber;verificationdate;orasotherwisedescribedinthe
471+29specificationsandstandardsoftheIICMVA.Thedepartmentofrevenueshallpromulgate
472+30rulestoofferinsurerswhoinsureonethousandorfewervehicleswithinthisstatean
473+HCSSSSB1359 13 31alternativemethodforverifyingmotorvehicleinsurancecoverageinlieuofwebservices,and
474+32toprovidefortheverificationoffinancialresponsibilitywhenfinancialresponsibilityis
475+33proventothedepartmenttobemaintainedbymeansotherthanapolicyofmotorvehicle
476+34insurance.Insurersshallnotberequiredtoverifyinsurancecoverageforvehiclesregistered
477+35inotherjurisdictions;
478+36 (2)Theverificationsystemshallrespondtoeachrequestwithinatimeperiod
479+37establishedbythedepartmentofrevenue.Aninsurer'ssystemshallrespondwithinthetime
480+38periodprescribedbytheIICMVA'sspecificationsandstandards.Insurersystemsshallbe
481+39permittedreasonablesystemdowntimeformaintenanceandotherworkwithadvancenotice
482+40tothedepartmentofrevenue.Insurersshallnotbesubjecttoenforcementfeesorother
483+41sanctionsundersuchcircumstances,orwhensystemsarenotavailablebecauseofemergency,
484+42outsideattack,orotherunexpectedoutagesnotplannedbytheinsurerandreasonablyoutside
485+43itscontrol;
486+44 (3)Thesystemshallassistinidentifyingviolationsofthemotorvehiclefinancial
487+45responsibilitylawinthemosteffectivewaypossible.Responsestoindividualinsurance
488+46verificationrequestsshallhavenobearingonwhetherinsurancecoverageisdeterminedtobe
489+47inforceatthetimeofaclaim.Claimsshallbeindividuallyinvestigatedtodeterminethe
490+48existenceofcoverage.Nothinginsections303.420to303.440shallprohibitthedepartment
491+49ofrevenuefromcontractingwithathird-partyvendororvendorswhohavesuccessfully
492+50implementedsimilarsystemsinotherstatestoassistinestablishingandmaintainingthis
493+51verificationsystem;
494+52 (4)Thedepartmentofrevenueshallconsultwithrepresentativesoftheinsurance
495+53industryandmayconsultwiththird-partyvendorstodeterminetheobjectives,details,and
496+54deadlinesrelatedtothesystembyestablishmentofanadvisorycouncil.Membersofthe
497+55advisorycouncilshallserveinanadvisorycapacityinmatterspertainingtothe
498+56administrationofsections303.420to303.440,asthedepartmentofrevenuemay
499+57request.Theadvisorycouncilshallexpireoneyearafterimplementationofthe
500+58program.Theadvisorycouncilshallconsistofvotingmemberscomprisedof:
501+59 (a)Thedirectorofthedepartmentofcommerceandinsurance,orhisorherdesignee,
502+60whoshallserveaschair;
503+61 (b)Tworepresentativesofthedepartmentofrevenue,tobeappointedbythedirector
504+62ofthedepartmentofrevenue;
505+63 (c)Onerepresentativeofthedepartmentofcommerceandinsurance,tobeappointed
506+64bythedirectorofthedepartmentofcommerceandinsurance;
507+65 (d)Threerepresentativesofinsurancecompanies,tobeappointedbythedirectorof
508+66thedepartmentofcommerceandinsurance;
509+67 (e)OnerepresentativefromtheMissouriInsuranceCoalition;
510+HCSSSSB1359 14 68 (f)OnerepresentativechosenbytheNationalAssociationofMutualInsurance
511+69Companies;
512+70 (g)OnerepresentativechosenbytheAmericanPropertyandCasualtyInsurance
513+71Association;
514+72 (h)OnerepresentativechosenbytheMissouriIndependentAgentsAssociation;and
515+73 (i)Suchotherrepresentativesasmaybeappointedbythedirectorofthedepartment
516+74ofcommerceandinsurance;
517+75 (5)Thedepartmentofrevenueshallpublishforcomment,andthenissue,adetailed
518+76implementationguideforitsonlineverificationsystem;
519+77 (6)Thedepartmentofrevenueanditsthird-partyvendors,ifany,shalleachmaintain
520+78acontactpersonforinsurersduringtheestablishment,implementation,andoperationofthe
521+79system;
522+80 (7)Ifthedepartmentofrevenuehasreasontobelieveavehicleownerdoesnot
523+81maintainfinancialresponsibilityasrequiredunderthischapter,itmayalsorequestaninsurer
524+82toverifytheexistenceofsuchfinancialresponsibilityinaformapprovedbythedepartment
525+83ofrevenue.Inaddition,insurersshallcooperatewiththedepartmentofrevenuein
526+84establishingandmaintainingtheverificationsystemestablishedunderthissection,andshall
527+85providemotorvehicleinsurancepolicystatusinformationasprovidedintherules
528+86promulgatedbythedepartmentofrevenue;
529+87 (8)Everypropertyandcasualtyinsurancecompanylicensedtoissuemotorvehicle
530+88insuranceorauthorizedtodobusinessinthisstateshallcomplywithsections303.420to
531+89303.440,andcorrespondingrulespromulgatedbythedepartmentofrevenue,forthe
532+90verificationofsuchinsuranceforeveryvehicleinsuredbythatcompanyinthisstate;
533+91 (9)Insurersshallmaintainahistoricalrecordofinsurancedataforaminimumperiod
534+92ofsixmonthsfromthedateofpolicyinceptionorpolicychangeforthepurposeofhistorical
535+93verificationinquiries;
536+94 (10)Forthepurposesofthissection,"commercialautocoverage"shallmeanany
537+95coverageprovidedtoaninsured,regardlessofnumberofvehiclesorentitiescovered,undera
538+96commercialcoverageformandratedfromacommercialmanualapprovedbythedepartment
539+97ofcommerceandinsurance.Sections303.420to303.440shallnotapplytovehiclesinsured
540+98undercommercialautocoverage;however,insurersofsuchvehiclesmayparticipateona
541+99voluntarybasis,andvehicleownersmayprovideproofatorsubsequenttothetimeofvehicle
542+100registrationthatavehicleisinsuredundercommercialautocoverage,whichthedepartment
543+101ofrevenueshallrecordinthesystem;
544+102 (11)Insurersshallprovidecommercialorfleetautomobilecustomerswithevidence
545+103reflectingthatthevehicleisinsuredunderacommercialorfleetautomobileliabilitypolicy.
546+104Sufficientevidenceshallincludeaninsuranceidentificationcardclearlymarkedwitha
547+HCSSSSB1359 15 105suitableidentifiersuchas"commercialautoinsuranceidentificationcard","fleetauto
548+106insuranceidentificationcard",orotherclearidentificationthatthevehicleisinsuredundera
549+107fleetorcommercialpolicy;
550+108 (12)Notwithstandinganyprovisionofsections303.420to303.440,insurersshallbe
551+109immunefromcivilandadministrativeliabilityforgoodfaitheffortstocomplywiththeterms
552+110ofsections303.420to303.440;
553+111 (13)Nothinginthissectionshallprohibitaninsurerfromusingtheservicesofa
554+112third-partyvendorforfacilitatingtheverificationsystemrequiredundersections303.420to
555+113303.440.
556+114 3.Thedepartmentofrevenueshallpromulgaterulesasnecessaryforthe
557+115implementationofsections303.420to303.440.Anyruleorportionofarule,asthatterm
558+116isdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
559+117becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536
560+118and,ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
561+119ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
562+120effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,then
563+121thegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust28,2023,
564+122shallbeinvalidandvoid.
565+303.440.Theverificationsystemestablishedundersection303.430shallbeinstalled
566+2andfullyoperational[onJanuary1,2025] nolaterthanDecember31,2027,orassoonas
567+3technologicallypossiblefollowingthedevelopmentandmaintenanceofamodernized,
568+4integratedsystemforthetitlingofvehicles,issuanceandrenewalofvehicle
569+5registrations,issuanceandrenewalofdriver'slicensesandidentificationcards,and
570+6perfectionandreleaseofliensandencumbrancesonvehicles,tobefundedbythemotor
571+7vehicleadministrationtechnologyfundascreatedinsection301.558, followingan
572+8appropriatetestingorpilotperiodofnotlessthanninemonths.Untilthesuccessful
573+9completionofthetestingorpilotperiodinthejudgmentofthedirectorofthedepartmentof
574+10revenue,noenforcementactionshallbetakenbasedonthesystem,includingbutnotlimited
575+11toactiontakenundertheprogramestablishedundersection303.425.
576+361.900.Sections361.900to361.1035shallbeknownandmaybecitedasthe
577+2"MoneyTransmissionModernizationActof2024".
578+361.903.Sections361.900to361.1035aredesignedtoreplaceexistingstate
579+2moneytransmissionlawscurrentlycodifiedinlawandto:
580+3 (1)Ensurestatesmaycoordinateinallareasofregulation,licensing,and
581+4supervisiontoeliminateunnecessaryregulatoryburdenandmoreeffectivelyutilize
582+5regulatorresources;
583+6 (2)Protectthepublicfromfinancialcrime;
584+HCSSSSB1359 16 7 (3)Standardizethetypesofactivitiesthataresubjecttolicensingorotherwise
585+8exemptfromlicensing;and
586+9 (4)Modernizesafetyandsoundnessrequirementstoensurecustomerfundsare
587+10protectedinanenvironmentthatsupportsinnovativeandcompetitivebusiness
588+11practices.
589+361.906.Forpurposesofsections361.900to361.1035,thefollowingtermsshall
590+2mean:
591+3 (1)"Actinginconcert",personsknowinglyactingtogetherwithacommongoal
592+4ofjointlyacquiringcontrolofalicensee,regardlessofwhetherunderanexpress
593+5agreement;
594+6 (2)"Authorizeddelegate",apersonthatalicenseedesignatestoengagein
595+7moneytransmissiononbehalfofthelicensee;
596+8 (3)"Averagedailymoneytransmissionliability",theamountofthelicensee's
597+9outstandingmoneytransmissionobligationsinthisstateattheendofeachdayina
598+10givenperiodoftime,addedtogether,anddividedbythetotalnumberofdaysinthe
599+11givenperiodoftime.Forpurposesofcalculatingaveragedailymoneytransmission
600+12liabilityundersections361.900to361.1035foranylicenseerequiredtodoso,thegiven
601+13periodoftimeshallbethequartersendingMarchthirty-first,Junethirtieth,September
602+14thirtieth,andDecemberthirty-first;
603+15 (4)"BankSecrecyAct",theBankSecrecyAct,31U.S.C.Section5311etseq.,
604+16anditsimplementingregulations,asamendedandrecodifiedfromtimetotime;
605+17 (5)"Closedloopstoredvalue",storedvaluethatisredeemablebytheissueronly
606+18forgoodsorservicesprovidedbytheissueroritsaffiliateorfranchiseesoftheissueror
607+19itsaffiliate,excepttotheextentrequiredbyapplicablelawtoberedeemableincashfor
608+20itscashvalue;
609+21 (6)"Control":
610+22 (a)Thepowertovote,directlyorindirectly,atleasttwenty-fivepercentofthe
611+23outstandingvotingsharesorvotinginterestsofalicenseeorpersonincontrolofa
612+24licensee;
613+25 (b)Thepowertoelectorappointamajorityofkeyindividualsorexecutive
614+26officers,managers,directors,trustees,orotherpersonsexercisingmanagerialauthority
615+27ofapersonincontrolofalicensee;or
616+28 (c)Thepowertoexercise,directlyorindirectly,acontrollinginfluenceoverthe
617+29managementorpoliciesofalicenseeorpersonincontrolofalicensee.
618+30
619+31Apersonispresumedtoexerciseacontrollinginfluenceifthepersonholdsthepowerto
620+32vote,directlyorindirectly,atleasttenpercentoftheoutstandingvotingsharesorvoting
621+HCSSSSB1359 17 33interestsofalicenseeorpersonincontrolofalicensee.Apersonpresumedtoexercisea
622+34controllinginfluenceasdefinedunderthissubdivisioncanrebutthepresumptionof
623+35controlifthepersonisapassiveinvestor.Forpurposesofdeterminingthepercentageof
624+36apersoncontrolledbyanyotherperson,theperson'sinterestshallbeaggregatedwith
625+37theinterestofanyotherimmediatefamilymember,includingtheperson'sspouse,
626+38parents,children,siblings,mothers-andfathers-inlaw,sons-anddaughters-in-law,
627+39brothers-andsisters-in-law,andanyotherpersonwhosharessuchperson'shome;
628+40 (7)"Director",thedirectoroftheMissouridivisionoffinance;
629+41 (8)"Eligiblerating",acreditratingofanyofthethreehighestratingcategories
630+42providedbyaneligibleratingservice.Eachcategorymayincluderatingcategory
631+43modifierssuchas"plus"or"minus"forStandardandPoor'sortheequivalentforany
632+44othereligibleratingservice;
633+45 (9)"Eligibleratingservice",anynationallyrecognizedstatisticalrating
634+46organization(NRSRO)asdefinedbytheUnitedStatesSecuritiesandExchange
635+47Commissionandanyotherorganizationdesignatedbyruleororder;
636+48 (10)"Federallyinsureddepositoryfinancialinstitution",abank,creditunion,
637+49savingsandloanassociation,trustcompany,savingsassociation,savingsbank,
638+50industrialbank,orindustrialloancompanyorganizedunderthelawsoftheUnited
639+51StatesoranystateoftheUnitedStatesifsuchbank,creditunion,savingsandloan
640+52association,trustcompany,savingsassociation,savingsbank,industrialbank,or
641+53industrialloancompanyhasfederallyinsureddeposits;
642+54 (11)"Inthisstate",ataphysicallocationwithinthisstateforatransaction
643+55requestedinperson.Foratransactionrequestedelectronicallyorbyphone,the
644+56providerofmoneytransmissionmaydetermineifthepersonrequestingthetransaction
645+57isinthisstatebyrelyingonotherinformationprovidedbythepersonregardingthe
646+58locationoftheindividual'sresidentialaddressorabusinessentity'sprincipalplaceof
647+59businessorotherphysicaladdresslocation,andanyrecordsassociatedwiththeperson
648+60thattheproviderofmoneytransmissionmayhavethatindicatesuchlocationincluding,
649+61butnotlimitedto,anaddressassociatedwithanaccount;
650+62 (12)"Individual",anaturalperson;
651+63 (13)"Keyindividual",anyindividualultimatelyresponsibleforestablishingor
652+64directingpoliciesandproceduresofthelicensee,suchasanexecutiveofficer,manager,
653+65director,ortrustee;
654+66 (14)"Licensee",apersonlicensedundersections361.900to361.1035;
655+67 (15)"Materiallitigation",litigationthat,accordingtoUnitedStatesgenerally
656+68acceptedaccountingprinciples,issignificanttoaperson'sfinancialhealthandwouldbe
657+HCSSSSB1359 18 69requiredtobedisclosedintheperson'sannualauditedfinancialstatements,reportto
658+70shareholders,orsimilarrecords;
659+71 (16)"Monetaryvalue",amediumofexchange,regardlessofwhether
660+72redeemableinmoney;
661+73 (17)"Money",amediumofexchangethatisauthorizedoradoptedbythe
662+74UnitedStatesoraforeigngovernment.Thetermincludesamonetaryunitofaccount
663+75establishedbyanintergovernmentalorganizationorbyagreementbetweentwoormore
664+76governments;
665+77 (18)"Moneytransmission",anyofthefollowing:
666+78 (a)Sellingorissuingpaymentinstrumentstoapersonlocatedinthisstate;
667+79 (b)Sellingorissuingstoredvaluetoapersonlocatedinthisstate;or
668+80 (c)Receivingmoneyfortransmissionfromapersonlocatedinthisstate.
669+81
670+82Thetermincludespayrollprocessingservices.Thetermdoesnotincludetheprovision
671+83solelyofonlineortelecommunicationsservicesornetworkaccess;
672+84 (19)"Multistatelicensingprocess",anyagreemententeredintobyandamong
673+85stateregulatorsrelatingtocoordinatedprocessingofapplicationsformoney
674+86transmissionlicenses,applicationsfortheacquisitionofcontrolofalicensee,control
675+87determinations,ornoticeandinformationrequirementsforachangeofkeyindividuals;
676+88 (20)"NMLS",theNationwideMultistateLicensingSystemandRegistry
677+89developedbytheConferenceofStateBankSupervisorsandtheAmericanAssociation
678+90ofResidentialMortgageRegulatorsandownedandoperatedbytheStateRegulatory
679+91RegistryLLCoranysuccessororaffiliatedentityforthelicensingandregistrationof
680+92personsinfinancialservicesindustries;
681+93 (21)"Outstandingmoneytransmissionobligations":
682+94 (a)Anypaymentinstrumentorstoredvalueissuedorsoldbythelicenseetoa
683+95personlocatedintheUnitedStatesorreportedassoldbyanauthorizeddelegateofthe
684+96licenseetoapersonthatislocatedintheUnitedStatesthathasnotyetbeenpaidor
685+97refundedbyorforthelicenseeorescheatedinaccordancewithapplicableabandoned
686+98propertylaws;or
687+99 (b)Anymoneyreceivedfortransmissionbythelicenseeoranauthorized
688+100delegateintheUnitedStatesfromapersonlocatedintheUnitedStatesthathasnot
689+101beenreceivedbythepayeeorrefundedtothesender,orescheatedinaccordancewith
690+102applicableabandonedpropertylaws.
691+103
692+104Forpurposesofthissubdivision,"intheUnitedStates"shallinclude,totheextent
693+105applicable,apersoninanystate,territory,orpossessionoftheUnitedStates;the
694+HCSSSSB1359 19 106DistrictofColumbia;theCommonwealthofPuertoRico;oraU.S.militaryinstallation
695+107thatislocatedinaforeigncountry;
696+108 (22)"Passiveinvestor",apersonthat:
697+109 (a)Doesnothavethepowertoelectamajorityofkeyindividualsorexecutive
698+110officers,managers,directors,trustees,orotherpersonsexercisingmanagerialauthority
699+111ofapersonincontrolofalicensee;
700+112 (b)Isnotemployedbyanddoesnothaveanymanagerialdutiesofthelicensee
701+113orpersonincontrolofalicensee;
702+114 (c)Doesnothavethepowertoexercise,directlyorindirectly,acontrolling
703+115influenceoverthemanagementorpoliciesofalicenseeorpersonincontrolofalicensee;
704+116and
705+117 (d)Either:
706+118 a.Atteststoparagraphs(a),(b),and(c)ofthissubdivision,inaformandina
707+119mediumprescribedbythedirector;or
708+120 b.Commitstothepassivitycharacteristicsofparagraphs(a),(b),and(c)ofthis
709+121subdivisioninawrittendocument;
710+122 (23)"Paymentinstrument",awrittenorelectroniccheck,draft,moneyorder,
711+123traveler'scheck,orotherwrittenorelectronicinstrumentforthetransmissionor
712+124paymentofmoneyormonetaryvalue,regardlessofwhethernegotiable.Thetermdoes
713+125notincludestoredvalueoranyinstrumentthat:
714+126 (a)Isredeemablebytheissueronlyforgoodsorservicesprovidedbytheissuer
715+127oritsaffiliateorfranchiseesoftheissueroritsaffiliate,excepttotheextentrequiredby
716+128applicablelawtoberedeemableincashforitscashvalue;or
717+129 (b)Isnotsoldtothepublicbutissuedanddistributedaspartofaloyalty,
718+130rewards,orpromotionalprogram;
719+131 (24)"Payrollprocessingservices",receivingmoneyfortransmissionundera
720+132contractwithapersontodeliverwagesorsalaries,makepaymentofpayrolltaxesto
721+133stateandfederalagencies,makepaymentsrelatingtoemployeebenefitplans,ormake
722+134distributionsofotherauthorizeddeductionsfromwagesorsalaries.Thetermdoesnot
723+135includeanemployerperformingpayrollprocessingservicesonitsownbehalforon
724+136behalfofitsaffiliateoraprofessionalemployerorganizationsubjecttoregulationunder
725+137sections285.700to285.750;
726+138 (25)"Person",anyindividual,generalpartnership,limitedpartnership,limited
727+139liabilitycompany,corporation,trust,association,jointstockcorporation,orother
728+140corporateentityidentifiedbythedirector;
729+HCSSSSB1359 20 141 (26)"Receivingmoneyfortransmission"or"moneyreceivedfortransmission",
730+142receivingmoneyormonetaryvalueintheUnitedStatesfortransmissionwithinor
731+143outsidetheUnitedStatesbyelectronicorothermeans;
732+144 (27)"Storedvalue",monetaryvaluerepresentingaclaimagainsttheissuer
733+145evidencedbyanelectronicordigitalrecordandthatisintendedandacceptedforuseas
734+146ameansofredemptionformoney,ormonetaryvalue,orpaymentforgoodsorservices.
735+147Thetermincludes,butisnotlimitedto,"prepaidaccess"asdefinedunder31CFR
736+148Section1010.100,asamendedorrecodifiedfromtimetotime.Notwithstandingthe
737+149provisionsofthissubdivision,thetermdoesnotincludeapaymentinstrumentorclosed
738+150loopstoredvalue,orstoredvaluenotsoldtothepublicbutissuedanddistributedas
739+151partofaloyalty,rewards,orpromotionalprogram;
740+152 (28)"Tangiblenetworth",theaggregateassetsofalicenseeexcludingall
741+153intangibleassets,lessliabilities,asdeterminedinaccordancewithUnitedStates
742+154generallyacceptedaccountingprinciples.
743+361.909.Sections361.900to361.1035shallnotapplyto:
744+2 (1)Anoperatorofapaymentsystemtotheextentthatitprovidesprocessing,
745+3clearing,orsettlementservicesbetweenoramongpersonsexemptedunderthissection
746+4orlicenseesinconnectionwithwiretransfers,creditcardtransactions,debitcard
747+5transactions,storedvaluetransactions,automatedclearinghousetransfers,orsimilar
748+6fundstransfers;
749+7 (2)Apersonappointedasanagentofapayeetocollectandprocessapayment
750+8fromapayertothepayeeforgoodsorservices,otherthanmoneytransmissionitself,
751+9providedtothepayerbythepayee,providedthat:
752+10 (a)Thereexistsawrittenagreementbetweenthepayeeandtheagentdirecting
753+11theagenttocollectandprocesspaymentsfromapayeronthepayee'sbehalf;
754+12 (b)Thepayeeholdstheagentouttothepublicasacceptingpaymentsforgoods
755+13orservicesonthepayee'sbehalf;and
756+14 (c)Paymentforthegoodsandservicesistreatedasreceivedbythepayeeupon
757+15receiptbytheagentsothatthepayer'sobligationisextinguishedandthereisnoriskof
758+16losstothepayeriftheagentfailstoremitthefundstothepayee;
759+17 (3)Apersonthatactsasanintermediarybyprocessingpaymentsbetweenan
760+18entitythathasdirectlyincurredanoutstandingmoneytransmissionobligationtoa
761+19senderandthesender'sdesignatedrecipient,providedthattheentity:
762+20 (a)Isproperlylicensedorexemptfromlicensingrequirementsundersections
763+21361.900to361.1035;
764+HCSSSSB1359 21 22 (b)Providesareceipt,electronicrecord,orotherwrittenconfirmationtothe
765+23senderidentifyingtheentityastheproviderofmoneytransmissioninthetransaction;
766+24and
767+25 (c)Bearssoleresponsibilitytosatisfytheoutstandingmoneytransmission
768+26obligationtothesender,includingtheobligationtomakethesenderwholeinconnection
769+27withanyfailuretotransmitthefundstothesender'sdesignatedrecipient;
770+28 (4)TheUnitedStatesoradepartment,agency,orinstrumentalitythereof,orits
771+29agent;
772+30 (5)MoneytransmissionbytheUnitedStatesPostalServiceorbyanagentofthe
773+31UnitedStatesPostalService;
774+32 (6)Astate,county,city,oranyothergovernmentalagencyorgovernmental
775+33subdivisionorinstrumentalityofastate,oritsagent;
776+34 (7)Afederallyinsureddepositoryfinancialinstitution;bankholdingcompany;
777+35officeofaninternationalbankingcorporation;foreignbankthatestablishesafederal
778+36branchundertheInternationalBankAct,12U.S.C.Section3102,asamendedor
779+37recodifiedfromtimetotime;corporationorganizedundertheBankService
780+38CorporationAct,12U.S.C.Sections1861-1867,asamendedorrecodifiedfromtime
781+39totime;orcorporationorganizedundertheEdgeAct,12U.S.C.Sections611-633,as
782+40amendedorrecodifiedfromtimetotime,underthelawsofastateortheUnitedStates;
783+41 (8)Electronicfundstransferofgovernmentalbenefitsforafederal,state,
784+42county,orgovernmentalagencybyacontractoronbehalfoftheUnitedStatesora
785+43department,agency,orinstrumentalitythereof,oronbehalfofastateorgovernmental
786+44subdivision,agency,orinstrumentalitythereof;
787+45 (9)Aboardoftradedesignatedasacontractmarketunderthefederal
788+46CommodityExchangeAct,7U.S.C.Sections1-25,asamendedorrecodifiedfromtime
789+47totime,orapersonthat,intheordinarycourseofbusiness,providesclearanceand
790+48settlementservicesforaboardoftradetotheextentofitsoperationasorforsucha
791+49board;
792+50 (10)Aregisteredfuturescommissionmerchantunderthefederalcommodities
793+51lawstotheextentofitsoperationassuchamerchant;
794+52 (11)Apersonregisteredasasecuritiesbroker-dealerunderfederalorstate
795+53securitieslawstotheextentofitsoperationassuchabroker-dealer;
796+54 (12)Anindividualemployedbyalicensee,authorizeddelegate,oranyperson
797+55exemptedfromthelicensingrequirementsundersections361.900to361.1035ifacting
798+56withinthescopeofemploymentandunderthesupervisionofthelicensee,authorized
799+57delegate,orexemptedpersonasanemployeeandnotasanindependentcontractor;
800+HCSSSSB1359 22 58 (13)Apersonexpresslyappointedasathird-partyserviceprovidertooragent
801+59ofanentityexemptundersubdivision(7)ofthissubsectionsolelytotheextentthat:
802+60 (a)Suchserviceprovideroragentisengaginginmoneytransmissiononbehalf
803+61ofandunderawrittenagreementwiththeexemptentitythatsetsforththespecific
804+62functionsthattheserviceprovideroragentistoperform;and
805+63 (b)Theexemptentityassumesallriskoflossandalllegalresponsibilityfor
806+64satisfyingtheoutstandingmoneytransmissionobligationsowedtopurchasersand
807+65holdersoftheoutstandingmoneytransmissionobligationsuponreceiptofthe
808+66purchaser'sorholder'smoneyormonetaryvaluebytheserviceprovideroragent.
809+361.912.Thedirectormayrequirethatanypersonclaimingtobeexemptfrom
810+2licensingundersection361.909provideinformationanddocumentationtothedirector
811+3demonstratingthatthepersonqualifiesforanyclaimedexemption.
812+361.915.1.Inordertocarryoutthepurposesofsections361.900to361.1035,
813+2thedirectormay,subjecttotheprovisionsofsubsections1and2ofsection361.918:
814+3 (1)Enterintoagreementsorrelationshipswithothergovernmentofficialsor
815+4federalandstateregulatoryagenciesandregulatoryassociationsinordertoimprove
816+5efficienciesandreduceregulatoryburdenbystandardizingmethodsorprocedures,and
817+6sharingresources,records,orrelatedinformationobtainedundersections361.900to
818+7361.1035;
819+8 (2)Use,hire,contract,oremployanalyticalsystems,methods,orsoftwareto
820+9examineorinvestigateanypersonsubjecttosections361.900to361.1035;
821+10 (3)Accept,fromotherstateorfederalgovernmentagenciesorofficials,
822+11licensing,examination,orinvestigationreportsmadebysuchotherstateorfederal
823+12governmentagenciesorofficials;and
824+13 (4)Acceptauditreportsmadebyanindependentcertifiedpublicaccountantor
825+14otherqualifiedthird-partyauditorforanapplicantorlicenseeandincorporatethe
826+15auditreportinanyreportofexaminationorinvestigation.
827+16 2.Thedirectorshallhavethebroadadministrativeauthorityto:
828+17 (1)Administer,interpret,andenforcesections361.900to361.1035and
829+18promulgaterulesorregulationsimplementingsections361.900to361.1035;and
830+19 (2)Recoverthecostofadministeringandenforcingsections361.900to361.1035
831+20byimposingandcollectingproportionateandequitablefeesandcostsassociatedwith
832+21applications,examinations,investigations,andotheractionsrequiredtoachievethe
833+22purposeofsections361.900to361.1035.
834+23 3.Thedirectorshallpromulgateallnecessaryrulesandregulationsforthe
835+24administrationofsections361.900to361.1035.Anyruleorportionofarule,asthat
836+25termisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
837+HCSSSSB1359 23 26sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
838+27provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
839+28536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
840+29pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
841+30arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
842+31andanyruleproposedoradoptedafterAugust28,2024,shallbeinvalidandvoid.
843+361.918.1.Exceptasotherwiseprovidedinsubsection2ofthissection,all
844+2informationorreportsobtainedbythedirectorfromanapplicant,licensee,or
845+3authorizeddelegateandallinformationcontainedinorrelatedtoanexamination,
846+4investigation,operatingreport,orconditionreportpreparedby,onbehalfof,orforthe
847+5useofthedirector,orfinancialstatements,balancesheets,orauthorizeddelegate
848+6information,shallbeconfidentialandheldinaccordancewithsection361.080.
849+7 2.Thedirectormaydiscloseinformationnototherwisesubjecttodisclosure
850+8undersubsection1ofthissectiontorepresentativesofstateorfederalagencieswho
851+9shallconfirminwritingthattheywillmaintaintheconfidentialityoftheinformation.
852+10 3.Thissectiondoesnotprohibitthedirectorfromdisclosingtothepublicalist
853+11ofalllicenseesortheaggregatedfinancialortransactionaldataconcerningthose
854+12licensees.
855+361.921.1.Thedirectormayconductanexaminationorinvestigationofa
856+2licenseeorauthorizeddelegateorotherwisetakeindependentactionauthorizedby
857+3sections361.900to361.1035orbyaruleadoptedororderissuedundersections361.900
858+4to361.1035asreasonablynecessaryorappropriatetoadministerandenforcesections
859+5361.900to361.1035,regulationsimplementingsections361.900to361.1035,andother
860+6applicablelaw,includingtheBankSecrecyActandtheUSAPATRIOTAct.The
861+7directormay:
862+8 (1)Conductanexaminationeitheronsiteoroffsiteasthedirectormay
863+9reasonablyrequire;
864+10 (2)Conductanexaminationinconjunctionwithanexaminationconductedby
865+11representativesofotherstateagenciesoragenciesofanotherstateorofthefederal
866+12government;
867+13 (3)Accepttheexaminationreportofanotherstateagencyoranagencyof
868+14anotherstateorofthefederalgovernment,orareportpreparedbyanindependent
869+15accountingfirm,whichonbeingacceptedisconsideredforallpurposesasanofficial
870+16reportofthedirector;and
871+17 (4)Summonandexamineunderoathakeyindividualoremployeeofalicensee
872+18orauthorizeddelegateandrequirethepersontoproducerecordsregardinganymatter
873+19relatedtotheconditionandbusinessofthelicenseeorauthorizeddelegate.
874+HCSSSSB1359 24 20 2.Alicenseeorauthorizeddelegateshallprovide,andthedirectorshallhavefull
875+21andcompleteaccessto,allrecordsthedirectormayreasonablyrequiretoconducta
876+22completeexamination.Therecordsshallbeprovidedatthelocationandintheformat
877+23specifiedbythedirector.Thedirectormayutilizemultistaterecordproduction
878+24standardsandexaminationproceduresifsuchstandardsandprocedureswill
879+25reasonablyachievetherequirementsofthissubsection.
880+26 3.Unlessotherwisedirectedbythedirector,alicenseeshallpayallcosts
881+27reasonablyincurredinconnectionwithanexaminationofthelicenseeorthelicensee's
882+28authorizeddelegates.
883+361.924.1.Toefficientlyandeffectivelyadministerandenforcesections361.900
884+2to361.1035andtominimizeregulatoryburden,thedirectorisauthorizedtoparticipate
885+3inmultistatesupervisoryprocessesestablishedbetweenstatesorcoordinatedthrough
886+4theConferenceofStateBankSupervisors,MoneyTransmitterRegulatorsAssociation,
887+5andaffiliatesandsuccessorsthereofforalllicenseesthatholdlicensesinthisstateand
888+6otherstates.Asaparticipantinmultistatesupervision,thedirectormay:
889+7 (1)Cooperate,coordinate,andshareinformationwithotherstateandfederal
890+8regulatorsinaccordancewithsection361.918;
891+9 (2)Enterintowrittencooperation,coordination,orinformation-sharing
892+10contractsoragreementswithorganizationsthemembershipofwhichismadeupof
893+11stateorfederalgovernmentalagencies;and
894+12 (3)Cooperate,coordinate,andshareinformationwithorganizationsthe
895+13membershipofwhichismadeupofstateorfederalgovernmentalagencies,provided
896+14thattheorganizationsagreeinwritingtomaintaintheconfidentialityandsecurityofthe
897+15sharedinformationinaccordancewiththissection.
898+16 2.Thedirectorshallnotwaiveandnothinginthissectionconstitutesawaiverof
899+17thedirector'sauthoritytoconductanexaminationorinvestigationorotherwisetake
900+18independentactionauthorizedbysections361.900to361.1035oraruleadoptedor
901+19orderissuedundersections361.900to361.1035toenforcecompliancewithapplicable
902+20stateorfederallaw.
903+21 3.Ajointexaminationorinvestigation,oracceptanceofanexaminationor
904+22investigationreport,doesnotwaiveanexaminationassessmentprovidedforinsections
905+23361.900to361.1035.
906+361.927.1.Intheeventstatemoneytransmissionjurisdictionisconditionedon
907+2afederallaw,anyinconsistenciesbetweenaprovisionofsections361.900to361.1035
908+3andthefederallawgoverningmoneytransmissionshallbegovernedbytheapplicable
909+4federallawtotheextentoftheinconsistency.
910+HCSSSSB1359 25 5 2.Intheeventofanyinconsistenciesbetweensections361.900to361.1035anda
911+6federallawthatgovernsundersubsection1ofthissection,thedirectormayprovide
912+7interpretiveguidancethat:
913+8 (1)Identifiestheinconsistency;and
914+9 (2)Identifiestheappropriatemeansofcompliancewithfederallaw.
915+361.930.1.Apersonshallnotengageinthebusinessofmoneytransmissionor
916+2advertise,solicit,orholditselfoutasprovidingmoneytransmissionunlessthepersonis
917+3licensedundersections361.900to361.1035.
918+4 2.Subsection1ofthissectionshallnotapplyto:
919+5 (1)Apersonthatisanauthorizeddelegateofapersonlicensedundersections
920+6361.900to361.1035actingwithinthescopeofauthorityconferredbyawrittencontract
921+7withthelicensee;or
922+8 (2)Apersonthatisexemptundersection361.909anddoesnotengageinmoney
923+9transmissionoutsidethescopeofsuchexemption.
924+10 3.Alicenseissuedundersection361.942shallnotbetransferableorassignable.
925+361.933.1.Toestablishconsistentlicensingbetweenthisstateandotherstates,
926+2thedirectorisauthorizedto:
927+3 (1)Implementthelicensingprovisionsofsections361.900to361.1035ina
928+4mannerthatisconsistentwithotherstatesthathaveadoptedthemoneytransmission
929+5modernizationsactormultistatelicensingprocesses;and
930+6 (2)Participateinnationwideprotocolsforlicensingcooperationand
931+7coordinationamongstateregulators,providedthatsuchprotocolsareconsistentwith
932+8sections361.900to361.1035.
933+9 2.Inordertofulfillthepurposesofsections361.900to361.1035,thedirectoris
934+10authorizedtoestablishrelationshipsorcontractswithNMLS,orotherentities
935+11designatedbyNMLSorotherthirdpartiestoenablethedirectorto:
936+12 (1)Collectandmaintainrecords;
937+13 (2)Coordinatemultistatelicensingprocessesandsupervisionprocesses;
938+14 (3)Processfees;and
939+15 (4)Facilitatecommunicationbetweenthisstateandlicenseesorotherpersons
940+16subjecttosections361.900to361.1035.
941+17 3.ThedirectorisauthorizedtoutilizeNMLSforallaspectsoflicensingin
942+18accordancewithsections361.900to361.1035including,butnotlimitedto,license
943+19applications,applicationsforacquisitionsofcontrol,suretybonds,reporting,criminal
944+20historybackgroundchecks,creditchecks,feeprocessing,andexaminations.
945+21 4.ThedirectorisauthorizedtoutilizeNMLSforms,processes,and
946+22functionalitiesinaccordancewithsections361.900to361.1035.
947+HCSSSSB1359 26 23 5.(1)Thedirectorisauthorizedtoestablishandadopt,byruleorregulation,
948+24requirementsforparticipationbyapplicantsandlicenseesinNMLSuponthedivisionof
949+25finance'sdeterminationthateachrequirementisconsistentwithlaw,publicinterest,
950+26andthepurposesofthissection.
951+27 (2)Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
952+28createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
953+29complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
954+30section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
955+31vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
956+32effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
957+33thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
958+3428,2024,shallbeinvalidandvoid.
959+361.936.1.Applicantsforalicenseshallapplyinaformandinamediumas
960+2prescribedbythedirector.Eachsuchformshallcontaincontentassetforthbyrule,
961+3regulation,instruction,orprocedureofthedirectorandmaybechangedorupdatedby
962+4thedirectorinaccordancewithapplicablelawinordertocarryoutthepurposesof
963+5sections361.900to361.1035andmaintainconsistencywithlicensingstandardsand
964+6practices.Theapplicationshallstateorcontain,asapplicable:
965+7 (1)Thelegalnameandresidentialandbusinessaddressesoftheapplicantand
966+8anyfictitiousortradenameusedbytheapplicantinconductingitsbusiness;
967+9 (2)Whethertheapplicanthasbeenconvictedof,orpledguiltyornolo
968+10contendereto,afelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
969+11laundering;
970+12 (3)Adescriptionofanymoneytransmissionpreviouslyprovidedbythe
971+13applicantandthemoneytransmissionthattheapplicantseekstoprovideinthisstate;
972+14 (4)Alistoftheapplicant'sproposedauthorizeddelegatesandthelocationsin
973+15thisstatewheretheapplicantanditsauthorizeddelegatesproposetoengageinmoney
974+16transmission;
975+17 (5)Alistofotherstatesinwhichtheapplicantislicensedtoengageinmoney
976+18transmissionandanylicenserevocations,suspensions,orotherdisciplinaryactiontaken
977+19againsttheapplicantinanotherstate;
978+20 (6)Informationconcerninganybankruptcyorreceivershipproceedings
979+21affectingthelicenseeorapersonincontrolofalicensee;
980+22 (7)Asampleformofcontractforauthorizeddelegates,ifapplicable;
981+23 (8)Asampleformofpaymentinstrumentorstoredvalue,asapplicable;
982+24 (9)Thenameandaddressofanyfederallyinsureddepositoryfinancial
983+25institutionthroughwhichtheapplicantplanstoconductmoneytransmission;
984+HCSSSSB1359 27 26 (10)Alistofanymateriallitigationinwhichtheapplicanthasbeeninvolvedin
985+27theten-yearperiodnextprecedingthesubmissionoftheapplication;and
986+28 (11)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
987+29applicant.
988+30 2.Ifanapplicantisacorporation,limitedliabilitycompany,partnership,or
989+31otherlegalentity,theapplicantshallalsoprovide:
990+32 (1)Thedateoftheapplicant'sincorporationorformationandstateorcountry
991+33ofincorporationorformation;
992+34 (2)Ifapplicable,acertificateofgoodstandingfromthestateorcountryinwhich
993+35theapplicantisincorporatedorformed;
994+36 (3)Abriefdescriptionofthestructureororganizationoftheapplicant,
995+37includinganyparentsorsubsidiariesoftheapplicant,andwhetheranyparentsor
996+38subsidiariesarepubliclytraded;
997+39 (4)Thelegalname,anyfictitiousortradename,allbusinessandresidential
998+40addresses,andtheemployment,asapplicable,intheten-yearperiodnextprecedingthe
999+41submissionoftheapplicationofeachkeyindividualandpersonincontrolofthe
1000+42applicant;
1001+43 (5)Whethertheyhavebeenconvictedof,orpledguiltyornolocontendereto,a
1002+44felonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoneylaundering;
1003+45 (6)Acopyofauditedfinancialstatementsoftheapplicantforthemostrecent
1004+46fiscalyearandforthetwo-yearperiodnextprecedingthesubmissionoftheapplication
1005+47or,ifdeterminedtobeacceptabletothedirector,certifiedunauditedfinancial
1006+48statementsforthemostrecentfiscalyearorotherperiodacceptabletothedirector;
1007+49 (7)Acertifiedcopyofunauditedfinancialstatementsoftheapplicantforthe
1008+50mostrecentfiscalquarter;
1009+51 (8)Iftheapplicantisapubliclytradedcorporation,acopyofthemostrecent
1010+52reportfiledwiththeUnitedStatesSecuritiesandExchangeCommissionunderSection
1011+5313ofthefederalSecuritiesExchangeActof1934,15U.S.C.Section78m,asamendedor
1012+54recodifiedfromtimetotime;
1013+55 (9)Iftheapplicantisawhollyownedsubsidiaryof:
1014+56 (a)AcorporationpubliclytradedintheUnitedStates,acopyofaudited
1015+57financialstatementsfortheparentcorporationforthemostrecentfiscalyearoracopy
1016+58oftheparentcorporation'smostrecentreportfiledunderSection13oftheU.S.
1017+59SecuritiesExchangeActof1934,15U.S.C.Section78m,asamendedorrecodifiedfrom
1018+60timetotime;or
1019+HCSSSSB1359 28 61 (b)AcorporationpubliclytradedoutsidetheUnitedStates,acopyofsimilar
1020+62documentationfiledwiththeregulatoroftheparentcorporation'sdomicileoutsidethe
1021+63UnitedStates;
1022+64 (10)Thenameandaddressoftheapplicant'sregisteredagentinthisstate;
1023+65 (11)Alistofanymateriallitigationinwhichtheapplicanthasbeeninvolvedin
1024+66theten-yearperiodnextprecedingthesubmissionoftheapplication;and
1025+67 (12)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
1026+68applicant.
1027+69 3.Anonrefundableapplicationfeeandlicensefee,asdeterminedbythedirector,
1028+70shallaccompanyanapplicationforalicenseunderthissection.
1029+71 4.Thedirectormaywaiveoneormorerequirementsofsubsections1and2of
1030+72thissectionorpermitanapplicanttosubmitotherinformationinlieuoftherequired
1031+73information.
1032+361.939.1.Anyindividualincontrolofalicenseeorapplicant,anyindividual
1033+2thatseekstoacquirecontrolofalicensee,andeachkeyindividualshallfurnishtothe
1034+3directorthroughNMLSthefollowing:
1035+4 (1)Theindividual'sfingerprintsforsubmissiontotheFederalBureauof
1036+5Investigationandthedirectorforpurposesofanationalcriminalhistorybackground
1037+6checkunlessthepersoncurrentlyresidesoutsideoftheUnitedStatesandhasresided
1038+7outsideoftheUnitedStatesforthelasttenyears;and
1039+8 (2)Personalhistoryandexperienceinaformandinamediumprescribedbythe
1040+9director,toobtainthefollowing:
1041+10 (a)Anindependentcreditreportfromaconsumerreportingagencyunlessthe
1042+11individualdoesnothaveaSocialSecuritynumber,inwhichcasethisrequirementshall
1043+12bewaived;
1044+13 (b)Whethertheyhavebeenconvictedof,orpledguiltyornolocontendereto,a
1045+14felonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoneylaundering;and
1046+15 (c)Informationrelatedtoanyregulatoryoradministrativeactionandanycivil
1047+16litigationinvolvingclaimsoffraud,misrepresentation,conversion,mismanagementof
1048+17funds,breachoffiduciaryduty,orbreachofcontract.
1049+18 2.IftheindividualhasresidedoutsideoftheUnitedStatesatanytimeinthelast
1050+19tenyears,theindividualshallalsoprovideaninvestigativebackgroundreportprepared
1051+20byanindependentsearchfirmthatmeetsthefollowingrequirements:
1052+21 (1)Ataminimum,thesearchfirmshall:
1053+22 (a)Demonstratethatithassufficientknowledgeandresourcesandemploys
1054+23acceptedandreasonablemethodologiestoconducttheresearchforthebackground
1055+24report;and
1056+HCSSSSB1359 29 25 (b)Notbeaffiliatedwithorhaveaninterestwiththeindividualitisresearching;
1057+26and
1058+27 (2)Ataminimum,theinvestigativebackgroundreportshallbewritteninthe
1059+28Englishlanguageandshallcontainthefollowing:
1060+29 (a)Ifavailableintheindividual'scurrentjurisdictionofresidency,a
1061+30comprehensivecreditreport,oranyequivalentinformationobtainedorgeneratedby
1062+31theindependentsearchfirmtoaccomplishsuchreport,includingasearchofthecourt
1063+32datainthecountries,provinces,states,cities,towns,andcontiguousareaswherethe
1064+33individualresidedandworked;
1065+34 (b)Criminalrecordsinformationforthepasttenyearsincluding,butnot
1066+35limitedto,felonies,misdemeanors,orsimilarconvictionsforviolationsoflawinthe
1067+36countries,provinces,states,cities,towns,andcontiguousareaswheretheindividual
1068+37residedandworked;
1069+38 (c)Employmenthistory;
1070+39 (d)Mediahistory,includinganelectronicsearchofnationalandlocal
1071+40publications,wireservices,andbusinessapplications;and
1072+41 (e)Financialservices-relatedregulatoryhistoryincludingbutnotlimitedto,
1073+42moneytransmission,securities,banking,insurance,andmortgage-relatedindustries.
1074+361.942.1.Ifanapplicationforanoriginallicenseundersections361.900to
1075+2361.1035appearstoincludealltheitemsandaddressesandallofthemattersthatare
1076+3required,theapplicationiscompleteandthedirectorshallpromptlynotifythe
1077+4applicantinarecordofthedateonwhichtheapplicationisdeterminedtobecomplete,
1078+5and:
1079+6 (1)Thedirectorshallapproveordenytheapplicationwithinonehundred
1080+7twentydaysafterthecompletiondate;or
1081+8 (2)Iftheapplicationisnotapprovedordeniedwithinonehundredtwentydays
1082+9afterthecompletiondate:
1083+10 (a)Theapplicationisapproved;and
1084+11 (b)Thelicensetakeseffectasofthefirstbusinessdayafterexpirationoftheone-
1085+12hundred-twenty-dayperiod.
1086+13
1087+14Thedirectormayforgoodcauseextendtheapplicationperiod.
1088+15 2.Adeterminationbythedirectorthatanapplicationiscompleteandis
1089+16acceptedforprocessingmeansonlythattheapplication,onitsface,appearstoinclude
1090+17alloftheitems,includingthecriminalbackgroundcheckresponsefromtheFederal
1091+18BureauofInvestigation,andaddressallofthemattersthatarerequired,andisnotan
1092+HCSSSSB1359 30 19assessmentofthesubstanceoftheapplicationorofthesufficiencyoftheinformation
1093+20provided.
1094+21 3.Ifanapplicationisfiledandconsideredcompleteunderthissection,the
1095+22directorshallinvestigatetheapplicant'sfinancialconditionandresponsibility,financial
1096+23andbusinessexperience,character,andgeneralfitness.Thedirectormayconductan
1097+24onsiteinvestigationoftheapplicant,thereasonablecostofwhichtheapplicantshallpay.
1098+25Thedirectorshallissuealicensetoanapplicantunderthissectionifthedirectorfinds
1099+26thatallofthefollowingconditionshavebeenfulfilled:
1100+27 (1)Theapplicanthascompliedwiththeprovisionsofsections361.929and
1101+28361.936;and
1102+29 (2)Thefinancialconditionandresponsibility,financialandbusinessexperience,
1103+30competence,character,andgeneralfitnessoftheapplicant;andthecompetence,
1104+31experience,character,andgeneralfitnessofthekeyindividualsandpersonsincontrol
1105+32oftheapplicantindicatethatitisintheinterestofthepublictopermittheapplicantto
1106+33engageinmoneytransmission.
1107+34 4.Ifanapplicantavailsitselforisotherwisesubjecttoamultistatelicensing
1108+35process:
1109+36 (1)Thedirectorshallbeauthorizedtoaccepttheinvestigationresultsofalead
1110+37investigativestateforthepurposeofsubsection3ofthissectioniftheleadinvestigative
1111+38statehassufficientstaffing,expertise,andminimumstandards;or
1112+39 (2)Ifthisstateisaleadinvestigativestate,thedirectorshallbeauthorizedto
1113+40investigatetheapplicantundersubsection3ofthissectionandthetimeframes
1114+41establishedbyagreementthroughthemultistatelicensingprocess,providedhowever,
1115+42thatinnocaseshallsuchtimeframebenoncompliantwiththeapplicationperiodin
1116+43subdivision(1)ofsubsection1ofthissection.
1117+44 5.Thedirectorshallissueaformalwrittennoticeofthedenialofalicense
1118+45applicationwithinthirtydaysofthedecisiontodenytheapplication.Thedirectorshall
1119+46setforthinthenoticeofdenialthespecificreasonsforthedenialoftheapplication.An
1120+47applicantwhoseapplicationisdeniedbythedirectorunderthissubsectionmayappeal
1121+48withinthirtydaysafterreceiptofthewrittennoticeofthedenialunderchapter536.
1122+49 6.Theinitiallicensetermshallbeginonthedaytheapplicationisapproved.
1123+50ThelicenseshallexpireonDecemberthirty-firstoftheyearinwhichthelicenseterm
1124+51beganunlesstheinitiallicensedateisbetweenNovemberfirstandDecemberthirty-
1125+52first,inwhichinstancetheinitiallicensetermshallrunthroughDecemberthirty-firstof
1126+53thefollowingyear.
1127+361.945.1.Alicenseundersections361.900to361.1035shallberenewed
1128+2annually.Anannualrenewalfee,tobedeterminedbythedirector,shallbepaidno
1129+HCSSSSB1359 31 3morethansixtydaysbeforethelicenseexpiration.Therenewaltermshallbefora
1130+4periodofoneyearandshallbeginonJanuaryfirstofeachyearaftertheinitiallicense
1131+5termandshallexpireonDecemberthirty-firstoftheyeartherenewaltermbegins.
1132+6 2.Alicenseeshallsubmitarenewalreportwiththerenewalfee,inaformandin
1133+7amediumprescribedbythedirector.Therenewalreportshallstateorcontaina
1134+8descriptionofeachmaterialchangeininformationsubmittedbythelicenseeinits
1135+9originallicenseapplicationthathasnotbeenreportedtothedirector.
1136+10 3.Thedirectorforgoodcausemaygrantanextensionoftherenewaldate.
1137+11 4.ThedirectorshallbeauthorizedandencouragedtoutilizeNMLStoprocess
1138+12licenserenewals,providedthatsuchfunctionalityisconsistentwiththissection.
1139+361.948.1.Ifalicenseedoesnotcontinuetomeetthequalificationsorsatisfythe
1140+2requirementsthatapplytoanapplicantforanewmoneytransmissionlicense,the
1141+3directormaysuspendorrevokethelicensee'slicenseinaccordancewiththeprocedures
1142+4establishedundersections361.900to361.1035orotherapplicablestatelawforsuch
1143+5suspensionorrevocation.
1144+6 2.Anapplicantforamoneytransmissionlicenseshalldemonstratethatitmeets
1145+7orwillmeet,andamoneytransmissionlicenseeshallatalltimesmeet,therequirements
1146+8insections361.999,361.1002,and361.1005.
1147+361.951.1.Anyperson,orgroupofpersonsactinginconcert,seekingtoacquire
1148+2controlofalicenseeshallobtainthewrittenapprovalofthedirectorpriortoacquiring
1149+3control.Anindividualisnotdeemedtoacquirecontrolofalicenseeandisnotsubjectto
1150+4theacquisitionofcontrolprovisionsifthatindividualbecomesakeyindividualinthe
1151+5ordinarycourseofbusiness.
1152+6 2.Aperson,orgroupofpersonsactinginconcert,seekingtoacquirecontrolofa
1153+7licenseeshall,incooperationwiththelicensee:
1154+8 (1)Submitanapplicationinaformandinamediumprescribedbythedirector;
1155+9and
1156+10 (2)Submitanonrefundablefee,tobedeterminedbythedirector,withthe
1157+11requestforapproval.
1158+12 3.Uponrequest,thedirectormaypermitalicenseeoraperson,orgroupof
1159+13personsactinginconcert,tosubmitsomeorallinformationrequiredbythedirector
1160+14undersubdivision(1)ofsubsection2ofthissectionwithoutusingNMLS.
1161+15 4.Theapplicationrequiredundersubdivision(1)ofsubsection2ofthissection
1162+16shallincludeinformationrequiredundersection361.939foranynewkeyindividuals
1163+17thathavenotpreviouslycompletedtherequirementsofsection361.939foralicensee.
1164+18 5.Whenanapplicationforacquisitionofcontrolunderthissectionappearsto
1165+19includealltheitemsandaddressallofthemattersthatarerequired,theapplication
1166+HCSSSSB1359 32 20shallbeconsideredcomplete.Thedirectorshallpromptlynotifytheapplicantina
1167+21recordofthedateonwhichtheapplicationwasdeterminedtobecomplete,and:
1168+22 (1)Thedirectorshallapproveordenytheapplicationwithinsixtydaysafterthe
1169+23completiondate;or
1170+24 (2)Iftheapplicationisnotapprovedordeniedwithinsixtydaysafterthe
1171+25completiondate:
1172+26 (a)Theapplicationisapproved;and
1173+27 (b)Theperson,orgroupofpersonsactinginconcert,arenotprohibitedfrom
1174+28acquiringcontrol;and
1175+29 (3)Thedirectormayforgoodcauseextendtheapplicationperiod.
1176+30 6.Adeterminationbythedirectorthatanapplicationiscompleteandis
1177+31acceptedforprocessingmeansonlythattheapplication,onitsface,appearstoinclude
1178+32alloftheitemsandaddressallofthemattersthatarerequired,andisnotanassessment
1179+33ofthesubstanceoftheapplicationorofthesufficiencyoftheinformationprovided.
1180+34 7.Ifanapplicationisfiledandconsideredcompleteundersubsection5ofthis
1181+35section,thedirectorshallinvestigatethefinancialconditionandresponsibility,financial
1182+36andbusinessexperience,character,andgeneralfitnessoftheperson,orgroupof
1183+37personsactinginconcert,seekingtoacquirecontrol.Thedirectorshallapprovean
1184+38acquisitionofcontrolunderthissectionifthedirectorfindsthatallofthefollowing
1185+39conditionshavebeenfulfilled:
1186+40 (1)Therequirementsofsubsections2and4ofthissectionhavebeenmet,as
1187+41applicable;and
1188+42 (2)Thefinancialconditionandresponsibility,financialandbusinessexperience,
1189+43competence,character,andgeneralfitnessoftheperson,orgroupofpersonsactingin
1190+44concert,seekingtoacquirecontrolandthecompetence,experience,character,and
1191+45generalfitnessofthekeyindividualsandpersonsthatwouldbeincontrolofthelicensee
1192+46aftertheacquisitionofcontrolindicatethatitisintheinterestofthepublictopermit
1193+47theperson,orgroupofpersonsactinginconcert,tocontrolthelicensee.
1194+48 8.Ifanapplicantavailsitselforisotherwisesubjecttoamultistatelicensing
1195+49process:
1196+50 (1)Thedirectorisauthorizedtoaccepttheinvestigationresultsofalead
1197+51investigativestateforthepurposeofsubsection7ofthissectioniftheleadinvestigative
1198+52statehassufficientstaffing,expertise,andminimumstandards;or
1199+53 (2)Ifthisstateisaleadinvestigativestate,thedirectorisauthorizedto
1200+54investigatetheapplicantundersubsection7ofthissectionandthetimeframes
1201+55establishedbyagreementthroughthemultistatelicensingprocess.
1202+HCSSSSB1359 33 56 9.Thedirectorshallissueaformalwrittennoticeofthedenialofanapplication
1203+57toacquirecontrolwithinthirtydaysofthedecisiontodenytheapplication.The
1204+58directorshallsetforthinthenoticeofdenialthespecificreasonsforthedenialofthe
1205+59application.Anapplicantwhoseapplicationisdeniedbythedirectorunderthis
1206+60subsectionmayappealwithinthirtydaysafterreceiptofthewrittennoticeofthedenial
1207+61underchapter536.
1208+62 10.Therequirementsofsubsections1and2ofthissectionshallnotapplytoany
1209+63ofthefollowing:
1210+64 (1)Apersonthatactsasaproxyforthesolepurposeofvotingatadesignated
1211+65meetingoftheshareholdersorholdersofvotingsharesorvotinginterestsofalicensee
1212+66orapersonincontrolofalicensee;
1213+67 (2)Apersonthatacquirescontrolofalicenseebydeviseordescent;
1214+68 (3)Apersonthatacquirescontrolofalicenseeasapersonalrepresentative,
1215+69custodian,guardian,conservator,ortrustee,orasanofficerappointedbyacourtof
1216+70competentjurisdictionorbyoperationoflaw;
1217+71 (4)Apersonthatisexemptundersubsection7ofsection361.909;
1218+72 (5)Apersonthatthedirectordeterminesisnotsubjecttosubsection1ofthis
1219+73sectionbasedonthepublicinterest;
1220+74 (6)Apublicofferingofsecuritiesofalicenseeorapersonincontrolofa
1221+75licensee;or
1222+76 (7)Aninternalreorganizationofapersonincontrolofthelicenseewherethe
1223+77ultimatepersonincontrolofthelicenseeremainsthesame.
1224+78 11.Personsinsubdivisions(2),(3),(4),(6),and(7)ofsubsection10ofthissection
1225+79incooperationwiththelicenseeshallnotifythedirectorwithinfifteendaysafterthe
1226+80acquisitionofcontrol.
1227+81 12.(1)Therequirementsofsubsections1and2ofthissectionshallnotapplyto
1228+82apersonthathascompliedwithandreceivedapprovaltoengageinmoneytransmission
1229+83undersections361.900to361.1035orwasidentifiedasapersonincontrolinaprior
1230+84applicationfiledwithandapprovedbythedirectororbyanotherstateundera
1231+85multistatelicensingprocess,providedthat:
1232+86 (a)Thepersonhasnothadalicenserevokedorsuspendedorcontrolleda
1233+87licenseethathashadalicenserevokedorsuspendedwhilethepersonwasincontrolof
1234+88thelicenseeinthepreviousfiveyears;
1235+89 (b)Ifthepersonisalicensee,thepersoniswellmanagedandhasreceivedat
1236+90leastasatisfactoryratingforcomplianceatitsmostrecentexaminationbyanotherstate
1237+91ifsuchratingwasgiven;
1238+HCSSSSB1359 34 92 (c)Thelicenseetobeacquiredisprojectedtomeettherequirementsofsections
1239+93361.999,361.1002,and361.1005aftertheacquisitionofcontroliscompleted,andifthe
1240+94personacquiringcontrolisalicensee,thatlicenseeisalsoprojectedtomeetthe
1241+95requirementsofsections361.999,361.1002,and361.1005aftertheacquisitionofcontrol
1242+96iscompleted;
1243+97 (d)Thelicenseetobeacquiredwillnotimplementanymaterialchangestoits
1244+98businessplanasaresultoftheacquisitionofcontrol,andifthepersonacquiringcontrol
1245+99isalicensee,thatlicenseealsowillnotimplementanymaterialchangestoitsbusiness
1246+100planasaresultoftheacquisitionofcontrol;and
1247+101 (e)Thepersonprovidesnoticeoftheacquisitionincooperationwiththelicensee
1248+102andatteststoparagraphs(a)to(d)ofthissubdivisioninaformandinamedium
1249+103prescribedbythedirector.
1250+104 (2)Ifthenoticeisnotdisapprovedwithinthirtydaysafterthedateonwhichthe
1251+105noticewasdeterminedtobecomplete,thenoticeisdeemedapproved.
1252+106 13.Beforefilinganapplicationforapprovaltoacquirecontrolofalicensee,a
1253+107personmayrequestinwritingadeterminationfromthedirectorastowhetherthe
1254+108personwouldbeconsideredapersonincontrolofalicenseeuponconsummationofa
1255+109proposedtransaction.Ifthedirectordeterminesthatthepersonwouldnotbeaperson
1256+110incontrolofalicensee,theproposedpersonandtransactionisnotsubjecttothe
1257+111requirementsofsubsections1and2ofthissection.
1258+112 14.Ifamultistatelicensingprocessincludesadeterminationundersubsection13
1259+113ofthissectionandanapplicantavailsitselforisotherwisesubjecttothemultistate
1260+114licensingprocess:
1261+115 (1)Thedirectorisauthorizedtoacceptthecontroldeterminationofalead
1262+116investigativestatewithsufficientstaffing,expertise,andminimumstandardsforthe
1263+117purposeofsubsection13ofthissection;or
1264+118 (2)Ifthisstateisaleadinvestigativestate,thedirectorisauthorizedto
1265+119investigatetheapplicantundersubsection13ofthissectionandthetimeframes
1266+120establishedbyagreementthroughthemultistatelicensingprocess.
1267+361.954.1.Alicenseeaddingorreplacinganykeyindividualshall:
1268+2 (1)Providenoticeinamannerprescribedbythedirectorwithinfifteendays
1269+3aftertheeffectivedateofthekeyindividual'sappointment;and
1270+4 (2)Provideinformationasrequiredbysection361.939withinforty-fivedaysof
1271+5theeffectivedate.
1272+6 2.Withinninetydaysofthedateonwhichthenoticeprovidedundersubsection
1273+71ofthissectionwasdeterminedtobecomplete,thedirectormayissueanoticeof
1274+8disapprovalofakeyindividualifthecompetence,experience,character,orintegrityof
1275+HCSSSSB1359 35 9theindividualwouldnotbeinthebestinterestsofthepublicorthecustomersofthe
1276+10licenseetopermittheindividualtobeakeyindividualofsuchlicensee.
1277+11 3.Anoticeofdisapprovalshallcontainastatementofthebasisfordisapproval
1278+12andshallbesenttothelicenseeandthedisapprovedindividual.Alicenseemayappeala
1279+13noticeofdisapprovalunderchapter536withinthirtydaysafterreceiptofsuchnoticeof
1280+14disapproval.
1281+15 4.Ifthenoticeprovidedundersubsection1ofthissectionisnotdisapproved
1282+16withinninetydaysafterthedateonwhichthenoticewasdeterminedtobecomplete,the
1283+17keyindividualisdeemedapproved.
1284+18 5.Ifamultistatelicensingprocessincludesakeyindividualnoticereviewand
1285+19disapprovalprocessunderthissectionandthelicenseeavailsitselforisotherwise
1286+20subjecttothemultistatelicensingprocess:
1287+21 (1)Thedirectorisauthorizedtoacceptthedeterminationofanotherstateifthe
1288+22investigatingstatehassufficientstaffing,expertise,andminimumstandardsforthe
1289+23purposeofthissection;or
1290+24 (2)Ifthisstateisaleadinvestigativestate,thedirectorisauthorizedto
1291+25investigatetheapplicantundersubsection2ofthissectionandthetimeframes
1292+26establishedbyagreementthroughthemultistatelicensingprocess.
1293+361.957.1.Eachlicenseeshallsubmitareportofconditionwithinfortydaysof
1294+2theendofthecalendarquarterorwithinanyextendedtimeasthedirectormay
1295+3prescribe.
1296+4 2.Thereportofconditionshallinclude:
1297+5 (1)Financialinformationatthelicenseelevel;
1298+6 (2)Nationwideandstate-specificmoneytransmissiontransactioninformationin
1299+7everyjurisdictionintheUnitedStateswherethelicenseeislicensedtoengageinmoney
1300+8transmission;
1301+9 (3)Permissibleinvestmentsreport;
1302+10 (4)Transactiondestinationcountryreportingformoneyreceivedfor
1303+11transmission,ifapplicable;and
1304+12 (5)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
1305+13licensee.ThedirectorisauthorizedtoutilizeNMLSforthesubmissionofthereport
1306+14requiredbysubsection1ofthissectionandisauthorizedtoupdateasnecessarythe
1307+15requirementsofthissectiontocarryoutthepurposesofsections361.900to361.1035
1308+16andmaintainconsistencywithNMLSreporting.
1309+17 3.Theinformationrequiredundersubdivision(4)ofsubsection2ofthissection
1310+18shallbeincludedonlyinareportofconditionsubmittedwithinforty-fivedaysofthe
1311+19endofthefourthcalendarquarter.
1312+HCSSSSB1359 36 361.960.1.Eachlicenseeshall,withinninetydaysaftertheendofeachfiscal
1313+2yearorwithinanyextendedtimeasthedirectormayprescribe,filewiththedirector:
1314+3 (1)Anauditedfinancialstatementofthelicenseeforthefiscalyearpreparedin
1315+4accordancewithUnitedStatesgenerallyacceptedaccountingprinciples;and
1316+5 (2)Anyotherinformationasthedirectormayreasonablyrequire.
1317+6 2.Theauditedfinancialstatementshallbepreparedbyanindependentcertified
1318+7publicaccountantorindependentpublicaccountantwhoissatisfactorytothedirector.
1319+8 3.Theauditedfinancialstatementsshallincludeorbeaccompaniedbya
1320+9certificateofopinionoftheindependentcertifiedpublicaccountantorindependent
1321+10publicaccountantthatissatisfactoryinformandcontenttothedirector.Ifthe
1322+11certificateoropinionisqualified,thedirectormayorderthelicenseetotakeanyaction
1323+12asthedirectormayfindnecessarytoenabletheindependentcertifiedpublicaccountant
1324+13orindependentpublicaccountanttoremovethequalification.
1325+361.963.1.Eachlicenseeshallsubmitareportofauthorizeddelegateswithin
1326+2forty-fivedaysoftheendofthecalendarquarter.Thedirectorisauthorizedtoutilize
1327+3NMLSforthesubmissionofthereportrequiredunderthissection,providedthatsuch
1328+4functionalityisconsistentwiththerequirementsofthissection.
1329+5 2.Theauthorizeddelegatereportshallinclude,ataminimum,eachauthorized
1330+6delegate's:
1331+7 (1)Companylegalname;
1332+8 (2)Taxpayeremployeridentificationnumber;
1333+9 (3)Principalprovideridentifier;
1334+10 (4)Physicaladdress,ifany;
1335+11 (5)Mailingaddress;
1336+12 (6)Anybusinessconductedinotherstates;
1337+13 (7)Anyfictitiousortradename;
1338+14 (8)Contactpersonname,phonenumber,andemail;
1339+15 (9)Startdateaslicensee'sauthorizeddelegate;
1340+16 (10)Enddateactingaslicensee'sauthorizeddelegate,ifapplicable;and
1341+17 (11)Anyotherinformationthedirectorreasonablyrequireswithrespecttothe
1342+18authorizeddelegate.
1343+361.966.1.Alicenseeshallfileareportwiththedirectorwithinonebusiness
1344+2dayafterthelicenseehasreasontoknowoftheoccurrenceofanyofthefollowing
1345+3events:
1346+4 (1)ThefilingofapetitionbyoragainstthelicenseeundertheUnitedStates
1347+5BankruptcyCode,11U.S.C.Section101-110,asamendedorrecodifiedfromtimeto
1348+6time,forbankruptcyorreorganization;
1349+HCSSSSB1359 37 7 (2)Thefilingofapetitionbyoragainstthelicenseeforreceivership,the
1350+8commencementofanyotherjudicialoradministrativeproceedingforitsdissolutionor
1351+9reorganization,orthemakingofageneralassignmentforthebenefitofitscreditors;or
1352+10 (3)Thecommencementofaproceedingtorevokeorsuspenditslicenseinastate
1353+11orcountryinwhichthelicenseeengagesinbusinessorislicensed.
1354+12 2.Alicenseeshallnotifythedirectorwithinthreebusinessdaysafterthelicensee
1355+13hasreasontoknowthat:
1356+14 (1)Thelicenseeorakeyindividualorpersonincontrolofthelicensee,hasbeen
1357+15convictedof,orpledguiltyornolocontenderetoafelonyinvolvinganactoffraud,
1358+16dishonesty,abreachoftrust,ormoneylaundering;or
1359+17 (2)Anauthorizeddelegatehasbeenconvictedof,orpledguiltyornolo
1360+18contendereto,afelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
1361+19laundering.
1362+361.969.Alicenseeandanauthorizeddelegateshallfileallreportsrequiredby
1363+2federalcurrencyreporting,recordkeeping,andsuspiciousactivityreporting
1364+3requirementsassetforthintheBankSecrecyActandotherfederalandstatelaws
1365+4pertainingtomoneylaundering.Thetimelyfilingofacompleteandaccuratereport
1366+5requiredunderthissectionwiththeappropriatefederalagencyisdeemedcompliant
1367+6withtherequirementsofthissection.
1368+361.972.1.Alicenseeshallmaintainthefollowingrecordsfordeterminingits
1369+2compliancewithsections361.900to361.1035foratleastthreeyears:
1370+3 (1)Arecordofeachoutstandingmoneytransmissionobligationsold;
1371+4 (2)Ageneralledgerpostedatleastmonthlycontainingallasset,liability,capital,
1372+5income,andexpenseaccounts;
1373+6 (3)Bankstatementsandbankreconciliationrecords;
1374+7 (4)Recordsofoutstandingmoneytransmissionobligations;
1375+8 (5)Recordsofeachoutstandingmoneytransmissionobligationpaidwithinthe
1376+9three-yearperiod;
1377+10 (6)Alistofthelastknownnamesandaddressesofallofthelicensee'sauthorized
1378+11delegates;and
1379+12 (7)Anyotherrecordsthedirectorreasonablyrequiresbyrule.
1380+13 2.Theitemsspecifiedinsubsection1ofthissectionmaybemaintainedinany
1381+14formofrecord.
1382+15 3.Recordsspecifiedinsubsection1ofthissectionmaybemaintainedoutside
1383+16thisstateiftherecordsaremadeaccessibletothedirectoronsevenbusinessdays'notice
1384+17thatissentinarecord.
1385+HCSSSSB1359 38 18 4.Allrecordsmaintainedbythelicenseeasrequiredinsubsections1to3ofthis
1386+19sectionareopentoinspectionbythedirectorundersubsection1ofsection361.921.
1387+361.975.1.Asusedinthissection,"remit"meanstomakedirectpaymentsof
1388+2moneytoalicenseeoritsrepresentativeauthorizedtoreceivemoneyortodeposit
1389+3moneyinabankinanaccountspecifiedbythelicensee.
1390+4 2.Beforealicenseeisauthorizedtoconductbusinessthroughanauthorized
1391+5delegate,orallowsapersontoactasthelicensee'sauthorizeddelegate,thelicensee
1392+6shall:
1393+7 (1)Adopt,andupdateasnecessary,writtenpoliciesandproceduresreasonably
1394+8designedtoensurethatthelicensee'sauthorizeddelegatescomplywithapplicablestate
1395+9andfederallaw;
1396+10 (2)Enterintoawrittencontractthatcomplieswithsubsection4ofthissection;
1397+11and
1398+12 (3)Conductareasonablerisk-basedbackgroundinvestigationsufficientforthe
1399+13licenseetodeterminewhethertheauthorizeddelegatehascompliedandwilllikely
1400+14complywithapplicablestateandfederallaw.
1401+15 3.Anauthorizeddelegateshalloperateinfullcompliancewithsections361.900
1402+16to361.1035.
1403+17 4.Thewrittencontractrequiredundersubsection2ofthissectionshallbe
1404+18signedbythelicenseeandtheauthorizeddelegateand,ataminimum,shall:
1405+19 (1)Appointthepersonsigningthecontractasthelicensee'sauthorizeddelegate
1406+20withtheauthoritytoconductmoneytransmissiononbehalfofthelicensee;
1407+21 (2)Setforththenatureandscopeoftherelationshipbetweenthelicenseeand
1408+22theauthorizeddelegateandtherespectiverightsandresponsibilitiesoftheparties;
1409+23 (3)Requiretheauthorizeddelegatetoagreetofullycomplywithallapplicable
1410+24stateandfederallaws,rules,andregulationspertainingtomoneytransmission,
1411+25includingsections361.900to361.1035andregulationsimplementingsections361.900to
1412+26361.1035,relevantprovisionsoftheBankSecrecyAct,andtheUSAPATRIOTAct;
1413+27 (4)Requiretheauthorizeddelegatetoremitandhandlemoneyandmonetary
1414+28valueinaccordancewiththetermsofthecontractbetweenthelicenseeandthe
1415+29authorizeddelegate;
1416+30 (5)Imposeatrustonmoneyandmonetaryvaluenetoffeesreceivedformoney
1417+31transmissionforthebenefitofthelicensee;
1418+32 (6)Requiretheauthorizeddelegatetoprepareandmaintainrecordsasrequired
1419+33bysections361.900to361.1035orregulationsimplementingsections361.900to
1420+34361.1035,orasreasonablyrequestedbythedirector;
1421+HCSSSSB1359 39 35 (7)Acknowledgethattheauthorizeddelegateconsentstoexaminationor
1422+36investigationbythedirector;
1423+37 (8)Statethatthelicenseeissubjecttoregulationbythedirectorandthat,aspart
1424+38ofthatregulation,thedirectormaysuspendorrevokeanauthorizeddelegate
1425+39designationorrequirethelicenseetoterminateanauthorizeddelegatedesignation;and
1426+40 (9)Acknowledgereceiptofthewrittenpoliciesandproceduresrequiredunder
1427+41subdivision(1)ofsubsection1ofthissection.
1428+42 5.Ifthelicensee'slicenseissuspended,revoked,surrendered,orexpired,the
1429+43licenseeshall,withinfivebusinessdays,providedocumentationtothedirectorthatthe
1430+44licenseehasnotifiedallapplicableauthorizeddelegatesofthelicenseewhosenamesare
1431+45inarecordfiledwiththedirectorsofthesuspension,revocation,surrender,or
1432+46expirationofalicense.Uponsuspension,revocation,surrender,orexpirationofa
1433+47license,applicableauthorizeddelegatesshallimmediatelyceasetoprovidemoney
1434+48transmissionasanauthorizeddelegateofthelicensee.
1435+49 6.Anauthorizeddelegateofalicenseeholdsintrustforthebenefitofthe
1436+50licenseeallmoneynetoffeesreceivedfrommoneytransmission.Ifanyauthorized
1437+51delegatecomminglesanyfundsreceivedfrommoneytransmissionwithanyotherfunds
1438+52orpropertyownedorcontrolledbytheauthorizeddelegate,allcommingledfundsand
1439+53otherpropertyshallbeconsideredheldintrustinfavorofthelicenseeinanamount
1440+54equaltotheamountofmoneynetoffeesreceivedfrommoneytransmission.
1441+55 7.Anauthorizeddelegateshallnotuseasubdelegatetoconductmoney
1442+56transmissiononbehalfofalicensee.
1443+361.978.Apersonshallnotengageinthebusinessofmoneytransmissionon
1444+2behalfofapersonnotlicensedundersections361.900to361.1035ornotexemptunder
1445+3sections361.909and361.912.Apersonthatengagesinsuchactivityprovidesmoney
1446+4transmissiontothesameextentasifthepersonwerealicenseeandshallbejointlyand
1447+5severallyliablewiththeunlicensedornonexemptperson.
1448+361.981.1.Thecircuitcourtinanactionbroughtbyalicenseeshallhave
1449+2jurisdictiontograntappropriateequitableorlegalrelief,includingwithoutlimitation
1450+3prohibitingtheauthorizeddelegatefromdirectlyorindirectlyactingasanauthorized
1451+4delegateforanylicenseeinthisstateandthepaymentofrestitution,damages,orother
1452+5monetaryrelief,ifthecircuitcourtfindsthatanauthorizeddelegatefailedtoremit
1453+6moneyinaccordancewiththewrittencontractrequiredbysubsection2ofsection
1454+7361.1275orasotherwisedirectedbythelicenseeorrequiredbylaw.
1455+8 2.Ifthecircuitcourtissuesanorderprohibitingapersonfromactingasan
1456+9authorizeddelegateforanylicenseeundersubsection1ofthissection,thelicenseethat
1457+HCSSSSB1359 40 10broughttheactionshallreporttheordertothedirectorwithinthirtydaysandshall
1458+11reporttheorderthroughNMLSwithinninetydays.
1459+12 3.Anauthorizeddelegatewhoholdsmoneyintrustforthebenefitofalicensee
1460+13andknowinglyfailstoremitmorethanonethousanddollarsofsuchmoneyisguiltyofa
1461+14classEfelony.
1462+15 4.Anauthorizeddelegatewhoholdsmoneyintrustforthebenefitofalicensee
1463+16andknowinglyfailstoremitnomorethanonethousanddollarsofsuchmoneyisguilty
1464+17ofaclassAmisdemeanor.
1465+361.984.1.Everylicenseeshallforwardallmoneyreceivedfortransmissionin
1466+2accordancewiththetermsoftheagreementbetweenthelicenseeandthesenderunless
1467+3thelicenseehasareasonablebelieforareasonablebasistobelievethatthesendermay
1468+4beavictimoffraudorthatacrimeorviolationoflaw,rule,orregulationhasoccurred,
1469+5isoccurring,ormayoccur.
1470+6 2.Ifalicenseefailstoforwardmoneyreceivedfortransmissioninaccordance
1471+7withthissection,thelicenseeshallrespondtoinquiriesbythesenderwiththereasonfor
1472+8thefailureunlessprovidingaresponsewouldviolateastateorfederallaw,rule,or
1473+9regulation.
1474+361.987.1.Thissectionshallnotapplyto:
1475+2 (1)MoneyreceivedfortransmissionsubjecttothefederalRemittanceRule,12
1476+3CFRPart1005,SubpartB,asamendedorrecodifiedfromtimetotime;or
1477+4 (2)Moneyreceivedfortransmissionunderawrittenagreementbetweenthe
1478+5licenseeandpayeetoprocesspaymentsforgoodsorservicesprovidedbythepayee.
1479+6 2.Everylicenseeshallrefundtothesender,withintendaysofreceiptofthe
1480+7sender'swrittenrequestforarefund,anyandallmoneyreceivedfortransmission
1481+8unlessanyofthefollowingoccurs:
1482+9 (1)Themoneyhasbeenforwardedwithintendaysofthedateonwhichthe
1483+10moneywasreceivedfortransmission;
1484+11 (2)Instructionshavebeengivencommittinganequivalentamountofmoneyto
1485+12thepersondesignatedbythesenderwithintendaysofthedateonwhichthemoneywas
1486+13receivedfortransmission;
1487+14 (3)Theagreementbetweenthelicenseeandthesenderinstructsthelicenseeto
1488+15forwardthemoneyatatimethatisbeyondtendaysofthedateonwhichthemoneywas
1489+16receivedfortransmission.Iffundshavenotyetbeenforwardedinaccordancewiththe
1490+17termsoftheagreementbetweenthelicenseeandthesender,thelicenseeshallissuea
1491+18refundinaccordancewiththeotherprovisionsofthissection;
1492+HCSSSSB1359 41 19 (4)Therefundisrequestedforatransactionthatthelicenseehasnotcompleted
1493+20basedonareasonablebelieforareasonablebasistobelievethatacrimeorviolationof
1494+21law,rule,orregulationhasoccurred,isoccurring,ormayoccur;or
1495+22 (5)Therefundrequestdoesnotenablethelicenseeto:
1496+23 (a)Identifythesender'snameandaddressortelephonenumber;or
1497+24 (b)Identifytheparticulartransactiontoberefundedintheeventthesenderhas
1498+25multipletransactionsoutstanding.
1499+361.990.1.Thissectionshallnotapplyto:
1500+2 (1)MoneyreceivedfortransmissionsubjecttothefederalRemittanceRule,12
1501+3CFRPart1005,SubpartB,asamendedorrecodifiedfromtimetotime;
1502+4 (2)Moneyreceivedfortransmissionthatisnotprimarilyforpersonal,family,or
1503+5householdpurposes;
1504+6 (3)Moneyreceivedfortransmissionunderawrittenagreementbetweenthe
1505+7licenseeandpayeetoprocesspaymentsforgoodsorservicesprovidedbythepayee;or
1506+8 (4)Payrollprocessingservices.
1507+9 2.Forpurposesofthissection,"receipt"meansapaperreceipt,electronic
1508+10record,orotherwrittenconfirmation.Foratransactionconductedinperson,the
1509+11receiptmaybeprovidedelectronicallyifthesenderrequestsoragreestoreceivean
1510+12electronicreceipt.Foratransactionconductedelectronicallyorbyphone,areceiptmay
1511+13beprovidedelectronically.Allelectronicreceiptsshallbeprovidedinaretainableform.
1512+14 3.(1)Everylicenseeoritsauthorizeddelegateshallprovidethesenderareceipt
1513+15formoneyreceivedfortransmission.Thereceiptshallcontainthefollowing
1514+16information,asapplicable:
1515+17 (a)Thenameofthesender;
1516+18 (b)Thenameofthedesignatedrecipient;
1517+19 (c)Thedateofthetransaction;
1518+20 (d)Theuniquetransactionoridentificationnumber;
1519+21 (e)Thenameofthelicensee,NMLSuniqueidentifier,thelicensee'sbusiness
1520+22address,andthelicensee'scustomerservicetelephonenumber;
1521+23 (f)TheamountofthetransactioninUnitedStatesdollars;
1522+24 (g)Anyfeechargedbythelicenseetothesenderforthetransaction;and
1523+25 (h)Anytaxescollectedbythelicenseefromthesenderforthetransaction.
1524+26 (2)ThereceiptrequiredbythissectionshallbeinEnglishandinthelanguage
1525+27principallyusedbythelicenseeorauthorizeddelegatetoadvertise,solicit,ornegotiate,
1526+28eitherorallyorinwriting,foratransactionconductedinperson,electronically,orby
1527+29phone,ifotherthanEnglish.
1528+361.996.1.Alicenseethatprovidespayrollprocessingservicesshall:
1529+HCSSSSB1359 42 2 (1)Issuereportstoclientsdetailingclientpayrollobligationsinadvanceofthe
1530+3payrollfundsbeingdeductedfromanaccount;and
1531+4 (2)Makeavailableworkerpaystubsoranequivalentstatementtoworkers.
1532+5 2.Subsection1ofthissectionshallnotapplytoalicenseeprovidingpayroll
1533+6processingservicesifthelicensee'sclientdesignatestheintendedrecipientstothe
1534+7licenseeandisresponsibleforprovidingthedisclosuresrequiredbysubdivision(2)of
1535+8subsection1ofthissection.
1536+361.999.1.Alicenseeundersections361.900to361.1035shallmaintainatall
1537+2timesatangiblenetworthofthegreaterofonehundredthousanddollarsorthree
1538+3percentoftotalassetsforthefirstonehundredmilliondollars,twopercentofadditional
1539+4assetsforonehundredmilliondollarstoonebilliondollars,andone-halfofonepercent
1540+5ofadditionalassetsforoveronebilliondollars.
1541+6 2.Tangiblenetworthshallbedemonstratedatinitialapplicationbythe
1542+7applicant'smostrecentauditedorunauditedfinancialstatementsundersubdivision(6)
1543+8ofsubsection2ofsection361.936.
1544+9 3.Notwithstandingtheprovisionsofthissection,thedirectorshallhavethe
1545+10authority,forgoodcauseshown,toexempt,inpartorinwhole,fromtherequirements
1546+11ofthissectionanyapplicantorlicensee.
1547+361.1002.1.Anapplicantforamoneytransmissionlicenseshallprovide,anda
1548+2licenseeatalltimesshallmaintain,securityconsistingofasuretybondinaform
1549+3satisfactorytothedirector.
1550+4 2.Theamountoftherequiredsecurityshallbe:
1551+5 (1)Thegreaterofonehundredthousanddollarsoranamountequaltoone
1552+6hundredpercentofthelicensee'saveragedailymoneytransmissionliabilityinthisstate
1553+7calculatedforthemostrecentlycompletedthree-monthperiod,uptoamaximumoffive
1554+8hundredthousanddollars;or
1555+9 (2)Intheeventthatthelicensee'stangiblenetworthexceedstenpercentofthe
1556+10totalassets,asuretybondofonehundredthousanddollars.
1557+11 3.Alicenseethatmaintainsabondinthemaximumamountprovidedforin
1558+12subsection2ofthissectionshallnotberequiredtocalculateitsaveragedailymoney
1559+13transmissionliabilityinthisstateforpurposesofthissection.
1560+361.1005.1.Alicenseeshallmaintainatalltimespermissibleinvestmentsthat
1561+2haveamarketvaluecomputedinaccordancewithUnitedStatesgenerallyaccepted
1562+3accountingprinciplesofnotlessthantheaggregateamountofallofitsoutstanding
1563+4moneytransmissionobligations.
1564+5 2.Exceptforpermissibleinvestmentsenumeratedinsubsection1ofsection
1565+6361.1008,thedirector,withrespecttoanylicensee,maybyrulelimittheextenttowhich
1566+HCSSSSB1359 43 7aspecificinvestmentmaintainedbyalicenseewithinaclassofpermissibleinvestments
1567+8maybeconsideredapermissibleinvestmentifthespecificinvestmentrepresentsundue
1568+9risktocustomersnotreflectedinthemarketvalueofinvestments.
1569+10 3.Permissibleinvestments,evenifcommingledwithotherassetsofthelicensee,
1570+11areheldintrustforthebenefitofthepurchasersandholdersofthelicensee's
1571+12outstandingmoneytransmissionobligationsintheeventofinsolvency,thefilingofa
1572+13petitionbyoragainstthelicenseeundertheUnitedStatesBankruptcyCode,11U.S.C.
1573+14Section101-110,asamendedorrecodifiedfromtimetotime,forbankruptcyor
1574+15reorganization,thefilingofapetitionbyoragainstthelicenseeforreceivership,the
1575+16commencementofanyotherjudicialoradministrativeproceedingforitsdissolutionor
1576+17reorganization,orintheeventofanactionbyacreditoragainstthelicenseewhoisnota
1577+18beneficiaryofthestatutorytrust.Nopermissibleinvestmentsimpressedwithatrust
1578+19underthissubsectionshallbesubjecttoattachment,levyofexecution,orsequestration
1579+20byorderofanycourt,exceptforabeneficiaryofthestatutorytrust.
1580+21 4.Upontheestablishmentofastatutorytrustinaccordancewithsubsection3of
1581+22thissectionorwhenanyfundsaredrawnonaletterofcreditundersubdivision(4)of
1582+23subsection1ofsection361.1008,thedirectorshallnotifytheapplicableregulatorofeach
1583+24stateinwhichthelicenseeislicensedtoengageinmoneytransmission,ifany,ofthe
1584+25establishmentofthetrustorthefundsdrawnontheletterofcredit,asapplicable.
1585+26Noticeshallbedeemedsatisfiedifperformedunderamultistateagreementorthrough
1586+27NMLS.Fundsdrawnonaletterofcredit,andanyotherpermissibleinvestmentsheld
1587+28intrustforthebenefitofthepurchasersandholdersofthelicensee'soutstandingmoney
1588+29transmissionobligations,aredeemedheldintrustforthebenefitofsuchpurchasersand
1589+30holdersonaprorataandequitablebasisinaccordancewithstatutesunderwhich
1590+31permissibleinvestmentsarerequiredtobeheldinthisstate,andotherstates,as
1591+32applicable.Anystatutorytrustestablishedunderthissubsectionshallbeterminated
1592+33uponextinguishmentofallofthelicensee'soutstandingmoneytransmissionobligations.
1593+34 5.Thedirectorbyruleorbyordermayallowothertypesofinvestmentsthatthe
1594+35directordeterminesareofsufficientliquidityandqualitytobeapermissibleinvestment.
1595+36Thedirectorisauthorizedtoparticipateineffortswithotherstateregulatorsto
1596+37determinethatothertypesofinvestmentsareofsufficientliquidityandqualitytobea
1597+38permissibleinvestment.
1598+361.1008.1.Thefollowinginvestmentsarepermissibleundersection361.1005:
1599+2 (1)Cash,includingdemanddeposits,savingsdeposits,andfundsinsuch
1600+3accountsheldforthebenefitofthelicensee'scustomersinafederallyinsureddepository
1601+4financialinstitution,andcashequivalents,includingautomatedclearinghouseitemsin
1602+5transittothelicenseeandautomatedclearinghouseitemsorinternationalwiresin
1603+HCSSSSB1359 44 6transittoapayee,cashintransitviaarmoredcar,cashinsmartsafes,cashinlicensee-
1604+7ownedlocations,debitcardorcreditcardfundedtransmissionreceivablesowedbyany
1605+8bank,ormoneymarketmutualfundsratedAAAbyStandard&Poor's,orthe
1606+9equivalentfromanyeligibleratingservice;
1607+10 (2)Certificatesofdepositorseniordebtobligationsofaninsureddepository
1608+11institution,asdefinedundertheFederalDepositInsuranceAct,12U.S.C.Section1813,
1609+12asamendedorrecodifiedfromtimetotime,orasdefinedunderthefederalCredit
1610+13UnionAct,12U.S.C.Section1781,asamendedorrecodifiedfromtimetotime;
1611+14 (3)AnobligationoftheUnitedStatesoracommission,agency,or
1612+15instrumentalitythereof;anobligationthatisguaranteedfullyastoprincipaland
1613+16interestbytheUnitedStates;oranobligationofastateoragovernmentalsubdivision,
1614+17agency,orinstrumentalitythereof;
1615+18 (4)Onehundredpercentofthesuretybondprovidedforundersection361.1002
1616+19thatexceedstheaveragedailymoneytransmissionliabilityinthisstate;and
1617+20 (5)Thefulldrawableamountofanirrevocablestandbyletterofcreditforwhich
1618+21thestatedbeneficiaryisthedirectorthatstipulatesthatthebeneficiaryneeddrawonly
1619+22asightdraftundertheletterofcreditandpresentittoobtainfundsuptotheletterof
1620+23creditamountwithinsevendaysofpresentationoftheitemsrequiredbyparagraph(d)
1621+24ofthissubdivision.Theletterofcreditshall:
1622+25 (a)Beissuedbyafederallyinsureddepositoryfinancialinstitution,aforeign
1623+26bankthatisauthorizedunderfederallawtomaintainafederalagencyorfederal
1624+27branchofficeinastateorstates,oraforeignbankthatisauthorizedunderstatelawto
1625+28maintainabranchinastatethat:
1626+29 a.Bearsaneligibleratingorwhoseparentcompanybearsaneligiblerating;and
1627+30 b.Isregulated,supervised,andexaminedbyUnitedStatesfederalorstate
1628+31authoritieshavingregulatoryauthorityoverbanks,creditunions,andtrustcompanies;
1629+32 (b)Beirrevocable,unconditional,andindicatethatitisnotsubjecttoany
1630+33conditionorqualificationsoutsideoftheletterofcredit;
1631+34 (c)Notcontainreferencestoanyotheragreements,documentsorentities,or
1632+35otherwiseprovideforanysecurityinterestinthelicensee;and
1633+36 (d)Containanissuedateandexpirationdate,andexpresslyprovidefor
1634+37automaticextension,withoutawrittenamendment,foranadditionalperiodofoneyear
1635+38fromthepresentoreachfutureexpirationdateunlesstheissueroftheletterofcredit
1636+39notifiesthedirectorinwritingbycertifiedorregisteredmailorcouriermailorother
1637+40receiptedmeans,atleastsixtydayspriortoanyexpirationdate,thattheirrevocable
1638+41letterofcreditwillnotbeextended.
1639+HCSSSSB1359 45 42 2.Intheeventofanynoticeofexpirationornonextensionofaletterofcredit
1640+43issuedunderparagraph(d)ofsubdivision(4)ofsubsection1ofthissection,thelicensee
1641+44shallberequiredtodemonstratetothesatisfactionofthedirector,fifteendayspriorto
1642+45expiration,thatthelicenseemaintainsandwillmaintainpermissibleinvestmentsin
1643+46accordancewithsubsection1ofsection361.1005upontheexpirationoftheletterof
1644+47credit.Ifthelicenseeisnotabletodoso,thedirectormaydrawontheletterofcreditin
1645+48anamountuptotheamountnecessarytomeetthelicensee'srequirementstomaintain
1646+49permissibleinvestmentsinaccordancewithsubsection1ofsection361.1005.Anysuch
1647+50drawshallbeoffsetagainstthelicensee'soutstandingmoneytransmissionobligations.
1648+51Thedrawnfundsshallbeheldintrustbythedirectororthedirector'sdesignatedagent,
1649+52totheextentauthorizedbylaw,asagentforthebenefitofthepurchasersandholdersof
1650+53thelicensee'soutstandingmoneytransmissionobligations.
1651+54 3.Theletterofcreditshallprovidethattheissueroftheletterofcreditwill
1652+55honor,atsight,apresentationmadebythebeneficiarytotheissuerofthefollowing
1653+56documentsonorpriortotheexpirationdateoftheletterofcredit:
1654+57 (1)Theoriginalletterofcredit,includinganyamendments;and
1655+58 (2)Awrittenstatementfromthebeneficiarystatingthatanyofthefollowing
1656+59eventshaveoccurred:
1657+60 (a)ThefilingofapetitionbyoragainstthelicenseeundertheUnitedStates
1658+61BankruptcyCode,11U.S.C.Sections101-110,asamendedorrecodifiedfromtimeto
1659+62time,forbankruptcyorreorganization;
1660+63 (b)Thefilingofapetitionbyoragainstthelicenseeforreceivership,orthe
1661+64commencementofanyotherjudicialoradministrativeproceedingforitsdissolutionor
1662+65reorganization;
1663+66 (c)Theseizureofassetsofalicenseebythedirectorunderanemergencyorder
1664+67issuedinaccordancewithapplicablelaw,onthebasisofanaction,violation,or
1665+68conditionthathascausedorislikelytocausetheinsolvencyofthelicensee;or
1666+69 (d)Thebeneficiaryhasreceivednoticeofexpirationornonextensionofaletter
1667+70ofcreditandthelicenseefailedtodemonstratetothesatisfactionofthebeneficiarythat
1668+71thelicenseewillmaintainpermissibleinvestmentsinaccordancewithsubsection1of
1669+72section361.1005upontheexpirationornonextensionoftheletterofcredit.
1670+73 4.Thedirectormaydesignateanagenttoserveonthedirector'sbehalfas
1671+74beneficiarytoaletterofcreditsolongastheagentandletterofcreditmeet
1672+75requirementsestablishedbythedirector.Thedirector'sagentmayserveasagentfor
1673+76multiplelicensingauthoritiesforasingleirrevocableletterofcreditiftheproceedsof
1674+77thedrawableamountforthepurposesofthissubsectionareassignedtothedirector.
1675+HCSSSSB1359 46 78 5.Thedirectorisauthorizedtoparticipateinmultistateprocessesdesignedto
1676+79facilitatetheissuanceandadministrationoflettersofcreditincluding,butnotlimited
1677+80to,servicesprovidedbytheNMLS,StateRegulatoryRegistryLLCorotherthird
1678+81parties.
1679+82 6.Unlesspermittedbythedirectorbyruleorbyordertoexceedthelimitasset
1680+83forthherein,thefollowinginvestmentsarepermissibleundersection361.1005tothe
1681+84extentspecified:
1682+85 (1)Receivablesthatarepayabletoalicenseefromitsauthorizeddelegatesinthe
1683+86ordinarycourseofbusinessthatarelessthansevendaysold,uptofiftypercentofthe
1684+87aggregatevalueofthelicensee'stotalpermissibleinvestments.Ofthereceivables
1685+88permissibleunderthissubdivision,receivablesthatarepayabletoalicenseefroma
1686+89singleauthorizeddelegateintheordinarycourseofbusinessshallnotexceedtenpercent
1687+90oftheaggregatevalueofthelicensee'stotalpermissibleinvestments;
1688+91 (2)Thefollowinginvestments,uptotwentypercentpercategoryandcombined
1689+92uptofiftypercentoftheaggregatevalueofthelicensee'stotalpermissibleinvestments:
1690+93 (a)Ashort-terminvestmentbearinganeligiblerating.Forpurposesofthis
1691+94paragraph,"short-term"meansuptosixmonths;
1692+95 (b)Commercialpaperbearinganeligiblerating;
1693+96 (c)Abill,note,bond,ordebenturebearinganeligiblerating;
1694+97 (d)UnitedStatestripartyrepurchaseagreementscollateralizedatonehundred
1695+98percentormorewithUnitedStatesgovernmentoragencysecurities,municipalbonds,
1696+99orothersecuritiesbearinganeligiblerating;
1697+100 (e)Moneymarketmutualfundsratedlessthan"AAA"andequaltoorhigher
1698+101than"A-"byStandard&Poor's,ortheequivalentfromanyothereligiblerating
1699+102service;and
1700+103 (f)Amutualfundorotherinvestmentfundcomposedsolelyandexclusivelyof
1701+104oneormorepermissibleinvestmentslistedinsubdivisions(1)to(3)ofsubsection1of
1702+105thissection;and
1703+106 (3)Cash,includingdemanddeposits,savingsdeposits,andfundsinsuch
1704+107accountsheldforthebenefitofthelicensee'scustomers,atforeigndepository
1705+108institutionstotenpercentoftheaggregatevalueofthelicensee'stotalpermissible
1706+109investmentsifthelicenseehasreceivedasatisfactoryratinginitsmostrecent
1707+110examinationandtheforeigndepositoryinstitution:
1708+111 (a)Hasaneligiblerating;
1709+112 (b)IsregisteredundertheForeignAccountTaxComplianceAct;
1710+113 (c)IsnotlocatedinanycountrysubjecttosanctionsfromtheOfficeofForeign
1711+114AssetControl;and
1712+HCSSSSB1359 47 115 (d)Isnotlocatedinahighriskornoncooperativejurisdictionasdesignatedby
1713+116theFinancialActionTaskForce.
1714+361.1011.1.Thedirectormaysuspendorrevokealicenseororderalicenseeto
1715+2revokethedesignationofanauthorizeddelegateif:
1716+3 (1)Thelicenseeviolatessections361.900to361.1035oraruleadoptedoran
1717+4orderissuedundersections361.900to361.1035;
1718+5 (2)Thelicenseedoesnotcooperatewithanexaminationorinvestigationbythe
1719+6director;
1720+7 (3)Thelicenseeengagesinfraud,intentionalmisrepresentation,orgross
1721+8negligence;
1722+9 (4)Anauthorizeddelegateisconvictedof,orentersapleaofguiltyornolo
1723+10contenderetoafelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
1724+11laundering,orviolatesaruleadoptedoranorderissuedundersections361.900to
1725+12361.1035asaresultofthelicensee'swillfulmisconductorwillfulblindness;
1726+13 (5)Thecompetence,experience,character,orgeneralfitnessofthelicensee,
1727+14authorizeddelegate,personincontrolofalicensee,keyindividual,orresponsible
1728+15personoftheauthorizeddelegateindicatesthatitisnotinthepublicinteresttopermit
1729+16thepersontoprovidemoneytransmission;
1730+17 (6)Thelicenseeengagesinanunsafeorunsoundpractice;
1731+18 (7)Thelicenseeisinsolvent,suspendspaymentofitsobligations,ormakesa
1732+19generalassignmentforthebenefitofitscreditors;or
1733+20 (8)Thelicenseedoesnotremoveanauthorizeddelegateafterthedirectorissues
1734+21andservesuponthelicenseeafinalorderincludingafindingthattheauthorized
1735+22delegatehasviolatedsections361.900to361.1035.
1736+23 2.Indeterminingwhetheralicenseeisengaginginanunsafeorunsound
1737+24practice,thedirectormayconsiderthesizeandconditionofthelicensee'smoney
1738+25transmission,themagnitudeoftheloss,thegravityoftheviolationofsections361.900to
1739+26361.1035,andthepreviousconductofthepersoninvolved.
1740+361.1014.1.Thedirectormayissueanordersuspendingorrevokingthe
1741+2designationofanauthorizeddelegate,ifthedirectorfindsthat:
1742+3 (1)Theauthorizeddelegateviolatedsections361.900to361.1035orarule
1743+4adoptedoranorderissuedundersections361.900to361.1035;
1744+5 (2)Theauthorizeddelegatedidnotcooperatewithanexaminationor
1745+6investigationbythedirector;
1746+7 (3)Theauthorizeddelegateengagedinfraud,intentionalmisrepresentation,or
1747+8grossnegligence;
1748+HCSSSSB1359 48 9 (4)Theauthorizeddelegatehasbeenconvictedof,orpledguiltyornolo
1749+10contenderetoafelonyinvolvinganactoffraud,dishonesty,abreachoftrust,ormoney
1750+11laundering;
1751+12 (5)Thecompetence,experience,character,orgeneralfitnessoftheauthorized
1752+13delegateorapersonincontroloftheauthorizeddelegateindicatesthatitisnotinthe
1753+14publicinteresttopermittheauthorizeddelegatetoprovidemoneytransmission;or
1754+15 (6)Theauthorizeddelegateisengaginginanunsafeorunsoundpractice.
1755+16 2.Indeterminingwhetheranauthorizeddelegateisengaginginanunsafeor
1756+17unsoundpractice,thedirectormayconsiderthesizeandconditionoftheauthorized
1757+18delegate'sprovisionofmoneytransmission,themagnitudeoftheloss,thegravityofthe
1758+19violationofsections361.900to361.1035oraruleadoptedororderissuedundersections
1759+20361.900to361.1035,andthepreviousconductoftheauthorizeddelegate.
1760+21 3.Anauthorizeddelegatemayapplyforrelieffromasuspensionorrevocation
1761+22ofdesignationasanauthorizeddelegateaccordingtoproceduresprescribedbythe
1762+23director.
1763+361.1017.1.Ifthedirectordeterminesthataviolationofsections361.900to
1764+2361.1035orofaruleadoptedoranorderissuedundersections361.900to361.1035bya
1765+3licenseeorauthorizeddelegateislikelytocauseimmediateandirreparableharmtothe
1766+4licensee,itscustomers,orthepublicasaresultoftheviolation,orcauseinsolvencyor
1767+5significantdissipationofassetsofthelicensee,thedirectormayissueanorderrequiring
1768+6thelicenseeorauthorizeddelegatetoceaseanddesistfromtheviolation.Theorder
1769+7becomeseffectiveuponservicetothelicenseeorauthorizeddelegate.
1770+8 2.Thedirectormayissueanorderagainstalicenseetoceaseanddesistfrom
1771+9providingmoneytransmissionthroughanauthorizeddelegatethatisthesubjectofa
1772+10separateorderbythedirector.
1773+11 3.Anordertoceaseanddesistremainseffectiveandenforceablependingthe
1774+12completionofanadministrativeproceedingunderchapter536.
1775+13 4.Alicenseeoranauthorizeddelegatethatisservedwithanordertoceaseand
1776+14desistmaypetitionthecircuitcourtwithjurisdictionforajudicialordersettingaside,
1777+15limiting,orsuspendingtheenforcement,operation,oreffectivenessoftheorderpending
1778+16thecompletionofanadministrativeproceedingunderchapter536.
1779+17 5.Anordertoceaseanddesistexpiresunlessthedirectorcommencesan
1780+18administrativeproceedingunderchapter536withintendaysafteritisissued.
1781+361.1020.Thedirectormayenterintoaconsentorderatanytimewithaperson
1782+2toresolveamatterarisingundersections361.900to361.1035oraruleadoptedororder
1783+3issuedundersections361.900to361.1035.Aconsentordershallbesignedbytheperson
1784+4towhomitisissuedorbytheperson'sauthorizedrepresentativeandshallindicate
1785+HCSSSSB1359 49 5agreementwiththetermscontainedintheorder.Aconsentordermayprovidethatit
1786+6doesnotconstituteanadmissionbyapersonthatsections361.900to361.1035orarule
1787+7adoptedoranorderissuedundersections361.900to361.1035hasbeenviolated.
1788+361.1023.1.Apersonthatintentionallymakesafalsestatement,
1789+2misrepresentation,orfalsecertificationinarecordfiledorrequiredtobemaintained
1790+3undersections361.900to361.1035orthatintentionallymakesafalseentryoromitsa
1791+4materialentryinsucharecordisguiltyofaclassEfelony.
1792+5 2.Apersonthatknowinglyengagesinanactivityforwhichalicenseisrequired
1793+6undersections361.900to361.1035withoutbeinglicensedundersections361.900to
1794+7361.1035andthatreceivesmorethanfivehundreddollarsincompensationwithina
1795+8thirty-dayperiodforthisactivityisguiltyofaclassEfelony.
1796+9 3.Apersonthatknowinglyengagesinanactivityforwhichalicenseisrequired
1797+10undersections361.900to361.1035withoutbeinglicensedundersections361.900to
1798+11361.1035andthatreceivesnomorethanfivehundreddollarsincompensationwithina
1799+12thirty-dayperiodforthisactivityisguiltyofaclassAmisdemeanor.
1800+361.1026.Thedirectormayassessacivilpenaltyagainstapersonthatviolates
1801+2sections361.900to361.1035oraruleadoptedoranorderissuedundersections361.900
1802+3to361.1035inanamountnottoexceedonethousanddollarsperdayforeachdaythe
1803+4violationisoutstanding,plusthisstate'scostsandexpensesfortheinvestigationand
1804+5prosecutionofthematter,includingreasonableattorney'sfees.
1805+361.1029.1.Ifthedirectorhasreasontobelievethatapersonhasviolatedoris
1806+2violatingsection361.930,thedirectormayissueanordertoshowcausewhyanorderto
1807+3ceaseanddesistshallnotbeissuedrequiringthatthepersonceaseanddesistfromthe
1808+4violationofsection361.930.
1809+5 2.Inanemergency,thedirectormaypetitionthecircuitcourtwithjurisdiction
1810+6fortheissuanceofatemporaryrestrainingorderundertherulesofcivilprocedure.
1811+7 3.Anordertoceaseanddesistbecomeseffectiveuponservicetotheperson.
1812+8 4.Anordertoceaseanddesistremainseffectiveandenforceablependingthe
1813+9completionofanadministrativeproceedingunderchapter536.
1814+10 5.Apersonthatisservedwithanordertoceaseanddesistforviolatingsection
1815+11361.930maypetitionthecircuitcourtwithjurisdictionforajudicialordersettingaside,
1816+12limiting,orsuspendingtheenforcement,operation,oreffectivenessoftheorderpending
1817+13thecompletionofanadministrativeproceedingunderchapter536.
1818+14 6.Anordertoceaseanddesistexpiresunlessthedirectorcommencesan
1819+15administrativeproceedingwithintendaysafteritisissued.
1820+HCSSSSB1359 50 361.1032.Inapplyingandconstruingsections361.900to361.1035,consideration
1821+2shallbegiventotheneedtopromoteuniformityofthelawwithrespecttoitssubject
1822+3matteramongstatesthatenactit.
1823+361.1035.1.Apersonlicensedinthisstatetoengageinthebusinessofmoney
1824+2transmissionshallnotbesubjecttotheprovisionsofsections361.900to361.1035tothe
1825+3extentthattheyconflictwithcurrentlaworestablishnewrequirementsnotimposed
1826+4undercurrentlaw,untilsuchtimeasthelicenseerenewsthelicensee'scurrentlicense.
1827+5 2.Notwithstandingsubsection1ofthissection,alicenseeshallberequiredonly
1828+6toamenditsauthorizeddelegatecontractsforcontractsenteredintooramendedafter
1829+7theeffectivedateorthecompletionofanytransitionperiodcontemplatedunder
1830+8subsection1ofthissection.Nothinghereinshallbeconstruedaslimitinganauthorized
1831+9delegate'sobligationstooperateinfullcompliancewithsections361.900to361.1035as
1832+10requiredbysubsection3ofsection361.975.
1833+374.190.1.Thedirectorshallexamineandinquireintoallviolationsoftheinsurance
1834+2lawsofthestate,andinquireintoandinvestigatethebusinessofinsurancetransactedinthis
1835+3statebyanyinsuranceagent,broker,agencyorinsurancecompany.
1836+4 2.Heoranyofhisdulyappointedagentsmaycompeltheattendancebeforehim,and
1837+5mayexamine,underoath,thedirectors,officers,agents,employees,solicitors,attorneysor
1838+6anyotherperson,inreferencetothecondition,affairs,managementofthebusiness,orany
1839+7mattersrelatingthereto.Hemayadministeroathsoraffirmations,andshallhavepowerto
1840+8summonandcompeltheattendanceofwitnesses,andtorequireandcompeltheproductionof
1841+9records,books,papers,contractsorotherdocuments,ifnecessary.
1842+10 3.Thedirectormaymakeandconducttheinvestigationinperson,orhemayappoint
1843+11oneormorepersonstomakeandconductthesameforhim.Ifmadebyanotherthanthe
1844+12directorinperson,thepersondulyappointedbythedirectorshallhavethesamepowersas
1845+13abovegrantedtothedirector.Acertificateofappointment,undertheofficialsealofthe
1846+14director,shallbesufficientauthorityandevidencethereofforthepersonorpersonstoact.
1847+15Forthepurposeofmakingtheinvestigations,orhavingthesamemade,thedirectormay
1848+16employthenecessaryclerical,actuarialandotherassistance.
1849+17 4.Notwithstandinganyprovisionoflawtothecontrary,theconfidentiality
1850+18provisionsofsection374.205,includingsubdivision(5)ofsubsection3ofsection
1851+19374.205,andsubsection4ofsection374.205,shallapplytoallreports,workingpapers,
1852+20recordedinformation,documents,andcopiesthereof,producedby,obtainedby,or
1853+21disclosedtothedirectororanyotherpersoninthecourseofanymarketconduct
1854+22investigationormarketconductaction.
1855+374.192.1.Notwithstandinganyprovisionoflawtothecontrary,aregulated
1856+2entityshallhavenotlessthanthirtycalendardaystosubmitanyrecordormaterial
1857+HCSSSSB1359 51 3requestedbythedepartment.Thissubsectionshallnotapplytorequestsforrecordsor
1858+4materialsbythedivisionofconsumeraffairsortorequestsforinformationonforms
1859+5submittedundersection375.920.
1860+6 2.Notwithstandinganyprovisionoflawtothecontrary,anyrecordor
1861+7document,regardlessofphysicalformorcharacteristic,maintainedbeyondtherecord
1862+8retentionperiodspecifiedinsection374.205shallnotbesubjecttorequestorreviewby
1863+9thedirectorunlessthedirectorhassubstantialandcompetentevidencethatthe
1864+10regulatedentityhaswillfullyengagedinanactoromissionconstitutingalevelfouror
1865+11fiveviolationofthelawsofthisstaterelatingtoinsurance,includingthischapter,
1866+12chapter354,andchapters375to385,orhasbeenconvictedofanyfelonyrelatedtothe
1867+13businessofinsurance,inwhichcasethedirectormayrequestorreviewrecordsor
1868+14documentsmaintainedbeyondtherecordretentionperiodspecifiedinsection374.205
1869+15thatdirectlyrelatetotheviolationorconviction.
1870+375.1183.1.Contractsreinsuringpoliciesoflifeorhealthinsuranceorannuities
1871+2referredtoinsection375.1178issuedbyacedinginsurerthathasbeenplacedin
1872+3conservationorrehabilitationproceedingsundersections375.1150to375.1246shallbe
1873+4continuedorterminatedunderthetermsandconditionsofeachcontractandthe
1874+5provisionsofthissection.
1875+6 2.Contractsreinsuringpoliciesoflifeorhealthinsuranceorannuitiesreferred
1876+7toinsection375.1178issuedbyacedinginsurerthathasbeenplacedintoliquidation
1877+8undersections375.1150to375.1246shallbecontinued,subjecttotheprovisionsofthis
1878+9section,unless:
1879+10 (1)Thecontractswereterminatedpursuanttotheirtermspriortothedateof
1880+11theorderofliquidation;or
1881+12 (2)Thecontractswereterminatedpursuanttotheorderofliquidation,inwhich
1882+13casetheprovisionsofsubsection9ofthissectionshallapply.
1883+14 3.(1)Atanytimewithinonehundredeightydaysofthedateoftheorderof
1884+15liquidation,aguarantyassociationcoveringpoliciesoflifeorhealthinsuranceor
1885+16annuitiesreferredtoinsection375.1178,inwholeorinpart,mayelecttoassumethe
1886+17rightsandobligationsofthecedinginsurerthatrelatetothepoliciesorannuitiesunder
1887+18anyoneormorereinsurancecontractsbetweenthecedinginsureranditsreinsurers.
1888+19Anysuchassumptionshallbeeffectiveasofthedateoftheorderofliquidation.The
1889+20electionshallbemadebytheguarantyassociationorthenationalorganizationoflife
1890+21andhealthinsuranceguarantyassociationsonitsbehalfbysendingwrittennotice,
1891+22returnreceiptrequested,totheaffectedreinsurers.
1892+HCSSSSB1359 52 23 (2)Tofacilitatethedecision,thereceiverandeachaffectedreinsurershallmake
1893+24availableuponrequesttotheguarantyassociationortothenationalorganizationoflife
1894+25andhealthinsuranceguarantyassociationsonitsbehalf:
1895+26 (a)Copiesofin-forcereinsurancecontractsandallrelatedfilesandrecords
1896+27relevanttothedeterminationofwhethersuchcontractsshouldbeassumed;and
1897+28 (b)Noticesofanydefaultsunderthereinsurancecontractsoranyknownevent
1898+29orconditionwhichwiththepassageoftimecouldbecomeadefaultunderthe
1899+30reinsurancecontracts.
1900+31 (3)Paragraphs(a)through(d)ofthissubdivisionshallapplytoreinsurance
1901+32contractssoassumedbyaguarantyassociation:
1902+33 (a)Theguarantyassociationshallberesponsibleforallunpaidpremiumsdue
1903+34underthereinsurancecontracts,forperiodsbothbeforeandafterthedateoftheorder
1904+35ofliquidation,andshallberesponsiblefortheperformanceofallotherobligationstobe
1905+36performedafterthedateoftheorderofliquidation.
1906+37 (b)Theguarantyassociationshallbeentitledtoanyamountspayablebythe
1907+38reinsurerunderthereinsurancecontractswithrespecttolossesoreventsthatoccurin
1908+39periodsonorafterthedateoftheorderofliquidation.
1909+40 (c)Withinthirtydaysfollowingthedateoftheguarantyassociation'selectionto
1910+41assumeareinsurancecontract,theguarantyassociationandthereinsurershall
1911+42calculatethebalanceduetoorfromtheguarantyassociationundereachreinsurance
1912+43contractasofthedateofsuchelection,andtheguarantyassociationorreinsurershall
1913+44payanyremainingbalanceduetheotherwithinthirty-fivedaysofthedateofsuch
1914+45election.Anydisputesovertheamountsduetoeithertheguarantyassociationorthe
1915+46reinsurershallberesolvedbyarbitrationpursuanttothetermsoftheaffected
1916+47reinsurancecontractor,ifthecontractcontainsnoarbitrationclause,pursuanttothe
1917+48provisionsofsubdivision(3)ofsubsection9ofthissection.
1918+49 (d)Iftheguarantyassociation,orreceiveronbehalfofsuchguaranty
1919+50association,withinsixtydaysofthedateoftheguarantyassociation'selectiontoassume
1920+51areinsurancecontract,paystheunpaidpremiumsdueforperiodsbothbeforeandafter
1921+52thedateofsuchelectionthatareduepursuanttothereinsurancecontract,thereinsurer
1922+53shallnotbeentitledtoterminatethereinsurancecontractforfailuretopaypremiums,
1923+54andshallnotbeentitledtosetoffanyunpaidamountsdueunderothercontracts,or
1924+55unpaidamountsduefrompartiesotherthantheguarantyassociation,againstamounts
1925+56duesuchguarantyassociation.
1926+57 4.Ifareceivercontinuespoliciesoflifeorhealthinsuranceorannuitiesreferred
1927+58toinsection375.1178inforcefollowinganorderofliquidation,andthepoliciesor
1928+59annuitiesarenotcoveredinwholeorinpartbyoneormoreguarantyassociations,the
1929+HCSSSSB1359 53 60receivermay,withinonehundredeightydaysofthedateoftheorderofliquidation,
1930+61electtoassumetherightsandobligationsofthecedinginsurerunderanyoneormoreof
1931+62thereinsurancecontractsthatrelatetothepoliciesorannuities,providedthecontracts
1932+63havenotbeenterminatedassetforthinsubsection2ofthissection.Theelectionshall
1933+64bemadebysendingwrittennotice,returnreceiptrequested,totheaffectedreinsurers.
1934+65Inthatevent,paymentofpremiumsonthereinsurancecontractsforthepoliciesand
1935+66annuities,forperiodsbothbeforeandafterthedateoftheorderofliquidation,shallbe
1936+67chargeableagainsttheestateasaclass1administrativeexpense.Amountspaidbythe
1937+68reinsureronaccountoflossesonthepoliciesandannuitiesshallbetotheestateofthe
1938+69cedinginsurer.
1939+70 5.Duringtheperiodfromthedateoftheorderofliquidationuntilthedatethe
1940+71guarantyassociationorthereceiverelectstoassumetherightsandobligationsofthe
1941+72cedinginsurerunderanyoneormoreofthereinsurancecontractsthatrelatetothe
1942+73policiesorannuitiesasprovidedforinsubsection3or4ofthissection,theguaranty
1943+74association,thereceiver,andthereinsurershallnothaveanyrightsorobligationsunder
1944+75anyreinsurancecontractthatiseligibleforassumptionbysuchassociationorthe
1945+76receiver.
1946+77 6.(1)Iftheguarantyassociationorthereceiver,asthecasemaybe,hastimely
1947+78electedtoassumeareinsurancecontractpursuanttosubsection3or4ofthissection,as
1948+79applicable,theparties'rightsandobligationsshallbegovernedbytheprovisionsof
1949+80subsection3or4ofthissection,asapplicable.
1950+81 (2)Wheretheguarantyassociationcoveringpoliciesoflifeorhealthinsurance
1951+82orannuitiesreferredtoinsection375.1178orthereceiver,asthecasemaybe,doesnot
1952+83timelyelecttoassumeareinsurancecontractpursuanttosubsection3or4ofthis
1953+84section,asapplicable,thereinsurancecontractshallbeterminatedretroactively
1954+85effectiveonthedateoftheorderofliquidationandsubsection9ofthissectionshall
1955+86apply.
1956+87 7.Whenpoliciesoflifeorhealthinsuranceorannuitiesreferredtoinsection
1957+88375.1178,ortheobligationsoftheguarantyassociationwithrespectthereto,are
1958+89transferredtoanassuminginsurer,reinsuranceonthepoliciesorannuitiesmayalsobe
1959+90transferredbytheguarantyassociation,inthecaseofcontractsassumedunder
1960+91subsection3ofthissection,orthereceiver,inthecaseofcontractsassumedunder
1961+92subsection4ofthissection,subjecttothefollowing:
1962+93 (1)Unlessthereinsurerandtheassuminginsureragreeotherwise,the
1963+94reinsurancecontracttransferredshallnotcoveranynewpoliciesorannuitiesin
1964+95additiontothosetransferred;
1965+HCSSSSB1359 54 96 (2)Theobligationsdescribedinsubsections3and4ofthissectionshallno
1966+97longerapplywithrespecttomattersarisingaftertheeffectivedateofthetransfer;and
1967+98 (3)Noticeshallbegiveninwriting,returnreceiptrequested,bythetransferring
1968+99partytotheaffectedreinsurernotlessthanthirtydayspriortotheeffectivedateofthe
1969+100transfer.
1970+101 8.Theprovisionsofthissectionshall,totheextentprovidedinsections375.1150
1971+102to375.1246,supersedetheprovisionsofanylaworofanyaffectedreinsurancecontract
1972+103thatprovidesfororrequiresanypaymentofreinsuranceproceeds,onaccountoflosses
1973+104oreventsthatoccurinperiodsafterthedateoftheorderofliquidation,tothereceiver
1974+105ofthecedinginsureroranyotherperson.Thereceivershallremainentitledtoany
1975+106amountspayablebythereinsurerunderthereinsurancecontractswithrespecttolosses
1976+107oreventsthatoccurinperiodspriortothedateoftheorderofliquidation,subjectto
1977+108provisionsofsections375.1150to375.1246includingapplicablesetoffprovisions.
1978+109 9.Whenareinsurancecontractisterminatedpursuanttosections375.1150to
1979+110375.1246,thereinsurerandthereceivershallcommenceamandatorynegotiation
1980+111procedureinaccordancewiththissubsection:
1981+112 (1)Nolaterthanthirtydaysafterthedateoftermination,eachpartyshall
1982+113appointanactuarytodetermineanestimatedsumdueasaresultoftheterminationof
1983+114thereinsurancecontractcalculatedinawayexpectedtomakethepartieseconomically
1984+115indifferentastowhetherthereinsurancecontractcontinuesorterminates,givingdue
1985+116regardtotheeconomiceffectsoftheinsolvency.Thesumshalltakeintoaccountthe
1986+117presentvalueoffuturecashflowsexpectedunderthereinsurancecontractandbebased
1987+118onagrosspremiumvaluationofnetliabilityusingcurrentassumptionsthatreflectpost-
1988+119insolvencyexperienceexpectations,withnoadditionalmargins,netofanyamounts
1989+120payableandreceivable,withamarketvalueadjustmenttoreflectprematuresaleof
1990+121assetstofundthesettlement;
1991+122 (2)Withinninetydaysofthedateoftermination,eachpartyshallprovidethe
1992+123otherpartywithitsestimateofthesumdueasaresultoftheterminationofthe
1993+124reinsurancecontract,togetherwithallrelevantdocumentsandotherinformation
1994+125supportingtheestimate.Thepartiesshallmakeagoodfaithefforttoreachagreement
1995+126onthesumdue;
1996+127 (3)Ifthepartiesareunabletoreachagreementwithinninetydaysfollowingthe
1997+128submissionofmaterialsrequiredinsubdivision(2)ofthissubsection,eitherpartymay
1998+129initiatearbitrationproceedingsasprovidedinthereinsurancecontract.Intheevent
1999+130thatthereinsurancecontractdoesnotcontainanarbitrationclause,eitherpartymay
2000+131initiatearbitrationpursuanttothissubdivisionbyprovidingtheotherpartywitha
2001+HCSSSSB1359 55 132writtendemandforarbitration.Thearbitrationshallbeconductedpursuanttothe
2002+133followingprocedures:
2003+134 (a)Venueforthearbitrationshallbewithinthecountyofthecourt'sjurisdiction
2004+135pursuanttosection375.1154,oranotherlocationagreedtobytheparties;
2005+136 (b)Withinthirtydaysoftherespondingparty'sreceiptofthearbitration
2006+137demand,eachpartyshallappointanarbitratorwhoisadisinterestedactiveorretired
2007+138officerorexecutiveofalifeorhealthinsuranceorreinsurancecompany,orother
2008+139professionalwithnolessthantenyears'experienceinorrelatingtothefieldoflifeor
2009+140healthinsuranceorreinsurance.Thetwoarbitratorsshallappointanindependent,
2010+141impartial,disinterestedumpirewhoisanactiveorretiredofficerorexecutiveofalifeor
2011+142healthinsuranceorreinsurancecompany,orotherprofessionalwithnolessthanten
2012+143years'experienceinthefieldoflifeorhealthinsuranceorreinsurance.Ifthe
2013+144arbitratorsareunabletoagreeonanumpire,eacharbitratorshallprovidetheother
2014+145withthenamesofthreequalifiedindividuals,eacharbitratorshallstriketwonames
2015+146fromtheother'slist,andtheumpireshallbechosenbydrawinglotsfromtheremaining
2016+147individuals;
2017+148 (c)Withinsixtydaysfollowingtheappointmentoftheumpire,thepartiesshall,
2018+149unlessotherwiseorderedbythepanel,submittothearbitrationpaneltheirestimatesof
2019+150thesumdueasaresultoftheterminationofthereinsurancecontract,togetherwithall
2020+151relevantdocumentsandotherinformationsupportingtheestimate;
2021+152 (d)Thetimeperiodssetforthintheseparagraphsmaybeextendeduponmutual
2022+153agreementoftheparties;
2023+154 (e)Thepanelshallhaveallpowersnecessarytoconductthearbitration
2024+155proceedingsinafairandappropriatemanner,includingthepowertorequestadditional
2025+156informationfromtheparties,authorizediscovery,holdhearings,andheartestimony.
2026+157Thepanelalsomayappointindependentactuarialexperts,theexpenseofwhichshallbe
2027+158sharedequallybetweentheparties;
2028+159 (4)Anarbitrationpanelconsideringthematterssetforthinthissubsectionshall
2029+160applythestandardssetforthinthissubsectionandshallissueawrittenaward
2030+161specifyinganetsettlementamountduefromonepartyortheotherasaresultofthe
2031+162terminationofthereinsurancecontract.Thereceivershipcourtshallconfirmthat
2032+163awardabsentproofofstatutorygroundsforvacatingormodifyingarbitrationawards
2033+164undertheFederalArbitrationAct;
2034+165 (5)Ifthenetsettlementamountagreedorawardedpursuanttothissubsectionis
2035+166payablebythereinsurer,thereinsurershallpaytheamountduetotheestatesubjectto
2036+167anyapplicableset-offundersection375.1198.Ifthenetsettlementamountagreedor
2037+168awardedpursuanttothissubsectionispayablebythecedinginsurer,thereinsurershall
2038+HCSSSSB1359 56 169bedeemedtohaveatimelyfiledclaimagainsttheestateforthatamount,whichclaim
2039+170shallbepaidpursuanttothepriorityestablishedinsubsection5ofsection375.1218.
2040+171Theaffectedguarantyassociationsshallnotbeentitledtoreceivethenetsettlement
2041+172amount,excepttotheextenttheyareentitledtoshareintheestateassetsascreditorsof
2042+173theestate,andshallhavenoresponsibilityforthenetsettlementamount.
2043+174 10.Exceptasotherwiseprovidedinthissection,nothinginthissectionshallalter
2044+175ormodifythetermsandconditionsofanyreinsurancecontract.Nothinginthissection
2045+176shallabrogateorlimitanyrightsofanyreinsurertoclaimthatitisentitledtorescinda
2046+177reinsurancecontract.Nothinginthissectionshallgiveapolicyholderorbeneficiaryan
2047+178independentcauseofactionagainstareinsurerthatisnototherwisesetforthinthe
2048+179reinsurancecontract.Nothinginthissectionshalllimitoraffectanyguaranty
2049+180association'srightsasacreditoroftheestateagainsttheassetsoftheestate.Nothingin
2050+181thissectionshallapplytoreinsurancecontractscoveringpropertyorcasualtyrisks.
2051+182 11.Thissectionandsubdivision(10)ofsubsection1ofsection376.734shallbe
2052+183construedtogetherinamannerthatisconsistentwitheachotherandwiththepurpose
2053+184providedforinsection376.715.
2054+379.1640.1.Asusedinthissection,thefollowingtermsshallmean:
2055+2 (1)"Department",thedepartmentofcommerceandinsurance;
2056+3 (2)"Director",thedirectorofthedepartmentofcommerceandinsurance;
2057+4 (3)"Limitedlinesself-servicestorageinsuranceproducer",anowner,operator,lessor,
2058+5orsublessorofaself-servicestoragefacility,oranagentorotherpersonauthorizedtomanage
2059+6thefacility,dulylicensedbythedepartmentofcommerceandinsurance;
2060+7 (4)"Offeranddisseminate",providegeneralinformation,includingadescriptionof
2061+8thecoverageandprice,aswellasprocesstheapplication,collectpremiums,andperform
2062+9othernonlicensableactivitiespermittedbythestate;
2063+10 (5)"Self-servicestorageinsurance",insurancecoverageforthelossof,ordamageto,
2064+11tangiblepersonalpropertyinaself-servicestoragefacilityasdefinedinsection415.405orin
2065+12transitduringtherentalperiod.
2066+13 2.Notwithstandinganyotherprovisionoflaw:
2067+14 (1)Individualsmayofferanddisseminateself-servicestorageinsuranceonbehalfof
2068+15andunderthecontrolofalimitedlinesself-servicestorageinsuranceproduceronlyifthe
2069+16followingconditionsaremet:
2070+17 (a)Thelimitedlinesself-servicestorageinsuranceproducerprovidestopurchasersof
2071+18self-servicestorageinsurance:
2072+19 a.Adescriptionofthematerialtermsortheactualmaterialtermsoftheinsurance
2073+20coverage;
2074+21 b.Adescriptionoftheprocessforfilingaclaim;
2075+HCSSSSB1359 57 22 c.Adescriptionoftherevieworcancellationprocessfortheself-servicestorage
2076+23insurancecoverage;and
2077+24 d.Theidentityandcontactinformationoftheinsurerandanythird-party
2078+25administratororsupervisingentityauthorizedtoactonbehalfoftheinsurer;
2079+26 (b)Atthetimeoflicensure,thelimitedlinesself-servicestorageinsuranceproducer
2080+27shallestablishandmaintainaregisteronaformprescribedbythedirectorofeachindividual
2081+28thatoffersself-servicestorageinsuranceonthelimitedlinesself-servicestorageinsurance
2082+29producer'sbehalf.Theregistershallbemaintainedandupdatedannuallybythelimitedlines
2083+30self-servicestorageinsuranceproducerandshallincludethename,address,andcontact
2084+31informationofthelimitedlinesself-servicestorageinsuranceproducerandanofficeror
2085+32personwhodirectsorcontrolsthelimitedlinesself-servicestorageinsuranceproducer's
2086+33operations,andtheself-servicestoragefacility'sfederaltaxidentificationnumber.The
2087+34limitedlinesself-servicestorageinsuranceproducershallsubmitsuchregisterwithinthirty
2088+35daysuponrequestbythedepartment.Thelimitedlinesself-servicestorageinsurance
2089+36producershallalsocertifythateachindividuallistedontheself-servicestorageregister
2090+37complieswith18U.S.C.Section1033;
2091+38 (c)Thelimitedlinesself-servicestorageinsuranceproducerservesasorhas
2092+39designatedoneofitsemployeeswhoisalicensedindividualproducerasapersonresponsible
2093+40forthebusinessentity'scompliancewiththeself-servicestorageinsurancelaws,rules,and
2094+41regulationsofthisstate;
2095+42 (d)Anindividualapplyingforalimitedlinesself-servicestorageinsuranceproducer
2096+43licenseshallmakeapplicationtothedirectoronthespecifiedapplicationanddeclareunder
2097+44penaltyofrefusal,suspensionorrevocationofthelicensethatthestatementsmadeonthe
2098+45applicationaretrue,correctandcompletetothebestoftheknowledgeandbeliefofthe
2099+46applicant.Beforeapprovingtheapplication,thedirectorshallfindthattheindividual:
2100+47 a.Isatleasteighteenyearsofage;
2101+48 b.Hasnotcommittedanyactthatisagroundfordenial,suspension,orrevocationset
2102+49forthinsection375.141;
2103+50 c.Haspaidalicensefeeinthesumofonehundreddollars;and
2104+51 d.Hascompletedaqualifiedtrainingprogramregardingself-servicestorage
2105+52insurancepolicies,whichhasbeenfiledwithandapprovedbythedirector;
2106+53 (e)Individualsapplyingforlimitedlinesself-servicestorageinsuranceproducer
2107+54licensesshallbeexemptfromexamination.Thedirectormayrequireanydocuments
2108+55reasonablynecessarytoverifytheinformationcontainedinanapplication.Withinthirty
2109+56workingdaysafterthechangeofanyinformationsubmittedontheapplication,theself-
2110+57servicestorageinsuranceproducershallnotifythedirectorofthechange.Nofeeshallbe
2111+58chargedforanysuchchange.Ifthedirectorhastakennoactionwithintwenty-fiveworking
2112+HCSSSSB1359 58 59daysofreceiptofanapplication,theapplicationshallbedeemedapprovedandtheapplicant
2113+60mayactasalicensedself-servicestorageinsuranceproducer,unlesstheapplicanthas
2114+61indicatedaconvictionforafelonyoracrimeinvolvingmoralturpitude;
2115+62 (f)Thelimitedlinesself-servicestorageinsuranceproducerrequireseachemployee
2116+63andauthorizedrepresentativeoftheself-servicestorageinsuranceproducerwhoseduties
2117+64includeofferinganddisseminatingself-servicestorageinsurancetoreceiveaprogramof
2118+65instructionortrainingprovidedorauthorizedbytheinsurerorsupervisingentitythathas
2119+66beenreviewedandapprovedbythedirector.Thetrainingmaterialshall,ataminimum,
2120+67containinstructionsonthetypesofinsuranceoffered,ethicalsalespractices,andrequired
2121+68disclosurestoprospectivecustomers;
2122+69 (2)Anyindividualofferingordisseminatingself-servicestorageinsuranceshall
2123+70providetoprospectivepurchasersbrochuresorotherwrittenmaterialsthat:
2124+71 (a)Providetheidentityandcontactinformationoftheinsurerandanythird-party
2125+72administratororsupervisingentityauthorizedtoactonbehalfoftheinsurer;
2126+73 (b)Explainthatthepurchaseofself-servicestorageinsuranceisnotrequiredinorder
2127+74toleaseself-storageunits;
2128+75 (c)Explainthatanunlicensedself-servicestorageoperatorispermittedtoprovide
2129+76generalinformationabouttheinsuranceofferedbytheself-servicestorageoperator,including
2130+77adescriptionofthecoverageandprice,butisnotqualifiedorauthorizedtoanswertechnical
2131+78questionsaboutthetermsandconditionsoftheinsuranceofferedbytheself-servicestorage
2132+79operatorortoevaluatetheadequacyofthecustomer'sexistinginsurancecoverage;and
2133+80 (d)Disclosethatself-servicestorageinsurancemayprovideduplicationofcoverage
2134+81alreadyprovidedbyanoccupant's,homeowner's,renter's,orothersourceofcoverage;
2135+82 (3)Alimitedlinesself-servicestorageproducer'semployeeorauthorized
2136+83representative,whoisnotlicensedasaninsuranceproducer,maynot:
2137+84 (a)Evaluateorinterpretthetechnicalterms,benefits,andconditionsoftheoffered
2138+85self-servicestorageinsurancecoverage;
2139+86 (b)Evaluateorprovideadviceconcerningaprospectivepurchaser'sexisting
2140+87insurancecoverage;or
2141+88 (c)Holdthemselvesoritselfoutasalicensedinsurer,licensedproducer,orinsurance
2142+89expert;
2143+90 (4)Ifself-servicestorageinsuranceisofferedtothecustomer,premiumorother
2144+91chargesspecificallyapplicabletoself-servicestorageinsuranceshallbelistedasaseparate
2145+92amountandapartfromotherchargesrelatingtotheleaseand/orprocurementofaself-service
2146+93storageunitonalldocumentationpertinenttothetransaction.
2147+94 3.Notwithstandinganyotherprovisionoflaw,alimitedlinesself-servicestorage
2148+95insuranceproviderwhoseinsurance-relatedactivities,andthoseofitsemployeesand
2149+HCSSSSB1359 59 96authorizedrepresentatives,arelimitedtoofferinganddisseminatingself-servicestorage
2150+97insuranceonbehalfofandunderthedirectionofalimitedlinesself-servicestorageinsurance
2151+98producermeetingtheconditionsstatedinthissectionisauthorizedtodosoandreceive
2152+99relatedcompensation,uponregistrationbythelimitedlinesself-servicestorageinsurance
2153+100producerasdescribedinparagraph(b)ofsubdivision(1)ofsubsection2ofthissection.
2154+101 4.Self-servicestorageinsurancemaybeprovidedunderanindividualpolicyorunder
2155+102agroupormasterpolicy.
2156+103 5.Limitedlinesself-servicestorageinsuranceproducers,operators,employeesand
2157+104authorizedrepresentativesofferinganddisseminatingself-servicestorageinsuranceunderthe
2158+105limitedlinesself-servicestorageinsuranceproducerlicenseshallbesubjecttotheprovisions
2159+106ofchapters374and375,exceptasprovidedforinthissection.
2160+107 6.Limitedlinesself-servicestorageinsuranceproducers,operators,employeesand
2161+108authorizedrepresentativesmayofferanddisseminateself-servicestorageinsurancepolicies
2162+109inanamountnottoexceed[five] fifteenthousanddollarsofcoveragepercustomerper
2163+110storageunit.
2164+111 7.Thedirectormaypromulgaterulestoeffectuatethissection.Anyruleorportionof
2165+112arule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegated
2166+113inthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
2167+114provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter536
2168+115arenonseverableandifanyofthepowersvestedwiththegeneralassemblypursuantto
2169+116chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
2170+117subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
2171+118proposedoradoptedafterAugust28,2016,shallbeinvalidandvoid.
2172+380.621.1.Thissectionshallbeknownandmaybecitedasthe"Protecting
2173+2Missouri'sMutualInsuranceCompaniesAct".
2174+3 2.Asusedinthissection,thefollowingtermsshallmean:
2175+4 (1)"Adequatereinsurance",commerciallyavailablereinsuranceasdeemed
2176+5appropriatebytheboardofdirectorsofthecompany;
2177+6 (2)"Unlimitedaggregatereinsurance",aggregatereinsurancecoveragewhere
2178+7thelossescoveredbythereinsurerarenotlimited.
2179+8 3.Notwithstandinganyprovisionoflawtothecontrary,theauthorityexpressly
2180+9grantedinthischaptershallbethesoleauthoritygrantedtothedepartmentoverany
2181+10Missourimutualinsurancecompanyoperatingundertheprovisionsofthischapter,
2182+11providedthatanyprovisionsregardingpremiumtaxationsetforthinchapter148that
2183+12areapplicabletoMissourimutualinsurancecompaniesshallremainapplicableto
2184+13Missourimutualinsurancecompaniesandfurther,providedthatchapter382shall
2185+14remainapplicabletoanyMissourimutualinsurancecompanythatisamemberof,oris
2186+HCSSSSB1359 60 15seekingtobecomeamemberof,an"insuranceholdingcompanysystem",asthatterm
2187+16isdefinedinsection382.010,providedthatanyexaminationauthorizedbychapter382
2188+17shallcomplywithsubsections6and7ofthissectionwhereaMissourimutualinsurance
2189+18companyowns,inwholeorpart,anaffiliatesubjecttoexamination.Thedepartment
2190+19shallnotrequireanycompanyoperatingundertheprovisionsofthischaptertowaive
2191+20anyrights,benefits,orrequirementsspecifiedinthischapter,norshallitconfer
2192+21favorabletreatmentinexchangefor,norconditionthegrantingofanyexceptionupon,
2193+22anycompanyconcedingadditionalregulatoryoversightbythedepartment.Ifthe
2194+23departmentandanycompanyoperatingundertheprovisionsofthischapterhave
2195+24enteredintoanyagreementinwhichthedepartmenthasreceivedconcessionsincluding,
2196+25butnotlimitedto,additionalregulatoryoversightbeyondtheauthorityexpressly
2197+26grantedinthischapter,suchagreementasitrelatestothedepartment'sauthorityis
2198+27voidupontheenactmentofthissection,butsuchagreementshallremaininfullforce
2199+28andeffectforthestateddurationoftheagreementasitrelatestoanybenefits,
2200+29allowances,orexemptionsgrantedtothecompanybytheagreement.
2201+30 4.(1)Notwithstandinganyprovisionoflawtothecontrary,nothinginthis
2202+31chapternoranyregulationpromulgatedbythedepartmentincluding,butnotlimited
2203+32to,anyregulationpromulgatedundersections374.045,380.021,380.271,and380.561,
2204+33shallrequireorbeconstruedtorequireanycompanyoperatingundertheprovisionsof
2205+34thischaptertoacquireorcarryreinsurancegreaterthanadequatereinsurance
2206+35including,butnotlimitedto,unlimitedaggregatereinsurance.Nothinginthissection
2207+36shallbeconstruedtolimittheoptionofanofferofunlimitedaggregatereinsurance.
2208+37 (2)Missourimutualinsurancecompaniesoperatingundertheprovisionsofthis
2209+38chaptershallannuallyfilethefollowingwiththedirectornolaterthanMarchfirstof
2210+39eachcalendaryear:
2211+40 (a)Documentationfromthereinsurerorbrokerofitsreinsuranceprogram,
2212+41suchasthereinsurancecoveragesummaryorothersimilardocumentation;and
2213+42 (b)Aresolutionfromthecompany’sboardofdirectorsstatingthat:
2214+43 a.Theboardhasreviewedthetermsofthereinsuranceobtainedbythecompany
2215+44andbelievesitissufficienttoprotectthefinancialstabilityofthecompanyforthe
2216+45upcomingcalendaryear;
2217+46 b.Theboardagreestonotifythedirectorwithinfifteendaysafteranyevent,or
2218+47assoonaspracticablethereafterifadversedevelopmentoccurstotriggerthis
2219+48notification,thatisexpectedtoexceedthecompany'saggregateorcatastrophe
2220+49attachmentpointorcouldcausethecompany'sreinsurancecoveragetobeexhausted;
2221+50and
2222+HCSSSSB1359 61 51 c.Theboardagreestonotifythedirectorwithinfifteendaysafterthecompany
2223+52identifiesliquidityconcernsthatcouldimpactthecompany'sabilitytopayclaimsor
2224+53determinesthatthecompany’ssurplusislessthanitsadmittedassetsminusliabilities
2225+54plusthereservefundoradequateguarantyfundrequiredbysection380.021or380.271,
2226+55asapplicable.
2227+56 5.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
2228+57limitedto,theprovisionsofsection380.321,thedirectorshallnothavetheauthorityto
2229+58holdahearingregardingaproposedmergerofcompaniesoperatingpursuanttothe
2230+59provisionsofthischapterunlessthedirectorhassubstantialandcompetentevidenceto
2231+60believetheproposedmergerwillprejudicetheinterestsofthepolicyholdersofthe
2232+61companies.Thedirectorshallhavefifteenbusinessdaystoreviewthepetitionfor
2233+62mergerand,uponsubstantialandcompetentevidencetobelievetheproposedmerger
2234+63willprejudicetheinterestsofthepolicyholdersofthecompanies,sendawrittennotice
2235+64ofahearingregardingtheproposedmerger.Thewrittennoticeofhearingshallitemize
2236+65thereasonswhythedirectorbelievestheproposedmergerwillprejudicethe
2237+66policyholdersofthecompaniesandshallincludethedateofahearingregardingthe
2238+67proposedmergernoearlierthanthirtydaysandnolaterthansixtydaysafterthenotice
2239+68ofhearingisreceivedbythecompaniesinvolvedintheproposedmerger.
2240+69 6.Allworkingpapers,recordedinformation,documents,andcopiesthereof,
2241+70producedby,obtainedby,ordisclosedtothedepartmentoranyotherpersoninthe
2242+71courseofanexaminationmadeunderthischaptershallbeconfidentialandnotsubject
2243+72tosubpoenaandshallnotbemadepublicbythedepartmentorsharedwithanyother
2244+73person,exceptasfollows:
2245+74 (1)Uponadoption,thedirectormayopenthefinalexaminationreportforpublic
2246+75inspection;
2247+76 (2)Thedirectormaydisclosethecontentofanexaminationreport,preliminary
2248+77examinationreportorresults,oranymatterrelatingthereto,totheinsurance
2249+78departmentofthisoranyotherstateorcountry,ortolawenforcementofficialsofthis
2250+79oranyotherstateoragencyofthefederalgovernmentatanytime,solongassuch
2251+80agencyorofficereceivingthereportormattersrelatingtheretoagreesinwritingtohold
2252+81itconfidentialandinamannerconsistentwiththissection;and
2253+82 (3)Intheeventthedirectordeterminesthatlegalorregulatoryactionis
2254+83appropriateasaresultofanyexamination,heorshemayinitiateanyproceedingsor
2255+84actionsasprovidedbylaw.
2256+85 7.(1)Notwithstandingtheprovisionsofsection380.491,thedepartmentshall
2257+86notchargearateforexaminationsinexcessofareasonablefee.Areasonablefeeis
2258+HCSSSSB1359 62 87determinedbytheaveragemarketratetypicallychargedbythird-partyvendorsfor
2259+88suchservices.
2260+89 (2)Atanytimeafternotificationofthecommencementofanexaminationand
2261+90throughitscompletion,acompanymayrequestonaprospectivebasisthatthe
2262+91department’smonthlyexaminationbillingstatementsincludethefollowingadditional
2263+92details:
2264+93 (a)Hoursbilledforanexaminationshallberecordedinabillingstatement
2265+94providedtothecompanyeachmonththatsetsforththetimespent,usingfifteen-minute
2266+95increments,foreachbillingexaminermultipliedbytheapplicablehourlyrate;
2267+96 (b)Billingstatementsshallincludeashortandconcisestatementofthework
2268+97performedduringthemonthtowhichthebillingstatementappliesbythebilling
2269+98examinerforeachperiodoftimespentontheexamination;
2270+99 (c)Thehourlyrateforadepartmentemployeeshallbelistedonthebilling
2271+100statementandshallincludetheemployee’ssalary,benefits,andotherexpensesofthe
2272+101examination;
2273+102 (d)Thehourlyrateforathird-partyvendorshallbethelowestandbesthourly
2274+103rateobtainedbythedepartmentbyandthroughthestateprocurementprocess;and
2275+104 (e)Billingstatementsshallalsoincludeanyotherexpensesortheexamination,
2276+105includingtravelexpenses,asallowedbysection380.491.
2277+106 (3)Atanytimeafternotificationofthecommencementofanexaminationand
2278+107throughitscompletion,acompanymayrequestaschedulingconferencewiththe
2279+108departmenttodiscussthefollowing:
2280+109 (a)Thepurposeandscopeoftheexamination;
2281+110 (b)Theestimatedcostsoftheexamination;
2282+111 (c)Thetypesofinformationthatthecompanywillbeaskedtoproduce;
2283+112 (d)Themostefficientmeansofconductingtheexamination;and
2284+113 (e)Anyalternativeapproachesinconductingtheexaminationthatwouldbe
2285+114moreconvenient,lessburdensome,orlessexpensiveforthecompanywhilestill
2286+115providingforaneffectiveexaminationbythedepartment.
2287+116 (4)(a)Nomorethanthirtydaysaftertheschedulingconference,thedepartment
2288+117shallprovidethecompanywithadetailedwrittenbudgetestimatefortheexamination
2289+118thatshall,foreachforthcomingphaseoftheexamination:
2290+119 a.Identifytheindividualsorfirmsperformingtheexaminationandtheirdaily
2291+120orhourlyrates;
2292+121 b.Provideanestimateoftravel,lodging,meal,andotheradministrativeor
2293+122supplycosts;and
2294+HCSSSSB1359 63 123 c.Estimatethelengthoftimenecessarytoconducton-siteandoff-site
2295+124examinationactivities.
2296+125 (b)Withinfifteendaysofreceiptofabudgetestimateunderparagraph(a)of
2297+126thissubdivision,thecompanyandthedepartmentshallhaveanadditionaldiscussion
2298+127regardingthemostefficientmeansofconductingtheexaminationandproducing
2299+128information.Ifnecessary,revisionsofthebudgetestimateshallbemade.
2300+129 (c)Thetimeperiodsunderparagraphs(a)and(b)ofthissubdivisionmaybe
2301+130extendedifthecompanyandthedepartmentmutuallyagreetotheextension.
2302+131 (d)Atanytimeduringtheexamination,thedepartmentshallholdanother
2303+132schedulingconferencewiththecompanyinaccordancewiththeprovisionsofthis
2304+133subsectionandprovidearevisedbudgetestimateassetforthinparagraph(a)ofthis
2305+134subdivisionif:
2306+135 a.Thedepartmentdeterminesthatthecostoftheexaminationwillexceedthe
2307+136statedestimatedbudgetbymorethantenpercent;or
2308+137 b.Thereisamaterialchangeinstaffing.
2309+380.631.1.Thissectionappliestoanycompanyoperatingundertheprovisions
2310+2ofthischapter.
2311+3 2.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
2312+4limitedto,thedefinitionof"insolvent"undersection375.1152,acompanyoperating
2313+5undertheprovisionsofthischapteris"insolvent"assuchtermisusedinsections
2314+6375.1150to375.1246,ifitisunabletopayitsobligationswhentheyaredue,orifits
2315+7admittedassetsdonotexceeditsliabilitiesplusthereservefundoradequateguaranty
2316+8fundrequiredbysection380.021or380.271,asapplicable.
2317+9 3.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
2318+10limitedto,thespecificexceptionundersubdivision(1)ofsubsection2ofsection
2319+11375.1150,theprovisionsofsections375.1150to375.1246shallapplytoallcompanies
2320+12operatingundertheprovisionsofthischapter,exceptthatsuchcompaniesshallnotbe
2321+13subjecttosections375.1160to375.1164.Sections375.570to375.750shallapplytosuch
2322+14proceedings.
2323+15 4.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot
2324+16limitedto,thedefinitionof"insolventinsurer"undersection375.772,acompany
2325+17operatingundertheprovisionsofthischapterisan"insolventinsurer"assuchtermis
2326+18usedinsections375.771to375.779,upontheentryofafinalorderofliquidationwitha
2327+19findingofinsolvencybyacourtofcompetentjurisdictionundertheapplicable
2328+20provisionsofsections375.1150to375.1246,unlesssuchorderofliquidationhasbeen
2329+21stayedorbeenthesubjectofawritofsupersedeasorothercomparableorder.
2330+HCSSSSB1359 64 408.035.Notwithstandingtheprovisionsofanyotherlawtothecontrary,itislawful
2331+2forthepartiestoagreeinwritingtoanyrateofinterest,fees,andothertermsandconditions
2332+3inconnectionwithany:
2333+4 (1)Loantoacorporation,generalpartnership,limitedpartnershiporlimitedliability
2334+5company;
2335+6 (2)Extensionofcreditprimarilyforagricultural,business,orcommercialpurposes;
2336+7 (3)Realestateloan,otherthanresidentialrealestateloans[andloansoflessthanfive
2337+8thousanddollarssecuredbyrealestateusedforanagriculturalactivity]; or
2338+9 (4)Loanoffivethousanddollarsormoresecuredsolelybycertificatesofstock,
2339+10bonds,billsofexchange,certificatesofdeposit,warehousereceipts,orbillsofladingpledged
2340+11ascollateralfortherepaymentofsuchloans.
2341+408.140.1.Nofurtherorotherchargeoramountwhatsoevershallbedirectlyor
2342+2indirectlycharged,contractedfororreceivedforinterest,servicechargesorotherfeesasan
2343+3incidenttoanysuchextensionofcreditexceptasprovidedandregulatedbysections367.100
2344+4to367.200andexcept:
2345+5 (1)Onloansforthirtydaysorlongerwhichareotherthan"open-endcredit"assuch
2346+6termisdefinedinthefederalConsumerCreditProtectionActandregulationsthereunder,a
2347+7fee,nottoexceedtenpercentoftheprincipalamountloanednottoexceedonehundred
2348+8dollarsmaybechargedbythelender;however,nosuchfeeshallbepermittedonany
2349+9extension,refinance,restructureorrenewalofanysuchloan,unlessanyinvestigationismade
2350+10ontheapplicationtoextend,refinance,restructureorrenewtheloan;
2351+11 (2)Thelawfulfeesactuallyandnecessarilypaidoutbythelendertoanypublic
2352+12officerforfiling,recording,orreleasinginanypublicofficeanyinstrumentsecuringtheloan,
2353+13andreasonableandbonafidethird-partyfeesincurredforremoteorelectronicfiling,which
2354+14feesmaybecollectedwhentheloanismadeoratanytimethereafter;however,premiumsfor
2355+15insuranceinlieuofperfectingasecurityinterestrequiredbythelendermaybechargedifthe
2356+16premiumdoesnotexceedthefeeswhichwouldotherwisebepayable;
2357+17 (3)Ifthecontractsoprovides,achargeforlatepaymentoneachinstallmentor
2358+18minimumpaymentindefaultforaperiodofnotlessthanfifteendaysinanamountnotto
2359+19exceedfivepercentofeachinstallmentdueortheminimumpaymentdueorfifteendollars,
2360+20whicheverisgreater,nottoexceedfiftydollars.Ifthecontractsoprovides,achargeforlate
2361+21paymentoneachtwenty-fivedollarsorlessinstallmentindefaultforaperiodofnotlessthan
2362+22fifteendaysshallnotexceedfivedollars;
2363+23 (4)Ifthecontractsoprovides,achargeforlatepaymentforasinglepaymentnotein
2364+24defaultforaperiodofnotlessthanfifteendaysinanamountnottoexceedfivepercentofthe
2365+25paymentdue;providedthat,thelatechargeforasinglepaymentnoteshallnotexceedfifty
2366+26dollars;
2367+HCSSSSB1359 65 27 (5)Chargesorpremiumsforinsurancewritteninconnectionwithanyloanagainst
2368+28lossofordamagetopropertyoragainstliabilityarisingoutofownershiporuseofpropertyas
2369+29providedinsection367.170;however,notwithstandinganyotherprovisionoflaw,withthe
2370+30consentoftheborrower,suchinsurancemaycoverpropertyallorpartofwhichispledgedas
2371+31securityfortheloan,andchargesorpremiumsforinsuranceprovidinglife,health,accident,
2372+32orinvoluntaryunemploymentcoverage;
2373+33 (6)Reasonabletowingcostsandexpensesofretaking,holding,preparingforsale,
2374+34andsellinganypersonalpropertyinaccordancewiththeuniformcommercialcode-secured
2375+35transactions,sections400.9-101to400.9-809;
2376+36 (7)Areasonableservicefeenottoexceedtheamountpermittedundersubdivision(2)
2377+37ofsubsection6ofsection570.120foranycheck,draft,order,orlikeinstrumentthatis
2378+38returnedunpaidbyafinancialinstitution,plusanamountequaltotheactualfeeschargedby
2379+39thefinancialinstitutionforeachcheck,draft,order,orlikeinstrumentreturnedunpaid;
2380+40 (8)Ifthecontractorpromissorynote,signedbytheborrower,providesforattorney
2381+41fees,andifitisnecessarytobringsuit,suchattorneyfeesmaynotexceedfifteenpercentof
2382+42theamountdueandpayableundersuchcontractorpromissorynote,togetherwithanycourt
2383+43costsassessed.Theattorneyfeesshallonlybeapplicablewherethecontractorpromissory
2384+44noteisreferredforcollectiontoanattorney,andisnothandledbyasalariedemployeeofthe
2385+45holderofthecontract;
2386+46 (9)Iftheopen-endcreditcontractistiedtoatransactionaccountinadepository
2387+47institution,suchaccountisintheinstitution'sassetsandsuchcontractprovidesforloansof
2388+48thirty-onedaysorlongerwhichare"open-endcredit",assuchtermisdefinedinthefederal
2389+49ConsumerCreditProtectionActandregulationsthereunder,thecreditormaychargeacredit
2390+50advancefeeofuptothelesserofseventy-fivedollarsortenpercentofthecreditadvanced
2391+51fromtimetotimefromthelineofcredit;suchcreditadvancefeemaybeaddedtotheopen-
2392+52endcreditoutstandingalongwithanyinterest,andshallnotbeconsideredtheunlawful
2393+53compoundingofinterestasspecifiedundersection408.120;
2394+54 (10)Adeficiencywaiveraddendum,guaranteedassetprotection,orasimilarproduct
2395+55purchasedaspartofaloantransactionwithcollateralandattheborrower'sconsent,provided
2396+56thecostoftheproductisdisclosedintheloancontract,isreasonable,andtherequirementsof
2397+57section408.380aremet;
2398+58 (11)Aconveniencefeeforpaymentsusinganalternativepaymentchannelthat
2399+59acceptsadebitorcreditcardnotpresenttransaction,nonface-to-facepayment,providedthat:
2400+60 (a)Thepersonmakingthepaymentisnotifiedoftheconveniencefee;and
2401+61 (b)Thefeeisfixedorflat,exceptthatthefeemayvarybaseduponmethodof
2402+62paymentused;and
2403+63 (12)Achargeequaltothecostofthecreditreport.
2404+HCSSSSB1359 66 64 2.Otherprovisionsoflawtothecontrarynotwithstanding,anopen-endcredit
2405+65contractunderwhichacreditcardisissuedbyacompany,financialinstitution,savingsand
2406+66loanorothercreditissuingcompanywhosecreditcardoperationsarelocatedinMissouri
2407+67maychargeanannualfee,providedthatnofinancechargeshallbeassessedonnewpurchases
2408+68otherthancashadvancesifsuchpurchasesarepaidforwithintwenty-fivedaysofthedateof
2409+69theperiodicstatementtherefor.
2410+70 3.Notwithstandinganyotherprovisionoflawtothecontrary,inadditiontocharges
2411+71allowedpursuanttosection408.100,anopen-endcreditcontractprovidedbyacompany,
2412+72financialinstitution,savingsandloanorothercreditissuingcompanywhichisregulated
2413+73pursuanttothischaptermaychargeanannualfeenottoexceedfiftydollars.
2414+427.300.1.Thissectionshallbeknown,andmaybecitedas,the"Commercial
2415+2FinancingDisclosureLaw".
2416+3 2.Forpurposesofthissection,thefollowingtermsmean:
2417+4 (1)"Account";
2418+5 (a)Includes:
2419+6 a.Arighttopaymentofamonetaryobligation,regardlessofwhetherearnedby
2420+7performance,foroneofthefollowing:
2421+8 (i)Propertythathasbeenoristobesold,leased,licensed,assigned,orotherwise
2422+9disposedof;
2423+10 (ii)Servicesrenderedortoberendered;
2424+11 (iii)Apolicyofinsuranceissuedortobeissued;
2425+12 (iv)Asecondaryobligationincurredortobeincurred;
2426+13 (v)Energyprovidedortobeprovided;
2427+14 (vi)Theuseorhireofavesselunderacharterorothercontract;
2428+15 (vii)Arisingoutoftheuseofacreditorchargecardorinformationcontainedon
2429+16orforusewiththecard;or
2430+17 (viii)Aswinningsinalotteryorothergameofchanceoperatedorsponsoredby
2431+18astate,governmentalunitofastate,orpersonlicensedorauthorizedtooperatethe
2432+19gamebyastateorgovernmentalunitofastate;and
2433+20 b.Health-care-insurancereceivables;and
2434+21 (b)doesnotinclude:
2435+22 a.Rightstopaymentevidencedbychattelpaperoraninstrument;
2436+23 b.Commercialtortclaims;
2437+24 c.Depositaccounts;
2438+25 d.Investmentproperty;
2439+26 e.Letter-of-creditrightsorlettersofcredit;or
2440+HCSSSSB1359 67 27 f.Rightstopaymentformoneysorfundsadvancedorsold,otherthanrights
2441+28arisingoutoftheuseofacreditorchargecardorinformationcontainedonorforuse
2442+29withthecard;
2443+30 (2)"Accountsreceivablepurchasetransaction",anytransactioninwhichthe
2444+31businessforwardsorotherwisesellstotheprovideralloraportionofthebusiness's
2445+32accountsorpaymentintangiblesatadiscounttotheirexpectedvalue.Theprovider's
2446+33characterizationofanaccountsreceivablepurchasetransactionasapurchaseis
2447+34conclusivethattheaccountsreceivablepurchasetransactionisnotaloanora
2448+35transactionfortheuse,forbearance,ordetentionofmoney;
2449+36 (3)"Broker",anypersonwho,forcompensationortheexpectationof
2450+37compensation,obtainsacommercialfinancingtransactionoranofferforacommercial
2451+38financingtransactionfromathirdpartythatwould,ifexecuted,bebindinguponthat
2452+39thirdpartyandcommunicatesthatoffertoabusinesslocatedinthisstate.Theterm
2453+40"broker"excludesaprovider,oranyindividualorentitywhosecompensationisnot
2454+41basedordependentonthetermsofthespecificcommercialfinancingtransaction
2455+42obtainedoroffered;
2456+43 (4)"Business",anindividualorgroupofindividuals,soleproprietorship,
2457+44corporation,limitedliabilitycompany,trust,estate,cooperative,association,orlimited
2458+45orgeneralpartnershipengagedinabusinessactivity;
2459+46 (5)"Businesspurposetransaction",anytransactionwheretheproceedsare
2460+47providedtoabusinessorareintendedtobeusedtocarryonabusinessandnotfor
2461+48personal,family,orhouseholdpurposes.Forpurposesofdeterminingwhethera
2462+49transactionisabusinesspurposetransaction,theprovidermayrelyonanywritten
2463+50statementofintendedpurposesignedbythebusiness.Thestatementmaybeaseparate
2464+51statementormaybecontainedinanapplication,agreement,orotherdocumentsigned
2465+52bythebusinessorthebusinessownerorowners;
2466+53 (6)"Commercialfinancingfacility",aprovider'splanforpurchasingmultiple
2467+54accountsreceivablefromtherecipientoveraperiodoftimepursuanttoanagreement
2468+55thatsetsforththetermsandconditionsgoverningtheuseofthefacility;
2469+56 (7)"Commercialfinancingtransaction",anycommercialloan,accounts
2470+57receivablepurchasetransaction,commercialopen-endcreditplanoreachtothe
2471+58extentthetransactionisabusinesspurposetransaction;
2472+59 (8)"Commercialloan",aloantoabusiness,whethersecuredorunsecured;
2473+60 (9)"Commercialopen-endcreditplan",commercialfinancingextendedbyany
2474+61providerunderaplaninwhich:
2475+62 (a)Theproviderreasonablycontemplatesrepeattransactions;and
2476+HCSSSSB1359 68 63 (b)Theamountoffinancingthatmaybeextendedtothebusinessduringthe
2477+64termoftheplan,uptoanylimitsetbytheprovider,isgenerallymadeavailabletothe
2478+65extentthatanyoutstandingbalanceisrepaid;
2479+66 (10)"Depositoryinstitution",anyofthefollowing:
2480+67 (a)Abank,trustcompany,orindustrialloancompanydoingbusinessunderthe
2481+68authorityof,orinaccordancewith,alicense,certificate,orcharterissuedbytheUnited
2482+69States,thisstate,oranyotherstate,district,territory,orcommonwealthoftheUnited
2483+70Statesthatisauthorizedtotransactbusinessinthisstate;
2484+71 (b)Afederallycharteredsavingsandloanassociation,federalsavingsbank,or
2485+72federalcreditunionthatisauthorizedtotransactbusinessinthisstate;or
2486+73 (c)Asavingsandloanassociation,savingsbank,orcreditunionorganized
2487+74underthelawsofthisoranyotherstatethatisauthorizedtotransactbusinessinthis
2488+75state;
2489+76 (11)"Generalintangible",anypersonalproperty,includingthingsinaction,
2490+77otherthanaccounts,chattelpaper,commercialtortclaims,depositaccounts,
2491+78documents,goods,instruments,investmentproperty,letter-of-creditrights,lettersof
2492+79credit,money,andoil,gas,orothermineralsbeforeextraction."Generalintangible"
2493+80alsoincludespaymentintangiblesandsoftware;
2494+81 (12)"Paymentintangible",ageneralintangibleunderwhichtheaccount
2495+82debtor'sprincipalobligationisamonetaryobligation;
2496+83 (13)"Provider",apersonwhoconsummatesmorethanfivecommercial
2497+84financingtransactionstoabusinesslocatedinthisstateinanycalendaryear.
2498+85"Provider"alsoincludesapersonthatentersintoawrittenagreementwithadepository
2499+86institutiontoarrangefortheextensionofacommercialfinancingtransactionbythe
2500+87depositoryinstitutiontoabusinessviaanonlinelendingplatformadministeredbythe
2501+88person.Thefactthataproviderextendsaspecificofferforacommercialfinancing
2502+89transactiononbehalfofadepositoryinstitutionshallnotbeconstruedtomeanthatthe
2503+90providerengagedinlendingorfinancingororiginatedthatloanorfinancing.
2504+91 3.(1)Aproviderthatconsummatesacommercialfinancingtransactionshall
2505+92disclosethetermsofthecommercialfinancingtransactionasrequiredbythissection.
2506+93Thedisclosuresshallbeprovidedatorbeforeconsummationofthetransaction.Only
2507+94onedisclosureisrequiredforeachcommercialfinancingtransaction,andadisclosureis
2508+95notrequiredasaresultofthemodification,forbearance,orchangetoaconsummated
2509+96commercialfinancingtransaction.
2510+97 (2)Aprovidershalldisclosethefollowinginconnectionwitheachcommercial
2511+98financingtransaction:
2512+HCSSSSB1359 69 99 (a)Thetotalamountoffundsprovidedtothebusinessunderthetermsofthe
2513+100commercialfinancingtransactionagreement.Thisdisclosureshallbelabeled"Total
2514+101AmountofFundsProvided";
2515+102 (b)Thetotalamountoffundsdisbursedtothebusinessunderthetermsofthe
2516+103commercialfinancingtransaction,iflessthanthetotalamountoffundsprovided,asa
2517+104resultofanyfeesdeductedorwithheldatdisbursementandanyamountpaidtoathird
2518+105partyonbehalfofthebusiness.Thisdisclosureshallbelabeled"TotalAmountofFunds
2519+106Disbursed";
2520+107 (c)Thetotalamounttobepaidtotheproviderpursuanttothecommercial
2521+108financingtransactionagreement.Thisdisclosureshallbelabeled"TotalofPayments";
2522+109 (d)Thetotaldollarcostofthecommercialfinancingtransactionundertheterms
2523+110oftheagreement,derivedbysubtractingthetotalamountoffundsprovidedfromthe
2524+111totalofpayments.Thiscalculationshallincludeanyfeesorchargesdeductedbythe
2525+112providerfromthe"TotalAmountofFundsProvided".Thisdisclosureshallbelabeled
2526+113"TotalDollarCostofFinancing";
2527+114 (e)Themanner,frequency,andamountofeachpayment.Thisdisclosureshall
2528+115belabeled"Payments".Ifthepaymentsmayvary,theprovidershallinsteaddisclose
2529+116themanner,frequency,andtheestimatedamountoftheinitialpaymentlabeled
2530+117"EstimatedPayments"andthecommercialfinancingtransactionagreementshall
2531+118includeadescriptionofthemethodologyforcalculatinganyvariablepaymentandthe
2532+119circumstanceswhenpaymentsmayvary;
2533+120 (f)Astatementofwhetherthereareanycostsordiscountsassociatedwith
2534+121prepaymentofthecommercialfinancingproductincludingareferencetotheparagraph
2535+122intheagreementthatcreatesthecontractualrightsofthepartiesrelatedtoprepayment.
2536+123Thisdisclosureshallbelabeled"Prepayment";and
2537+124 (3)Aproviderthatconsummatesacommercialfinancingfacilitymayprovide
2538+125disclosuresofthissubsectionwhicharebasedonanexampleofatransactionthatcould
2539+126occurundertheagreement.Theexampleshallbebasedonanaccountsreceivabletotal
2540+127faceamountowedoftenthousanddollars.Onlyonedisclosureisrequiredforeach
2541+128commercialfinancingfacility,andadisclosureisnotrequiredasresultofa
2542+129modification,forbearance,orchangetothefacility.Anewdisclosureisnotrequired
2543+130eachtimeaccountsreceivablearepurchasedunderthefacility.
2544+131 4.Theprovisionsofthissectionshallnotapplytothefollowing:
2545+132 (1)Aproviderthatisadepositoryinstitutionorasubsidiaryoraffiliate;A
2546+133providerthatisaservicecorporationtoadepositoryinstitutionthatis:
2547+134 (a)Ownedandcontrolledbyadepositoryinstitution;and
2548+135 (b)Regulatedbyafederalbankingagency;
2549+HCSSSSB1359 70 136 (2)AproviderthatisalenderregulatedunderthefederalFarmCreditAct,12
2550+137U.S.C.Section2001etseq.;
2551+138 (3)Acommercialfinancingtransactionthatis:
2552+139 (a)Securedbyrealproperty;
2553+140 (b)Alease;or
2554+141 (c)Apurchasemoneyobligationthatisincurredasallorpartofthepriceofthe
2555+142collateralorforvaluegiventoenablethebusinesstoacquirerightsinortheuseofthe
2556+143collateralifthevalueisinfactsoused;
2557+144 (4)Acommercialfinancingtransactioninwhichtherecipientisamotorvehicle
2558+145dealeroranaffiliateofsuchadealer,oravehiclerentalcompany,oranaffiliateofsuch
2559+146acompany,pursuanttoacommercialloanorcommercialopen-endcreditplanofat
2560+147leastfiftythousanddollarsoracommercialfinancingtransactionofferedbyapersonin
2561+148connectionwiththesaleorleaseofproductsorservicesthatsuchpersonmanufactures,
2562+149licenses,ordistributes,orwhoseparentcompanyoranyofitsdirectlyorindirectly
2563+150ownedandcontrolledsubsidiariesmanufactures,licenses,ordistributes;
2564+151 (5)Acommercialfinancingtransactionthatisafactoringtransaction,purchase,
2565+152sale,advance,orsimilarofaccountsreceivableowedtoahealthcareproviderbecause
2566+153ofapatient'spersonalinjurytreatedbythehealthcareprovider;
2567+154 (6)Aproviderthatislicensedasamoneytransmitterinaccordancewitha
2568+155license,certificate,orcharterissuedbythisstateoranyotherstate,district,territory,or
2569+156commonwealthoftheUnitedStates;
2570+157 (7)Aproviderthatconsummatesnomorethanfivecommercialfinancing
2571+158transactionsinthisstateinatwelve-monthperiod;or
2572+159 (8)Acommercialfinancingtransactionofmorethanfivehundredthousand
2573+160dollars.
2574+161 5.(1)Nopersonshallengageinbusinessasabrokerwithinthisstatefor
2575+162compensation,unlesspriortoconductingsuchbusiness,thepersonhasfileda
2576+163registrationwiththedivisionoffinancewithinthedepartmentofcommerceand
2577+164insuranceandhasonfileagoodandsufficientbondasspecifiedinthissubsection.The
2578+165registrationshallbeeffectiveuponreceiptbythedivisionoffinanceofacompleted
2579+166registrationformandtherequiredregistrationfee,andshallremaineffectiveuntilthe
2580+167timeofrenewal.
2581+168 (2)Afterfilinganinitialregistrationform,abrokershallfile,onorbefore
2582+169Januarythirty-firstofeachyear,arenewalregistrationformalongwiththerequired
2583+170renewalregistrationfee.
2584+HCSSSSB1359 71 171 (3)Thebrokershallpayaone-hundred-dollarregistrationfeeuponthefilingof
2585+172aninitialregistrationandafifty-dollarrenewalregistrationfeeuponthefilingofa
2586+173renewalregistration.
2587+174 (4)Theregistrationformrequiredbythissubsectionshallincludethefollowing:
2588+175 (a)Thenameofthebroker;
2589+176 (b)Thenameinwhichthebrokeristransactedifdifferentfromthatstatedin
2590+177paragraph(a)ofthissubdivision;
2591+178 (c)Theaddressofthebroker'sprincipaloffice,whichmaybeoutsidethisstate;
2592+179 (d)Whetheranyofficer,director,manager,operator,orprincipalofthebroker
2593+180hasbeenconvictedofafelonyinvolvinganactoffraud,dishonesty,breachoftrust,or
2594+181moneylaundering;and
2595+182 (e)Thenameandaddressinthisstateofadesignatedagentuponwhomservice
2596+183ofprocessmaybemade.
2597+184 (5)Ifinformationinaregistrationformchangesorotherwisebecomes
2598+185inaccurateafterfiling,thebrokershallnotberequiredtofileafurtherregistration
2599+186formpriortothetimeofrenewal.
2600+187 (6)Everybrokershallobtainasuretybondissuedbyasuretycompany
2601+188authorizedtodobusinessinthisstate.Theamountofthebondshallbetenthousand
2602+189dollars.ThebondshallbeinfavorofthestateofMissouri.Anypersondamagedbythe
2603+190broker'sbreachofcontractorofanyobligationarisingtherefrom,orbyanyviolationof
2604+191thissection,maybringanactionagainstthebondtorecoverdamagessuffered.The
2605+192aggregateliabilityofthesuretyshallbeonlyforactualdamagesandinnoeventshall
2606+193exceedtheamountofthebond.
2607+194 (7)Employeesregularlyemployedbyabrokerwhohascompliedwiththis
2608+195subsectionshallnotberequiredtofilearegistrationorobtainasuretybondwhen
2609+196actingwithinthescopeoftheiremploymentforthebroker.
2610+197 6.(1)Anypersonwhoviolatesanyprovisionofthissectionshallbepunishedby
2611+198afineoffivehundreddollarsperincident,nottoexceedtwentythousanddollarsforall
2612+199aggregatedviolationsarisingfromtheuseofthetransactiondocumentationormaterials
2613+200foundtobeinviolationofthissection.Anypersonwhoviolatesanyprovisionofthis
2614+201sectionafterreceivingwrittennoticeofapriorviolationfromtheattorneygeneralshall
2615+202bepunishedbyafineofonethousanddollarsperincident,nottoexceedfiftythousand
2616+203dollarsforallaggregatedviolationsarisingfromtheuseofthetransaction
2617+204documentationormaterialsfoundtobeinviolationofthissection.
2618+205 (2)Violationofanyprovisionofthissectionshallnotaffecttheenforceabilityor
2619+206validityoftheunderlyingagreement.
2620+HCSSSSB1359 72 207 (3)Thissectionshallnotcreateaprivaterightofactionagainstanypersonor
2621+208otherentitybaseduponcomplianceornoncompliancewithitsprovisions.
2622+209 (4)Authoritytoenforcecompliancewiththissectionisvestedexclusivelyinthe
2623+210attorneygeneralofthisstate.
2624+211 7.Therequirementsofsubsections3and5ofthissectionshalltakeeffectupon
2625+212either:
2626+213 (1)Sixmonthsafterthedivisionoffinancefinalizespromulgatingrules,ifthe
2627+214divisionintendstopromulgaterules;or
2628+215 (2)February28,2025,ifthedivisiondoesnotintendtopromulgaterules.
2629+216 8.Thedivisionoffinancemaypromulgaterulesimplementingthissection.If
2630+217thedivisionoffinanceintendstopromulgaterules,itshalldeclareitsintenttodosono
2631+218laterthanFebruary28,2025.Anyruleorportionofarule,asthattermisdefinedin
2632+219section536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
2633+220becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter
2634+221536and,ifapplicable,section536.028.Thissectionandchapter536arenonseverable
2635+222andifanyofthepowersvestedwiththegeneralassemblypursuanttochapter536to
2636+223review,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
2637+224heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
2638+225adoptedafterAugust28,2024,shallbeinvalidandvoid.
2639+442.210.1.Thecertificateofacknowledgmentshallstatetheactof
2640+2acknowledgment,andthatthepersonmakingthesamewaspersonallyknowntoatleast
2641+3onejudgeofthecourt,ortotheofficergrantingthecertificate,tobethepersonwhosenameis
2642+4subscribedtotheinstrumentasapartythereto,orwasprovedtobesuchbyatleasttwo
2643+5witnesses,whosenamesandplacesofresidenceshallbeinsertedinthecertificate;andthe
2644+6followingformsofacknowledgmentmaybeusedinthecaseofconveyancesorotherwritten
2645+7instrumentsaffectingrealestate;andanyacknowledgmentsotakenandcertificateshallbe
2646+8sufficienttosatisfyallrequirementsoflawrelatingtotheexecutionorrecordingofsuch
2647+9instruments(begininallcasesbyacaption,specifyingthestateandplacewherethe
2648+10acknowledgmentistaken):
2649+11 (1)Incaseofnaturalpersonsactingintheirownright
2650+12 Onthis______dayof______,20______,beforemepersonallyappearedAB(orAB
2651+13andCD),tomeknowntobetheperson(orpersons)describedinandwhoexecutedthe
2652+14foregoinginstrument,andacknowledgedthathe(orthey)executedthesameashis(ortheir)
2653+15freeactanddeed.
2654+16 (2)Inthecaseofnaturalpersonsactingbyattorney
2655+HCSSSSB1359 73 17 Onthis______dayof______,20______,beforemepersonallyappearedAB,tome
2656+18knowntobethepersonwhoexecutedtheforegoinginstrumentinbehalfofCD,and
2657+19acknowledgedthatheexecutedthesameasthefreeactanddeedofCD.
2658+20 (3)Inthecaseofcorporationsorjointstockassociations
2659+21 Onthis______dayof______,20______,beforemeappearedAB,tomepersonally
2660+22known,who,beingbymedulysworn(oraffirmed)didsaythatheisthepresident(orother
2661+23officeroragentofthecorporationorassociation),of(describingthecorporationor
2662+24association),andthatthesealaffixedtoforegoinginstrumentisthecorporatesealofsaid
2663+25corporation(orassociation),andthatsaidinstrumentwassignedandsealedinbehalfofsaid
2664+26corporation(orassociation)byauthorityofitsboardofdirectors(ortrustees),andsaidAB
2665+27acknowledgedsaidinstrumenttobethefreeactanddeedofsaidcorporation(orassociation).
2666+28 2.Incasethecorporationorassociationhasnocorporateseal,omitthewords"the
2667+29sealaffixedtosaidinstrumentisthecorporatesealofsaidcorporation(orassociation),and
2668+30that",andaddattheendoftheaffidavitclausethewords"andthatsaidcorporation(or
2669+31association)hasnocorporateseal".
2670+32 3.(Inallcasesaddsignatureandtitleoftheofficertakingtheacknowledgment.)
2671+33 [4.Whenamarriedwomanuniteswithherhusbandintheexecutionofanysuch
2672+34instrument,andacknowledgesthesameinoneoftheformsabovesanctioned,sheshallbe
2673+35describedintheacknowledgmentashiswife,butinallotherrespectsheracknowledgment
2674+36shallbetakenandcertifiedasifsheweresole;andnoseparateexaminationofamarried
2675+37womaninrespecttotheexecutionofanyreleaseordower,orotherinstrumentaffectingreal
2676+38estate,shallberequired.]
2677+[361.700.1.Sections361.700to361.727shallbeknownandmaybe
2678+2 citedasthe"SaleofChecksLaw".
2679+3 2.Forthepurposesofsections361.700to361.727,thefollowing
2680+4 termsmean:
2681+5 (1)"Check",anyinstrumentforthetransmissionorpaymentofmoney
2682+6 andshallalsoincludeanyelectronicmeansoftransmittingorpayingmoney;
2683+7 (2)"Director",thedirectorofthedivisionoffinance;
2684+8 (3)"Licensee",anypersondulylicensedbythedirectorpursuantto
2685+9 sections361.700to361.727;
2686+10 (4)"Person",anyindividual,partnership,association,trustor
2687+11 corporation.]
2688+[361.705.1.Nopersonshallissuechecksinthisstatefora
2689+2 considerationwithoutfirstobtainingalicensefromthedirector;provided,
2690+3 however,thatsections361.700to361.727shallnotapplytothereceiptof
2691+4 moneybyanincorporatedtelegraphcompanyatanyofficeoragencyofsuch
2692+5 companyforimmediatetransmissionbytelegraphnortoanybank,trust
2693+6 company,savingsandloanassociation,creditunion,oragencyoftheUnited
2694+7 Statesgovernment.
2695+HCSSSSB1359 74 8 2.Anypersonwhoviolatesanyoftheprovisionsofsections361.700
2696+9 to361.727orattemptstosellorissuecheckswithouthavingfirstobtaineda
2697+10 licensefromthedirectorshallbedeemedguiltyofaclassAmisdemeanor.]
2698+[361.707.1.Eachapplicationforalicensepursuanttosections
2699+2 361.700to361.727shallbeinwritingandunderoathtothedirectorinsuch
2700+3 formashemayprescribe.Theapplicationshallstatethefullnameand
2701+4 businessaddressof:
2702+5 (1)Theproprietor,iftheapplicantisanindividual;
2703+6 (2)Everymember,iftheapplicantisapartnershiporassociation;
2704+7 (3)Thecorporationandeachofficeranddirectorthereof,ifthe
2705+8 applicantisacorporation.
2706+9 2.Eachapplicationforalicenseshallbeaccompaniedbyan
2707+10 investigationfeeofthreehundreddollars.Ifthelicenseisgrantedthe
2708+11 investigationfeeshallbeappliedtothelicensefeeforthefirstyear.No
2709+12 investigationfeeshallberefunded.]
2710+[361.711.Eachapplicationforalicenseshallbeaccompaniedbya
2711+2 corporatesuretybondintheprincipalsumofonehundredthousanddollars.
2712+3 Thebondshallbeinformsatisfactorytothedirectorandshallbeissuedbya
2713+4 bondingcompanyorinsurancecompanyauthorizedtodobusinessinthis
2714+5 state,tosecurethefaithfulperformanceoftheobligationsoftheapplicantand
2715+6 theagentsandsubagentsoftheapplicantwithrespecttothereceipt,
2716+7 transmission,andpaymentofmoneyinconnectionwiththesaleorissuanceof
2717+8 checksandalsotopaythecostsincurredbythedivisiontoremedyanybreach
2718+9 oftheobligationsoftheapplicantsubjecttothebondortopayexamination
2719+10 costsofthedivisionowedandnotpaidbytheapplicant.Uponlicense
2720+11 renewal,therequiredamountofbondshallbeasfollows:
2721+12 (1)Foralllicenseessellingpaymentinstrumentsorstoredvaluecards,
2722+13 fivetimesthehighoutstandingbalancefromthepreviousyearwitha
2723+14 minimumofonehundredthousanddollarsandamaximumofonemillion
2724+15 dollars;
2725+16 (2)Foralllicenseesreceivingmoneyfortransmission,fivetimesthe
2726+17 greatestamounttransmittedinasingledayduringthepreviousyearwitha
2727+18 minimumofonehundredthousanddollarsandamaximumofonemillion
2728+19 dollars.
2729+20
2730+21 Ifintheopinionofthedirectorthebondshallatanytimeappeartobe
2731+22 inadequate,insecure,exhausted,orotherwisedoubtful,additionalbondin
2732+23 formandwithsuretysatisfactorytothedirectorshallbefiledwithinfifteen
2733+24 daysafternoticeoftherequirementisgiventothelicenseebythedirector.An
2734+25 applicantorlicenseemay,inlieuoffilinganybondrequiredunderthis
2735+26 section,providethedirectorwithanirrevocableletterofcredit,asdefinedin
2736+27 section400.5-103,issuedbyanystateorfederalfinancialinstitution.
2737+28 Wheneverinthedirector'sjudgmentitisnecessaryorexpedient,the
2738+29 directormayperformaspecialexaminationofanypersonlicensedunder
2739+30 sections361.700to361.727withallauthorityundersection361.160asthough
2740+HCSSSSB1359 75 31 thelicenseewereabank.Thecostofsuchexaminationshallbepaidbythe
2741+32 licensee.]
2742+[361.715.1.Uponthefilingoftheapplication,thefilingofacertified
2743+2 audit,thepaymentoftheinvestigationfeeandtheapprovalbythedirectorof
2744+3 thenecessarybond,thedirectorshallcause,investigate,anddetermine
2745+4 whetherthecharacter,responsibility,andgeneralfitnessoftheprincipalsof
2746+5 theapplicantoranyaffiliatesaresuchastocommandconfidenceandwarrant
2747+6 beliefthatthebusinessoftheapplicantwillbeconductedhonestlyand
2748+7 efficientlyandthattheapplicantisincompliancewithallotherapplicable
2749+8 stateandfederallaws.Ifsatisfied,thedirectorshallissuetotheapplicanta
2750+9 licensepursuanttotheprovisionsofsections361.700to361.727.In
2751+10 processingarenewallicense,thedirectorshallrequirethesameinformation
2752+11 andfollowthesameproceduresdescribedinthissubsection.
2753+12 2.Eachlicenseeshallpaytothedirectorbeforetheissuanceofthe
2754+13 license,andannuallythereafteronorbeforeAprilfifteenthofeachyear,a
2755+14 licensefeeoffourhundreddollars.
2756+15 3.Thedirectormayassessareasonablecharge,nottoexceedfour
2757+16 hundreddollars,foranyapplicationtoamendandreissueanexistinglicense.]
2758+[361.718.Everylicenseeshallatalltimeshaveondemanddepositina
2759+2 federallyinsureddepositoryinstitutionorintheformofcashonhandorinthe
2760+3 handsofhisagentsorinreadilymarketablesecuritiesanamountequaltoall
2761+4 outstandingunpaidcheckssoldbyhimorhisagentsinMissouri,inadditionto
2762+5 theamountofhisbond.Upondemandbythedirector,licenseesmust
2763+6 immediatelyprovideproofofsuchfundsorsecurities.Thedirectormaymake
2764+7 suchdemandasoftenasreasonablynecessaryandshallmakesuchdemandto
2765+8 eachlicensee,withoutpriornotice,atleasttwiceeachlicenseyear.]
2766+[361.720.Eachlicenseemayconductbusinessatoneormore
2767+2 locationswithinthisstateandbymeansofemployees,agents,subagentsor
2768+3 representativesassuchlicenseemaydesignate.Nolicenseundersections
2769+4 361.700to361.727shallberequiredofanysuchemployee,agent,subagentor
2770+5 representativewhosellschecksinbehalfofalicensee.Eachsuchagent,
2771+6 subagentorrepresentativeshallupondemandtransferanddelivertothe
2772+7 licenseetheproceedsofthesaleoflicensee'scheckslessthefees,ifany,due
2773+8 suchagent,subagentorrepresentative.]
2774+[361.723.Eachlicenseeshallfilewiththedirectorannuallyonor
2775+2 beforeAprilfifteenthofeachyearastatementlistingthelocationsofthe
2776+3 officesofthelicenseeandthenamesandlocationsoftheagentsorsubagents
2777+4 authorizedbythelicenseetoengageinthesaleofchecksofwhichthelicensee
2778+5 istheissuer.]
2779+[361.725.Thedirectormayatanytimesuspendorrevokealicense,
2780+2 foranyreasonhemightrefusetograntalicense,forfailuretopayanannual
2781+3 feeorforaviolationofanyprovisionofsections361.700to361.727.No
2782+4 licenseshallbedenied,revokedorsuspendedexceptontendays'noticetothe
2783+HCSSSSB1359 76 5 applicantorlicensee.Uponreceiptofsuchnoticetheapplicantorlicensee
2784+6 may,withinfivedaysofsuchreceipt,makewrittendemandforahearing.The
2785+7 directorshallthereafterhearanddeterminethematterinaccordancewiththe
2786+8 provisionsofchapter536.]
2787+[361.727.Thedirectorshallissueregulationsnecessarytocarryout
2788+2 theintentandpurposesofsections361.700to361.727,pursuanttothe
2789+3 provisionsofsection361.105andchapter536.]
2790+✔
2791+HCSSSSB1359 77