To repeal sections 303.024, 303.025, 303.026, 303.042, 303.140, 303.290 and 303.370, RSMo 1994, and section 307.400, RSMo Supp. 1996, relating to motor vehicles, and to enact in lieu thereof nine new sections relating to the same subject, with penalty provisions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

Section A. Sections 303.024, 303.025, 303.026, 303.042, 303.140, 303.290 and 303.370, RSMo 1994, and section 307.400, RSMo Supp. 1996, are repealed and nine new sections enacted in lieu thereof, to be known as sections 303.024, 303.025, 303.026, 303.042, 303.140, 303.290, 303.370, 307.400 and 1, to read as follows:

303.024. 1. Each insurer issuing motor vehicle liability policies in this state, or an agent of the insurer, shall furnish an insurance identification card to the named insured for each motor vehicle insured by a motor vehicle liability policy that complies with the requirements of [sections 303.010 to 303.050, 303.060, 303.140, 303.220, 303.290, 303.330 and 303.370] this chapter.

2. The insurance identification card shall include all of the following information:

(1) The name and address of the insurer;

(2) The name of the named insured;

(3) The policy number;

(4) The effective dates of the policy, including month, day and year;

(5) A description of the insured motor vehicle, including year and make or at least five digits of the vehicle identification number or the word "Fleet" if the insurance policy covers five or more motor vehicles;

(6) The statement "THIS CARD MUST BE CARRIED IN THE INSURED MOTOR VEHICLE FOR PRODUCTION UPON DEMAND" prominently displayed on the card.

3. A new insurance identification card shall be issued when the insured motor vehicle is changed, when an additional motor vehicle is insured, and when a new policy number is assigned. A replacement insurance identification card shall be issued at the request of the insured in the event of loss of the original insurance identification card.

4. The director shall furnish each self-insurer, as provided for in section 303.220, an insurance identification card for each motor vehicle so insured. The insurance identification card shall include all of the following information:

(1) Name of the self-insurer;

(2) The word "self-insured";

(3) The statement "THIS CARD MUST BE CARRIED IN THE SELF-INSURED MOTOR VEHICLE FOR PRODUCTION UPON DEMAND" prominently displayed on the card.

5. An insurance identification card shall be carried in the insured motor vehicle at all times. [The operator of an insured motor vehicle shall exhibit the insurance identification card on the demand of] Any peace officer who lawfully stops [such] an operator of a motor vehicle while that officer is engaged in the performance of the duties of [his] the officer's office shall request that such operator present the insurance identification card to the peace officer, and such operator shall present the card immediately upon such request. If the operator fails to [exhibit] present an insurance identification card, the officer shall notify the director of revenue, in the manner determined by the director. A motor vehicle liability insurance policy, a motor vehicle liability insurance binder, or receipt which contains the policy information required in subsection 2 of this section, shall be satisfactory evidence of insurance in lieu of an insurance identification card. Any person who violates this section is guilty of a class A misdemeanor and the court shall assess a fine against the operator for a violation of this subsection an amount of one hundred dollars for the first violation, two hundred fifty dollars for the second violation and five hundred dollars for the third and each subsequent violation. If the operator is unable to pay the fine required by this section, the judge may imprison such person in lieu of such fine, thirty days for each one hundred dollars owed. The penalties provided by this section shall be in addition to any administrative suspensions of the operator's drivers' license or vehicle registrations and any reinstatement fees for such suspensions. No penalty for a violation of this section shall be assessed or imposed if the operator provides the court with proof that on the date which the operator did not provide the card or other proof required by this subsection for the motor vehicle being operated to the peace officer, the operator in fact was in compliance with the financial responsibility requirements of this chapter with respect to such motor vehicle. The penalties assessed pursuant to this subsection shall be deposited in the school moneys fund to be distributed to the various school districts located wholly or partially within the county in which the operator was lawfully stopped. This subsection shall not apply to any operator of a rented motor vehicle. All penalty provisions of this section shall be displayed in plain view and in large bold print in every fee office of this state.

303.025. 1. No owner of a motor vehicle registered in this state, or required to be registered in this state, shall operate the vehicle, or authorize any other person to operate the vehicle, unless the owner maintains the financial responsibility as required in this section. Furthermore, no person shall operate a motor vehicle owned by another with the knowledge that the owner has not maintained financial responsibility unless such person has financial responsibility which covers [his] the person's operation of the other's vehicle. Any person who violates this section is guilty of a class C misdemeanor and the court shall assess and impose, at a minimum, a fine of one hundred dollars for the first offense, two hundred fifty dollars for the second offense and five hundred dollars for the third and any subsequent offense. If the operator or owner is unable to pay the fine required by this section, the judge may imprison such person in lieu of such fine, thirty days for each one hundred dollars owed. The penalties provided by this section shall be in addition to any administrative suspensions of the operator's or owner's drivers' license or vehicle registrations and any reinstatement fees for such suspensions. No penalty for a violation of this section shall be assessed or imposed if the operator or the owner provides the court with evidence that on the date the owner or operator was charged with violating this section, the operator or the owner in fact was in compliance with the financial responsibility requirements of this chapter with respect to such motor vehicle. Notwithstanding any provision of law to the contrary, no city, town or village in this state shall adopt or enforce any order or ordinance regulating motor vehicle financial responsibility which imposes any penalty exceeding those prescribed by this section.

2. A motor vehicle owner shall maintain [his] the owner's financial responsibility in a manner provided for in section 303.160, or with a motor vehicle liability policy which conforms to the requirements of the laws of this state.

3. Nothing in sections 303.010 to 303.050, 303.060, 303.140, 303.220, 303.290, 303.330 and 303.370 shall be construed as prohibiting the department of insurance from approving or authorizing those exclusions and limitations which are contained in automobile liability insurance policies and the uninsured motorist provisions of automobile liability insurance policies.

303.026. 1. The director shall inform each owner who registers a motor vehicle of the following:

(1) The existence of the requirement that every motor vehicle owner in the state maintain [his] financial responsibility;

(2) The existence of the requirement that every motor vehicle owner provide proof of financial responsibility at the time of registering a vehicle by presenting:

(a) An insurance identification card or a copy thereof;

(b) An insurance policy, certificate of insurance, insurance binder or a copy thereof;

(c) Written certification from an insurance company, insurance agent or insurance broker confirming that the motor vehicle owner maintains financial responsibility of such vehicle at the time of registration;

(d) A certificate of deposit of money or securities as provided in section 303.240; or

(e) A certificate of self-insurance as provided in section 303.220;

[(2)] (3) The penalties which apply to violations of the requirement to maintain financial responsibility;

[(3)] (4) The benefits of maintaining coverages in excess of those which are required;

[(4)] (5) The director's authority to conduct samples of Missouri motor vehicle owners to insure compliance.

2. No motor vehicle owner shall be issued registration for a vehicle unless the owner, or [his] the owner's authorized agent, [signs a statement provided by] must demonstrate to the director of revenue at the time of registration of the vehicle certifying that such owner has and will maintain, during the period of registration, financial responsibility with respect to each motor vehicle that is owned, licensed or operated on the streets or highways[.], and, unless such owner registers the owner's vehicle in conjunction with a reciprocity agreement entered into by the Missouri highway reciprocity commission pursuant to sections 301.271 to 301.279, RSMo, at the time of registration presents:

(1) An insurance identification card or a copy thereof;

(2) An insurance policy, certificate of insurance, insurance binder or copy thereof;

(3) Written certification from an insurance company, insurance agent or insurance broker confirming that the motor vehicle owner maintains financial responsibility of such vehicle at the time of registration;

(4) A certificate of deposit of money or securities as provided in section 303.240;

(5) A certificate of self-insurance as provided in section 303.240; or

(6) Some other proof of financial responsibility in the form prescribed by the director of revenue.

3. The director shall annually select for financial responsibility verification, a sample of the motor vehicle registrations or licenses which is statistically significant to determine the number of insured motorists in the state of Missouri, [or] to [insure] ensure compliance. The director may utilize a variety of sampling techniques including but not limited to the processing of uniform traffic tickets, point system warning letters, and random surveys of motor vehicle registrations.

4. Upon determination that the information provided by the owner or authorized agent is inaccurate, the director shall notify the owner of the need to provide, within thirty days, information establishing the existence of the required financial responsibility as of the date of such notice. Failure to provide such information shall result in the suspension of all registrations of the owner's motor vehicles failing to meet such requirements, as is provided in section 303.041.

303.042. 1. The suspension shall become effective thirty days after the subject person is deemed to have received the notice of suspension by certified mail as provided in section 303.041. If the request for a hearing is received by the department prior to the effective date of the suspension, the effective date of the suspension [will] shall be stayed until a final order is issued following the hearing; however, any delay in the hearing which is caused or requested by the subject person or counsel representing that person without good cause shown shall not result in a stay of the suspension during the period of delay.

2. Except as provided in subsection 3 of this section, the period of suspension [under this] pursuant to section 303.041 shall be as follows:

(1) If the person's driving record shows no prior failure to maintain the required financial responsibility as provided for in section 303.025, the period of suspension shall be sixty days after the effective date of suspension;

(2) If the person's record shows one prior suspension for failure to maintain the required financial responsibility as provided for in section 303.025, the period of suspension shall be one year after the effective date of suspension;

(3) If the person's driving record shows two or more prior suspensions for failure to maintain the required financial responsibility as provided for in section 303.025, the period of suspension shall be two years after the effective date of suspension. The director shall not reduce any period of suspension provided for in this subsection.

3. In the event such person is also subject to suspension pursuant to section 303.030 for damages or injuries arising out of a motor vehicle accident, such person's license to operate a motor vehicle shall be suspended until such person deposits security, is released from liability, is finally adjudicated not to be liable or executes an agreement providing for payment with respect to all injuries or damages resulting from the accident provided for in subsection 1 or 2 of section 303.030. In addition, no such person shall be eligible for reinstatement of any license to operate a motor vehicle until proof of financial responsibility is filed with the department in accordance with this chapter.

4. In the event that proof of financial responsibility has not been filed with the department of revenue in accordance with this chapter prior to the end of the period of suspension provided in subsection 2 or 3 of this section, such period of suspension shall be extended until such proof of financial responsibility has been filed. In no event shall filing proof of financial responsibility reduce any period of suspension.

303.140. [The license and registration and nonresident's operating privilege suspended as provided in section 303.030 shall remain suspended and shall not be renewed nor shall a license or registration be issued to the person until:

(1) The person deposits, or there is deposited on his behalf, the security required under section 303.030; or

(2) One year has elapsed following the date of the suspension, and no claimant has filed notice, supported by a copy of the petition bearing the court file number, that he has commenced an action in a court of record, begun not later than one year after the date of such accident, arising out of the accident on which the suspension is based; or

(3) Evidence satisfactory to the director is filed with him of a release from liability, or a final adjudication of nonliability, or a duly acknowledged written agreement, in accordance with subdivision (3) of section 303.070; but] If there is any default in the payment of any installment under any duly acknowledged written agreement, then, upon notice of the default, the director shall forthwith suspend the license and registration or nonresident's operating privilege of the person defaulting which shall not be restored unless and until:

[(a)] (1) The person deposits and thereafter maintains security as required under section 303.030 in the amount that the director then determines or files another duly acknowledged written installment agreement, or files a final adjudication of nonliability, or files a release from liability; or

[(b) One year has] (2) Five years have elapsed following the date [when the security was required] of the accident and during that period no action [upon the agreement] has been instituted in a court of this state against such person for a violation of this chapter.

303.290. 1. The director of revenue shall administer and enforce the provisions of this chapter and may make rules and regulations necessary for its administration and shall provide for hearings upon request of persons aggrieved by orders or acts of the director [under] pursuant to the provisions of this chapter. Upon receipt of a request for an administrative hearing the director of revenue shall reach a final decision including findings of fact and conclusions of law within [ninety] one hundred twenty days of the date the hearing is held.

2. Any decision, finding or order of the director, [under] pursuant to the provisions of this chapter shall be subject to review by appeal to the circuit court of the county of the residence of the licensee, at the instance of any party in interest, in the manner provided by chapter 536, RSMo, at any time within thirty days after notice is given the licensee of such decision, finding or order. Upon such appeal the cause shall be heard de novo and the circuit court may determine the reasonableness of the director's decision, finding or order, and in disposing of the issues before it may modify, affirm, or reverse the decision, finding or order in whole or in part. Appeals from the judgment of the circuit court may be taken as in civil cases. The prosecuting attorney of the county where such appeal is taken shall appear in behalf of the director, and prosecute or defend as the case may require.

303.370. 1. Failure to report an accident as required in section 303.040 shall be punished by a fine not in excess of five hundred dollars, and in the event of injury or damage to the person or property of another in such accident, the director shall suspend the license of the person failing to make such report, or the nonresident's operating privilege of such person, until such report has been filed or for no more than one year, provided all other requirements for reinstatement have been met and for such further period not to exceed thirty days as the director may fix.

2. Any person who gives information required in report or otherwise as provided for in section 303.040 knowing or having reason to believe that it is forged or signed without authority, shall be fined not more than one thousand dollars or imprisoned for not more than one year, or both.

3. Any person whose license or registration or nonresident's operating privilege has been suspended or revoked [under] pursuant to this chapter and who, during such suspension or revocation drives any motor vehicle upon any highway or knowingly permits any motor vehicle owned by such person to be operated by another upon any highway, except as permitted under this chapter, shall be [fined not more than five hundred dollars or imprisoned not exceeding six months, or both.] guilty of a class A misdemeanor.

4. Any person willfully failing to return [his] the person's license or registration as required in section 303.330 shall be fined not more than five hundred dollars or imprisoned not to exceed thirty days, or both.

5. Any person who [shall violate] violates any provision of this chapter for which no penalty is otherwise provided shall be fined not more than five hundred dollars or imprisoned not more than ninety days, or both.

307.400. 1. As used in this section, "commercial motor vehicle" means any self-propelled or towed vehicle, including a trailer, used on public highways in interstate or intrastate commerce to transport passengers or property whenever:

(1) The vehicle has a gross vehicle weight rating or gross combination weight rating of more than ten thousand pounds;

(2) The vehicle is designed to transport more than fifteen passengers, including the driver; or

(3) The vehicle is used in the transportation of hazardous materials in a quantity requiring placarding under regulations issued by the secretary of the United States Department of Transportation under the Hazardous Materials Transportation Act, sections 5101, et seq., of title 49 United States Code.

[1.] 2. It is unlawful for any person to operate any commercial motor vehicle [licensed for more than twelve thousand pounds] as defined in this section, either singly or in combination [with a trailer, as both vehicles are defined in section 301.010, RSMo], unless such vehicles are equipped and operated as required by Parts 390 through 397, Title 49, Code of Federal Regulations, as such regulations have been and may periodically be amended, whether intrastate [transportation] commerce or interstate [transportation] commerce. Members of the Missouri state highway patrol are authorized to enter the cargo area of a commercial motor vehicle [or trailer] to inspect the contents when reasonable grounds exist to cause belief that the vehicle is transporting hazardous materials as defined by Title 49 of the Code of Federal Regulations. The director of the department of public safety is hereby authorized to further regulate the safety of commercial motor vehicles [and trailers] as [he deems] deemed necessary to govern and control their operation on the public highways of this state by promulgating and publishing rules and regulations consistent with this chapter. Any such rules shall, in addition to any other provisions deemed necessary by the director, require:

(1) Every commercial motor vehicle [and trailer] and all parts thereof to be maintained in a safe condition at all times[;], as required pursuant to paragraph (a) or (b) of this subdivision;

(a) Except as provided in paragraph (b) of this subdivision, commercial motor vehicles as defined in this section shall comply with the applicable safety requirements of Parts 390-397, Title 49, Code of Federal Regulations, as those regulations have been and may periodically be amended;

(b) Any commercial motor vehicle operated in intrastate commerce and duly licensed for a gross weight of sixty thousand pounds or less when used exclusively for the transportation of solid waste or forty-two thousand pounds or less when the license plate has been designated for farm use by the letter "F" as authorized by the revised statutes of Missouri, shall comply with the applicable motor vehicle equipment requirements as established in subsection 8 of section 307.170, RSMo.

(2) Accidents arising from or in connection with the operation of commercial motor vehicles and trailers to be reported to the department of public safety in such detail and in such manner as the director may require.

Except for the provisions of subdivisions (1) and (2) of this subsection, the provisions of this section shall not apply to any commercial motor vehicle operated in intrastate commerce and licensed for a gross weight of sixty thousand pounds or less when used exclusively for the transportation of solid waste or forty-two thousand pounds or less when the license plate has been designated for farm use by the letter "F" as authorized by the Revised Statutes of Missouri, unless such vehicle is transporting hazardous materials as defined in Title 49, Code of Federal Regulations.

[2.] 3. Notwithstanding the provisions of subsection 1 of this section to the contrary, Part 391, Subpart E, Title 49, Code of Federal Regulations, relating to the physical requirements of drivers shall not be applicable to drivers in intrastate commerce, provided such drivers were licensed by this state as chauffeurs to operate commercial motor vehicles on May 13, 1988. Persons who are otherwise qualified and licensed to operate a commercial motor vehicle in this state may operate such vehicle intrastate at the age of eighteen years or older, except that any person transporting hazardous material must be at least twenty-one years of age.

[3.] 4. Commercial motor vehicles and drivers of such vehicles may be placed out of service if the vehicles are not equipped and operated according to the requirements of this section. Criteria used for placing vehicles and drivers out of service are the North American Uniform Out-of-Service Criteria adopted by the Commercial Vehicle Safety Alliance and the United States Department of Transportation, as such criteria have been and may periodically be amended.

[4.] 5. Notwithstanding the provisions of subsection 1 of this section to the contrary, Part 395, Title 49, Code of Federal Regulations, relating to the hours of drivers, shall not apply to any vehicle owned or operated by any public utility, rural electric cooperative or other public service organization, or to the driver of such vehicle, while providing restoration of essential utility services during emergencies and operating intrastate. For the purposes of this subsection, the term "essential utility services" means electric, gas, water, telephone and sewer services.

[5.] 6. Violation of any provision of this section or any rule promulgated as authorized therein is a class B misdemeanor.

[6.] 7. No rule or portion of a rule promulgated under the authority of this chapter shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

     Section 1. Material damage to a vehicle sold in this state shall be disclosed as follows:

     (1) Each manufacturer or distributor of new motor vehicles sold or transferred to a motor vehicle dealer in this state, shall notify the motor vehicle dealer in writing prior to delivery of the vehicle of any material damage to the vehicle which is known to the manufacturer or distributor and repaired, and which was sustained or incurred by the motor vehicle at any time after the manufacturing process is complete but prior to delivery of the vehicle to the dealer;

     (2) In selling a new motor vehicle, each motor vehicle dealer in this state shall notify the purchaser in writing at the time of sale of any material damage to the vehicle which is known to the motor vehicle dealer and which was sustained or incurred by the motor vehicle at any time after the manufacturing process is complete, but prior to delivery of the vehicle to the purchaser;

     (3) For purposes of this section, "material damage" means damage sustained or incurred by a motor vehicle, whether corrected or uncorrected, which cost to repair exceeds three percent of the manufacturer's suggested retail price of the vehicle based upon the dealer's retail repair cost or the sum of five hundred dollars, whichever is greater. Damage to tires, glass, bumpers, dash boards, and in-dash audio equipment shall not be considered in determining the cost of repair if those components are replaced by identical manufacturer's original equipment. The failure of a manufacturer, distributor, or motor vehicle dealer to give notice of damage below the threshold constituting "material damage" shall not provide grounds for revocation of the sale nor shall such failure constitute a material misrepresentation or omission of fact; and

     (4) Each manufacturer or distributor of new motor vehicles shall indemnify and hold harmless the motor vehicle dealer obtaining a vehicle from the manufacturer or distributor from and against any liability, including reasonable attorneys' fees, which the motor vehicle dealer may have to the purchaser of the vehicle as a result of damage to the new motor vehicle which was known to the manufacturer or distributor and repaired, which occurred after the manufacturing process is complete but prior to delivery of the vehicle to the dealer, and which was not disclosed in writing to the dealer prior to delivery of the vehicle.