15 CSR — Elected Officials

Division 30 Secretary of State

Chapter 1 Organization

15 CSR 30-1.020 General Organization—Missouri Elections Commission {#sec-15-csr-30-1.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-1.020}

15 CSR 30-1.010 General Organization {#sec-15-csr-30-1.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-1.010}

PURPOSE: This rule describes the general organization and functions of the Office of the Secretary of State to comply with the requirements of section 536.023, RSMo.

(1) The Office of Secretary of State has many diverse responsibilities. The office collects, compiles, stores, and publishes a variety of state documents. The secretary of state is the chief elections official. The secretary of state oversees several areas relating to state commerce, such as administration of the Uniform Commercial Code and registration of corporations and securities. In addition, the secretary of state is the keeper of the Great Seal of the State of Missouri and authenticates official acts of the governor. Except where otherwise noted, the general mailing address is: 600 West Main Street, PO Box 1767, Jefferson City, MO 65102. Functions of the office are divided into seven (7) divisions: Elections, Securities, Business Services, Library Services, Records Services, Administrative Rules, and Administrative Services. The executive deputy secretary of state is secondin-command and is charged by law with implementing the policies and procedures of the secretary of state and supervising the dayto-day operations of certain phases of the office. The executive deputy secretary of state shall possess all the powers and perform any of the duties prescribed by law to be performed by the secretary of state when and for such period of time as the secretary of state may designate. The divisions of the office are as follows:

(A) State Library. The State Library is composed of the state librarian and two (2) sections: Library Development and Reference Services. The State Library promotes and encourages library services, continuing education, resource sharing, technology, program planning, needs assessment, and evaluation; provides counsel, advice, and continuing education to library boards; and ensures library and information services to diverse populations through libraries. It also receives federal grants including Library Services and Technology Act (LSTA) program, prepares reports, keeps records, and directs information about federal programs to libraries in the state. Information may be obtained from the state librarian in person on the second floor of the James C. Kirkpatrick State Information Center, by written request to PO Box 387, Jefferson City, MO 65102, by email at mostlib@sos.mo.gov, by fax at (573) 751- 3612, or by telephone at (573) 522-4036 or (800) 325-0131.

The State Library Development section produces informative publications, brochures, newsletters, and other publications for the Missouri library community, coordinates all activities of the Missouri Center for the Book, works with statewide and local literacy organizations, and consults with libraries on the development of literacy programs. It administers federal and state grants and the privately funded grants or projects.

Other programs include library automation and technology; library administration and management; state and community partnerships; youth and senior services; and the State Census Data Center. Information may be obtained from this section in person on the second floor of the James C. Kirkpatrick State Information Center, by written request to PO Box 387, Jefferson City, MO 65102, by email at mostlib@sos.mo.gov, by fax at (573) 751-3612 or by telephone at (573) 522- 4036 or (800) 325-0131.

The State Library Reference Services

section provides library and information services, reference services, and research to government officials, agencies, and employees. It also administers the federal and state documents programs. Information may be obtained from this section in person on the second floor of the James C. Kirkpatrick State Information Center, by written request to PO Box 387, Jefferson City, MO 65102, by email at libref@sos.mo.gov, by fax at (573) 751-3612 or by telephone at (573) 751- 3615.

Wolfner Library provides public library services and administers library materials, equipment, and information services to persons unable to use standard print. Information may be obtained from this section in person on the second floor of the James C.

Kirkpatrick State Information Center, by written request to PO Box 387, Jefferson City, MO 65102, by email at wolfner@sos.mo.gov, by fax at (573) 751- 3612 or by telephone at (573) 751-8720 or instate toll free (800) 392-2614;

(B) Records Services. The Records Services Division fulfills the constitutional duty of the secretary of state for the management and safekeeping of state records. Under the state and local records law, the secretary of state administers the section providing for the efficient and economical application of management methods to the creation, utilization, maintenance, retention, preservation, and disposal of official records.

The State Archives is the officially designated repository for all state records of permanent value. Its mission is to identify, collect, preserve, and make available to elected officials, state government, historians, students, genealogists, and the general public, the permanent and historically valuable records of Missouri’s state and local governments. The Missouri Historical Records Advisory Board (MHRAB) is the central advisory body for historical records planning and for projects relating to historic records, developed and carried out within the state.

The MHRAB provides state-level appraisal of grant proposals submitted to the National Historical Publications and Records Commission by Missouri repositories and serves as the review and award panel for grant applications submitted to the Missouri Historical Records Grant Program and the Local Records Preservation Program. Information about these services may be obtained from the State Archives in person in Room 119, ter, by written request to PO Box 1747, Jefferson City, MO 65102, by telephone at (573) 751-3280, by fax at (573) 526-5327, or by email at archref@sos.mo.gov.

Local Records provides assistance to units of local government by advising and educating the local records custodians in the use of sound records management and archival practices. The program’s conservation laboratory provides treatment and advisory services on all aspects of records care, preservation, and disaster recovery. The Local Records Grant Program offers local governments, or political subdivisions with taxing
Records Management assists state agencies in the development of their records management programs. Such programs include a planned and coordinated set of policies, procedures, and activities needed to ensure the efficient and effective management of an agency’s records regardless of the media on which the information is recorded (i.e., electronic, paper, microfilm, etc.). The State Records Commission determines the retention and disposition of state agency records based on administrative, legal, fiscal, or historical values. Records Management provides a host of services to agencies, including consultation and technical advice, microfilm processing, duplicating and quality control, and off-site storage of documents.

Information on these services may be obtained in person in Rooms 103, 192, 278, ter, by written request to PO Box 1747, Jefferson City, MO 65102, by telephone at (573) 751-3319, by fax at (573) 526-5327, or by email at recman@sos.mo.gov;

(C) Securities. The Securities Division administers the Missouri Uniform Securities Act through an appointed commissioner of securities. The commissioner also oversees the enforcement and licensing responsibilities of this division. Information may be obtained from this division in person in Room 229, ter, by written request to PO Box 1276, Jefferson City, MO 65102, by email at securities@sos.mo.gov, by fax at (573) 526-3124, or by telephone at (573) 751-4136 for securities questions, by telephone at (573) 751- 4136 for registration of securities or (573) 751-2302 for registration of broker-dealers, agents, and investment advisers or (573) 751- 4704 for enforcement, exemptions, exceptions, and exclusions, or by email at securities@sos.mo.gov.

The Enforcement section of the Securities Division conducts enforcement activities, including responses to suspected violations or complaints. In the case of suspected violations, the Enforcement section may conduct investigations. The Enforcement section may seek administrative sanctions from the commissioner prohibiting or conditioning the further sale of securities; denying, suspending, or revoking the registration of broker dealers, agents, investment advisers, and investment adviser representatives; or censuring any registrant. The commissioner may seek an injunction, writ of mandamus, the appointment of a receiver or conservator, and other equitable relief in a circuit court. The commissioner may refer cases for criminal prosecution to prosecuting attorneys and the attorney general, and the commissioner or the Enforcement section may assist in those prosecutions. The Enforcement section may coordinate with the enforcement efforts of the attorney general, prosecuting attorneys, and any state or federal law enforcement agencies.
The Registration section reviews applications for securities registrations, notice filings for state exemptions and federal covered securities, and applications for broker-dealers, agents, investment advisers, and investment adviser representatives and may recommend action on any such application to the commissioner. It also makes recommendations to the commissioner for determinations of whether a specific security or certain transactions would be exempt from registration. The Registration section may also refer matters to the Enforcement section. The Registration section, upon proper request from any person, shall propose interpretive opinions for issuance by the commissioner;

(D) Business Services. The Business Services Division is composed of four (4) sections; Corporations, Commissions, Uniform Commercial Code, and Safe at Home. The director for business services is responsible for overseeing the day-to-day functions of each section, and for the direct supervision of the management staff of each section. The Business Services Division also oversees branch offices in St. Louis, Kansas City, and Springfield.

The Corporations section administers the laws and filings of business entities organized under the laws of Missouri and business organizations from other jurisdictions having certificates of authority to do business in the state of Missouri. Corporations are required to file articles of incorporation and amended articles, instruments affecting mergers or consolidations, and articles of dissolution and termination. Each corporation must file an annual registration report and pay annual registration fees to remain in good standing.

This section processes dissolutions, terminations, and forfeitures. The section administers all registration of fictitious names and provides certified copies of documents relating to the organization of business entities. In addition to these basic functions, this section handles daily communications from attorneys and individuals requesting information contained in the respective entity files. This section is to furnish and regulate the availability of entity names so that those names are protected and distinguishable from one another.

This section processes trademark and service mark registrations, furnishes certificates of registration, and maintains a register of the marks. Service of process is received, processed, and forwarded from this section.

A. Information may be obtained from this section in person in Room 322 of the James C. Kirkpatrick State Information Center, by written request to PO Box 778, (866) 223-6535 or (573) 751-4153, by fax at (573) 751-5841, or by email at corporations@sos.mo.gov.

B. From the St. Louis office in person at 815 Old Post Office and Customs House, Olive Street, Suite 150, St. Louis, Missouri, 63101, or by telephone at (314) 340-7490, or by fax at (314) 340-7500.

C. From the Kansas City office in person at the Fletcher Daniels State Office Building, Room 513, Kansas City, Missouri, 64106, or by telephone at (816) 889-2925, or by fax at (816) 889-2879.

D. From the Springfield office in person at the Landers State Office Building, 149 Park Central Sq., Room 624, Springfield, Missouri, 65806, by telephone at (417) 895- 6330, or by fax at (417) 895-6537.

The Commissions section performs the constitutional duties of the secretary of state relating to affixing the Great Seal of the State of Missouri and authenticating all official acts of the governor, except the approval of laws. The section maintains a record of the governor’s proclamations, executive orders, commissions and appointments, extraditions, domestic requisitions, commutations, and restorations of citizenship and also prepares certificates of appointments and commissions. Commissions staff of the secretary of state’s office sign and seal requests for extradition, domestic requisitions, commutations, and restoration of citizenship. This section processes certifications and authentications confirming the authority of a public official, such as a notary public, recorder of deeds, or county clerk to act in a particular capacity in connection with a document that he or she has signed. Commissions also receives, reviews, and maintains all notary public applications, oaths, bonds, and commissions.

A. Information may be obtained from this section in person in Room 322 of the James C. Kirkpatrick State Information Center, by written request to PO Box 784, (866) 223-6535 or (573) 751-2783, by fax at (573) 751-8199, or by email at commissions@sos.mo.gov.

B. From the St. Louis office in person at 815 Old Post Office and Customs House, Olive Street, Suite 150, St. Louis, Missouri, 63101, by telephone at (314) 340-7490, or by fax at (314) 340-7500.

C. From the Kansas City office at the Fletcher Daniels State Office Building, Room 513, Kansas City, Missouri, 64106, by telephone at (816) 889-2925, or by fax at (816) 889-2879.

D. From the Springfield office at the Landers State Office Building, 149 Park Central Sq., Room 624, Springfield, Missouri, 65806, by telephone at (417) 895-6330, or by fax at (417) 895-6537.

The Uniform Commercial Code (UCC) section has the duty of perfecting liens or security interests for many loans in Missouri. These loans are perfected by the filing of a financing statement which when filed shows the date, hour, and file number.

A. Information may be obtained from this section in person in Room 322 of the ter, by written request to PO Box 1159, Jefferson City, MO 65102, by telephone at (866)

(2/28/21) JOHN R. ASHCROFT 223-6535 or (573) 751-4628, by fax at (573) 751-3855, or by email at UCC@sos.mo.gov.

The Safe at Home program provides an address confidentiality program to those who are survivors of domestic violence, sexual assault, rape, human trafficking, stalking, or other crimes in their efforts to stay safe by providing a designated address to use when creating new public records. These services help keep survivors’ confidential addresses out of the hands of their assailants. The public may obtain information from this section by written request to PO Box 1409, Jefferson City, MO 65102, by telephone at (866) 509- 1409, by fax at (573) 522-1525, or by email at SafeAtHome@sos.mo.gov;

(E) Elections. The Elections Division administers all statewide elections for both candidates and issues. The division administers the filing of candidates for governor, lieutenant governor, secretary of state, auditor, treasurer, attorney general, United States senators and congressmen, Missouri state senators and representatives, and certain judicial candidates. The division also prepares ballots, certifies lists of candidates for primary elections to the county clerks and election boards, certifies nominees following the primary election, prepares ballots for the general election, canvasses returns, and publishes returns. Also initiative and referendum petitions and petitions to place new political parties on the ballot are filed with the secretary of state. The division and the secretary determine if the petitions have a sufficient number of qualified signatures to be placed on the ballot. Before the convening of each general assembly the division prepares a list of the duly elected members for the secretary of state to present to the speaker of the house and the secretary of the senate. The division accepts and maintains a file of annual reports from county clerks on fees and salaries of elected county officials, coordinates the implementation of the National Voter Registration Act in Missouri, and administers the centralized voter registration database. The operations of this division are supervised by two (2) co-directors, one (1) republican and one (1) democrat. Information may be obtained from this division in person in Room 337, James C. Kirkpatrick State Information Center, by written request to PO Box 1767, Jefferson City, MO 65102, by email at elections@sos.mo.gov, by fax at (573) 526- 3242 or by telephone at (573) 751-2301;

(F) Fiscal, Human Resources (HR), and Facilities. The Fiscal, HR, and Facilities Division is responsible for certain statutory and public service requirements of the secretary of state’s office.

The Fiscal Office supports the secretary of state’s office in matters involving budgets and funding for expense, equipment, and personal service appropriations. It processes payments to vendors and administers the requirements of contracts for purchase and lease of equipment established by the office.

Additionally, it is responsible for approving all revenue transactions, tracking and reporting on all grants received, and handling of all facilities issues.

The Human Resources Office supports the following functions: staff payroll processing, employee benefits, training, performance evaluation, and personnel recruitment.
The Central Services section is responsible for opening and distributing mail, shipping and receiving for the entire office, keeping office supplies, surplus property, vehicle maintenance, and travel reservations.
Information may be obtained from the division by written request to PO Box 1767, (573) 751-1831, by email at SOSMain@sos.mo.gov, by fax at (573) 522- 6289, or in person on the third floor of the ter;

(G) Administrative Rules. Administrative Rules is the central filing office for the administrative rules of all state agencies.

Chapter 536, RSMo, mandates the Secretary of State publish the Missouri Register, which contains the text of all new proposed rules, amendments, and rescissions. This publication is currently published twice a month.

Once finalized and adopted, the rule becomes

part of the permanent volumes of the Code of State Regulations, which is a compilation of the final rules of all state agencies. The updates to the Code of State Regulations are published once a month. Additionally, section 536.023, RSMo requires Administrative Rules to set forth in writing the policies and procedures for the uniform standards for preparing and filing rules. Administrative Rules publishes a guide to administrative rulemaking, commonly known as Missouri State Rulemaking Manual.

Information may be obtained from Administrative Rules by written request to PO Box 1767, Jefferson City, MO 65102, or by telephone at (573) 751-4015, by email at rules@sos.mo.gov, by fax at (573) 751-3032, or in person in Room 168, James C. Kirkpatrick State Information Center.
The Code of State Regulations and the Missouri Register are posted on the Internet at https://www.sos.mo.gov/adrules/moreg/mor eg (Missouri Register) or https://www.sos.mo.gov/adrules/csr/csr (Code of State Regulations), and the uniform standards and procedures for rulemaking, Missouri State Rulemaking Manual at: https://www.sos.mo.gov/adrules/manual/ma nual;

(H) Communications/Publications. The Communications/Publications Division is responsible for collecting, compiling, designing, and editing manuals of the Missouri Constitution, General Assembly Roster, Missouri Roster, and Official State of Missouri Manual (blue book). They also compile the manual of the Missouri Election Laws, Notary Public Handbook, and numerous other brochures, bookmarks, forms, newsletters, and notices for the office. All publications are available to the public by mail at Communications/Publications Division, Secretary of State’s Office, PO Box 1767, Jefferson City, MO 65102; by email at publications@sos.mo.gov; online at https://www.sos.mo.gov/pubs; or by telephone at (573) 751-4218; and (I) Information Technology. The Information and Technology section provides computer hardware, software, and network support, new system development, web development, and technology planning, implementation, support, and maintenance for computer and information systems throughout the Office of Secretary of State.

Information may be obtained from this section in person in Room 367, James C. Kirkpatrick State Information Center, by written request by email at itcs@sos.mo.gov, or by telephone at (573) 751-4000.

Filed Nov. 15, 1989, effective March 11, 1990. Amended: Filed Feb. 16, 1995, effective Sept. 30, 1995. Rescinded and readopted: Filed Oct. 28, 2003, effective May 30, 2004. Amended: Filed July 16, 2019, effective Jan. 30, 2020. Amended: Filed Oct. 5, 2020, effective March 30, 2021. *Original authority: 536.023, RSMo 1975, amended 1976, 1997, 2004.

History

authority, grant funding for approved records management or preservation projects. Information on these services may be obtained from the Local Records in person in Room 112, James C. Kirkpatrick State Information Center, by written request to PO Box 1747, (573) 751-9047, by fax at (573) 526-5327, or by email at local.records@sos.mo.gov.
AUTHORITY: section 536.023.3, RSMo 2016. Original rule filed Dec. 5, 1975, effective Dec. 31, 1975. Amended: Filed July 15, 1985, effective Dec. 26, 1985. Amended:

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(Rescinded July 11, 1980)

Original rule filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed April 11, 1980, effective July 11, 1980.

History

AUTHORITY: section 536.023, RSMo 1978.

Chapter 3 Voter Identification

15 CSR 30-3.020 Provisional Ballots and Envelopes for Registered Voters under Voter {#sec-15-csr-30-3.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.020}

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15 CSR 30-3.040 Procedures for Identity Verification for Provisional Ballots for Registered Voters under Voter Identification Law, Counting Approved Ballots, and {#sec-15-csr-30-3.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.040}

15 CSR 30-3.050 Voter Inquiries as to Whether Provisional Ballot for Registered Voter was {#sec-15-csr-30-3.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.050}

15 CSR 30-3.100 Procedures for Obtaining One (1) Copy of Documents Needed to Obtain {#sec-15-csr-30-3.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.100}

15 CSR 30-3.005 Voter Identification {#sec-15-csr-30-3.005 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.005}

PURPOSE: This rule makes clear that state-issued cards for photo identification for voting issued by other Missouri state agencies must meet certain guidelines.

A Department of Revenue driver or non-driver license that is used as a photo voter identification as outlined in section 115.427.1, RSMo, is to be used as a voter identification card.

Any other state agency issued identification card, used for the agency’s specific purpose or program, must be made of plastic or other comparable material and meet the required information as outlined in section 115.427.1(3), RSMo, in order for the identification card to be accepted and used as photo identification for voting. Photo identification cards must also be manufactured using materials and processes that will prohibit, as nearly as possible, the ability to reproduce, alter, counterfeit, forge, or duplicate without ready detection.

History

AUTHORITY: section 115.427, RSMo Supp. 2023. Original rule filed Nov. 29, 2023, effective June 30, 2024. Original authority: 115.427, RSMo 1977, amended 1983, 1993, 2002, 2006, 2016, 2022.

15 CSR 30-3.010 Voter Identification Affidavit {#sec-15-csr-30-3.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.010}

(Rescinded November 30, 2017)

Original rule filed Oct. 18, 2002, effective April 30, 2003. Emergency rescission filed May 22, 2017, effective June 1, 2017, expired Feb. 22, 2018. Rescinded: Filed May 22, 2017, effective Nov. 30, 2017.

History

AUTHORITY: section 115.427, RSMo Supp. 2002. Emergency rule filed Oct. 11, 2002, effective Oct. 21, 2002, expired April 18, 2003.

15 CSR 30-3.020 Provisional Ballots and Envelopes for Registered Voters under Voter Identification Law {#sec-15-csr-30-3.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.020}

PURPOSE: This rule requires the secretary of state to provide provisional ballot envelopes for provisional ballots under section 115.427, RSMo, sets forth the contents of the envelope, and explains when a registered voter must be allowed to cast a provisional (1) The secretary of state shall produce one (1) size of envelope for provisional ballots for registered voters casting a provisional ballot under section 115.427, RSMo, and distribute them to each election authority.

(A) The envelope shall be fourteen and one-half inches by nine and one-fourth inches (14 1/2" × 9 1/4"). All envelopes for provisional ballots shall be printed on a color of paper distinguishable from the provisional ballot envelope provided under

section 115.430, RSMo, and 15 CSR 30-8.010.

(B) The envelope shall include the following:

Spaces for the voter’s full name, residential and mailing address, date of birth, last four (4) digits of his or her Social Security number, and optional daytime telephone number;
A statement for the voter to read setting forth the requirement for his or her vote to be counted under subsection 4 of section 115.427, RSMo;
A space for the voter’s signature and the date; and 4. A section to be completed by election judges stating that the voter was allowed to cast a provisional ballot, with the printed name of the voter, election date, polling place number, and the signatures of the election judges.

(2) A provisional ballot shall be provided to a voter on election day if the voter— (A) Does not present a form of identification set forth in sub-

section 1 of section 115.427, RSMo;

(B) The election judge examines the precinct register and determines the voter is otherwise eligible to vote; and (C) The voter provides the information and signs the statement on the envelope for a provisional ballot (provisional ballot envelope).

(3) The election judges shall witness the signature of the voter affirming the information and statement on the provisional (4) Once the provisional ballot is voted, it shall be placed in a provisional ballot envelope and sealed. The sealed envelope shall be placed in the area designated for such envelopes. *Original authority: 115.427, RSMo 1977, amended 1983, 1993, 2002, 2006, 2016, 2022.

15 CSR 30-3.030 Procedures for Registered Voters Returning to the Polling Place with Identification {#sec-15-csr-30-3.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.030}

PURPOSE: This rule sets forth acceptable procedures for local election authorities to follow when a registered voter who cast a provisional ballot returns to the polling place before the polling place closes with personal identification and wants to cast a regular ballot.

(1) If a voter that completed a provisional ballot and envelope returns to the polling place during the uniform polling hours established by section 115.407, RSMo, and provides a form of identification set forth in subsection 1 of section 115.427, RSMo, one (1) of the following procedures shall be followed, at the choice of the election authority, but the chosen procedure shall be used at all polling places within the jurisdiction of the local election authority:

(A) The election judges may retrieve the identified voter’s provisional ballot for registered voter (provisional ballot) envelope, hand it to the voter, who opens it and returns the empty envelope to the election judge, and then casts his or her ballot as a regular ballot by placing it in a precinct counter or regular ballot box. If the local election authority uses provisional ballots that are marked so that they will not be accepted by a precinct scanner, it may spoil the provisional ballot and issue the voter a regular ballot that can be cast by placing it in a precinct counter; or (B) The election judges may complete and sign a document identifying the voter, stating the voter returned with the required form of identification, and place that document with the sealed provisional ballots for processing as provided in 15 CSR 30-3.040.

(2) If the method in subsection (1)(A) of this rule is used, the (5/31/24) John R. Ashcroft election authority shall ensure that the provisional ballot envelope is marked as to the reason the ballot was counted and is retained as ballot material. *Original authority: 115.427, RSMo 1977, amended 1983, 1993, 2002, 2006, 2016, 2022.

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PURPOSE: This rule sets forth the procedures for identity verification of registered voters casting a provisional ballot and for marking, counting, recording, and storing provisional ballot materials.

(1) Except for voters returning to the polling place with a form of identification set forth in subsection 1 of section 115.427, RSMo, who may be allowed to then cast a regular ballot pursuant to 15 CSR 30-3.030, provisional ballots for registered voters casting a provisional ballot under section 115.427, RSMo (provisional ballot), shall be processed and counted in the following manner:

(A) The identity of the person completing the provisional ballot envelope shall be verified according to the requirements of subsection 4 of section 115.427, RSMo (identity verification);

(B) Upon the election authority’s determination whether the voter’s identity is verified, each provisional envelope (or a photocopy of same) shall be marked “rejected” or “accepted,” with reason for rejection or acceptance noted;

(C) After identity verification, accepted provisional ballot envelopes shall be kept separate from rejected provisional ballot envelopes;

(D) Rejected provisional ballot envelopes shall remain sealed and the ballot not counted;

(E) Accepted provisional ballot envelopes shall be opened and the ballots counted, ensuring— 1. The counting of provisional ballots is done by a bi-partisan team;

A voter’s ballot selections remain private;
Accepted ballots are counted in accordance with the rules governing ballot tabulation; and 4. The vote is tallied and the returns made as provided in sections 115.447 to 115.525, RSMo, for paper ballots; and (F) Provisional envelopes and ballots and the processing of same must be properly accounted for through recordkeeping.

(2) A local election authority may choose to follow procedures substantially similar to those followed for processing regular provisional ballots set forth in section 115.430, RSMo, and 15 CSR 30-8.020, but is not required to do so, as long as the process meets the requirements of subsections (1)(A) through (F) of this

rule, and sections (3), (4), and (5) of this rule.

(3) After the votes on all accepted provisional ballots have been counted, the approved ballots, ballot envelopes (and, if applicable, copies of ballot envelopes) with the identity verification information and determination provided by the election authority shall be enclosed in sealed containers marked “voted provisional ballots and ballot envelopes from the election held______, 20______.” All rejected provisional ballots, ballot envelopes, and (and, if applicable, copies of ballot envelopes) with the identity verification information and determination provided by the election authority shall be enclosed in sealed containers marked “rejected provisional ballots and ballot envelopes from the election held________, 20______.” On the outside of each voted ballot and rejected ballot container, each member of the bi-partisan team shall write their name, and all such containers shall be returned to the election authority. Upon receipt of the returns and ballots, the election authority shall tabulate the provisional vote.

(4) The local election authority shall record on a provisional ballot acceptance/rejection list the provisional ballot identification number and a notation marking it as accepted or rejected.

(5) The certificate of ballot cards shall— (A) Reflect the number of provisional ballot envelopes delivered; and (B) Reflect the number of sealed provisional envelopes with voted ballots counted. *Original authority: 115.427, RSMo 1977, amended 1983, 1993, 2002, 2006, 2016, 2022.

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PURPOSE: This rule describes the procedure by which a registered voter who cast a provisional ballot can find out whether his or her ballot was counted or rejected.

(1) Provisional ballot envelopes provided by the secretary of state’s office for registered voters casting a provisional ballot under section 115.427, RSMo (provisional ballots), will have a tear-away section containing a unique identification number and a toll-free phone number.

(2) Individuals who cast provisional ballots may, after the election results have been certified, call the toll-free phone number provided to them on the tear-away section of their provisional ballot envelope. This toll-free phone number will be maintained and operated by the secretary of state’s office. Only individuals who have cast provisional ballots are permitted to use this service to verify the status of their own provisional (3) Upon receiving calls from provisional voters on the tollfree provisional ballot inquiry line, the secretary of state’s office shall transfer the call to the appropriate local election

(4) The local election authority shall, using the provisional voter’s unique provisional voting identification number from the tear away section of the provisional ballot envelope, inform the voter of whether or not their provisional ballot was counted or rejected. *Original authority: 115.427, RSMo 1977, amended 1983, 1993, 2002, 2006, 2016, 2022.

History

authority.

15 CSR 30-3.100 Procedures for Obtaining One (1) Copy of Documents Needed to Obtain Free Personal Identification for Voting {#sec-15-csr-30-3.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-3.100}

PURPOSE: This rule describes when and how the secretary of state’s office will pay for documents needed by a person in order to obtain a free non-driver’s license for the purpose of voting.

(1) Definitions. As used in this rule— (A) “Another state’s documents” means the following documents issued by a state of the United States other than Missouri:

A birth certificate;
A marriage license or certificate;
A divorce decree;
A certificate of decree of adoption; and 5. A court order changing a person’s name;

(B) “Eligible individual” means a resident of Missouri who meets the following requirements:

Is seeking to obtain one (1) free non-driver’s license in order to vote in Missouri; and 2. Needs federal documents, Missouri documents, or another state’s documents in order to obtain a Missouri nondriver’s license; and 3. Is seventeen (17) years of age or older; and 4. Does not have a non-expired Missouri driver’s license (according to state records); and 5. Does not have a non-expired or non-expiring Missouri nondriver’s license (according to state records);

(C) “Federal documents” means a Social Security card reflecting an updated name or naturalization papers or other documents from the United States Department of State proving U.S. citizenship;

(D) “Free personal identification in order to vote” means a non-expired or non-expiring Missouri non-driver’s license provided for free by the Missouri Department of Revenue or any Missouri license office under section 115.427.6(1), RSMo;

(E) “Missouri documents” means the following documents issued by the state of Missouri:

A birth certificate;
A marriage license or certificate;
A divorce decree;
A certificate of decree of adoption; and 5. A court order changing a person’s name.

(2) The secretary of state’s office will pay for the following:

(A) Any fee charged by another state for another state’s documents for eligible individuals, limited to one (1) copy of a in order to obtain free personal identification in order to vote;

(B) Any fee charged by the federal government for federal documents for eligible individuals, limited to one (1) copy of a in order to obtain free personal identification in order to vote; and (C) Any fee charged by a Missouri state court for a Missouri document for eligible individuals, limited to one (1) copy of a in order to obtain free personal identification in order to vote.

(3) The secretary of state will not pay for— (A) A Missouri non-driver’s license;

(B) Federal documents, Missouri documents, or another state’s documents sought by an individual to obtain or renew a Missouri driver’s license; or (C) Birth certificates that can be obtained free of charge through the Missouri Department of Health and Senior Services.

(4) In order for the secretary of state’s office to pay for a document, the eligible individual must cooperate with the secretary of state’s office to obtain the document, providing any information needed by the secretary of state’s office to facilitate obtaining the document and for the secretary of state’s office to directly pay for the document. This information may include, but is not limited to, the eligible individual’s full name, date of birth, residence and mailing addresses, last four (4) digits of his or her Social Security number, telephone numbers, and e-mail addresses.

(5) If an eligible individual does not cooperate with the secretary of state’s office to obtain a copy of the documents identified in subsections (4)(A) through (C) pursuant to section (6), but seeks reimbursement from the secretary of state for costs of the documents they obtained by themselves, the secretary of state may provide reimbursement if the eligible individual provides his or her full name, date of birth, residence and mailing addresses, last four (4) digits of his or her Social Security number, and a genuine numbered receipt issued by the applicable government entity that contains all of the following information:

(A) Name of governmental entity from which document was obtained;

(B) Name and address of the eligible individual;

(C) Type of document that was provided (e.g., birth certificate, divorce decree, marriage certificate, etc.); and (D) The amount paid to the governmental entity for the document.

The secretary of state may reject any requests for direct reimbursement at their discretion.

(6) If the Department of Revenue’s records show an individual has a non-expired Missouri driver’s license or a non-expired or non-expiring Missouri non-driver’s license, the individual will be considered eligible by the secretary of state’s office only if the person executes a statement, under penalty of perjury, to the secretary of state’s office that his or her license has been lost, stolen, or destroyed, and the individual meets the requirements of paragraphs (1)(B)1. through 3. above.

rule filed May 22, 2017, effective Nov. 30, 2017. *Original authority: 115.427, RSMo 1977, amended 1983, 1993, 2002, 2006, 2016.

History

AUTHORITY: section 115.427, RSMo 2016. Emergency rule filed May 22, 2017, effective June 1, 2017, expired Feb. 22, 2018. Original

Chapter 4 Postcard Voter Application and Forms

15 CSR 30-4.010 Postcard Voter Application and Forms {#sec-15-csr-30-4.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-4.010}

PURPOSE: This rule establishes requirements for the printing, distribution and acceptance of postcard voter application forms.

(1) A postcard voter application form titled Missouri Voter Registration Application shall be printed. All Missouri election authorities shall accept a completed and signed postcard voter application form as a valid application to register in their jurisdiction. In addition to the Missouri Voter Registration Application, each election authority may print and accept its own postcard voter application form which shall be substantially in the same form as the Missouri Voter Registration Application.

(2) Postcard Application Form Format and Content— (A) The postcard application form shall be printed on white index one hundred ten (110) pound paper cut to ten inches by eight inches (10" × 8"), perforated into two (2) sections measuring five inches by eight inches (5" × 8");

(B) The format of the bottom section of the postcard voter application form shall substantially follow the guidelines provided in subsections (2)(C)–(D) of this rule;

Are you a citizen of the United States of America? ___ Yes ___ No;
Will you be 18 years of age on or before election day? ___ Yes ___ No;
New Registration ___ Address Change ___ Name Change ___ Political Party Affiliation;
(Full Legal Name) Last Name ______ First Name______ Middle Name ______ Suffix Jr. __ Sr. __ II __ III __ IV __ Male ___ Female ___;
Address where you live (House No., Street, Apt. No. or Rural Route and Box — No PO Box) __________ City ______ County _____ Zip Code _____;
Address where you get your mail (Required if different from #5 above) __________ City ______ County ______ Zip Code _____;
Driver’s License Number (If you do not have a driver’s license, please leave blank);
Last 4 digits of Social Security Number (If you do not have a Social Security Number, please leave blank);
Date of Birth (MM/DD/YYYY) //_____;
Place of Birth (optional);
Daytime Phone No. (optional);
Email Address (optional);
Name and Address on Last Voter Registration — Name __________ Address __________ City ________ State ____ County ______ (If currently registered in another state or county, please complete this box);
I hereby certify that I am a citizen of the United States and a resident of the state of Missouri. I am at least seventeen and one-half years of age. I have not been adjudged incapacitated by any court of law. If I have been convicted of a felony or a misdemeanor connected with the right of suffrage, I have had the voting disabilities from such conviction removed pursuant to law. I swear under penalty of perjury that all statements made on this card are true to the best of my knowledge and belief. I understand that if I register to vote knowing that I am not legally entitled to register, I am committing a class one election offense and may be punished by imprisonment of not more than five (5) years or by a fine of between two thousand five hundred dollars ($2,500) and ten thousand dollars ($10,000) or both such imprisonment and fine. Date ___________________ Signature ________________________;
Political Party Affiliation (optional) ___ Republican ___ Democratic ___ Libertarian ___ Unaffiliated _____ Other.

(D) The format and questions and the statement “Warning:

Conviction of making a false statement may result in imprisonment for up to five years and/or a fine up to $10,000” shall be printed in black ink, except that the statement, “YOUR APPLICATION WILL BE CONFIRMED BY MAIL WITHIN SEVEN (7)

BUSINESS DAYS OF ITS RECEIPT BY THE ELECTION AUTHORITY.

PLEASE CONTACT THE ELECTION AUTHORITY IF YOU DO NOT

RECEIVE NOTIFICATION,” shall be printed in red ink not smaller than ten (10) point in size;

(E) The format of the top section of the postcard voter application form may include information as determined by the secretary of state to facilitate orderly elections, and shall substantially follow the guidelines provided in subsection (2)

(F) of this rule; and (F) The top portion of the card shall contain a statement printed in red ink explaining that the application will be confirmed by mail within seven (7) business days of its receipt by the election authority, and the following statement printed in black ink. “THIS CARD IS NOT PROOF OF REGISTRATION.”

(3) Distribution of Postcard Application Forms— (A) The postcard application form may be printed and distributed by election authorities and the secretary of state.

Any private individual, group, corporation or other entity desiring to print the postcard application form as it is set out in this rule may do so upon approval of the format by the secretary of state;

(B) To allow individual or group registration, any individual or group may request and shall receive from any election

Such request form shall include the requester’s name, address, and telephone number.

(4) Acceptance of Postcard Application Forms— (A) The completed and signed postcard application form(s) shall be delivered to the appropriate election authority representing the area in which the applicant resides;

(B) The completed and signed postcard application form(s) may be delivered to the appropriate election authority either in person, by mail, or by delivery by a third party;

(C) Upon receipt of a completed and signed postcard application form, the election authority shall process the application as required by section 115.159, RSMo; and (D) Nothing in this rule shall be construed to authorize the rejection of any voter registration card approved by federal law.

rule filed Nov. 10, 1993, effective May 9, 1994. Amended: Filed Aug. 27, 1999, effective Feb. 29, 2000. Emergency amendment filed Sept. 26, 2000, effective Oct. 6, 2000, expired April 3, 2001. Amended:

Filed Sept. 26, 2000, effective April 30, 2001. Rescinded and readopted: Filed Aug. 8, 2001, effective March 1, 2002. Amended:

Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.155, RSMo 1977, amended 1986, 1988, 1993, 1997, 1999, 2018, 2022, and 115.159, RSMo 1977, amended 1993, 1994, 1997, 2002, 2003, 2006, 2013.

History

authority a sufficient number of Missouri Voter Registration Applications. The distributed postcard application forms shall contain a unique identifier. The above referenced identifier shall be printed on both sections of the card as described in subsection (2)(A) of this rule; and (C) The secretary of state shall design a request form to be completed by any person requesting voter registration applications from the secretary of state or election authorities.
AUTHORITY: section 115.159, RSMo 2016, and section 115.155.5, RSMo Supp. 2023. Emergency rule filed Nov. 10, 1993, effective Nov. 20, 1993, expired March 19, 1994. Emergency rule filed Feb. 23, 1994, effective March 20, 1994, expired May 8, 1994. Original (5/31/24) John R. Ashcroft

Chapter 5 Mail Ballot Election Procedures and Forms

15 CSR 30-5.020 Mail Ballot Election Procedures and Forms {#sec-15-csr-30-5.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-5.020}

PURPOSE: This rule provides requirements for local election authorities to fulfill for conducting Mail Ballot Elections.

(1) The election authority shall prepare a written plan setting forth the steps to be followed during the conduct of a Mail Ballot Election as follows:

(A) A plan shall be prepared for the initial Mail Ballot Election in a jurisdiction;

(B) In each county in which the county clerk is the election authority, a plan shall be prepared by any county clerk who is conducting his/her first Mail Ballot Election, regardless of whether or not it is the initial Mail Ballot Election for the jurisdiction;

(C) Subsequent to the initial Mail Ballot Election in subsection(s) (1)(A) and/or (B) of this rule, the election authority, in lieu of a written plan, may prepare a checklist. The checklist shall show compliance with the procedures and steps contained in the written plan as outlined in section (2) of this rule and with the provisions of the Mail Ballot Election Act; and (D) Not later than the fourth Wednesday prior to the election, the plan or checklist shall be made available to the public and shall be forwarded to the political subdivision or special district official(s) responsible for calling the Mail Ballot Election.

(2) The plan shall include, but need not be limited to, the following:

(A) A checklist outlining the steps to be followed during the preparation and conduct of the Mail Ballot Election;

(B) A timetable listing projected dates for completion of various steps and procedures necessary to the conduct of the election;

(D) The procedures for mailing out ballots;

(E) The procedures for handling returned, voted ballots;

(F) The procedures for handling undeliverable ballots and for canvassing registration records;

(G) The procedures for allowing absentee votes;

(H) The procedures for replacement of ballots destroyed, spoiled, lost or not received by voters;

(I) The procedures for resolving signature conflicts;

(J) The proposed ballot, instruction sheet, secrecy envelope, ballot-return envelope, mail-out envelope and ballot replacement application; and (K) The procedures to establish the list of qualified voters who are to receive a ballot.

(3) Printed materials, when possible, shall be printed in type not less than fourteen (14) points in size and conform to the following guidelines and formats:

(A) The secrecy envelope shall be opaque and contain on the front face the name of the political subdivision or special district calling the election and the date of the election. Also on the front face shall be the words MAIL BALLOT SECRECY ENVELOPE, prominently displayed in type not less than twentyfour (24) points in size. Instructions for marking and returning the voted ballot may be included on the back side of the secrecy envelope;

(B) The instruction sheet shall describe the voting process and include information on marking the ballot, use of the secrecy envelope and the return identification envelope, and completion of the self-administered affidavit required in section 115.655, RSMo (Cum. Supp. 1990);

(C) The application for a replacement ballot as provided for in section 115.655, RSMo shall be in substantially the following form:

State of Missouri County (City) of __________________________________________________________________________________________________ ss I, _________________________________________________________________________________________________, declare that I am Print Name a resident and a properly registered voter residing at ____________________________________________________________________________________________________________________ Residence Address City I further declare that my ballot was: (circle one) destroyed spoiled lost not received and that I have not and will not vote more than one (1) ballot in this election. __________________________________________________________________________________________________________ Telephone Number Date of Birth I wish my replacement ballot to be sent to the address listed below: ____________________________________________________________________________________________________________________ Address City State Zip ________________________________________________ Signature of Voter Subscribed and sworn to (affirmed) before me, this ______________ day of _, 19 _________________________________________________________________ Notary Public or other officer authorized to administer oaths (SEAL)My commission expires ____________________________________________ RETURN THIS COMPLETED FORM TO:

Election Authority Address City, State, Zip For Office Use Only Date application received _____________________________________Date replacement ballot was mailed or delivered __________________________ 4CODE OF STATE REGULATIONS (11/30/02) MATTBLUNT (D) No information which encourages a vote for or against an issue shall be included with an official mail ballot delivered to any voter.

History

AUTHORITY: sections 115.652 and 115.660, RSMo Supp. 1990. Emergency rule filed July 15, 1988, effective July 25, 1988, expired Nov. 22, 1988. Original rule filed March 29, 1991, effective Aug. 30, 1991. Original authority: 115.652, RSMo 1988 and 115.660, RSMo 1988.

Chapter 7 Administration of Secretary of State's Technology Trust Fund

15 CSR 30-7.010 Secretary Of Stateís Technology Trust Fund Account Emergency rule filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. {#sec-15-csr-30-7.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-7.010}

15 CSR 30-7.020 Centralized Voter Registration System Advisory Committee {#sec-15-csr-30-7.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-7.020}

PURPOSE: This rule establishes an advisory committee to assist the secretary of state in establishing and maintaining a centralized voter registration system.

(1) There is hereby established an advisory committee to assist the secretary of state in establishing and maintaining a centralized voter registration system. The committee shall be made up of nine (9) members appointed by the secretary of state. The secretary of state may appoint up to five (5) additionalad hoc members to advise the committee on matters requiring technical expertise.

(2) The committee shall meet as often as the secretary of state deems appropriate and necessary, but in no event less than once a year.

The committee shall make recommendations to the secretary of state to develop a centralized voter registration system that will at least:

(A) Provide for voters to submit their registration to those offices and agencies authorized in this chapter and the National Voter Registration Act of 1993;

(B) Provide for the establishment and maintenance of a centralized data base for all voter registration information;

(D) Provide for the interaction with other state agencies and departments to facilitate voter registration;

(E) Allow election authorities and the secretary of state to add, modify, and delete information from the system to provide for accurate and up-to-date information;

(F) Allow election authorities and the secretary of state access to the centralized data base for review and search capabilities;

(G) Provide security and protection of all information in the centralized data base and monitor the centralized data base to ensure unauthorized entry is not allowed;

(H) Provide a system for each election

(I) Provide a procedure for phasing in or converting existing manual and computerized voter registration systems to the centralized voter registration system; and (J) Provide a procedure for transferring data from election authoritiesí existing computerized voter registration systems located in first class counties to the centralized voter registration system.

(3) Committee members shall serve at the pleasure of the secretary of state.

(4) Committee members shall serve without compensation, except that the Office of the Secretary of State may reimburse members for reasonable and necessary expenses incurred traveling to and from meetings.

Rebecca McDowell Cook (4/30/96)

History

authority to identify the precinct to which a voter should be assigned for voting purposes;
AUTHORITY: section 115.158, RSMo (1994). Original rule filed Feb. 16, 1995, effective Sept. 30, 1995. Original authority 1994.

Chapter 8 Provisional Voting Procedures

15 CSR 30-8.010 Provisional Ballots and Envelopes {#sec-15-csr-30-8.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-8.010}

PURPOSE: This rule ensures the uniform application of section 115.430, RSMo.

(1) The following steps will be taken to determine whether a person may vote a provisional ballot:

(A) The election judge shall examine the precinct register.

If the voter’s eligibility cannot be immediately established, then— (B) The election judge shall contact the election authority.

If the election authority cannot immediately establish the voter’s eligibility upon examination of its records on file, or if the election judge is unable to make contact with the election

(C) In the case of a voter requesting an absentee ballot, such voter shall be entitled to a provisional ballot when the voter’s qualifications cannot be immediately established upon examination of the records on file with the election authority.

(2) No person shall be entitled to receive a provisional ballot until they have completed a provisional ballot affidavit on the provisional ballot envelope. The secretary of state shall produce provisional ballot envelopes and distribute them to each election authority. All provisional envelopes shall be printed on a distinguishable color of paper or have a distinguished marking.

(A) On each side of the outside of the provisional envelopes, produced by the secretary of state, there shall appear information in substantially the format available at the secretary of state’s website. A copy of the form may be requested in writing from the Elections Division, PO Box 1767, Jefferson City, MO 65102 or in person at the Elections Division, 600 W. Main, State Information Center, Jefferson City, Missouri.

(3) After the provisional ballot is voted, it shall be placed in the provisional ballot envelope and sealed. The sealed envelope shall be placed in the area designated for such envelope.

(4) The certificate of provisional ballots shall— (A) Reflect the number of provisional envelopes delivered; and (B) Reflect the number of sealed provisional envelopes with voted ballots deposited in the area designated for such envelopes.

(5) Upon the election authority’s determination of the eligibility of the voter, each rejected provisional envelope shall be marked “rejected” with reason for rejection noted. If rejected, a photocopy of the envelope shall be made and used by the election authority as a mail-in voter registration. The actual provisional ballot envelope shall be kept as ballot material and the copy of the envelope shall be used by the election authority for registration record keeping.

(6) Provisional ballots shall not be counted until all provisional ballots are determined either eligible or ineligible. All provisional ballots cast by voters, whose eligibility has been verified, shall be counted in accordance with the rules governing ballot tabulation.

(7) If a provisional ballot is cast in the wrong congressional district, the incorrect congressional vote shall not be counted but all other votes cast on that ballot shall be counted.

Emergency rule filed Oct. 25, 2002, effective Nov. 4, 2002, expired April 18, 2003. Original rule filed Oct. 25, 2002, effective April 30, 2003. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.430, RSMo 2002, amended 2003, 2006.

History

authority immediately, then the voter will be entitled to a provisional ballot.
AUTHORITY: section 115.430, RSMo 2016. Emergency rule filed Oct. 11, 2002, effective Oct. 21, 2002, terminated Oct. 25, 2002.

15 CSR 30-8.020 Procedures to Determine Eligibility for Provisional Ballots to Be Counted {#sec-15-csr-30-8.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-8.020}

PURPOSE: This rule sets out the procedures for provisional voting in addition to those found in Chapter 115, RSMo.

(1) Prior to accepting any provisional ballot at the polling place, the election judges shall determine that the information provided on the provisional ballot envelope by the provisional voter is consistent with the identification provided by such person pursuant to section 115.427, RSMo.

(2) When the ballot boxes are delivered to the election

(3) Prior to any provisional ballots being counted, the election

(4) To determine whether a provisional ballot is valid and entitled to be counted, the election authority shall examine its records and verify that the provisional voter is duly registered and qualified to vote in the election. If the provisional voter has provided information regarding the registration agency where the provisional voter registered to vote, the election authority shall make an inquiry of the registration agency to determine whether the provisional voter is duly registered and qualified to vote in the election.

(5) If the election authority determines that the provisional voter is registered and qualified to vote in the election, the election authority shall provide documentation verifying the voter’s eligibility. This documentation shall be noted on the copy of the provisional ballot envelope and shall contain substantially the following information:

(A) Name of provisional voter;

(B) Name of reviewer;

(6) The local election authority shall record on a provisional (5/31/24) John R. Ashcroft ballot acceptance/rejection list the provisional ballot identification number and a notation marking it as accepted.

(7) If the election authority determines that the provisional voter is not registered and/or qualified to vote in the election, the election authority shall provide documentation verifying the voter’s ineligibility. This documentation shall be noted on the copy of the provisional ballot envelope and shall contain substantially the following information:

(A) Name of the provisional voter;

(B) Name of reviewer;

(8) The local election authority shall record on a provisional ballot acceptance/rejection list the provisional ballot identification number and notation marking it as rejected.

(9) After the election authority completes its review of the provisional voter’s eligibility pursuant to sections (4), (5), and (7), of this rule, the election authority shall deliver the provisional ballots, and copies of the provisional ballot envelopes which include the eligibility information, to bi-partisan counting teams, which may be the board of verification, for review and tabulation. The election authority shall maintain a record of the delivery. The record shall include the number of ballots delivered to each team and shall include a signed receipt from two (2) judges, one (1) from each major political party. The election authority shall provide each team with a ballot box, and material necessary for tabulation.

(10) Challengers and watchers, as provided by sections 115.105 and 115.107, RSMo may be present during all times that the bi-partisan counting teams are reviewing and/or counting the provisional ballots, the provisional ballot envelopes, and/or the copies of the provisional ballot envelopes which include the eligibility information provided by the election authority.

The election authority shall notify the county chair of each major political party of the time and location when the bipartisan counting teams will be reviewing and/or counting the provisional ballots, the provisional ballot envelopes, and/ or the copies of the provisional ballot envelopes which include the eligibility information provided by the election authority.

(11) If the person named on the provisional ballot affidavit is found to have been duly qualified and registered to cast a ballot in the election, the envelope shall be opened, and the ballot shall be placed in a ballot box to be counted.

(12) If the person named on the provisional ballot affidavit is found to have not been duly qualified and registered to cast a ballot in the election, or if the election authority is unable to determine such person’s right to vote, the envelope containing the provisional ballot shall not be opened and the person’s vote shall not be counted. The members of the team shall then follow the procedures set out in 15 CSR 30-8.010(5) for rejected provisional ballots.

(13) The vote shall then be tallied and the returns made as provided in sections 115.447 to 115.525, RSMo for paper ballots.

After the vote on all ballots assigned to a team have been counted, the ballots, ballot envelopes, and copies of ballot envelopes with the eligibility information provided by the election authority shall be enclosed in sealed containers marked “voted provisional ballots and ballot envelopes from the election held______, 20______.” All rejected provisional ballots, ballot envelopes and copies of ballot envelopes with the eligibility information provided by the election authority shall be enclosed in sealed containers marked “rejected provisional ballots and ballot envelopes from the election held________, 20______.” On the outside of each voted ballot and rejected ballot container, each member of the team shall write their name, and all such containers shall be returned to the election

Original rule filed Oct. 22, 2002, effective April 30, 2003. Amended:

Filed Sept. 19, 2003, effective May 30, 2004. *Original authority: 115.430, RSMo 2002, amended 2003.

History

authority from the polling places, the receiving teams shall separate the provisional ballots from the rest of the ballots and place the sealed provisional ballot envelopes in a separate container. Teams of election authority employees or teams of election judges with each team consisting of one (1) member of each major political party shall photocopy each provisional ballot envelope, such photocopy to be used by the election
authority to determine provisional voter eligibility. The sealed provisional ballot envelopes shall be placed, by the team, in a sealed container and shall remain therein until tabulation.
authority shall determine the eligibility of the provisional voter. The eligibility of provisional voters shall be determined according to the requirements for a voter to cast a ballot in the election as set out in sections 115.133 and 115.135, RSMo.
authority. Upon receipt of the returns and ballots, the election
authority shall tabulate the provisional vote.
AUTHORITY: section 115.430, RSMo Supp. 2003. Emergency rule filed Oct. 21, 2002, effective Oct. 31, 2002, expired April 28, 2003.

15 CSR 30-8.030 Provisional Ballot Verification Procedure {#sec-15-csr-30-8.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-8.030}

PURPOSE: This rule describes Missouri’s procedure for provisional voters to discern whether or not their provisional ballot was counted, as mandated by the Help America Vote Act of 2002.

(1) Provisional ballot envelopes, provided by the secretary of state’s office, will have a tear away section containing a unique identification number and a toll free phone number.

(2) Individuals who cast provisional ballots may, after the election results have been certified, call the toll free phone number provided to them on the tear away section of their provisional ballot envelope. In compliance with the Help America Vote Act of 2002, this toll free phone number will be maintained and operated by the secretary of state’s office. Only individuals who have cast provisional ballots are permitted to use this service to verify the status of their own provisional ballot.

(3) Upon receiving calls from provisional voters on the toll free provisional ballot inquiry line, the secretary of state’s office shall transfer the call to the appropriate local election

(5) If the provisional voter’s ballot was rejected the local election authority shall inform the provisional voter that their rejected provisional ballot envelope shall be used to register them to vote.

History

authority.
AUTHORITY: section 115.430, RSMo Supp. 2003. Original rule filed Sept. 19, 2003, effective May 30, 2004. Original authority: 115.430, RSMo 2002, amended 2003.

Chapter 9 Uniform Counting Standards

15 CSR 30-9.010 Uniform Counting Standards—Punch Card Voting Systems {#sec-15-csr-30-9.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-9.010}

(Rescinded June 30, 2024)

History

AUTHORITY: section 115.225, RSMo 2000. Original rule filed Aug. 8, 2001, effective March 1, 2002. Rescinded: Filed Nov. 29, 2023, effective June 30, 2024.

15 CSR 30-9.020 Uniform Counting Standards—Optical Scan Voting Systems {#sec-15-csr-30-9.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-9.020}

PURPOSE: This rule provides for standards to be used by election authorities when counting ballots cast using optical scan voting systems.

(1) The election authority shall be responsible for insuring that the standards provided for in this rule are followed when counting ballots cast using optical scan voting systems.

(2) Prior to tabulating ballots all machines shall be programmed to reject blank ballots where no votes are recorded, or where an overvote is registered in any race.

(A) In jurisdictions using precinct-based tabulators, the voter who cast the ballot shall review the ballot if rejected, to determine if he/she wishes to make any changes to the ballot or if he/she would like to spoil their ballot and receive another ballot.

(B) In jurisdictions using centrally based tabulators, if a ballot is so rejected, it shall be reviewed by a bipartisan team using the following criteria:

If a ballot is determined to be damaged, the bipartisan team shall spoil the original ballot and duplicate the voter’s intent on the new ballot, provided that there is an undisputed method of matching the duplicate ballot with its original after it has been placed with the remainder of the ballots from that precinct; and 2. The provisions of sections (3), (4), (5), and (6) of this rule.

(3) The following marks shall be considered expressions of voter intent:

(A) Any ballot which is properly marked in the target area, as specified by the ballot instructions.

(B) Any ballot that is properly marked with any device other than the approved marking device which prevents a machine count shall be counted as a vote.

(D) There is a distinguishing mark in the target area next to a candidate or issue preference including but not limited to the following examples:

(E) The name of a candidate or issue preference is circled.

(F) In the event that there are distinguishing marks for two (2) or more candidates, clarified by an additional mark or marks that appear to indicate support, the ballot shall be counted as a vote for the candidate with the additional, clarifying marks.

(4) If a voter marks more candidates than there are positions to be elected for that office, without any additional clarifying marks, the marks do not constitute a valid vote for any candidate in that race and the ballot shall be deemed an overvote.

(5) In jurisdictions using optical scan systems, a valid vote for a write-in candidate must include the following:

(A) A distinguishing mark in the target area next to the name of the candidate;

(B) The name of a qualified write-in candidate. If the name of the candidate, as written by the voter, is substantially as declared by the candidate it shall be counted, or in those circumstances where the names of candidates are similar, the names of candidates as shown on voter registration records shall be counted; and (C) The name of the office for which the candidate is to be elected.

(6) If a voter designates a vote for a named candidate on the ballot and also provides for a write-in candidate in the same race it shall be treated as follows:

(A) If a voter designates a vote for a named candidate on the ballot and writes in the same candidate in the write-in area, the vote shall count for that candidate.

(B) If a voter designates a vote for a named candidate on the ballot and writes in the name of a qualified write-in candidate or the name of a different named candidate on the ballot in that race and makes a distinguishing mark in the target area next to the name of the write-in candidate, it shall be considered an overvote with neither candidate receiving credit for the vote.

(C) If a voter designates a vote for a named candidate on the ballot and writes in the name of a person who is not a qualified write-in candidate and not a named candidate on the ballot in that race, it shall be considered a vote for the named candidate.

(7) Whenever a hand recount of votes of optical scan ballots is ordered, the provisions of this rule shall be used to determine voter intent.

Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

History

AUTHORITY: section 115.225, RSMo Supp. 2023. Original rule filed Aug. 8, 2001, effective March 1, 2002. Emergency rescission filed Feb. 2, 2006, effective Feb. 18, 2006, expired Aug. 16, 2006. Emergency rule filed Feb. 2, 2006, effective Feb. 18, 2006, terminated April 30, 2006. Emergency rule filed April 20, 2006, effective April 30, 2006, expired Aug. 16, 2006. Rescinded and readopted: Filed Feb. 2, 2006, effective July 30, 2006. Amended:

15 CSR 30-9.030 Uniform Counting Standards—Paper Ballots {#sec-15-csr-30-9.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-9.030}

PURPOSE: This rule provides for standards to be used by election authorities when counting ballots cast using paper ballots.

(1) The election authority shall be responsible for insuring that the standards provided for in this rule are followed when counting ballots cast using paper ballots.

(2) The following marks shall be considered expressions of voter intent:

(A) Any ballot which is properly marked, as specified by the ballot instructions, in the target area.

(B) The target area next to a candidate or issue preference is circled.

(C) There is a distinguishing mark in the target area next to a candidate or issue preference including but not limited to the following examples:

(D) The name of a candidate or issue preference is circled.

(E) In the event that there are distinguishing marks for two (2) or more candidates, clarified by an additional mark or marks that appear to indicate support, the ballot shall be counted as a vote for the candidate with the additional, clarifying marks.

(3) If a voter marks more candidates than there are positions to be elected for that office, without any additional clarifying marks, the marks do not constitute a valid vote for any candidate in that race and the ballot shall be deemed an overvote.

(4) In jurisdictions using paper ballots, a valid vote for a write-in candidate must include the following:

(A) A distinguishing mark in the target area next to the name of the candidate;

(5) If a voter designates a vote for a named candidate on the ballot and also provides for a write-in candidate in the same race it shall be treated as follows:

(A) If a voter designates a vote for a named candidate on the ballot and writes in the same candidate in the write-in area, the vote shall count for that candidate.

(6) Whenever a hand recount of votes of paper ballots is ordered, the provisions of this rule shall be used to determine voter intent.

History

AUTHORITY: section 115.225, RSMo Supp. 2005. Original rule filed Aug. 8, 2001, effective March 1, 2002. Emergency rescission filed Feb. 2, 2006, effective Feb. 18, 2006, expired Aug. 16, 2006. Emergency rule filed Feb. 2, 2006, effective Feb. 18, 2006, terminated April 30, 2006. Emergency rule filed April 20, 2006, effective April 30, 2006, expired Aug. 16, 2006. Rescinded and readopted: Filed Feb. 2, 2006, effective July 30, 2006. Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002.

15 CSR 30-9.040 Write-In Stickers {#sec-15-csr-30-9.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-9.040}

PURPOSE: This rule sets out the procedures for the process of using stickers to vote for write-in candidates.

(1) The sticker shall contain the name of a candidate, office sought, and a distinguishing mark in the square immediately preceding the name of the candidate and shall be approximately one inch by three inches (1" × 3") in size with black print on a white background.

(2) The sticker shall be placed by the voter on the write-in line designating the office sought or the sticker shall be placed by the voter on the write-in line on the secrecy envelope.

Original rule filed Oct. 18, 2002, effective April 30, 2003. *Original authority: 115.439, RSMo 1977, amended 1993, 2002.

History

AUTHORITY: section 115.439.5, RSMo Supp. 2002. Emergency rule filed Oct. 11, 2002, effective Oct. 21, 2002, expired April 18, 2003.

Chapter 10 Voting Machines (Electronic)

15 CSR 30-10.020 Certification Statements for New or Modified Electronic Voting {#sec-15-csr-30-10.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.020}

15 CSR 30-10.070 Certificates by Officers; Security Areas; Retention of Material; {#sec-15-csr-30-10.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.070}

15 CSR 30-10.130 Voter Education and Voting Device Preparation (DREs and Precinct {#sec-15-csr-30-10.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.130}

15 CSR 30-10.140 Electronic Ballot Tabulation—Counting Preparation and Logic and {#sec-15-csr-30-10.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.140}

15 CSR 30-10.160 Electronic Ballot Tabulation—Election Procedures {#sec-15-csr-30-10.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.160}

15 CSR 30-10.010 Definitions {#sec-15-csr-30-10.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.010}

PURPOSE: This rule provides definitions of terms in addition to those found in Chapter 115, RSMo for the conduct of elections.

(1) Election authority shall mean the county clerk or board of election commissioners. The election authority shall be the chief custodian of the electronic voting system and its components and shall be responsible for the proper maintenance and all necessary preparation for elections. The election authority is authorized to appoint as many custodians as deemed necessary and is permitted by law.

(2) Electronic voting system is a system of casting votes by use of marking devices, and counting votes by use of automatic tabulating or electronic data processing equipment and includes computerized voting systems.

(3) Automatic tabulating equipment shall mean a system consisting of a mechanical or electronic ballot reader, or both, an electronic central processing unit and visually readable tabulated results of the voters’ markings on the ballot. Integral to the system is a capacity to determine the number of ballots processed and the votes cast on each candidate and each ballot question by precinct, jurisdiction total, and any other needed total such as ward or township. Absentee totals shall be determinable.

(4) Program shall mean the prepared election computer program or the section of the computer program that contains the information for the particular election being tabulated.

Additionally, the term shall extend to all programs in the system including but not limited to system software, utilities software, and compilers, which may be used during the operation of the application software which tabulates the ballots. The program may be stored on electronic, optical, or paper storage media that utilizes air-gapped tabulating or data-processing equipment.

(5) Ballot is a ballot which is voted by making a mark which can be tabulated by automatic tabulating equipment. All types of automatic or electronic system ballots shall be known as ballots regardless of size or stock thickness.

(6) Ballot label is the paper, booklet, page, or other material containing the names of all offices, candidates, and questions to be voted on.

(7) Systems which use a single unit for the ballot and the ballot label shall conform to the rules for both.

(8) Accessible voting station is a voting station equipped for individuals with disabilities.

(9) Audio ballot is a ballot in which a set of offices and issues is presented to the voter in audible, rather than visual form.

(10) Audit trail is recorded information that allows election officials to review the activities that occurred on the voting equipment to verify or reconstruct the steps followed without compromising the ballot or voter secrecy.

(11) Ballot marking device is any approved device which will enable the votes cast on paper ballots to be counted by automatic tabulating equipment.

(12) Ballot style is the particular set of contests and issues to appear on the ballot for a particular election district, their order, the list of ballot positions for each contest or issue, and the binding of candidate names and issues to ballot positions.

(13) Cast vote record is the permanent record of all votes cast by a single voter whether in electronic, paper, or other form.

(14) Election management system is a set of processing functions and databases within a voting system that define, develop, and maintain election databases, perform election definition and setup functions, format ballots, count votes, consolidate and report results, and maintain audit trails.

(15) Electronically assisted ballot marking device is a device that provides assistance to voters who are visually impaired or who have difficulty correctly marking by hand a preprinted paper ballot that is to be counted in optical scan systems. The device marks, or assists the voter to mark, selected choices on a previously inserted, preprinted paper ballot. The device then provides audio, tactile, or visual feedback to the voter with regard to the choices the voter has made on the ballot. The completed ballots are later tabulated on the same unit that processes other paper ballots and provides a paper audit trail.

(16) Logic and accuracy testing is the testing of the tabulator setups of a new election definition to ensure that the content correctly reflects the election being held (i.e., contests, candidates, number to be elected, ballot styles, etc.) and that all voting positions can be voted for the maximum number of eligible candidates and that results are accurately tabulated and reported.

(17) Paper cast vote record is a paper record of all votes cast by a single voter that can be directly verified by the voter. It is the record that is created from the voter verifiable audit record after the selections are verified and the vote is cast by the voter.

(18) Precinct count voting system is a voting system that tabulates ballots at the polling place. These systems typically tabulate ballots as they are cast and are capable of printing the results after the close of polling.

March 31, 1972, effective April 14, 1972. Emergency rescission filed Oct. 5, 1982, effective Nov. 2, 1982. Emergency rule filed Oct. 5, Filed Dec. 15, 1986, effective Feb. 28, 1987. Emergency amendment Amended: Filed June 21, 2006, effective Dec. 30, 2006. Amended: *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.020 Certification Statements for New or Modified Electronic Voting Systems {#sec-15-csr-30-10.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.020}

PURPOSE: This rule provides that voting machine manufacturers file an initial affidavit stating that the voting machine complies with all applicable rules and laws and a second affidavit stating that when any changes are made in the system the voting machine’s ability to continue to comply with the applicable rules and laws will not be affected and that voting machine manufacturers deposit into an escrow account the source code for each version of their voting system qualified for sale and use in Missouri.

(1) As a prerequisite to approval from the secretary of state, each manufacturer or supplier of electronic voting systems or equipment shall have completed and submitted to the secretary of state a certification statement in substantially the same form as contained in section (5), and shall have received certification from an independent testing authority approved by the secretary of state.

(2) As a prerequisite to approval from the secretary of state, each manufacturer or supplier of electronic voting systems or equipment shall execute an escrow agreement with an escrow agent for the manufacturer’s source code for each system fully qualified by the Office of the Secretary of State. At a minimum, the agreement must— (A) Identify an escrow agency;

(B) Provide the software source code for all voting system components in a minimum of two (2) formats (one (1) human readable and one (1) machine readable) to the escrow agent;

(D) Contain a statement confirming that the state of Missouri will, within seven (7) days of the occurrence of one (1) of the following events, receive full access to the source code and unlimited rights to continue using and supporting the software at no cost to the state or the agency should the manufacturer— 1. Become insolvent; or 2. Make a general assignment for the benefit of creditors; or 3. File a voluntary petition of bankruptcy; or 4. Suffer or permit the appointment of a receiver for its business or assets; or 5. Become subject to any proceeding of bankruptcy or insolvency law, whether foreign or domestic; or 6. Wind up or liquidate its business voluntarily or otherwise and the state has reason to believe that the vendor will fail to meet future obligations; or 7. Discontinue support of the provided products or fail to support the products in accordance with its maintenance obligations and warranties;

(E) Contain a statement agreeing to notify in writing the Independent Testing Authority (ITA) that certified the system, giving the state of Missouri full access to “final build,” records and test results related to the certification tests at no charge to the state; and (F) Contain a statement agreeing that the escrow will stay in place as long as the system is used in Missouri, at no cost to the state.

(3) If any modification, deletion, or improvement to approved voting or tabulating equipment, procedures, or systems is made, the manufacturer, programmer, or supplier shall notify the secretary of state and a certification amendment statement shall be submitted.

(A) No certification need be submitted if one (1) of the following conditions are met:

The equipment is not a device which— A. Converts the intent of the voter into a data string, as an example, a card reader or scanner;

B. Changes, interprets, converts, modifies, or records the data string being transmitted from the ballot counter; or C. Manipulates data or the results of any data conversion into a report exclusive of the printer; or 2. The software only monitors system operation.

(B) Certificates from the software supplier or programmer shall always be submitted in the following cases when the additions could be used during the tabulating process:

Installation of a new release of system software, utilities software, or both;
Installation of new or expanded central processing units;
Installation of additional random access or read only memory (RAM or ROM); and 4. Installation of additional magnetic, electronic, or optical data storage units.

(4) Manufacturer’s certification statement shall be completed substantially as the example which follows:

MANUFACTURER’S CERTIFICATION STATEMENT

I, _______________________, president of __________________ ________________________________________________________ (electronic voting systems company) do hereby certify to ___________________, Secretary of State of Missouri that the ______________________ electronic voting (name of equipment) system will permit in accordance with section 115.225, RSMo:

Voting in absolute secrecy;
Each elector to vote at any election for all persons and offices for whom and for which s/he is lawfully entitled to vote;
The automatic tabulating equipment to be set to reject all votes for any office or on any measure except write-in votes when the number of votes exceeds the number the voter is entitled to cast;
Each elector to vote for as many persons for an office as s/he is entitled to vote for;
Each elector to vote for or against any questions upon which s/he is entitled to vote, and to vote, by means of a single device, where applicable, for all candidates of one (1) party or to vote a split ticket as s/he desires;
Each elector, at presidential elections, by one (1) mark, to vote for the candidate of that party for president, vice-president, and their presidential electors; and 7. The __________________________ electronic voting system complies with all other requirements of the election laws of the state of Missouri where they are applicable.

(Briefly describe the type of electronic voting system provided by ____________________________________, the means by which it meets the requirements of provisions 1.–6., and list the areas in which the system is in use.)

I do hereby certify that the above information is true and accurate this ______________ day of ______________, 20.

(President)

(Name of Company)

The above signator appeared before me this _________ day of _______, 20, and did personally sign this affidavit.

(Notary)

My commission expires ______________ (5) Compliance with this certification statement will assist this office when approval is requested for use of electronic voting systems in this state. After receiving this information, the secretary of state will schedule a meeting with the election official making the request to use electronic equipment and representatives of the voting equipment company to discuss approval of its use in Missouri.

(6) The certification amendment statement shall be completed substantially as the example which follows:

AMENDMENT TO CERTIFICATION STATEMENT

I, ____________________________________

(Name) ___________________________________, of (Office) ______________________, do hereby certify (Company) to _______________________, Secretary of State of Missouri, that the change outlined here will not affect the accuracy or legal operational requirements as outlined in section 115.225, RSMo, of ____________________________________.

(Product Name and Version) ______________________________________ (Briefly describe the change) _______________________________________ (Signature)

The above signator appeared before me this _____ day of __, 20 and did personally sign this affidavit.

(Name) _____________________________________ (Name of Company) _____________________________________ (Notary)

My commission expires _______________ (7) No change in system software, utilities software, or both, may be made within six (6) weeks prior to an election in which the automated tabulating equipment will be used for the tabulating of ballots. In the event that system software, utilities software, or both, is to be changed within thirty (30) days after any election in which the automated tabulating equipment is used for the tabulating of ballots, the election authority shall have copies made of the original system software, utilities software, or both, and those copies shall be stored in the same manner as the ballots counted in that election.

March 31, 1972, effective April 10, 1972. Amended: Filed April 7, 1978, effective July 13, 1978. Emergency amendment filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983. Amended: Filed Oct. 5, 1982, effective Feb. 11, 1983. Amended: Filed Dec. 15, 1986, effective Feb. 28, 1987. Rescinded and readopted: Filed Aug. 8, 2001, effective March 1, 2002. Emergency amendment filed June 21, 2006, effective July 1, 2006, expired Feb. 22, 2007. Amended:

Filed June 21, 2006, effective Dec. 30, 2006. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115,225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.025 Election Authority’s Certification Statement {#sec-15-csr-30-10.025 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.025}

PURPOSE: This rule provides a method by which the election

(1) No election authority shall authorize payment for software or hardware used for the tabulation of ballots unless they have on file in their office a copy of the letter of authorization from the secretary of state to the manufacturer of the equipment, software, or both, being purchased which states that the equipment, software, or both, is approved for use in Missouri.

Dec. 15, 1986, effective Feb. 28, 1987. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115,225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

History

authority and the secretary of state are assured that the systems being purchased are approved for use in Missouri.

15 CSR 30-10.030 Voter Education and Voting Device Preparation {#sec-15-csr-30-10.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.030}

PURPOSE: This rule provides for the conduct of voter education and voting device preparation.

(1) Before elections in which an electronic voting system is to be used for the first time, the election authority shall conduct a public information program to acquaint voters who will be using the system with the manner in which ballots are voted and counted.

(2) Vote Recording Preparation—Polling Place. In addition to those supplies required for the conduct of elections generally, the election authority shall cause to have prepared and delivered to each polling place, using the electronic voting system no later than forty-five (45) minutes prior to the opening of the polls, a sufficient quantity of the following:

(A) Each polling place in a primary or general election shall have a sufficient number of machines provided. The voting devices shall be put in order, set, adjusted, and ready for voting when delivered to the polling places;

(B) Ballot(s) in the form required for processing by the electronic data processing equipment. The number of ballot(s) supplied shall be sufficient to comply with section 115.247, RSMo.

Sample ballots, demonstration ballot(s), or ballot labels which shall be exact copies of the official ballots except for wording indicating the sample status of the sheet.
All ballot(s) shall be delivered to the polling places in a sealed package or container;

(D) A transfer case sufficiently large to hold, transfer to the counting location from the polling place and store the ballots which have been voted in a polling place, and the spoiled ballots envelope. The transfer case shall be sealed with a numbered nonreusable seal;

(E) Envelopes and containers in which to enclose voted paper ballots, spoiled paper ballots, and unused paper ballots;

(F) Two (2) sample ballots of each ballot type to be voted on in the polling place;

(G) Ballot marking tools, seals, and any other supplies and forms deemed necessary; and (H) Missouri Election Laws published by the secretary of state.

STATE OF MISSOURI

BALLOT CERTIFICATION

This section to be completed BEFORE Polls open.

We hereby certify at the Election held in , ___ _ Missouri, on , __ 20 in To w nsh i p and Precinct(s) that the follo w ing information is correct.

( Initials of Judges)

Rep. __ Dem.

Rep.

Rep.__ Dem.__ Total Ballots Received This section to be completed AFTER Polls close.

Total number of spoiled ballots Total number of unused ballots (all colors)

Total number of baJlots removed from ballot box after polls close Total of 3 lines above SIGNATURES OF ELECTION JUDGES Re p . _____ _____ _ Rep. _______ Rep . ____ _ _____ Sept. 15, 1972, effective Sept. 25, 1972. Emergency rescission filed Oct. 5, 1982, effective Nov. 2, 1982. Emergency rule filed Oct. 5, *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.040 Electronic Ballot Tabulation—Counting Preparation {#sec-15-csr-30-10.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.040}

PURPOSE: This rule provides for procedures in connection with the preparation for vote recording and tabulation including appointment of judges, equipment and program preparation, and pre-election testing.

(1) The election authority shall be responsible for insuring that the electronic tabulating system s/he chooses to use accurately records, and/or counts, all proper votes cast and complies with all applicable state statutes and rules.

(2) The election authority shall be responsible that all steps have been taken to ensure that the electronic tabulating equipment operates properly at the time of the pre-election public logic and accuracy test and during the tabulation of ballots on election night.

(3) The election authority shall be responsible for making necessary arrangements for a backup ballot tabulating system.

(4) The election authority shall be responsible for providing a duplicate of the counting program for the computer system on which the ballot tabulation is to be done, regardless of the backup counting system used.

(5) Prior to each election day, the election authority shall be responsible for appointing one (1) or more bipartisan teams composed of equal numbers of members from the two (2) major parties to carry out the functions of—certifying the accuracy of the electronic tabulating equipment, receiving election materials from the polls, duplicating damaged or defective ballots, processing ballots through the electronic tabulating system and preparing election materials for final storage. Each person so appointed shall have the qualifications of and take the oath of office prescribed for election judges in

section 115.091, RSMo. These persons will be selected from lists compiled as outlined in section (6) except where an election

(6) Beginning in 1987, not less than sixty (60) days prior to the first election date of each calendar year, each election

(7) Prior to election day the election authority shall supervise a public logic and accuracy test of the electronic tabulating equipment conducted by the accuracy certification team.

(A) The logic and accuracy test shall be open to any member of the public; and the election authority, by some appropriate method, shall notify the public of the time and date of the test.

(B) Persons, other than candidates and other individuals required to be notified under section 115.233, RSMo, wishing to participate in the testing process shall file a written request with the election authority at least twenty-four (24) hours prior to the publicized beginning of the logic and accuracy test.

(C) The election authority shall prepare an appropriate logic and accuracy test deck which will include the following conditions:

Each ballot position must be tested;
No two (2) candidates for the same office may receive the same number of votes, but each candidate must receive one (1) vote;
No ballot question may receive the same number of votes for and against;
In situations where a voter can legally vote for more than one (1) person for an office, at least one (1) ballot shall be voted for the maximum number of allowable candidates;
One (1) ballot shall be marked to have one (1) more vote for each candidate or question than is allowable;
One (1) ballot shall have no votes recorded on it;
Ballots should be marked to test all name rotations, if used; and 8. One (1) ballot (if possible) shall contain a vote for a candidate for whom persons using that ballot format are not entitled to vote.

(D) The accuracy certification team may run the test deck as provided by the election authority again, making as many additions, subtractions, or changes in the ballots as they desire.

(E) The public logic and accuracy team shall compare the results of the electronic test to those from a manual count of the test ballots. If the results are incorrect, then changes and/ or corrections will be made until an errorless count is made.

An electronic ballot tabulation machine shall not be used on election day until an errorless count is made on that machine.

(F) After the team is satisfied that the equipment is tabulating the ballots properly, each candidate on the ballot or any representative of a group which has notified the election

(G) If the results match with the manual count, the team shall certify that the system is accurate and properly counting ballots. All logic and accuracy test materials including the deck shall be sealed in a tamperproof container and sealed with a numbered seal. All team members shall verify, by signature or initials, the seal number on a certificate placed on the outside of the container.

(H) The election authority shall have custody of the logic and accuracy test materials including the program until called for by the accuracy certification team.

April 7, 1978, effective July 13, 1978. Emergency rescission and

rule filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983.

Rescinded and readopted: Filed Oct. 5, 1982, effective Feb. 11, 1983. Emergency rescission and rule filed May 12, 1986, effective Aug. 1, 1986, expired Nov. 7, 1986. Emergency rescission and rule filed April 17, 1987, effective April 27, 1987, expired Aug. 14, 1987.

Rescinded and readopted: Filed April 17, 1987, effective June 25, 1987. Rescinded and readopted: Filed Aug. 8, 2001, effective March 1, 2002. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

History

authority is a board of election commissioners, the election
authority may designate persons of its own choosing.
authority, except as noted in section (5), shall notify the chairpersons of the two (2) major political parties within their jurisdiction of the number of persons from their parties needed for the bipartisan teams used in processing and counting ballots. Each chairperson shall have thirty (30) days to provide a list to the election authority of twice as many persons meeting the qualifications of section 115.085, RSMo, as the election authority has indicated are necessary. If the chairpersons cannot respond in that thirty- (30-) day period with the list of names or enough persons to fill all positions, the election authority shall select persons from that party to fulfill those functions. Nothing contained in this rule shall prohibit an election authority from requesting a new list of names for the bipartisan teams for each election provided that the lists are requested sixty (60) days prior to the election and that the chairpersons have thirty (30) days for response. If the election
authority has not previously utilized automated tabulating equipment, it shall follow the same schedule as will be used in succeeding years except that the chairpersons shall be notified not later than sixty (60) days prior to the August primary.
authority pursuant to subsection (7)(B) may inspect and manually recount the test deck.

15 CSR 30-10.050 Election Procedures {#sec-15-csr-30-10.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.050}

PURPOSE: This rule provides for the appointment and instruction of election judges.

(1) The election authority shall appoint a minimum of four (4) judges for each polling place to be used in the election according to sections 115.079, 115.081, and 115.085, RSMo.

(2) All persons not previously trained in the use of the type of voting equipment being used, prior to entering into the performance of their duties as judges at the election, shall attend a course of instruction for judges in the use and operation of the electronic voting system, conducted under the authorization and supervision of the election authority.

In addition to the normal duties of the judges of election, the instruction shall cover the proper use and procedures for use of the voting devices, marking of the ballot, procedures for write-in votes (when applicable), replacing spoiled ballots, and procedures for safeguarding and transfer of ballots and other materials.

(3) The voting and marking devices, registration books or electronic registration books, identification cards, ballots, and other necessary supplies shall be delivered to the polling places prior to 5:30 a.m. on election day.

(4) The election authority shall provide the Missouri Election Laws, published by the secretary of state, to be given to election judges in each polling place.

March 31, 1972, effective April 10, 1972. Amended: Filed Sept. 15, 1972, effective Sept. 25, 1972. Emergency rescission filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983. Emergency rule filed Oct. 5, 1982, effective Nov. 2, 1982. Rescinded and readopted:

Filed Oct. 5, 1982, effective Feb. 11, 1983. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.060 Electronic Ballot Tabulation—Election Procedures {#sec-15-csr-30-10.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.060}

PURPOSE: This rule provides for procedures to be used by election authorities using electronic tabulating equipment to count voted ballots.

(1) Voted and unvoted ballots shall be processed using the following rules:

(A) Voted ballots shall always be handled or moved either by a bipartisan team or in the direct view of a bipartisan team;

(B) In those cases where the election authority determines it is more efficient to move voted ballots by use of a single person, those items shall be placed into a tamperproof container and sealed with a numbered seal. Members of a bipartisan team shall witness the sealing and verify the number of the seal by their signatures on a certificate placed on the exterior of the container. The container shall only be opened in the presence of a bipartisan team which shall verify the accuracy of the seal number before the seal is broken;

(C) The election authority shall be responsible for ensuring that sufficient certificates are made on each transfer of ballot responsibility to accurately recreate each movement of the ballot from one (1) team to the next. Each transfer shall include a statement that no election material was added, subtracted, or altered except as provided by statute or rule and that no irregularities were noticed unless otherwise noted; and (D) The election authority or his/her representative shall be on hand at all times in the counting center when ballots are unsealed.

(2) Ballot counting shall be conducted as follows:

(A) The election authority shall have the authority to limit access by persons, other than those previously appointed to bipartisan teams, in those areas where ballots are unsealed or are being counted;

(B) Ballot duplication for damaged ballots shall be done by bipartisan teams using whatever method is selected by the election authority provided that— 1. The system provides an exact duplicate of the voter’s intent, pursuant to 15 CSR 30-9.010, 15 CSR 30-9.020, and 15 CSR 30-9.030;

Both members of the team participate in the process;
Both members can review the other’s work;
There is an undisputed method to match the duplicate ballot with its original after it has been placed with the remainder of the ballots from that precinct; and 5. Allowances are made for watchers appointed pursuant to section 115.107, RSMo, to perform their statutory duties;

(C) Any changes to the operating system, application programs, files, or counters used in the ballot counting shall be documented by the election authority;

(D) The last transaction with the electronic tabulating system prior to counting ballots shall be the public logic and accuracy test; and (E) The election authority may conduct other logic and accuracy tests as s/he deems necessary including the hand count of ballots.

(3) Prior to certification of the election results, the accuracy and certification team shall recount the test deck used prior to the start of ballot tabulation on each electronic tabulating machine as follows:

(A) In the event that the counts are not identical, the team shall not certify that the electronic tabulating system was operating properly;

(B) Necessary corrections shall be made to the tabulating program until the test deck is counted properly, and all ballots shall be recounted; and (C) If the counts are identical, the team shall certify that the system is operating properly.

(4) After the accuracy certification team has approved the count and before the ballots are sealed for final storage, the team processing the ballots shall select one (1) precinct by mutual consent to be recounted. The results of that recount shall be reported on certificates supplied by the secretary of state. One (1) copy shall be filed with the secretary of state within four (4) weeks of the election date and one (1) copy shall be filed with the public records of the election.

(5) After the recount of the selected precinct, bipartisan teams shall place all ballots and other support materials into appropriate tamperproof containers which are sealed in such a way as to prevent any undisclosed entry. If numbered seals are used, those numbers shall appear on the exterior of the container and shall be witnessed by the signatures of the team members.

Sept. 15, 1972, effective Sept. 25, 1972. Amended: Filed Nov. 18, 1976, effective March 11, 1977. Emergency amendment filed Oct. 8, 1976, effective Oct. 18, 1976, expired Feb. 15, 1977. Amended:

Filed April 7, 1978, effective July 13, 1978. Emergency rescission and rule filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983. Rescinded and readopted: Filed Oct. 5, 1982, effective Feb. 11, 1983. Emergency rescission and rule filed May 12, 1986, effective Aug. 1, 1986, expired Nov. 7, 1986. Emergency rescission and rule filed April 17, 1987, effective April 27, 1987, expired Aug. 14, 1987.

15 CSR 30-10.070 Certificates by Officers; Security Areas; {#sec-15-csr-30-10.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.070}

Retention of Material; Independent Audit (Rescinded June 25, 1987)

rule filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983.

Rescinded and readopted: Filed Oct. 5, 1982, effective Feb. 11, 1983.

Emergency rescission filed April 17, 1987, effective April 27, 1987, expired Aug. 14, 1987. Rescinded: Filed April 17, 1987, effective June 25, 1987.

History

AUTHORITY: section 115.225, RSMo 1986. Original rule filed March 31, 1972, effective April 10, 1972. Emergency rescission filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983. Emergency

15 CSR 30-10.080 Absentee Balloting {#sec-15-csr-30-10.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.080}

PURPOSE: This rule sets out procedures for absentee balloting in addition to those found in Chapter 115, RSMo.

(1) All jurisdictions using electronic data processing tabulation systems may conduct absentee balloting by the same means.

The requirements of Chapter 115, RSMo shall be followed.

(2) For absentee ballots to be voted within the office of the election authority, the election authority may provide voting tabulation machines as provided in 15 CSR 30-10.030.

(3) For absentee ballots to be voted elsewhere, the election

(B) Absentee voting instructions in substantially the same form as section (5) of this rule;

(4) The absentee ballots received in absentee ballot envelopes by the election authority as allowed by law and received prior to the time fixed by law for the closing of the polls on election day shall be deemed cast according to 115.286, RSMo.

The absentee envelope shall be hand marked or stamped as it is received indicating the date and time the absentee ballot envelope was received. If the absentee envelope is missing any required information and is not complete, the absentee ballot shall not be counted and shall be rejected. There shall be no attempt to contact the voter to correct information required that is missing from the absentee envelope once the absentee envelope is in the possession of the election authority and his or her office.

(5) Absentee voting instructions are shown in Exhibit 3.

ProPosed Proof January 2, 2024 Missouri Register EXHIBIT 3 Sample Absentee Voting Instructions ABSENTEE VOTING INSTRUCTIONS READ ALL INSTRUCTIONS BEFORE VOTING Your 'ballot packet' consists of— •Official absentee paper ballot listing offices, candidates, and/or questions; and •Absentee voting instructions If you make an error and spoil your paper ballot in any manner, you may return the ballot packet to the election authority and request a new ballot.

TO VOTE

Read the official absentee paper ballot noting the offices, the candidate names, questions, and other special instructions.

INSTRUCTIONS FOR MARKING BALLOT(S)

USE A BLACK OR BLUE PEN;

VOTE BOTH SIDES OF THE BALLOT •Place the paper ballot in the absentee ballot envelope; •In the presence of a notary public, fill out the envelope including your signature. Let the notary sign, date, and witness the envelope if required; •Place the absentee ballot envelope inside the large envelope after the notary fills out his/her section, if a notarization is required; •Seal the large envelope; and •Return the envelope to the election authority either in person or by the U.S. Postal Service, postage is prepaid on the absentee return envelope.

The envelope containing your ballot must be received by the election authority not later than 7 p.m. on the day of the election.

After voting the paper ballot— ProPosed Proof January 2, 2024 Missouri Register ABSENTEE VOTING INSTRUCTIONS INSTRUCTIONS FOR MARKING BALLOT(S)

USE A BLACK OR BLUE PEN; VOTE BOTH SIDES OF BALLOT 1.On receipt of this ballot, the voter shall prepare the ballot for voting in the following manner:

(a)The voter should fill in the circle immediately to the left of the names of candidates for whom he/she wishes to vote; and (b)If the voter desires to vote for one (1) or more candidates whose name or names do not appear on the printed ballot, he/ she may do so by writing the name of the person for whom he/she desires to vote and filling in the circle at the left of such name on the printed ballot in the column provided for write-ins. 2.All candidates of the party whose circle is marked shall be counted as voted. If two (2) or more candidates for the same office are thus designated, neither shall be counted. 3.It is unlawful to deface or tear a ballot in any manner or to erase any printed name, figure, word, or letter therefrom, or to erase any mark made thereon by the voter. 4.A ballot without any marks shall not be counted. Ballots shall be counted only for the person for whom the marks thereon are applicable; when a voter places a mark against two (2) or more names for the same office, and only one (1) candidate is to be chosen for the office, none of the candidates is deemed to have been voted for and the ballot shall not be counted for either candidate. 5.All ballots must be returned to the election authority no later than 7:00 p.m. on election day in order to be counted.

March 31, 1972, effective April 10, 1972. Amended: Filed Sept. 15, 1972, effective Sept. 25, 1972. Emergency amendment filed Oct. 8, 1976, effective Oct. 18, 1976, expired Feb. 15, 1977. Amended: Filed Nov. 18, 1976, effective March 11, 1977. Amended: Filed April 7, 1978, effective July 13, 1978. Emergency rescission filed Oct. 5, 1982, effective Nov. 2, 1982. Emergency rule filed Oct. 5, 1982, effective Nov. 2, 1982, expired Feb. 2, 1983. Rescinded and readopted: Filed Oct. 5, 1982, effective Feb. 11, 1983. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

History

authority shall provide— (A) A printed paper ballot listing of the offices, candidates, and questions containing reproductions of the pages of the ballot label assembly used for voting;

15 CSR 30-10.090 Procedure for Recount or Contested Election {#sec-15-csr-30-10.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.090}

PURPOSE: This rule provides program tabulating and accuracy tests in addition to those set out in 15 CSR 30-10.020 for tabulating a recount or contested election.

(1) Procedure for Recall Contest Using Electronic Data Processing System. A recall contest has two (2) parts. Part 1 consists of a yes or no vote for the recall proposal. Part 2 consists of candidates for the vacant office in the event a majority of yes votes are cast for the recall proposal. Only voters casting valid votes in Part 1 are eligible to vote in Part 2. Ballots which do not contain a vote in Part 1 and ballots which contain both yes and no votes in Part 1 represent invalid ballots not eligible to vote in Part 2, and must be manually removed from the ballots to be tabulated with the electronic processing system. Once the invalid ballots have been identified manually and have been put aside, and the total removed has been verified, the remaining valid ballots are processed to determine the number of yes and no votes for the recall proposal and the candidate(s) elected to succeed the incumbent.

(2) Standard electronic data processing tests and auditing procedures shall be used to test the accuracy and validity of the programming of the electronic data processing system.

March 31, 1972, effective April 15, 1972. Emergency rescission filed Oct. 5, 1982, effective Nov. 2, 1982. Emergency rule filed Oct. 5, *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.100 Rejection of Votes {#sec-15-csr-30-10.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.100}

(Rescinded December 13, 1979)

History

AUTHORITY: section 115.225, RSMo 1978. Original rule filed Nov. 13, 1978, effective Feb. 11, 1979. Rescinded: Filed Aug. 14, 1979, effective Dec. 13, 1979.

15 CSR 30-10.110 Manual Recount {#sec-15-csr-30-10.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.110}

PURPOSE: This rule provides a method for the election authority, the secretary of state, and the general public to compare electronically tabulated vote results with manual recounts by hand of selected races and ballot issues in certain election precincts.

(1) Definitions.

(A) County—whenever the word county is used in this rule, it includes the cities of St. Louis and Kansas City.

(B) Precinct—the election authority, at his/her discretion, may consider polling sites containing more than one (1) precinct to be counted as a single precinct for all purposes of this rule.

(2) Prior to the certification of the election results, the accuracy certification team shall randomly select not less than five percent (5%) of all election precincts through the use of a random drawing, but not less than one (1) precinct, in order to conduct a manual recount by hand of selected contested races and ballot issues in the selected precinct(s). Random selection of the precincts shall be open to any member of the public, and the election authority shall notify the public of the time and place of the selection process no later than forty-eight (48) hours prior to the beginning of the selection process by posting a notice in a prominent place, which is easily accessible to the public and clearly designated for that purpose, at the principal office of the election authority.

(3) Recount of the randomly selected precinct(s) shall be conducted in the following manner:

(A) The election authority shall select not less than one (1) manual recount team made up of not less than two (2) persons selected from lists as outlined in 15 CSR 30-10.040(6) except when an election authority is a board of election commissioners, the election authority may designate persons of its own choosing. Each person so appointed shall have the qualifications of and take the oath of office prescribed for election judges in section 115.091, RSMo. The election authority may utilize the accuracy certification team selected in 15 CSR 30-10.040;

(B) For the selected precinct(s), the manual recount team shall unseal the appropriate ballot containers and manually recount by hand certain randomly selected contested races and ballot issues; and (C) One (1) contested race or ballot issue to be manually recounted by hand shall be randomly selected from each of the following categories, where applicable:

Presidential and Vice-Presidential electors, United States senate candidates, and state-wide candidates;
State-wide ballot issues;
United States representative candidates and state general assembly candidates;
Partisan circuit and associate circuit judge candidates and all nonpartisan judicial retention candidates;
In addition to the candidates and issues previously listed, the manual recount team shall select not less than one (1) contested race or ballot issue from all political subdivisions and special districts, including the county, in the selected precinct(s); and 6. In addition to the candidates and issues previously listed, the manual recount team shall select all races in which the margin of victory between the two (2) top candidates is equal to or less than one-half of one percent (0.5%) of the number of votes cast for the office or issue.

(4) If the results of the manual recount of the selected races and ballot issues differ by more than one-half of one percent (0.5%) from the results of the electronically tabulated vote results, the manual recount team shall immediately notify the election

(5) Upon completion of the manual recount, the manual recount team shall reseal the ballots and other support materials in the appropriate containers. The results of the manual recount shall be reported on certificates provided by the secretary of state.

One (1) copy shall be filed with the secretary of state within four (4) weeks of the election date and one (1) copy shall be filed with the public records of the election.

(6) The secretary of state may make grant funds available to reimburse election authorities for the cost of conducting manual recounts under section (2) and paragraph (3)(C)6. of this rule.

Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

History

authority, who shall investigate the causes of any discrepancy and resolve any discrepancies prior to the date of certification set forth in section 115.507, RSMo.
AUTHORITY: section 115.225.1., RSMo Supp. 2023. Original rule filed Jan. 3, 1990, effective March 26, 1990. Emergency amendment filed Sept. 15, 2008, effective Sept. 25, 2008, expired March 23, 2009. Amended: Filed Sept. 15, 2008, effective March 30, 2009.

15 CSR 30-10.120 Ballot Management Systems {#sec-15-csr-30-10.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.120}

PURPOSE: This rule provides that management controls shall be instituted by local election authorities on ballots counted by electronic ballot tabulating equipment.

(1) Definitions.

(A) Ballot—the entire ballot on which a voter marks their votes.

(B) Destruction of ballots—any method which renders the ballots unusable for further use as ballots including burning, mechanical shredding or cutting, and chemical decomposition but does not include landfilling or burying.

(2) All county election officials shall develop and operate a management system to document on the public record the acquisition and usage of all ballots provided to them for use in automated tabulating systems.

(3) At a minimum, the system shall provide an ongoing inventory record and a signed written affidavit on the public record for the following activities:

(A) Receipt of ballots including date of receipt, total shipment received, and serial numbers (if available) of the ballots;

(B) Issuance of ballots to each polling place including the election date, total number of ballots issued, and serial numbers, if available;

(C) Receipt of ballots from each polling place following the election including election date, a reconciliation for each precinct showing total ballots issued, total ballots voted, total ballots invalidated, total ballots lost, and total ballots returned unvoted. The election authority within thirty (30) days after the election shall verify by physical count the number of unvoted ballots. Unvoted ballots shall be shown by serial numbers, if available;

(D) Issuance of ballots to the election authority for the purpose of absentee ballot preparation. This record shall contain all the elements contained in subsection (3)(B). Following the election, the election authority shall complete a record containing all information contained in subsection (3)(C);

(E) Destruction of unvoted ballots for whatever purpose the election authority deems appropriate. This record shall contain the number of ballots destroyed, the method of destruction, and the serial numbers of the ballots, if available;

(F) Issuance of ballots for educational, testing, or any purposes other than those mentioned in subsections (3)(A)–(E). In every case the record shall indicate the purpose for which the ballots are issued, the serial numbers of the ballots, if available, and the steps taken by the election authority, including the marking of the word VOID on the face or back of the ballot, or changes to the ballot to ensure that the ballots will not be used in subsequent elections; and (G) All the affidavits in this section shall be maintained in the office of the election authority for a period of two (2) years after the date on which all ballots from a single shipment of ballots have been completely issued.

(4) Each election authority shall conduct an annual inventory of all ballots in their custody comparing the actual number of ballots in their custody with the number of ballots indicated as being on their inventory records.

(A) This inventory must include verification of all serial numbers if available.

(B) The election authority shall establish the date(s) of the inventory at their discretion between April 1 and June 1 of each year.

(C) Following the required inventory, the election authority shall sign an affidavit including the actual number of ballots on hand at the end of the previous inventory, the number of ballots received since the previous inventory, the number of ballots restocked following elections or other activities outlined in section (3), the number of ballots issued or destroyed since the last inventory based on previously filed affidavits, the actual number of ballots on hand as determined by the present inventory and any discrepancies. In the case of discrepancies, the election authority shall include their assessment of the reason for the discrepancy. In all cases the affidavit shall include serial numbers, if available.

(D) One (1) copy of the affidavit shall be held by the election

History

authority in their office for five (5) years from the date of affidavit and one (1) copy shall be forwarded to the secretary of state.
AUTHORITY: section 115.225.1., RSMo Supp. 2023. Original rule filed Jan. 3, 1990, effective March 26, 1990. Amended: Filed Nov. 29, 2023, effective June 30, 2024. Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.130 Voter Education and Voting Device Preparation (DREs and Precinct Counters) {#sec-15-csr-30-10.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.130}

(Rescinded June 30, 2024)

History

AUTHORITY: section 115.225, RSMo Supp. 2005. Emergency rule Original rule filed June 21, 2006, effective Dec. 30, 2006. Rescinded:

15 CSR 30-10.140 Electronic Ballot Tabulation—Counting Preparation and Logic and Accuracy Testing {#sec-15-csr-30-10.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.140}

PURPOSE: This rule provides procedures in connection with the preparation of optical scan electronic ballot tabulation voting systems for vote tabulation, including equipment and program preparation and pre-election logic and accuracy testing and certification.

(1) Election authorities in jurisdictions in which electronic ballot tabulators are used shall be responsible for ensuring that the devices accurately record and count all proper votes cast and that the systems comply with all applicable state statutes and rules.

(2) The election authority shall be responsible for taking all steps necessary to ensure that the electronic ballot tabulators operate properly at the time of the pre-election public logic and accuracy test and during the tabulation of votes on the day of the election.

(3) The election authority shall be responsible for making necessary arrangements for a backup ballot tabulating method.

(5) The election authority shall be responsible for appointing a bipartisan accuracy certification team(s) pursuant to 15 CSR 30-10.040(5) and (6).

(6) Prior to election day the election authority shall supervise a public logic and accuracy test of the electronic ballot tabulators conducted by the accuracy certification team(s).

(A) The logic and accuracy test shall be open to any member of the public, and the election authority, by some appropriate method, shall notify the public of the time and date of the test.

(B) Persons, other than candidates and other individuals required to be notified under section 115.233, RSMo, wishing to participate in the testing process, in the manner provided in state law and this rule, shall file a written request with the election authority at least twenty-four (24) hours prior to the publicized beginning of the logic and accuracy test.

(C) The election authority shall cause each electronic ballot tabulator to be programmed for the ballot style for the precinct(s) at which the electronic ballot tabulator will be used and the programmed memory card assigned to that unit shall be inserted. After programming the electronic ballot tabulator, each unit shall have such internal diagnostic tests performed as shall be directed by the election authority.

Following the completion of the diagnostic tests, all units shall have an internal logic and accuracy test performed using the programmed ballot style for the election and precinct(s) for which the unit is being prepared and shall test the conditions described in 15 CSR 30-10.040(7)(C). In addition, for electronically assisted ballot marking devices, the test script shall include votes cast using a combination of audio and touch-screen methods.

(D) The accuracy certification team(s) shall compare the results of the electronic test to the data entered and to the results from a manual count of the paper cast vote records and the results of a manual count of the paper ballots to the electronic ballot tabulators. If the results are incorrect, then changes or corrections will be made to the programming until an errorless count is made. A unit shall not be used on election day until an errorless count is made on that unit.

(E) After the team(s) is satisfied that the equipment is tabulating the votes properly, each candidate on the ballot or any representative of a group which has notified the election authority pursuant to 15 CSR 30-10.140(6)(B) may inspect the paper audit trail for the optical scan test deck.

(F) If any unit fails any of the diagnostic or logic and accuracy tests, the unit shall not be used in an election until such unit is repaired, reprogrammed, and inspected and found capable of proper functioning and passes the diagnostic and logic and accuracy tests. Upon the successful completion of the logic and accuracy test, the counters shall be cleared of any accumulated vote totals for the election and a zero tape run to verify that the vote registers in the unit are set at zero. The accuracy certification team(s) shall verify that the vote registers are set at zero and make a corresponding notation on the certification form to document the successful logic and accuracy testing and the unit shall be configured for voting. The memory card shall be sealed into the unit to prevent unauthorized access using a controlled serialized seal that is tamper resistant and resistant to inadvertent breakage and the unit shall then be securely closed in its case and a numbered seal placed on its case such that the case may not be opened until and unless the seal is broken. If the unit does not have a case, the unit shall be sealed with a numbered seal placed on the unit such that the unit may not be used for voting until and unless the seal is broken. The numbers on the seals shall be entered into verifiable seal logs.

(G) The election authority shall make a certification for each electronic ballot tabulator stating the serial number of the unit, the number on the system counter of the unit, the number on the seal with which the unit is sealed, and that the election counter and each vote register on the unit was set at zero. The case shall be appropriately labeled with the name of the polling location in which the unit is to be used and the serial number of the unit. The certification shall be retained with the records for such election and shall be stored for the same period of time and in the same manner as required by law for other election records.

(H) All logic and accuracy test materials shall be sealed in a tamperproof container securely sealed in such a manner that if the container is opened, the seal will be broken beyond repair.

All members of the accuracy certification team(s) shall verify, by signature or initials, the date and time the container was sealed on a certificate placed on the outside of the container.

The election authority shall have custody of the logic and accuracy test materials, including the program, until called for by the accuracy certification team.

(I) After being prepared for voting, each electronic ballot tabulator shall be safely and securely stored until such time as the unit is transported to the polling location in which such unit is to be used. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.150 Closing Polling Places Ballot Marking Devices {#sec-15-csr-30-10.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.150}

PURPOSE: This rule provides procedures for administering and closing polling places using a ballot marking device.

(1) Once one (1) vote is cast on a ballot marking device, the poll workers shall encourage voters to cast their votes on that unit so that at least two (2) more ballots are cast on that unit, even if not by voters needing its accessibility components, in order to protect the privacy of the voter.

(2) Abandoned Ballots.

(A) If a voter places an optical scan ballot into an electronic ballot tabulator and the electronic ballot tabulator rejects the ballot after the voter has left the polling place and if the ballot is still in the electronic ballot tabulator, a bipartisan team of election judges shall take action to ensure that the ballot is counted and deposited in the ballot box.

(B) If a voter leaves their optical scan ballot anywhere in the polling place other than in the electronic ballot tabulator or ballot box and the voter leaves the polling place, the ballot shall not be counted. A bipartisan team of election judges shall mark the ballot “Abandoned” and place the ballot in the spoiled ballot envelope. The judges shall make a corresponding notation on an Abandoned Ballot Tracking Form, initialed by both judges.

(3) Immediately after the polls close and the last voter has voted, the election judges shall close, or supervise the closing of, each of the ballot marking devices and electronic ballot tabulators in the polling location against further voting.

(4) The election judges shall cause each ballot marking device and electronic ballot tabulator to print a minimum of one (1) tape showing the number of votes cast on each unit. They shall compare the number of ballots cast as shown on the tape with the number of ballots cast as shown on the election counter of the unit and with the number of voters who signed the precinct register and for the electronic ballot tabulator with the number of ballots marked. If these numbers are not identical, the election judges shall document the discrepancy.

(5) After completing the procedures in sections (3) and (4), the memory components shall be removed from any unit that will not be returned to the central location on election night or shall remain sealed in any unit that will be returned to the central location, as appropriate for the make, model, and version of the system in use. The ballot marking device and the electronic ballot tabulator shall be turned off and secured in their cases and locked or resealed. The number of each seal shall be entered on the appropriate form along with the serial number of the unit or unit case on which it is used. The units or cases shall then be secured.

(6) Any provisional ballots, optical scan ballots, spoiled ballots, paper cast vote records, and memory components shall be secured in tamperproof containers securely sealed in such a manner that if the container is opened, the seal will be broken beyond repair.

(7) Audit trail tapes, voter access cards, supervisor’s card, ballot encoder devices, precinct binders, numbered lists of voters, voter certificates, recap sheets, and other such paperwork shall be transported to the election authority. In the event the paper cast vote record is unreadable, the audit trail tapes shall be available as an official record when a manual recount of votes is ordered.

(8) All paper cast vote records shall be preserved and secured by election judges in the same manner as paper ballots and shall be available as an official record when a manual recount of votes is ordered and for the post-election verification of the electronically tabulated vote results required by 15 CSR 30- 10.060. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

15 CSR 30-10.160 Electronic Ballot Tabulation—Election Procedures (Ballot Marking Devices and Precinct Counters) {#sec-15-csr-30-10.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-10.160}

PURPOSE: This rule provides procedures to be used by election authorities using optical scan electronic ballot tabulator voting systems and ballot marking devices.

(1) Each unit or case shall only be opened in the presence of a bipartisan team which shall verify the accuracy of the seal number before the seal is broken.

(2) The election authority shall be responsible for ensuring that sufficient certificates or log entries are made on each transfer of ballot marking devices, electronic ballot tabulators, memory components, paper cast vote records, and ballots to accurately recreate each movement of the ballot marking devices, electronic ballot tabulators, memory components, paper cast vote records, and ballots. Each transfer shall include a statement that no election material was added, subtracted, or altered except as provided by statute or rule and that no irregularities were noticed unless otherwise noted.

(3) The election authority or his/her representative shall be on hand at all times in the counting center when the ballots, paper cast vote records, and memory components are unsealed. The units and containers shall be unsealed in the presence of bipartisan teams which shall verify that the seal is intact, and verify the seal number where numbered seals are used, before the seal is broken. When sealing and unsealing the containers, the members of the bipartisan teams shall verify the seal numbers by their signatures on a log sheet designed for that

purpose.

(4) The tabulation and consolidation shall be performed in public. The election authority may make reasonable rules and regulations for conduct at the tabulating center, including limiting access to the tabulation area, to ensure the security of the results and the returns and to avoid interference with the tabulating center personnel.

(5) Upon receiving the ballot marking devices, electronic ballot tabulators, memory components, paper cast vote records, and ballots, the election authority shall verify that the seals are intact, verify the seal number where numbered seals are used, and that there is no evidence of tampering with the units, cases, containers, or their contents.

(6) Following acceptable procedures appropriate for the make, model, and version of the ballot marking device or electronic ballot tabulators in use, the election authority or his/her designee shall transfer the vote totals from the memory components into the election management system for official tabulation and consolidation.

(7) Prior to certification of the election results, the accuracy certification team(s) shall tabulate the same set of votes used in the pre-election internal logic and accuracy test performed pursuant to 15 CSR 30-10.140(6)(C) on each memory component used at the polling locations to tabulate votes on ballot marking devices and electronic ballot tabulators. This section shall not apply to any memory component on which election results are stored.

(A) If the results are not identical to those produced in the pre-election test for any memory component, the team shall not certify that the unit in which that component was used was operating properly.

In the case of an electronic ballot tabulators, the necessary corrections shall be made to the program until the results are identical and the ballots cast on the electronic ballot tabulators in which the memory component was used shall be retabulated and the consolidated results corrected accordingly.

(B) If the results are identical, the team shall certify that the unit was operating properly.

(8) The paper cast vote records audit trail tapes and ballots shall be kept secured until they must be unsealed to be hand counted in the post-election verification of electronic results pursuant to 15 CSR 30-10.110 or until they must be unsealed to be hand counted when a manual recount of votes is ordered.

They shall only be unsealed in the presence of bipartisan teams which shall verify that the seal is intact, before the seal is broken and which shall reseal the containers in such a manner that if the container is opened, the seal will be broken beyond repair after the post-election audit or the manual recount is complete. When sealing and unsealing the containers, the members of the bipartisan teams shall verify the seal numbers by their signatures on a log sheet designed for that purpose. *Original authority: 115.225, RSMo 1977, amended 1993, 1995, 2002, 2006, 2018, 2022.

Chapter 12 Grievance Procedures

15 CSR 30-12.010 Statewide HAVA Grievance Procedure {#sec-15-csr-30-12.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-12.010}

PURPOSE: This rule describes the procedure for the filing of an administrative complaint to remedy grievances concerning a violation of Title III of the Help America Vote Act of 2002.

(1) Any person who believes that there is a violation of any provision of Title III of the Help America Vote Act of 2002 (HAVA), 42 U.S.C. 15481 through 15485, (including a violation that has occurred, is occurring, or is about to occur), may file a complaint with the Elections Division of the Office of the Secretary of State.

(2) Any complaint filed under this rule must be written, signed, and sworn to before a notary public commissioned by the state of Missouri.

(3) Any complaint filed under this rule must be filed within thirty (30) days of the certification of the election in which the violation is alleged to have occurred.

(4) The complaint filed under section (1) of this rule shall state the following:

(A) The name and mailing address of the person or persons alleged to have committed the violation of Title III of HAVA described in the complaint;

(B) A description of the act or acts that the person filing the complaint believes is a violation of a provision of Title III of HAVA; and (C) The nature of the injury suffered (or is about to be suffered) by the person filing the complaint.

(5) The Elections Division shall promptly provide a copy of the complaint by certified mail to:

(A) All persons identified as possible violators of the provisions of Title III of HAVA; and (B) The election authority in whose jurisdiction the violation is alleged to have occurred.

(6) The Elections Division may consolidate complaints filed under this rule.

(7) Once a complaint has been properly filed under this rule, the secretary of state shall appoint a presiding officer who shall conduct an investigation of the complaint.

(8) At the request of the person filing the complaint, or if the presiding officer believes that the circumstances so dictate, the presiding officer shall conduct a hearing on the complaint and prepare a record on the hearing, such hearing to be conducted within ten (10) days of the request of the person filing the complaint.

(9) The presiding officer, upon completing the investigation, shall submit the results to the Elections Division, which shall then issue a written report. The Elections Division shall provide a copy of the report by certified mail to:

(A) The person who filed the complaint;

(B) The person or persons alleged to have committed the violation; and (C) The election authority in whose jurisdiction the violation was alleged to have occurred.

(10) The report described in section (8) of this rule shall:

(A) Indicate the date when the complaint was received by the Elections Division;

(B) Contain findings of fact regarding the alleged violation and state whether a violation of Title III of HAVA has occurred;

(C) State what steps, if any, the person or persons alleged to have committed the violation has taken to correct the violation and/or to prevent any reoccurrence;

(D) Suggest any additional measures that could be taken to correct the violation;

(E) Indicate the date a violation was corrected or is expected to be corrected; and (F) Provide any additional information or recommendations useful in resolving the complaint.

(11) If the Elections Division determines that there is a violation of any provision of Title III of HAVA, the Elections Division shall determine and provide the appropriate remedy, if authorized to do so. If the Elections Division determines that it is not authorized by law to provide the appropriate remedy, the Elections Division shall, if possible, refer the matter to the appropriate agency or office that has jurisdiction.

MATTBLUNT(4/30/04)

Chapter 12óGrievance Procedures15 CSR 30-12

History

AUTHORITY: section 28.035, RSMo Supp. 2003. Original rule filed Sept. 19, 2003, effective May 30, 2004. Original authority: 28.035, RSMo 2003.

Chapter 14 Election Contributions

15 CSR 30-14.010 Campaign Contribution Limits {#sec-15-csr-30-14.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-14.010}

PURPOSE: This rule sets the limits of contributions that a political party may accept from any person or committee.

(1) Notwithstanding Article III, Section 2(c), the campaign contribution limits set forth in Article VIII, Section 23.3, as adjusted pursuant to Article VIII, Section 23.3(18) are as follows:

(A) By any person, other than the candidate, to a candidate running for governor, lieutenant governor, secretary of state, state treasurer, state auditor, attorney general, office of state senator, office of state representative or any other state of judicial office under Article VIII, Section 23.3(1), two thousand eight hundred twenty-five dollars ($2,825);

(B) By any person to a political party for any state, county, municipal, district, ward, or township level election under

Article VIII, Section 23.3(2)(a), twenty-seven thousand four hundred dollars ($27,400); and (C) By any committee to a political party for any state, county, municipal, district, ward, or township level election under Article VIII, Section 23.3(2)(b), twenty-seven thousand four hundred dollars ($27,400).

(2) That the secretary of state shall calculate adjustments to campaign contribution limits every four (4) years using the past four (4) years Consumer Price Index (CPI) issued by the United States Bureau of Labor Statistics for Kansas City and St.

Louis.

(3) That these limits shall remain in effect until the secretary of state recalculates the campaign contribution limits in four (4) years and publishes them as an amended rule.

Original rule filed March 20, 2019, effective Sept. 30, 2019.

Amended: Filed May 19, 2022, effective Jan. 1, 2023.

History

AUTHORITY: Article VIII, Section 23(18). Emergency rule filed March 20, 2019, effective March 30, 2019, expired Jan. 8, 2020.

Chapter 15 Initiative, Referendum, New Party and Independent Candidate Petition Rules

15 CSR 30-15.010 Signature Verification Procedures for Initiative, Referendum, {#sec-15-csr-30-15.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-15.010}

15 CSR 30-15.020 Processing Procedures for Initiative, Referendum, New Party, {#sec-15-csr-30-15.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-15.020}

15 CSR 30-15.030 Initiative, Referendum, New Party, and Independent Candidate Petitions Missouri Voter Registration System and Other Independent Candidate Petition Rules {#sec-15-csr-30-15.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-15.030}

15 CSR 30-15.010 Signature Verification Procedures for Initiative, Referendum, New Party, and Independent Candidate Petitions {#sec-15-csr-30-15.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-15.010}

PURPOSE: The secretary of state may make rules to ensure uniform, complete, and accurate checking of initiative and referendum petition signatures. This rule provides for uniform determination of whether signatures are those of legal voters as required in Article III, Section 50 of the Missouri Constitution.

(1) Voter signatures will be rejected if— (A) They list an address outside of the county as indicated on the petition except as provided in subsection (2)(B) and (3)(F) of this section; or (B) They have been struck through or crossed out.

(2) Voter names will only be accepted if— (A) The name is exactly as it appears on the voting rolls except that there is— 1. The presence or absence of a middle initial when a first name is given or the presence or absence of a first initial when a middle name is given;

The substitution of a common nickname for the name on the voting roll, that is, Dick for Richard, Liz or Beth for Elizabeth, Bill for William, Becky for Rebecca, etc.;
The presence or absence of terms such as Jr. or Sr. following a name;
The use of only a first and middle initial provided that on either the petition or the voting rolls both initials can be determined from the name(s) given; and 5. A name change and the local election authority determines that the individual’s signature on the petition and on the voter’s registration record are sufficiently alike to identify the petition signer as the same person who is registered to vote; and (B) They were registered to vote within the county named at the top of the petition page on the date the petition was signed.

(3) Voter addresses will be accepted if they meet one (1) or a combination of the following categories:

(A) The address is exactly as it appears on the voting rolls;

(B) The address is exactly as it appears on the voting rolls except that there is— 1. The presence or absence of a letter or number identifying an apartment; and 2. The presence or absence of a letter or grouping of letters indicating the directional location of a street, for example, “E” for east, “NW” for northwest, “S” for south;

(C) The voter resides in the same residence as indicated on the voting rolls and the local election authority can determine that only the address designation has been changed by municipal or postal authorities;

(D) The address as listed on the petition was the voter’s registered address on the date the petition was signed;

(E) The address listed on the petition is different from the address on the voting rolls but within the county named at the top of the page, provided that the local election authority who maintains the registration record of such person shall compare and determine that the individual’s signatures on the alike to identify the petition signer as the same person who is registered to vote within the jurisdiction. If otherwise valid, the signature of an individual whose address is acceptable under this subsection (3)(E) shall be counted in the totals of the local election authority who has jurisdiction over the address listed on the petition; or (F) The address listed on the petition is different from the address on the voting rolls but the voter was registered to vote within the county named at the top of the page on the date the petition was signed, provided that the local election authority who maintains the registration record of such person shall compare and determine that the individual’s signatures on the was registered to vote within the jurisdiction on the date the petition was signed. If otherwise valid, the signature of an individual whose address is acceptable under this subsection (3)(F) shall be counted in the totals of the local election

(4) A voter’s signature will be accepted as valid if it generally appears to be in a form similar to that found on the voter rolls.

(5) In order for a name to be qualified to appear on the petition, there must be a valid voter name, address, and signature.

NOTE: Failure of any other information is not a reason to fail to certify a name as being qualified.

(6) A voter’s signature shall not be deemed invalid on the basis of source of registration. If otherwise valid, the signature of a person who registered to vote pursuant to the provisions of sections 115.159, 115.160, or 115.162, RSMo, shall be accepted as valid without respect to whether such person has previously voted in the jurisdiction or received a voter identification card, provided that each of the following must apply at the time of verification of the petition by the local election authority:

(A) The voter registration application had been received and accepted by the election authority on or before the date the petition was signed;

(B) The verification notice sent by the election authority pursuant to section 115.155.3, RSMo, was not returned by the postal service to the election authority within the time established by the election authority; and (C) The local election authority’s voter registration file reflects the applicant was eligible to vote in the county named at the top of the petition page on the date the petition was signed. 116.130.5, RSMo 2016.* Original rule filed Nov. 22, 1985, effective March 24, 1986. Amended: Filed April 22, 1992, effective Sept. 6, 1992. Emergency amendment filed June 10, 1992, effective June 20, 1992, expired Oct. 17, 1992. Emergency amendment filed July 9, 1996, effective July 19, 1996, expired Jan. 14, 1997. Amended: Filed July 9, 1996, effective Feb. 28, 1997. Amended: Filed Aug. 27, 1999, effective Feb. 29, 2000. Amended: Filed Aug. 30, 2013, effective Feb. 28, 2014. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.335.7, RSMo 1977, amended 1993, 1995, 2018, and 116.130, (5/31/24) John R. Ashcroft

History

authority who has jurisdiction over the address named at the top of the petition page.

15 CSR 30-15.020 Processing Procedures for Initiative, Referendum, New Party, and Independent Candidate Petitions {#sec-15-csr-30-15.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-15.020}

PURPOSE: The secretary of state may make rules to ensure uniform, complete, and accurate checking of initiative and referendum petition signatures. This rule provides for uniform processing of petitions once a determination has been made as to the validity of a name on a petition.

(1) Each local election authority shall check each signature designated by the secretary of state against voter registration records and annotate each signature, according to their findings in red ink in the left margin, on the copies of petition pages sent to him/her in the following manner:

(A) If the name, address, and signature are acceptable pursuant to 15 CSR 30-15.010 “R” to denote “Registered”;

(B) Where possible, if the voter’s address on an “R” designated signature is acceptable pursuant to 15 CSR 30-15.010 (3)(F), where the address listed on the petition is different from the address on the voting rolls but the voter was registered to vote within the county named at the top of the petition page on the date the petition was signed, and the local election

(C) Where possible, if the voter’s address on an “R” designated signature is acceptable pursuant to 15 CSR 30-15.010(3)(E), where the address listed on the petition is different from the address on the voting rolls (including PO Box addresses) but within the county named at the top of the page, and the local election

(D) If the name on the petition does not appear in the election authority’s registration file as an eligible voter in that jurisdiction “NR” to denote “Not Registered”;

(E) If the name and address are acceptable pursuant to 15 CSR 30-15.010, but the signature appears different than that on file with the election authority, “WS” to denote “Wrong Signature”;

(F) If a name selected in a random sample for a particular congressional district is actually in another district in the county and otherwise properly registered, “OD” to denote “Other District”; and (G) If a person is registered, but the correct congressional district is not indicated on the petition, the incorrect number should be crossed out and the correct number entered in the right margin.

(2) In the event a duplicate signature is found on the petition, the local election authority shall call this to the attention of the secretary of state in a separate memo, noting the page number(s) and the line number(s) of the signatures.

(3) In the event a situation is identified where one (1) person has signed for him/herself and his/her spouse on one (1) line, that is, Mr. and Mrs. John Jones, the signature may be counted which appears to be that of the petition signer provided that all of the requirements of sections (1) and (2) are met. The local election authority shall call these occurrences to the attention of the secretary of state in a separate memo, noting the page number(s) and the line number(s).

(4) Each local election authority shall review all pages and signatures s/he had been asked to check by the secretary of state for apparent irregularities and call these irregularities to the attention of the secretary of state in a separate memo, noting the page number(s) and the line number(s).

(5) Each local election authority shall certify to the secretary of state, on forms provided, or by means of petition processing summary reports generated by the software provided by the secretary of state as part of the Centralized Voter Registration System authorized by section 115.158, RSMo, the total of each category enumerated in section (1) less the number of duplicate, but otherwise qualified, signatures in section (2).

First class counties participating in the Centralized Voter Registration System through the electronic interface allowed by the statute may certify their totals on reports from their automated systems if the report format is approved by the secretary of state. 116.130.5, RSMo 2016.* Original rule filed Nov. 22, 1985, effective March 24, 1986. Amended: Filed April 22, 1992, effective Sept. 6, 1992. Emergency amendment filed June 10, 1992, effective June 20, 1992, expired Oct. 17, 1992. Emergency amendment filed July 12, 1996, effective July 22, 1996, expired Jan. 14, 1997. Amended: Filed July 12, 1996, effective Feb. 28, 1997. Amended: Filed Aug. 27, 1999, effective Feb. 29, 2000. Amended: Filed Aug. 30, 2013, effective Feb. 28, 2014. Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.335.7, RSMo 1977, amended 1993, 1995, 2018, and 116.130,

History

authority determined that the individual’s signatures on the was registered to vote within the jurisdiction on the date the petition was signed, the local election authority listed on the top of the petition page shall designate the signature as “R”;
authority determined that the individual’s signatures on the is registered to vote within the jurisdiction, the local election
authority shall add to the “R” designation “DA” (i.e., “RDA” to denote “Registered, Different Address”);

15 CSR 30-15.030 Initiative, Referendum, New Party, and Independent Candidate Petitions Missouri Voter Registration System and Other Computerized Processing Options {#sec-15-csr-30-15.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-15.030}

PURPOSE: The purpose of this rule is to clarify that local election authorities have the option to use the centralized Missouri Voter Registration System (MCVR) or a petition processing software program provided and maintained by the Office of the Secretary of State for initiative, referendum, new party, and independent candidate petition signature verification as allowed under Chapters 115 and 116, RSMo. MCVR is the official statewide voter registration list which was created and implemented as part of the Help America Vote Act of 2002. This system is maintained and administered by the Office of the Secretary of State and contains the name and registration information of every legally registered Missouri voter. It serves as the official voter registration list for the conduct of all elections in Missouri and allows local election authorities immediate real-time electronic access to the information contained in the system. Currently, local election authorities may use this system for petition signature verification as authorized by Chapter 115, RSMo. The secretary of state may make rules to ensure uniform, complete, and accurate checking of initiative and referendum petition signatures.

(1) Each local election authority has the option for local petitions to comply with the requirements of 15 CSR 30-15.010 and 15 CSR 30-15.020 through the centralized Missouri Voter Registration System (MCVR).

(2) Each local election authority may comply with the requirements of 15 CSR 30-15.010 and 15 CSR 30-15.020 for statewide petitions, referendums, new party, and independent candidates filed with the secretary of state office through a petition processing software program maintained and administered by the secretary of state. Petition pages will be processed and annotated electronically. Each local election authority shall certify to the secretary of state by means of petition processing summary reports generated by the software program provided by the secretary of state the total of each category enumerated in 15 CSR 30-15.020(1) less the number of duplicate, but otherwise qualified, signatures in 15 CSR 30-15.020(2). 116.130.5, RSMo 2016.* Original rule filed Aug. 14, 2013, effective Feb. 28, 2014. Amended: Filed Jan. 31, 2020, effective July 30, 2020.

Amended: Filed Nov. 29, 2023, effective June 30, 2024. *Original authority: 115.335.7, RSMo 1977, amended 1993, 1995, 2018, and 116.130,

Chapter 45 Records Management

15 CSR 30-45.040 Missouri Historical Records Advisory Board (MHRAB) {#sec-15-csr-30-45.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-45.040}

15 CSR 30-45.010 State Records {#sec-15-csr-30-45.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-45.010}

(Rescinded September 30, 2019)

Original rule filed Aug. 25, 1989, effective Feb. 11, 1990. Rescinded: Filed March 20, 2019, effective Sept. 30, 2019.

History

AUTHORITY: section 109.230, RSMo 1986.

15 CSR 30-45.020 Local Records {#sec-15-csr-30-45.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-45.020}

(Rescinded September 30, 2019)

Filed March 20, 2019, effective Sept. 30, 2019.

History

AUTHORITY: sections 109.241 and 109.255, RSMo 1986. Original rule filed Aug. 25, 1989, effective Feb. 11, 1990. Rescinded:

15 CSR 30-45.030 Local Records Grant Program Administration {#sec-15-csr-30-45.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-45.030}

PURPOSE: This rule outlines the process of administering the grants-in-aid program for local records preservation through the Office of the Secretary of State.

(1) The local records grant program provides financial assistance to local government officials to support records management and preservation efforts, particularly for records of permanent retention.

(A) Eligible applicants include all local government entities supported by a tax levy.

(B) Ineligible applicants include:

Individuals;
State agencies (local public records housed by state agencies may be included in a grant application that is submitted and administered by the local official who has statutory authority over the records);
Private organizations (local public records housed by private organizations may be included in a grant application that is submitted and administered by the local official who has statutory authority over the records);
Federal agencies.

The Missouri Historical Records Advisory Board (MHRAB) recommends grant— A. Activities, requirements, and objectives;

B. Cost-sharing contributions, budget structure, payment benchmarks, and accounting guidelines; and C. Calendars.

The MHRAB reviews and evaluates grant applications and recommends funding levels for award to the secretary of state.
The process to be followed in writing and submitting a grant proposal are found in the Missouri Local Records Preservation Grant Program Guidebook and Application.

All applicable guidelines, procedures, and standards relating to the local records preservation grants-in-aid program are detailed in Missouri Local Records Preservation Grant Program Guidebook and Application and the Guidelines for Microfilming Public Records.

A. Any interested person may obtain the most current version of Local Records Preservation Grant Program Guidebook and Application from the secretary of state website: www.sos.mo.gov/archives/localrecs/grants/.

B. The most current version of Guidelines for Microfilming Public Records are available from the secretary of state website: www.sos.mo.gov/archives/pubs/mfmg/.

The current Guidebook and Application and the Guidelines for Microfilming Public Records may be accessed on the secretary of state website: www.sos.mo.gov/archives/localrecs/grants.

Filed July 27, 1999, effective Feb. 29, 2000.

Rescinded and readopted: Filed Jan. 18, 2002, effective July 30, 2002. Amended:

Filed Jan. 24, 2003, effective July 30, 2003.

Amended: Filed July 25, 2014, effective Jan. 30, 2015. Amended: Filed July 1, 2019, effective Dec. 30, 2019. *Original authority: 59.319, RSMo 1969, amended 1989, 1994, 2012 and 109.221, RSMo 1989, amended 1990, 1993, 1995, 1998, 2018.

History

AUTHORITY: section 59.319, RSMo 2016, and section 109.221, RSMo Supp. 2019. Emergency rule filed June 19, 1991, effective June 29, 1991, expired Oct. 28, 1991. Original rule filed June 19, 1991, effective Oct. 31, 1991. Amended: Filed Nov. 6, 1991, effective May 14, 1992. Rescinded and readopted:

15 CSR 30-45.040 Missouri Historical Records Advisory Board (MHRAB) {#sec-15-csr-30-45.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-45.040}

Regrant Program Administration

PURPOSE: This rule outlines the authority of the grants-in-aid program for historical records preservation through the Office of the Secretary of State.

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive.

This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction.

This note applies only to the reference material. The entire text of the rule is printed here.

(1) The Missouri Historical Records Grant Program, provides financial assistance to historical records repositories to support cooperative strategies, education for records keepers, and preservation and expanded access to records.

(A) Eligible applicants include historical, ethnic, and religious societies, museums, libraries, colleges, universities, and others whose archival collections or records of historical value are open to the public on equal terms for everyone.

(B) Procedures and Evaluation of Applications.

The Missouri Historical Records Advisory Board (MHRAB) recommends grant— A. Activities, requirements, and objectives;

B. Cost-sharing contributions, budget structure, payment benchmarks, and accounting guidelines; and C. Calendars.

The MHRAB reviews and evaluates applications and makes awards in the program.
The process to be followed in writing and submitting a grant proposal is found in the Missouri Historical Records Grant Program Guidelines and Application which can be found on the secretary of state website: www.sos.mo.gov.

Rescinded and readopted: Filed Oct. 6, 2003, effective April 30, 2004. Amended: Filed April 1, 2010, effective Sept. 30, 2010.

Amended: Filed July 1, 2019, effective Dec. 30, 2019. *Original authority: 109.221, RSMo 1989, amended 1990, 1993, 1995, 1998, 2018.

History

AUTHORITY: sections 109.221.3 and 109.221.5, RSMo Supp. 2019. Original rule filed Oct. 6, 2000, effective April 30, 2001.

Chapter 50 General

15 CSR 30-50.050 Application for Registration as Broker-Dealer of Securities {#sec-15-csr-30-50.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.050}

15 CSR 30-50.060 Computation of Net Capital, Aggregate Indebtedness and Ratio of Aggregate Indebtedness to Net Capital {#sec-15-csr-30-50.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.060}

15 CSR 30-50.070 Broker-Dealer, Agent, Investment Adviser Statutory Bond {#sec-15-csr-30-50.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.070}

15 CSR 30-50.080 Request for Withdrawal from Registration as Broker-Dealer {#sec-15-csr-30-50.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.080}

15 CSR 30-50.090 Application for Registration as an Investment Adviser {#sec-15-csr-30-50.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.090}

15 CSR 30-50.100 Appointment of Agent by Broker-Dealer or Issuer {#sec-15-csr-30-50.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.100}

15 CSR 30-50.120 Application for Renewal Registration as Agent {#sec-15-csr-30-50.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.120}

15 CSR 30-50.140 Application for Registration of Securities by Coordination {#sec-15-csr-30-50.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.140}

15 CSR 30-50.150 Application for Registration of Securities by Qualification {#sec-15-csr-30-50.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.150}

15 CSR 30-50.190 Appointment of the Commissioner of Securities to Acknowledge {#sec-15-csr-30-50.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.190}

15 CSR 30-50.200 Supplemental Sheet to Agent’s Application {#sec-15-csr-30-50.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.200}

15 CSR 30-50.210 Statement of Claim for the Exemption of Securities of a Cooperative {#sec-15-csr-30-50.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.210}

15 CSR 30-50.220 Application for Exception From Definition of Agent for Sellers of {#sec-15-csr-30-50.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.220}

15 CSR 30-50.010 Definitions {#sec-15-csr-30-50.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.010}

PURPOSE: This rule defines certain terms used in the administration of the Missouri Securities Act of 2003 and in the corresponding rules, forms, and orders made.

(1) When the terms listed in this rule are used in the Missouri Securities Act of 2003 (the Act), these rules, the forms, and the orders of the commissioner, the following meanings shall apply (unless the context otherwise requires), together with those which may later appear to the extent that they are not inconsistent with definitions provided in Chapter 409, RSMo:

(A) Act means Chapter 409, RSMo, otherwise known as the Missouri Securities Act of 2003;

(B) Affiliate means a person who, directly or indirectly, through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, another person;

(D) Application means the form prescribed or approved by the commissioner for filing in connection with the— 1. Registration of securities, including any amendment to the form and any information, document, report, or memorandum filed as a part of the form or incorporated in the form by reference; it includes the registration statement; and 2. Registration as a broker-dealer, agent, investment adviser, or representative of an investment adviser, including any amendment to the form and any information, document, report, or memorandum filed as a part of the form or incorporated in the form by reference;

(E) Associate means a corporation or organization (other than an issuer or a majority-owned subsidiary of an issuer) of which a person is an officer or partner, or is, directly or indirectly, the beneficial owner of ten percent (10%) or more of any class of equity securities; a trust or other estate in which a person has a substantial beneficial interest or as to which s/he serves as trustee or in a similar capacity; and a relative or spouse of a person, or any relative of his/her spouse, who has the same home as the person or who is a director or officer of an issuer or any of its parents or subsidiaries;

(F) Certified means, when used in connection with financial statements, certified by an independent certified public accountant in accordance with generally accepted accounting principles;

(G) Chief compliance officer means an individual, who is both a supervised person and an investment adviser representative of the firm, responsible for administering the supervisory or compliance policies and procedures an investment adviser adopts under “Supervision Guidelines for Investment Advisers” in 15 CSR 30-51.173;

(H) CRD System means the NASAA/FINRA Central Registration Depository;

(I) Control and controlling person mean possession of the power, authority, or means to engage in the management or policy-making functions of a person, directly or indirectly, through ownership of securities, by contract or otherwise. An officer, director, partner, or trustee or individual occupying similar status or performing similar functions or a person owning ten percent (10%) or more of the outstanding shares of any class or classes of securities of another shall be presumed a controlling person;

(J) Division or Securities Division means the staff of the Securities Division, Office of Secretary of State of Missouri;

(K) FINRA means the Financial Industry Regulatory Authority;

(L) IARD System means the NASAA/SEC Investment Adviser Registration Depository;

(M) Isolated, for the purpose of section 409.2-202(1) of the Act, means standing alone, disconnected from any other transactions;

(N) NASAA means the North American Securities Administrators Association, Inc.;

(O) Parent means an affiliate controlling another person;

(P) Predecessor means a person, a major portion of whose business, assets, or control has been acquired by another;

(Q) Promoter means a person who— 1. Acting alone or in conjunction with one (1) or more other persons, directly or indirectly, takes the initiative in founding and organizing or reorganizing the business or enterprise of an issuer; and 2. In connection with the founding and organizing or reorganizing of the business or enterprise of an issuer, directly or indirectly, receives in consideration of services or property, or both services and property, a substantial amount of any class of securities of the issuer or a substantial amount of the proceeds from the sale of any class of securities;

(R) Registrant means an applicant for whom, or an issuer with respect to whose securities, a registration has become effective;

(S) SEC means the United States Securities and Exchange Commission;

(T) Subsidiary means an affiliate controlled by another person;

(U) Supervised person means any partner, officer, director (or other person occupying a similar status or performing similar functions), investment adviser representative, employee of an investment adviser, or other person who provides investment advice on behalf of the investment adviser and is subject to the supervision and control of the investment adviser;

(V) Underwriter means a person who has purchased from an issuer or an affiliate of an issuer with a view to, or offers or sells for an issuer or an affiliate of an issuer in connection with, the distribution of any security, or participates or has a participation in the direct or indirect underwriting of any such undertaking. Not included is a person whose interest is limited to a commission from an underwriter or dealer not in excess of the usual and customary distributors’ or sellers’ commission;

(W) Viatical settlement, for the purpose of section 409.1- 102(28)(E), RSMo, includes, but is not limited to, a viatical settlement contract which means a written agreement establishing the terms under which compensation or anything of value will be paid, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator’s assignment, transfer, sale, devise, or bequest of the death benefit or ownership of any portion of the insurance policy or certificate of insurance. A viatical settlement contract also includes:

A contract for a loan or other financing transaction with a viator secured primarily by an individual or group life insurance policy, other than a loan by a life insurance company pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy; and 2. An agreement with a viator to transfer ownership or change the beneficiary designation at a later date regardless of the date that compensation is paid to the viator; and (X) For the purpose of section 409.2-201(3) of the Act, the words banking institution or other depository institution do not include any loan and investment company formed under the provisions of Chapter 368, RSMo.

Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Emergency amendment filed Sept. 19, 1977, effective Sept. 29, 1977, expired Jan. 27, 1978. Amended: Filed Oct. 3, 1977, effective Jan. 13, 1978.

Emergency amendment filed Aug. 1, 1980, effective Aug. 13, 1980, expired Dec. 11, 1980. Amended: Filed Aug. 13, 1980, effective Dec. 11, 1980. Emergency amendment filed Aug. 4, 1995, effective Aug. 14, 1995, expired Dec. 11, 1995. Amended: Filed Aug. 4, 1995, effective Jan. 30, 1996. Amended: Filed Dec. 17, 2001, effective July 30, 2002. Emergency amendment filed Aug. 25, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 25, 2003, effective Feb. 29, 2004. Amended: Filed May 21, 2009, effective Nov. 30, 2009. Amended: Filed Sept. 9, 2010, effective March 30, 2011. Amended: Filed Dec. 3, 2013, effective July 30, 2014. *Original authority: 409.6-605, RSMo 2003.

History

AUTHORITY: section 409.6-605, RSMo Supp. 2013. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974.

15 CSR 30-50.020 General Instructions {#sec-15-csr-30-50.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.020}

PURPOSE: This rule prescribes general matters within the commissioner’s jurisdiction.

(1) Office Hours. The Securities Division shall be open for transaction of business between the hours of 7:30 a.m. and 5:00 p.m. on Monday through Friday, public holidays excepted.

(2) Filing Documents with the Securities Division.

(A) A document is filed when it is received in the office of the commissioner, or filed through the Central Registration Depository (CRD) System, the Investment Adviser Registration Depository (IARD) System, or other electronic system approved by the commissioner. All applications for registration and filings shall be dated and bear a signature.

(B) All written communications, including applications and inquiries not submitted through the CRD System or the IARD System, shall be delivered by mail or carrier to Secretary of State, Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, MO 65102; or by facsimile to Secretary of State, Securities Division, (573) 526-3124; or by electronic mail to an address approved by the commissioner (section 409.6-606(a), RSMo).

If a document pertains to more than one (1) subject or application, a separate form, including cover or transmittal letter, or two (2) or more copies of the letter commensurate with the number of items submitted, should be filed.

(D) All forms and documents shall be printed, photocopied, typewritten, in electronic format, or prepared by a similar process which, in the opinion of the commissioner, produces copies suitable for a permanent record. All forms and documents shall be clear, easily readable and suitable for repeated photocopying. Exhibits may be attached and shall be properly marked and identified.

(E) All applications and other documents received and filed in the division become a part of its permanent records and may not be returned to the applicant or correspondent.

(3) Practice of Law. The unauthorized practice of law or the appearance of unauthorized practice shall be avoided in connection with any filing under the Act.

(4) Delegation of Authority. The commissioner may delegate to the staff of the Securities Division the authority to act for the commissioner, or to perform necessary functions and duties to carry out the purposes of the Act, rules promulgated thereunder and the orders and policies of the commissioner (section 1.060, RSMo).

(5) Interpretive Opinions. Interpretive opinions (section 409.6- 605(d), RSMo) including no action letters are rendered only in writing. Informal discussions with the commissioner or members of the staff of the Securities Division shall not be taken to signify any determination or approval concerning the matters discussed.

(6) Exceptions. When authorized by statute, the commissioner may authorize or make exceptions to these rules as are necessary to carry out the provisions of the Act. Nothing in these rules shall inhibit the exercise by the commissioner of

(7) Open Records Policy. The commissioner shall issue an open records policy in compliance with Chapter 610, RSMo, and consistent with section 409.6-607, RSMo.

Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended:

Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Emergency amendment filed Aug. 1, 1980, effective Aug. 13, 1980, expired Dec. 11, 1980. Amended:

Filed Aug. 13, 1980, effective Dec. 11, 1980. Amended: Filed Aug. 1, 1984, effective Nov. 11, 1984. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: Filed Jan. 3, 1985, effective May 11, 1985. Amended: Filed Dec. 20, 1988, effective Sept. 28, 1989. Amended: Filed June 8, 1992, effective Feb. 26, 1993. Amended: Filed Feb. 2, 1996, effective July 30, 1996.

Rescinded and readopted: Filed Dec. 17, 2001, effective July 30, 2002. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 22, 2003, effective Feb. 29, 2004. *Original authority: 409.6-605, RSMo 2003; 409.6-606, RSMo 2003; and 409.6-607, RSMo 2003.

History

authority prescribed in or under the Act.
AUTHORITY: sections 409.6-605, 409.6-606 and 409.6-607, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-50.030 Fees {#sec-15-csr-30-50.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.030}

PURPOSE: This rule prescribes policies and procedures for charging registration and other fees.

(1) General Provisions.

(A) All fees shall accompany the application or other filing to which they pertain.

(B) Fees shall be remitted by check, draft, or money order (cash is not acceptable) payable to the Missouri Secretary of State, or, if the application is submitted through the Central Registration Depository (CRD) System or Investment Adviser Registration Depository (IARD) System, fees shall be remitted by check or wire transfer to the financial institution designated by the Financial Industry Regulatory Authority (FINRA).

(C) Fees paid with applications filed through the CRD System, the IARD System, or other electronic system approved by the commissioner may be sent by wire transfer or mail to FINRA.

(D) Fees paid in connection with applications filed through other electronic systems that are approved by the commissioner may be sent by wire transfer to the financial institution designated by the Office of the Missouri Secretary of State.

(2) Registration of Securities (section 409.3-305(b), RSMo). The fees for registration of securities are as follows:

(A) The minimum filing fee is one hundred dollars ($100).

This permits registration of up to one hundred thousand dollars ($100,000) of securities in Missouri;

(B) To register more than one hundred thousand dollars ($100,000) of securities in Missouri, the registration fee is onetwentieth of one percent (1/20 of 1%) of the amount above one hundred thousand dollars ($100,000). The maximum total fee (filing plus registration) is one thousand dollars ($1,000);

(C) The registration fee in the case of warrants or rights shall be based on the aggregate amount of the security called for by the warrants or rights, and the amount of the warrants or rights if they are not distributed without consideration;

(D) The registration fee relating to convertible securities in which no consideration is given for the second security, except the surrender of the first, shall be based solely on the amount of the convertible security;

(E) When separate securities are sold as a unit, the unit and the securities that comprise the unit are considered one (1) registration. The registration fee is based on the aggregate amount of securities that comprise the unit. When separate securities are sold separately, a separate application, filing fee, and registration fee is required for each security; and (F) Renewal Filings. The annual renewal fee for the registration of securities is one hundred dollars ($100).

(3) Federal Covered Securities. The filing fees for federal covered securities are as follows:

(A) Face-Amount Certificate Companies or Open-End Management Companies. The fees for securities issued by these companies, as classified under the Investment Company Act of 1940 and that are offered or sold in this state, shall consist of the following:

Initial filing fee. The initial filing fee is one hundred dollars ($100). The initial filing fee must be paid prior to the initial offer of the securities in this state. A separate initial filing fee is required for each portfolio of securities; and 2. Filing fee. A filing fee of one-twentieth of one percent (1/20 of 1%) of the amount of securities sold in this state during the issuer’s previous fiscal year must be paid within sixty (60) days of the issuer’s fiscal year end. The maximum filing fee for the securities sold in this state during a fiscal year is three thousand dollars ($3,000). This maximum filing fee includes the initial filing fee for the first fiscal year. In addition, the renewal fee described in subsection (3)(C) below can be applied as the filing fee for the first two hundred thousand dollars ($200,000) of securities sold in this state during a fiscal year. A separate filing fee is required for each portfolio of securities;

(B) Closed End Management Companies. The fees for securities issued by these companies, as classified under the Investment Company Act of 1940 and that are offered or sold in this state, shall consist of the following:

Initial filing fee. The initial filing fee is one hundred dollars ($100). The initial filing fee of one hundred dollars ($100) includes the filing fee for the first one hundred thousand dollars ($100,000) of securities to be sold in this state; and 2. Filing fee. The filing fee for any additional amount of securities sold above the first one hundred thousand dollars ($100,000) is one-twentieth of one percent (1/20 of 1%) of the amount of the additional securities sold in this state during the issuer’s previous fiscal year and must be paid within sixty (60) days of the issuer’s fiscal year end. The maximum filing fee is one thousand dollars ($1,000) and includes the initial filing fee;

(C) Unit Investment Trusts. The fees for securities issued by these companies, as classified under the Investment Company Act of 1940 and that are offered or sold in this state, shall consist of the following:

Initial filing fee. The initial filing fee is one hundred dollars ($100). The initial filing fee of one hundred dollars ($100) includes the filing fee for the first one hundred thousand dollars ($100,000) of securities to be sold in this state; and 2. Filing fee. The filing fee for any additional amount of securities sold above the first one hundred thousand dollars ($100,000) is one-twentieth of one percent (1/20 of 1%) of the amount of the additional securities sold in this state after the anniversary of the effectiveness with the Securities and Exchange Commission or the anniversary of the filings’ effectiveness in this state, and must be paid within sixty (60) days of that date. The maximum filing fee is one thousand dollars ($1,000) and includes the initial filing fee;

(D) Renewal Fee for Investment Companies. The annual renewal fee for investment companies is one hundred dollars ($100) and must be paid on or within thirty (30) days before the anniversary of the effective date or at the time of the fiscal year end;

(E) Regulation D, Rule 506. The filing fee for each offering under Regulation D, Rule 506, is one hundred dollars ($100).

There shall be a payment of fifty dollars ($50) for any late filing; and (F) Regulation A, Tier 2. The filing fees for each offering under Regulation A, Tier 2, are as follows:

Initial Notice Filing—one hundred dollars ($100);
Late Filing—fifty dollars ($50); and 3. Renewal Offering—one hundred dollars ($100).

(4) Registration of Broker-Dealers and Investment Advisers (section 409.4-410, RSMo). The filing fees for registration of broker-dealers and investment advisers are as follows:

(A) Initial Registration—two hundred dollars ($200); and (B) Renewal Registration—one hundred dollars ($100).

(5) Registration of Agents and Investment Adviser Representatives. The filing fees for registration of broker-dealer agents and investment adviser representatives are as follows:

(A) Initial Registration—fifty dollars ($50);

(B) Renewal Registration—fifty dollars ($50); and (C) Change of Registration—fifty dollars ($50).

(6) Federal Covered Adviser. The notice filing fees of federal covered advisers are as follows:

(A) Initial Notice Filing—two hundred dollars ($200); and (B) Renewal Notice Filing—one hundred dollars ($100).

(7) Document Requests. The fees for copies of documents and records in the division, or reports relating to these documents or records, are as follows: ten cents (10¢) per page, plus five dollars ($5) for certification and two dollars ($2) per page for telephone and electronic transmittals (sections 28.160 and 409.6-606(c), RSMo).

(8) Interpretive Opinions. Interpretive opinions, including no action letters and opinions that involve a claim of exception from a definition under section 409.1-102, RSMo, or otherwise from the scope of the Act, may be provided to interested persons for a filing fee of one hundred dollars ($100) (section 409.6-605(d), RSMo).

(9) Notice Filing for Exemptions. The filing fee for a notice filing for an exemption under sections 409.2-201, 409.2-202, or 409.2- 203, RSMo, is one hundred dollars ($100).

(10) Refunds.

(A) No refund of filing fees shall be permitted in the instances of applications for registration of securities and for registration of broker-dealers, agents, investment advisers, and representatives of investment advisers, even though the applications are denied or withdrawn (section 409.4-410, RSMo).

(B) Registration fees, but not filing fees, will be refunded upon withdrawal of an application. Registration fees will not be refunded if an application is denied registration pursuant to section 409.3-306, RSMo.

(11) Exemption for Active Duty Military Personnel. Agents and investment adviser representatives who either have been called to active military duty or voluntarily joined the Armed Forces of the United States shall be, after proper notification, exempt from the payment of renewal registration fees for the period of active service.

(A) Agents and investment adviser representatives wishing to utilize the exemption shall notify the division in writing, and provide a copy of the individual’s orders (official call-up notification) or a copy of the letter of leave request for individuals that voluntarily join. Either document should include the individual’s start date, military branch, and location of service duty.

(B) Within ninety (90) days of completion of military service, the agent or investment adviser representative shall provide a copy of the individual’s discharge papers that indicate the start and end dates of service. Upon completion of service, the individual’s renewal registration fee shall be paid under the provisions of section 409.4-406(2)(d), RSMo.

(C) Any renewal fee paid during the time the individual is on active military duty shall be refunded within ninety (90) days.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended:

Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Emergency amendment filed Aug. 11, 1978, effective Aug. 23, 1978, expired Dec. 21, 1978. Amended:

Filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Aug. 1, 1980, effective Aug. 13, 1980, expired Dec. 11, 1980.

Amended: Filed Aug. 13, 1980, effective Dec. 11, 1980. Amended:

Filed Oct. 16, 1986, effective Feb. 12, 1987. Amended: Filed July 20, 1988, effective Nov. 11, 1988. Amended: Filed Jan. 3, 1990, effective March 11, 1990. Amended: Filed Dec. 24, 1991, effective May 14, 1992. Amended: Filed June 8, 1992, effective Feb. 26, 1993. Emergency amendment filed Aug. 4, 1995, effective Aug. 14, 1995, expired Dec. 11, 1995. Amended: Filed Aug. 4, 1995, effective Jan. 30, 1996. Amended: Filed Feb. 2, 1996, effective July 30, 1996. Rescinded and readopted: Filed Dec. 17, 2001, effective July 30, 2002. Amended: Filed Nov. 26, 2002, effective May 30, 2003. Emergency amendment filed Aug. 25, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 25, 2003, effective Feb. 29, 2004. Amended: Filed July 11, 2005, effective Jan. 30, 2006. Amended: Filed May 21, 2009, effective Nov. 30, 2009.

Amended: Filed July 19, 2019, effective Jan. 30, 2020. Amended:

Filed Aug. 7, 2020, effective Jan. 30, 2021. Amended: Filed June 30, 2025, effective Dec. 30, 2025. *Original authority: 409.3-302, RSMo 2003, amended 2020, and 409.6-605, RSMo 2003.

History

AUTHORITY: section 409.3-302, RSMo Supp. 2025, and section 409.6-605, RSMo 2016. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969.

15 CSR 30-50.040 Forms {#sec-15-csr-30-50.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.040}

PURPOSE: This rule prescribes the forms adopted and approved for filing with the commissioner.

rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) The following forms have been adopted and approved for filing with the Securities Division:

(A) Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives— 1. Form BD—Uniform Application for Broker-Dealer Registration approved May 2001, OMB Approval Number 3235- 0012, or any form which substantially comports with the 2. Form BDW—Uniform Request for Broker-Dealer Withdrawal approved November 2000, OMB Approval Number 3235-0018, or any form which substantially comports with the 3. Form SBD-1—Missouri Broker-Dealer Affidavit revised January 2005, or any form which substantially comports with the specified form;

Form X-17A-5—Financial and Operational Combined Uniform Single Report approved July 2002, OMB Approval Number 3235-0123, or any form which substantially comports with the specified form;
Form U-4—Uniform Application for Securities Industry Registration or Transfer adopted by the North American Securities Administrators Association, Inc. (NASAA) on April 16, 2003, or any form which substantially comports with the 6. Form U-5—Uniform Termination Notice for Securities Industry Registration adopted by the NASAA on April 16, 2003, or any form which substantially comports with the specified form;
Form SA-1—Missouri Application for Renewal Registration as Agent revised August 2003, or any form which substantially comports with the specified form;
Form ADV—Uniform Application for Investment Adviser Registration approved July 2003, OMB Approval Number 3235- 0049, or any form which substantially comports with the 9. Form ADV-W—Uniform Notice of Withdrawal from Registration as Investment Adviser approved January 2001, OMB Approval Number 3235-0313, or any form which substantially 10. Form SADV-1—State Covered Investment Adviser Affidavit revised March 2002, or any form which substantially 11. Form SADV-SH—State Application for Hardship Exemption from IARD revised October 2001, or any form which substantially comports with the specified form; and 12. Form U-2—Uniform Consent to Service of Process adopted by NASAA and revised November 1997, or any form which substantially comports with the specified form.

(B) Registration of Securities— 1. Form U-1—Uniform Application to Register Securities adopted by NASAA and revised February 1997, or any form which substantially comports with the specified form;

Form SR-1—Form of Prospectus for Registration of Securities by Qualification revised August 2003;
Form U-2—Uniform Consent to Service of Process adopted by NASAA and revised November 1997, or any form which substantially comports with the specified form;
Form U-2A—Uniform Form of Corporate Resolution adopted by NASAA and revised April 1998, or any form which substantially comports with the specified form;
Form SR-2—Missouri Annual Report for Renewal of Registration of Securities revised December 2001;
Form SR-3—Midwest Regional Review Application revised July 2003, or any form which substantially comports with the specified form;
Form SR-4—Missouri Impoundment of Funds Agreement revised September 2002, or any form which substantially 8. Form SR-5—Missouri Application for Registration of Single Family Mortgage Revenue Bonds revised June 2002, or any form which substantially comports with the specified form; and 9. Form U-7—Small Company Offering Registration (SCOR)

Form adopted by NASAA and revised September 1999, or any form which substantially comports with the specified form.

(C) Exemptions from Registration, Exceptions from Definition, Federal Covered Securities— 1. Form SE-1—Statement of Claim for the Exemption of Securities of a New Generation Processing Entity revised August 2003;

Form SE-2—Statement of Claim for the Exemption of a Securities of a Missouri Agricultural Cooperative revised December 2004;
Form NF—Uniform Investment Company Notice Filing adopted by NASAA April 1997, or any form which substantially 4. Form D—Notice of Sale of Securities Pursuant to

Regulation D, Section 4(6), and/or Uniform Limited Offering Exemption approved in June 2002, OMB Approval Number 3235-0076, or any form which substantially comports with the specified form; and 5. Form AI—Notice of Sale of Securities Pursuant to the Missouri Accredited Investor Exemption, or any form which substantially comports with the specified form.

(D) Commodities— 1. Form C-4—Missouri Commodity Broker-Dealer, Sales Representative, Statutory Bond, revised June 2001, or any form which substantially comports with the specified form; and 2. Form C-16—Missouri Application for Renewal Registration of Sales Representative revised June 2001, or any form which substantially comports with the specified form.

(2) The Securities Division on request will supply the forms listed in 15 CSR 30-50.040(1) in printed format, which are incorporated by reference herein, as published by the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, MO 65102. This

rule does not incorporate any subsequent amendments or additions. Accurate reproduction of the forms may be utilized for filing in lieu of the printed forms. All uniform forms are electronically available at http://www.sos.mo.gov/securities.

Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended:

Filed Dec. 19, 1975, effective Dec. 31, 1975. Emergency amendment filed Aug. 11, 1978, effective Aug. 23, 1978, expired Dec. 21, 1978.

Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Aug. 1, 1980, effective Aug. 13, 1980, expired Dec. 11, 1980. Amended: Filed Aug. 13, 1980, effective Dec. 11, 1980.

Amended: Filed Oct. 16, 1986, effective Feb. 12, 1987. Rescinded and readopted: Filed Sept. 29, 1988, effective Nov. 11, 1988. Rescinded and readopted: Filed March 27, 1989, effective June 12, 1989.

Amended: Filed Feb. 2, 1996, effective July 30, 1996. Rescinded and readopted: Filed Dec. 17, 2001, effective July 30, 2002. Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended: Filed May 26, 2004, effective Nov. 30, 2004.

Amended: Filed Dec. 10, 2004, effective June 30, 2005. Amended:

Filed March 3, 2006, effective Sept. 30, 2006. Amended: Filed Dec. 3, 2013, effective July 30, 2014. *Original authority: 409.6-605, RSMo 2003.

History

AUTHORITY: section 409.6-605, RSMo Supp. 2013. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed June 3, 1974, effective June 17, 1974.

15 CSR 30-50.050 Application for Registration as Broker- Dealer of Securities Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.050}

15 CSR 30-50.060 Computation of Net Capital, Aggregate Indebtedness and Ratio of Aggregate Indebtedness to Net Capital Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.060}

15 CSR 30-50.070 Broker-Dealer, Agent, Investment Adviser Statutory Bond {#sec-15-csr-30-50.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.070}

(Rescinded February 12, 1987)

Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Oct. 16, 1986, effective Feb. 12, 1987.

15 CSR 30-50.080 Request for Withdrawal from Registration as Broker-Dealer Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.080}

15 CSR 30-50.090 Application for Registration as an Investment Adviser Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.090}

15 CSR 30-50.100 Appointment of Agent by Broker-Dealer or Issuer Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.100}

15 CSR 30-50.110 Application for Registration as Agent Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.110}

15 CSR 30-50.120 Application for Renewal Registration as Agent Dec. 5, 1975, effective Dec. 15, 1975. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: {#sec-15-csr-30-50.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.120}

15 CSR 30-50.130 Registration of Securities by Notification Dec. 5, 1975, effective Dec. 15, 1975. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: {#sec-15-csr-30-50.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.130}

15 CSR 30-50.140 Application for Registration of Securities by Coordination Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.140}

15 CSR 30-50.150 Application for Registration of Securities by Qualification Dec. 5, 1975, effective Dec. 15, 1975. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: {#sec-15-csr-30-50.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.150}

15 CSR 30-50.160 Investment Company Report of Sales Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, effective Nov. 11, 1984. Emergency rule filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Readopted: Filed Jan. 3, 1985, effective May 11, 1985. Amended: Filed April 19, 1993, effective Dec. 9, 1993. Amended: Filed Feb. 2, 1996, effective July 30, 1996. {#sec-15-csr-30-50.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.160}

15 CSR 30-50.170 In the Matter of the Condition of Dec. 5, 1975, effective Dec. 15, 1975. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: {#sec-15-csr-30-50.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.170}

15 CSR 30-50.180 Individual Affidavit Dec. 5, 1975, effective Dec. 15, 1975. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: {#sec-15-csr-30-50.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.180}

15 CSR 30-50.190 Appointment of the Commissioner of Securities to Acknowledge and Receive Service of Process Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.190}

15 CSR 30-50.200 Supplemental Sheet to Agent’s Application Dec. 5, 1975, effective Dec. 15, 1975. Rescinded: Filed Aug. 1, 1984, {#sec-15-csr-30-50.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.200}

15 CSR 30-50.210 Statement of Claim for the Exemption of Securities of a Cooperative Association {#sec-15-csr-30-50.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.210}

Original rule filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: Filed Jan. 3, 1985, effective May 11, 1985.

History

AUTHORITY: section 409.413, RSMo 1986. Emergency rule filed Aug. 11, 1978, effective Aug. 23, 1978, expired Dec. 21, 1978.

15 CSR 30-50.220 Application for Exception From Definition of Agent for Sellers of Agricultural Cooperative Securities {#sec-15-csr-30-50.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.220}

Original rule filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Jan. 3, 1985, effective Jan. 13, 1985, expired May 13, 1985. Amended: Filed Jan. 3, 1985, effective May 11, 1985.

History

AUTHORITY: section 409.413, RSMo 1986. Emergency rule filed Aug. 11, 1978, effective Aug. 23, 1978, expired Dec. 21, 1978.

Chapter 51 Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives

15 CSR 30-51.130 Records To Be Preserved by Broker-Dealers {#sec-15-csr-30-51.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.130}

15 CSR 30-51.150 Records to be Preserved by Investment Advisers {#sec-15-csr-30-51.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.150}

15 CSR 30-51.165 Networking Arrangements Between Broker-Dealers and Banks, {#sec-15-csr-30-51.165 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.165}

15 CSR 30-51.170 Dishonest or Unethical Business Practices by Broker-Dealers and {#sec-15-csr-30-51.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.170}

15 CSR 30-51.172 Dishonest or Unethical Business Practices by Investment Advisers {#sec-15-csr-30-51.172 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.172}

15 CSR 30-51.174 Fraudulent Practices of Investment Advisers and Investment {#sec-15-csr-30-51.174 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.174}

15 CSR 30-51.180 Exemptions from Registration for Broker-Dealers, Agents, Advisers, and Investment Adviser Representatives {#sec-15-csr-30-51.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.180}

15 CSR 30-51.010 General Instructions {#sec-15-csr-30-51.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.010}

PURPOSE: This rule covers general instructions applicable to persons applying for registration as broker-dealer, agent, investment adviser, or investment adviser representative.

(1) Qualifications for Registration. A broker-dealer, agent, investment adviser, investment adviser representative, or issuer agent may be registered or renewed under the Act if the commissioner finds that the applicant— (A) Is qualified;

(B) Has sufficient training, knowledge, and experience in the securities business;

(C) Is of good repute and has otherwise satisfied the requirements of the Act and these rules; and (D) Has attained the age of eighteen (18) years, if the applicant is an individual.

(2) Registered Person Requirement. A broker-dealer shall have at least one (1) agent registered in this state. An investment adviser shall have at least one (1) investment adviser representative registered in this state.

(3) Dual Registration of Agents and/or Investment Adviser Representatives. Any applicant for registration as agent or investment adviser representative shall not be registered as representing more than one (1) broker-dealer, issuer, or investment adviser at any one (1) time, except as follows:

(A) Where control and management of the broker-dealers, issuers, or investment advisers are essentially identical; or (B) Where both broker-dealer(s), issuer(s), and/or investment adviser(s) have filed a statement signed by a principal of each firm— 1. Acknowledging the proposed dual agency;

Affirming that there will be no conflict of interest; and 3. Assuring the commissioner that the dual agency will be disclosed to all prospective customers.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended:

Filed Nov. 15, 1974, effective Nov. 25, 1974. Emergency amendment filed Aug. 15, 1983, effective Aug. 29, 1983, expired Dec. 26, 1983.

Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983. Emergency amendment filed Aug. 4, 1995, effective Aug. 14, 1995, expired Dec. 11, 1995. Amended: Filed Aug. 4, 1995, effective Jan. 30, 1996.

Amended: Filed Dec. 17, 2001, effective July 30, 2002. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004. Amended: Filed Aug. 29, 2024, effective Feb. 28, 2025. *Original authority: 409.4-402, RSMo 2003; 409.4-406, RSMo 2003; and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-402(e), 409.4-406(e), and 409.6-605, RSMo 2016. Original rule filed June 25, 1968, effective Aug.

15 CSR 30-51.020 Applications for Registration or Notice Filings {#sec-15-csr-30-51.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.020}

PURPOSE: This rule prescribes the information to be contained in and the documents to accompany applications for registration as broker-dealer, broker-dealer agent, issuer agent, investment adviser, and investment adviser representative, and the notice filing requirement for federal covered investment advisers.

(1) Broker-Dealer Application. The application for registration as broker-dealer shall contain the information outlined in

section 409.4-406(a) of the Act and in this rule. Financial Industry Regulatory Authority (FINRA) members must file applications in accordance with the guidelines of the Central Registration Depository (CRD) System.

(A) Initial Registration. The following shall be included in an 1. Form BD;

Form SBD-1, the Broker-Dealer Affidavit;
If a FINRA member, the most recent audited financial statements or Form X-17A-5 FOCUS Report;
If not a FINRA member, the most recent certified financial statements;
Designation of at least one (1) broker-dealer agent to be registered in Missouri; and 6. Payment of the filing fee.

(B) Renewal Registration. The following shall be submitted in a renewal application:

If a FINRA member, broker-dealer must submit payment of the filing fee;
If not a FINRA member, broker-dealer must submit— A. The execution page of the Form BD;

B. Any amendments to the Form BD not previously filed;

C. A balance sheet prepared within ninety (90) days of filing;

D. A listing of agents representing the broker-dealer;

E. Payment of the filing fee.

(2) Broker-Dealer Agent and Issuer Agent Application. The application for registration as a broker-dealer agent or issuer agent shall contain the information outlined in section 409.4- 406(a) of the Act and in this rule. FINRA members must file applications in accordance with the guidelines of the CRD System.

(A) Initial Registration. The following shall be included in an 1. Form U-4;

Payment of the filing fee; and 3. Documentation of qualification under examination requirements.

(B) Renewal registration of broker-dealer agents and issuer agents. The following shall be submitted in a renewal registration:

Payment of the filing fee; and 2. If not an agent of a FINRA member, Form SA-1, the Missouri Application for Renewal Registration as Agent.

(3) Investment Adviser Application. The application for registration as an investment adviser shall contain the information outlined in section 409.4-406(a) of the Act and in this rule. All applicants must file applications in accordance with the guidelines of the Investment Adviser Registration Depository (IARD) System, unless the commissioner has granted a hardship exemption under section (6).

(A) Initial Registration. The following shall be included in an 1. Electronically-filed Form ADV;

Form SADV-1, the State Covered Investment Adviser Affidavit and requested information;
Applicant’s current balance sheet prepared within thirty (30) days of filing;
A listing of all investment adviser representatives who will be rendering investment advice for the firm in this state;
The name of the applicant’s chief compliance officer;
Copies of the following documents:

A. A sample or copy of the written agreement the applicant intends to enter into with any client relating to the business of the applicant;

B. A sample or copy of any solicitor agreements the applicant intends to utilize if the applicant intends to use a solicitor(s) arrangement or act as a solicitor; and C. Private placement memorandum(s), limited partnership agreement(s), subscription agreement(s), and gatekeeper arrangement(s) if a pooled investment vehicle or hedge fund is to be involved, or any agreements similar to the above, if the applicant intends to utilize any of the above agreements; and 7. Payment of the filing fee.

(B) Renewal Registration. The following shall be submitted in a renewal registration:

Payment of the filing fee.

(4) Federal Covered Adviser Notice Filing. The notice filing of a federal covered adviser transacting business in this state shall be filed in accordance with the guidelines of the IARD System and include the following:

(A) Initial Notice Filing. The following shall be submitted in an initial notice filing:

Form ADV; and 2. Payment of filing fee; and (B) Renewal Notice Filing. The following shall be submitted in a renewal notice filing:
Payment of filing fee.

(5) Investment Adviser Representative Application. The application for registration as an investment adviser representative shall contain the information outlined in section 409.4-406(a), RSMo and in this rule. All applicants must file applications in accordance with the guidelines of the CRD System, unless the commissioner has granted a hardship exemption under section (6).

(A) Initial Registration. The following shall be included in an 1. Form U-4;

Documentation of qualification under examination requirements; and 3. Payment of filing fee.

(B) Renewal Registration. The following shall be submitted in a renewal registration:

Payment of filing fee.

(6) Hardship Exemption for Investment Advisers and Investment Adviser Representatives from IARD System and CRD System.

(A) An investment adviser or investment adviser representative may request a hardship exemption from applying for registration in electronic format through the IARD System or CRD System by filing with the commissioner— 1. Form SADV-SH;

Payment of one hundred dollars ($100) filing fee.

(B) The commissioner may grant a hardship exemption if filing an application in electronic format would subject the applicant to unreasonable burden or expense.

(7) Amendments to Application. Any amendment of an application pursuant to section 409.4-406(b), RSMo and 15 CSR 30-51.160(3) shall be filed with the appropriate form marked AMENDED.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, 11, 1979. Emergency amendment filed Aug. 15, 1983, effective Aug. 29, 1983, expired Dec. 26, 1983. Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983. Amended: Filed Oct. 16, 1986, effective Feb. 12, 1987. Amended: Filed March 27, 1989, effective June 12, 1989.

Amended: Filed July 3, 1989, effective Sept. 28, 1989. Emergency amendment filed Aug. 4, 1995, effective Aug. 14, 1995, expired Dec. 11, 1995. Amended: Filed Aug. 4, 1995, effective Jan. 30, 1996.

Amended: Filed Feb. 27, 1996, effective Aug. 30, 1996. Rescinded and readopted: Filed Dec. 17, 2001, effective July 30, 2002.

Amended: Filed Feb. 13, 2003, effective Aug. 30, 2003. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004. Amended: Filed Sept. 9, 2010, effective March 30, 2011.

Amended: Filed July 19, 2019, effective Jan. 30, 2020. Amended:

Filed Aug. 29, 2024, effective Feb. 28, 2025. *Original authority: 409.4-402, RSMo 2003; 409.4-406, RSMo 2003; and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-402, 409.4-406, and 409.6-605, RSMo 2016. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-51.030 Examination Requirement {#sec-15-csr-30-51.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.030}

PURPOSE: This rule prescribes the examination requirements of applicants for registration as broker-dealer, agent and investment adviser, and investment adviser representatives.

(1) Every applicant for registration as a broker-dealer, agent, investment adviser, or investment adviser representative shall pass the written examinations required by the Financial Industry Regulatory Authority (FINRA) and this rule.

(2) The following examinations are required for the following applicants:

(A) Broker-Dealer Agent Application. General agents of securities broker-dealers are required to take and pass— 1. The Securities Industry Essentials examination;

The Series 7 examination; and 3. Either Series 63 or the Series 66 examination.

(B) Specialized Agent of a Broker-Dealer or Issuer Agent Application. Specialized agents of broker-dealers or issuers are required to take and pass— 1. The Securities Industry Essentials examination;

The applicable FINRA examination; and 3. Either the Series 63 or the Series 66 examination.

Investment adviser representatives are required to take and pass— 1. The Series 65 examination; or 2. The Securities Industry Essentials, the Series 66, and the Series 7 examinations.

(3) Waiver of Examination Requirement for Broker-Dealer Agents. The commissioner may by order grant an agent registration to an applicant that has not complied with the examination requirements set forth in 15 CSR 30-51.030(2) if granting the registration is in the public interest and the applicant is able to demonstrate exceptional experience in and knowledge of the securities markets and applicable regulations, or the broker-dealer agent has taken and passed the previous equivalent of the required examination and has been previously registered as a broker-dealer agent with FINRA. For agents of FINRA members, unless a proceeding under section 409.4-412, RSMo, has been instituted, a waiver of the examination requirement by FINRA shall be deemed a waiver by the commissioner.

(4) Waiver of Examination Requirement for Investment Adviser Representatives. The examination requirement for applicants may be waived if the examination is not necessary for the protection of advisory clients. Applicants for Investment Adviser Representative may qualify for a waiver of the examination requirement in 15 CSR 30-51.030(2)(C)2., if the applicant currently holds one (1) of the following designations:

(A) Certified Financial Planner (CFP) awarded by Certified Financial Planner Board of Standards, Inc.;

(B) Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania;

(D) Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts;

(E) Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.;

(F) Certified Investment Management Consultant (CIMC) awarded by the Institute for Certified Investment Management Consultants;

(G) Certified Investment Management Analyst (CIMA) awarded by the Investment Management Consultants Association; or (H) Such other professional designation as the commissioner may by order recognize.

Emergency amendment filed Aug. 15, 1983, effective Aug. 29, 1983, expired Dec. 26, 1983. Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983. Emergency amendment filed Aug. 1, 1984, effective Aug. 11, 1984, expired Nov. 11, 1984. Amended: Filed Aug. 1, 1984, effective Nov. 11, 1984. Amended: Filed July 3, 1989, effective Sept. 28, 1989. Emergency amendment filed Aug. 4, 1995, effective Aug. 14, 1995, expired Dec. 11, 1995. Amended: Filed Aug. 4, 1995, effective Jan. 30, 1996. Rescinded and readopted: Filed Dec. 17, 2001, effective July 30, 2002. Emergency amendment filed Aug. 27, Filed Aug. 28, 2003, effective Feb. 29, 2004. Amended: Filed May 21, 2009, effective Nov. 30, 2009. Amended: Filed Sept. 9, 2010, effective March 30, 2011. Amended: Filed April 12, 2018, effective Sept. 30, 2018. Amended: Filed July 19, 2019, effective Jan. 30, 2020.

History

AUTHORITY: sections 409.4-412(a) and 409.6-605, RSMo 2016. Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975.

15 CSR 30-51.040 Financial Statements {#sec-15-csr-30-51.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.040}

PURPOSE: This rule prescribes the content of financial statements filed by persons applying for registration and by persons registered as a broker-dealer or as an investment adviser.

(1) A financial statement shall consist of a balance sheet, a profit and loss statement, statement of change in financial condition, certified unless otherwise prescribed hereinafter or permitted by the commissioner.

(2) Every applicant for initial registration as broker-dealer or investment adviser shall file a financial statement as follows:

(A) As to initial registration as a broker-dealer, the applicant shall file a certified financial statement as of a date within thirty (30) days prior to the filing; provided if the applicant has been engaged in business one (1) year or more, s/he may file a certified financial statement as of the end of his/her last fiscal period together with a balance sheet, which need not be certified, as of a date within thirty (30) days prior to the filing. If the annual financial statement is more than six (6) months old, s/he also shall file a semi-annual financial statement, which need not be certified. The semi-annual financial statement may consist wholly of a completed FOCUS report for that period and a net capital computation (FOCUS Report, Form X-17A-5 (see 15 CSR 30-51.020)), as of the date of the balance sheet shall accompany the financial statement; and (B) As to initial registration as an investment adviser, the applicant shall file a verified balance sheet current within thirty (30) days prior to filing.

Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, 11, 1979. Emergency amendment filed Aug. 15, 1983, effective Aug. 29, 1983, expired Dec. 26, 1983. Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983. Amended: Filed July 3, 1989, effective Sept. 28, 1989. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.4-411(b) and 409.6-605, RSMo Supp.

15 CSR 30-51.050 Net Capital Re quirements for Broker- Dealers {#sec-15-csr-30-51.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.050}

PURPOSE: This rule prescribes the minimum net capital and ratio between net capital and aggregate indebtedness required of registered broker-dealers.

(1) A broker-dealer registered or required to be registered under the Missouri Securities Act of 2003 (the Act) shall maintain net capital requirements in accordance with rule 15c3-1 under the Securities Exchange Act of 1934.

(2) The commissioner, by order, which may apply individually or to a class, may establish a lower net capital requirement, a lower cash reserve requirement, or a higher maximum ratio of aggregate indebtedness to net capital either unconditionally or upon special terms or conditions, for a broker-dealer who satisfies the commissioner that because of the special nature of his/her business and his/her financial condition and the safeguards that have been established for the protection of customers’ funds, investors would not be adversely affected.

(3) A broker-dealer not in compliance with the aggregate indebtedness, net capital or cash reserve requirements shall cease soliciting new business and shall immediately notify the commissioner in writing.

(4) For the purposes of this rule and to insure uniform interpretation, the terms aggregate indebtedness and net capital shall have the respective meanings as defined in rule 15c3-1 under the Securities Exchange Act of 1934.

Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, 11, 1979. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.4-411(a) and 409.6-605, RSMo Supp.

15 CSR 30-51.060 Broker-Dealer Notice of Net Capital Deficiency {#sec-15-csr-30-51.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.060}

PURPOSE: This rule requires broker-dealers to furnish the commissioner notice of impending net capital deficiency, and announces the commissioner, once a year and without prior notice, may require all registered broker-dealers to furnish a net capital report.

(1) Broker-dealers registered or required to be registered under the Missouri Securities Act of 2003 (the Act) whose net capital at any time is less than the minimum required by rule 15c3-1 under the Securities Exchange Act of 1934 shall give notice and file such reports with the commissioner as are required to be given and filed with the Securities and Exchange Commission (SEC) under rule 17a-11 of the Securities Exchange Act of 1934.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.4-411(a) and (b), and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug.

15 CSR 30-51.070 Minimum Net Worth Requirements for {#sec-15-csr-30-51.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.070}

PURPOSE: This rule prescribes the minimum capital required of investment advisers.

(1) Every investment adviser shall have and maintain net worth (assets minus liabilities), to include all cash, securities, and tangible assets of not less than five thousand dollars ($5,000) except as provided in section (2) of this rule.

(2) An investment adviser domiciled in another state must only comply with the net worth requirement of its home state.

Feb. 29, 2004. Amended: Filed July 19, 2019, effective Jan. 30, 2020.

History

AUTHORITY: sections 409.4-411(a) and 409.6-605, RSMo 2016. Nov. 25, 1974. Amended: Filed July 3, 1989, effective Sept. 28, 1989.

15 CSR 30-51.075 Trusted Contact Requirements for {#sec-15-csr-30-51.075 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.075}

PURPOSE: This rule requires investment advisers to inform clients of their ability to provide a trusted contact and to maintain trusted contact information.

(1) Every investment adviser, upon entering into a written agreement with a client, shall inform the client that they may provide trusted contact person information to the adviser.

The adviser shall maintain this information with the written agreement.

(2) The client may provide the same trusted contact person information to the investment adviser as was provided to the custodian of any of the client’s accounts in accordance with Financial Industry Regulatory Authority (FINRA) Rule 4512.06.

(3) The client may opt not to provide any trusted contact person information. If the client opts not to provide this information, the investment adviser shall maintain a record of this refusal along with or in the written agreement.

(4) The investment adviser or an associated investment adviser representative may contact the trusted contact person and may disclose information about the client’s account to the trusted contact person in order to address potential exploitation of the client, the health or capacity of the client, or the identity of any family member, legal guardian, executor, trustee, or power of attorney of the client.

History

AUTHORITY: section 409.600, RSMo 2016, and section 409.605, RSMo Supp. 2021. Original rule filed Nov. 1, 2021, effective April 30, 2022. Original authority: 409.600, RSMo 2015, and 409.605, RSMo 2015, amended 2020.

15 CSR 30-51.080 Bonds {#sec-15-csr-30-51.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.080}

(Rescinded February 12, 1987)

rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975.

Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Aug. 15, 1983, effective Aug. 29, 1983, expired Dec. 26, 1983. Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983.

Rescinded: Filed Oct. 16, 1986, effective Feb. 12, 1987.

History

AUTHORITY: sections 409.202 and 409.413(a), RSMo 1978. Original

15 CSR 30-51.090 Segregation of Accounts by Broker-Dealers {#sec-15-csr-30-51.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.090}

PURPOSE: This rule prescribes the commingling by broker-dealers of their personal funds and securities with those of their customers and provides for the maintenance of separate records.

(1) Every broker-dealer shall at all times keep its customers’ funds and securities in trust and segregated from its own funds and securities; provided, however, that compliance with Securities and Exchange Commission rules governing the use, commingling and hypothecation of customers’ securities and free credit balances shall be deemed compliance with this rule.

(2) Every broker-dealer which engages in more than one (1) enterprise or activity shall maintain separate books of accounts and records relating to its securities business and its other businesses and the assets relating to its securities business shall not be commingled with those of such other businesses.

Every broker-dealer shall maintain a clearly defined division among those businesses with respect to income and expenses.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended:

Filed Nov. 15, 1974, effective Nov. 25, 1974. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004.

Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004. *Original authority: 409-4-411, RSMo 2003; 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-411(c) and (f), and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug.

15 CSR 30-51.100 Custody of Securities or Funds by Investment {#sec-15-csr-30-51.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.100}

PURPOSE: This rule prohibits the custody of clients’ securities or funds by registered investment advisers.

(1) Investment advisers may have custody or possession of the securities or funds of a client if— (A) The investment adviser maintains custody or possession in accordance with the requirements set forth in 17 CFR 275.206(4)-2; and (B) All items required to be filed with the U.S. Securities and Exchange Commission (SEC) under 17 CFR 275.206(4)-2 are filed, through the Investment Advisor Registration Depository (IARD)

System, with the commissioner.

(2) The specific citation to 17 CFR 275.206(4)-2 referenced in this rule and published on January 11, 2010, shall apply and is hereby incorporated by reference as published by the Office of the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, DC 20408. This

rule does not incorporate any subsequent amendments or additions.

History

AUTHORITY: sections 409.4-411(f) and 409-6.605, RSMo Supp. 2011. Original rule filed June 25, 1968, effective Aug. 1, 1968. 1974, effective Nov. 25, 1974. Emergency amendment filed Aug. 27, Filed Aug. 28, 2003, effective Feb. 29, 2004. Amended: Filed Sept. 1, 2005, effective Feb. 28, 2006. Amended: Filed May 1, 2012, effective Oct. 30, 2012. Original authority: 409.4-411, RSMo 2003 and 409.6-603, RSMo 2003.

15 CSR 30-51.110 Confirmations {#sec-15-csr-30-51.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.110}

PURPOSE: This rule requires broker-dealers to confirm transactions in customers’ securities.

(1) Confirmations by broker-dealers of all purchases and sales of securities and notices of all other debits and credits for securities, cash and other items for the account of customers, officers, agents, partners and employees shall be given or sent to those persons at or before completion of each transaction, disclosing at least the following:

(A) The account for which entered;

(B) Instructions, terms and conditions, whether executed or unexecuted;

(D) Whether the broker-dealer is acting for its own account, as agent for some other person, or as an agent for both customer and some other person;

(E) If a broker-dealer is acting as agent for the customer, the following additional information or a statement that same will be furnished upon request:

The name of the person from whom the security was purchased, or to whom it was sold, and date and time the transaction occurred;
Source and amount of commission or remuneration received or to be received in connection with that transaction;

(F) Name or identification number of agent handling transaction.

History

AUTHORITY: sections 409.4-411(c) and 409.6-605, RSMo Supp. 1974, effective Nov. 25, 1974. Emergency amendment filed Aug. 27, Filed Aug. 28, 2003, effective Feb. 29, 2004.

15 CSR 30-51.120 Records Required of Broker-Dealers {#sec-15-csr-30-51.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.120}

PURPOSE: This rule prescribes the books and records required to be kept by broker-dealers that comply with the National Securities Markets Improvement Act of 1996 and the Missouri Securities Act of 2003 that became effective September 1, 2003.

(1) Every broker-dealer registered or required to be registered under the Missouri Securities Act of 2003 shall make and maintain records as required for brokers or dealers under the rules promulgated under the Securities Exchange Act of 1934, as amended (17 CFR 240.17a-3 and 17 CFR 240.17a-4).

Emergency rescission and rule filed Aug. 25, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded and readopted: Filed Aug. 25, 2003, effective Feb. 29, 2004. Amended: Filed July 19, 2019, effective Jan. 30, 2020. *Original authority: 409.4-411, RSMo 2003 and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-411(c) and 409.6-605, RSMo 2016. Nov. 25, 1974. Amended: Filed Oct. 16, 1986, effective Feb. 12, 1987.

15 CSR 30-51.130 Records To Be Preserved by Broker-Dealers {#sec-15-csr-30-51.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.130}

(Rescinded January 30, 2020)

Original rule filed June 25, 1968, effective Aug. 1, 1968. 1974, effective Nov. 25, 1974. Emergency rescission and rule filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004.

Rescinded and readopted: Filed Aug. 26, 2003, effective Feb. 29, 2004. Rescinded: Filed July 19, 2019, effective Jan. 30, 2020.

History

AUTHORITY: sections: 409.4-411(c) and 409.6-605, RSMo Supp.

15 CSR 30-51.140 Records Required of and To Be Preserved by {#sec-15-csr-30-51.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.140}

PURPOSE: This rule prescribes the books and records to be kept by investment advisers that comply with the Missouri Securities Act of 2003 that became effective September 1, 2003.

(1) Every investment adviser registered or required to be registered under the Missouri Securities Act of 2003 shall make and keep true, accurate and current the following books and records relating to its investment advisory business:

(A) A journal or journals, including cash receipts and disbursements, records, and any other records of original entry forming the basis of entries in any ledger;

(B) General and auxiliary ledgers (or other comparable records) reflecting asset, liability, reserve, capital, income and expense accounts;

(C) A memorandum of each order given by the investment adviser for the purchase or sale of any security, of any instruction received by the investment adviser concerning the purchase, sale, receipt or delivery of a particular security, and of any modification or cancellation of any such order or instruction.

Such memoranda shall show the terms and conditions of the order, instruction, modification or cancellation; shall identify the person connected with the investment adviser who recommended the transaction to the client and the person who placed such order; and shall show the account for which entered, the date of entry, and the bank, broker or dealer by or through whom executed where appropriate. Orders entered pursuant to the exercise of discretionary power shall be so designated;

(D) All checkbooks, bank statements, cancelled checks and cash reconciliations of the investment adviser;

(E) All bills or statements (or copies thereof), paid or unpaid, relating to the business of the investment adviser as such;

(F) All trial balances, financial statements, and internal audit working papers relating to the business of such investment adviser;

(G) Originals of all written communications received and copies of all written communications sent by such investment adviser relating to any recommendation made or proposed to be made and any advice given or proposed to be given, any receipt, disbursement or delivery of funds or securities, or the placing or execution of any order to purchase or sell any security. Provided, however, the investment adviser shall not be required to keep any unsolicited market letters and other similar communications of general public distribution not prepared by or for the investment adviser, and that if the investment adviser sends any notice, circular or other advertisement offering any report, analysis, publication or other investment advisory service to more than ten (10) persons, the investment adviser shall not be required to keep a record of the names and addresses of the persons to whom it was sent; except that if such notice, circular or advertisement is distributed to persons named on any list, the investment adviser shall retain with the copy of such notice, circular or advertisement a memorandum describing the list and the source thereof;

(H) A list or other record of all accounts in which the investment adviser is vested with any discretionary power with respect to the funds, securities or transactions of any client;

(I) All powers of attorney and other evidences of the granting of any discretionary authority by any client to the investment adviser, or copies thereof;

(J) All written agreements (or copies thereof) entered into by the investment adviser with any client or otherwise relating to the business of such investment adviser as such;

(K) A copy of each notice, circular, advertisement, newspaper

article, investment letter, bulletin or other communication that the investment adviser circulates or distributes, directly or indirectly, to ten (10) or more persons (other than persons connected with such investment adviser), and if such notice, circular, advertisement, newspaper article, investment letter, bulletin or other communication recommends the purchase or sale of a specific security and does not state the reasons for such recommendation, a memorandum of the investment adviser indicating the reasons therefor;

(L) A copy of each written disclosure statement and each amendment or revision thereof, given or sent to any client or prospective client of such investment adviser, and a record of the dates that each written disclosure statement, and each amendment or revision thereof, was given, or offered to be given, to any client or prospective client who subsequently becomes a client;

(M) All written agreements or acknowledgments of receipt obtained from clients and copies of the disclosure documents delivered to clients by these solicitors pursuant to 15 CSR 30- 51.145; and (N) All accounts, books, internal working papers, and any other records or documents that are necessary to form the

basis for or demonstrate the calculation of the performance or rate of return of any or all managed accounts or securities recommendations in any notice, circular, advertisement, newspaper article, investment letter, bulletin or other communication that the investment adviser circulates or distributes, directly or indirectly, to ten (10) or more persons (other than persons connected with such investment adviser); provided, however, that, with respect to the performance of managed accounts, the retention of all account statements, if they reflect all debits, credits, and other transactions in a client’s account for the period of the statement, and all worksheets necessary to demonstrate the calculation of the performance or rate of return of all managed accounts shall be deemed to satisfy the requirements of this subsection.

(2) If an investment adviser subject to section (1) of this rule has custody or possession of securities or funds of any client, the records required to be made and kept under section (1) of this

rule shall include:

(A) A journal or other record showing all purchases, sales, receipts and deliveries of securities (including certificate numbers) for such accounts and all other debits and credits to such accounts;

(B) A separate ledger account for each such client showing all purchases, sales, receipts and deliveries of securities, the date and price of each purchase and sale, and all debits and credits;

(C) Copies of confirmations of all transactions effected by or for the account of any such client; and (D) A record for each security in which any such client has a position, which record shall show the name of each such client having any interest in such security, the amount or interest of each such client, and the location of each such security.

(3) Every investment adviser subject to section (1) of this rule who renders any investment supervisory or management service to any client shall, with respect to the portfolio being supervised or managed and to the extent that the information is reasonably available to or obtainable by the investment adviser, make and keep true, accurate and current:

(A) Records showing separately for each such client the securities purchased and sold, and the date, amount and price of each such purchase and sale; and (B) For each security in which any such client has a current position, information from which the investment adviser can promptly furnish the name of each such client, and the current amount or interest of such client.

(4) Any books or records required by this rule may be maintained by the investment adviser in such manner that the identity of any client to whom such investment adviser renders investment supervisory services is indicated by numerical or alphabetical code or some similar designation.

(5) All books and records required to be made under the provisions of sections (1) to subsection (3)(A), inclusive, of this

rule (except for books and records required to be made under the provisions of subsections (1)(K) and (1)(N) of this rule), shall be maintained and preserved in an easily accessible place for a period of not less than five (5) years from the end of the fiscal year during which the last entry was made on such record, the first two (2) years in an appropriate office of the investment adviser.

(A) Partnership articles and any amendments thereto, articles of incorporation, charters, minute books, and stock certificate books of the investment adviser and of any predecessor, shall be maintained in the principal office of the investment adviser and preserved until at least three (3) years after termination of the enterprise.

(B) Books and records required to be made under the provisions of subsections (1)(K) and (1)(N) of this rule shall be maintained and preserved in an easily accessible place for a period of not less than five (5) years, the first two (2) years in an appropriate office of the investment adviser, from the end of the fiscal year during which the investment adviser last published or otherwise disseminated, directly or indirectly, the notice, circular, advertisement, newspaper article, investment letter, bulletin or other communication.

(6) An investment adviser subject to section (1) of this rule, before ceasing to conduct or discontinuing business as an investment adviser shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this rule for the remainder of the period specified in this rule, and shall notify the commissioner in writing, of the exact address where such books and records will be maintained during such period.

(7) Micrographic and Electronic Storage Permitted.

(A) General. The records required to be maintained and preserved pursuant to this part may be maintained and preserved for the required time by an investment adviser on:

Micrographic media, including microfilm, microfiche, or any similar medium; or 2. Electronic storage media, including any digital storage medium or system that meets the terms of this rule.

(B) General Requirements. The investment adviser must:

Arrange and index the records in a way that permits easy location, access, and retrieval of any particular record;
Provide promptly any of the following that the commissioner (by his examiners or other representatives) may request:

A. A legible, true, and complete copy of the record in the medium and format in which it is stored;

B. A legible, true, and complete printout of the record;

C. Means to access, view, and print the records; and D. Separately store, for the time required for preservation of the original record, a duplicate copy of the record on any medium allowed by this rule.

(C) Special requirements for electronic storage media. In the case of records on electronic storage media, the investment adviser must establish and maintain procedures:

To maintain and preserve the records, so as to reasonably safeguard them from loss, alteration, or destruction;
To limit access to the records to properly authorized personnel and the commissioner (including its examiners and other representatives); and 3. To reasonably ensure that any reproduction of a nonelectronic original record on electronic storage media is complete, true, and legible when retrieved.

(8) Any book or other record made, kept, maintained and preserved in compliance with section 240.17a-3 and 240.17a-4 under the Securities Exchange Act of 1934, which is substantially the same as the book or other record required to be made, kept, maintained and preserved under this rule, shall be deemed to be made, kept, maintained and preserved in compliance with this rule.

(A) A record made and kept pursuant to any provision of

section (1) of this rule, which contains all the information required under any other provision of section (1) of this rule, need not be maintained in duplicate in order to meet the requirements of the other provision of section (1) of this rule.

(9) As used in this rule the term “discretionary power” shall not include discretion as to the price at which or the time when a transaction is or is to be effected, if, before the order is given by the investment adviser, the client has directed or approved the purchase or sale of a definite amount of the particular security.

Rescinded and readopted: Filed Aug. 25, 2003, effective Feb. 29, 2004. *Original authority: 409.4-411, RSMo 2003, and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409-4-411(c) and 409.6-605, RSMo Supp. 1974, effective Nov. 25, 1974. Emergency rescission and rule filed Aug. 25, 2003, effective Sept. 12, 2003, expired March 9, 2004.

15 CSR 30-51.145 Compensation Arrangements Involving {#sec-15-csr-30-51.145 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.145}

PURPOSE: This rule permits compensation arrangements presently allowed by the United States Securities and Exchange Commission.

(1) Registered investment advisers may pay a cash fee to a solicitor who refers business to the investment adviser (but does not render any investment advice) as long as the solicitor is not subject to a disqualification as set out in section 409.4-412(d), RSMo and the cash fee is paid pursuant to the requirements set out in 17 CFR Section 275.206(4)–3.

(2) Registered investment advisers may receive performancebased fees (fees based upon a share of the capital gains upon, or the capital appreciation of, the funds, or any portion of the funds, of a client) provided that the fees are charged only to qualified clients, as defined in 17 CFR Section 275.205-3, and the fees are fully disclosed in the investment advisory contract.

Feb. 29, 2004. *Original authority: 409.4-406, RSMo 2003, and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-406(e) and 409.6-605, RSMo Supp. 2003. Original rule filed March 27, 1989, effective June 12, 1989.

15 CSR 30-51.150 Records to be Preserved by Investment {#sec-15-csr-30-51.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.150}

(Rescinded February 29, 2004)

rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Emergency rescission filed Aug. 25, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded: Filed Aug. 25, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.203 and 409.413(a), RSMo 1986. Original

15 CSR 30-51.160 Effectiveness and Post-Effective Requirements {#sec-15-csr-30-51.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.160}

PURPOSE: This rule specifies when the registration of brokerdealers, agents and investment advisers becomes effective, reports required during effectiveness, and procedures for terminating the effectiveness and effecting withdrawal of registrations.

(1) Pending Applications for Registration.

(A) Effective Date of Registration. If no denial order is in effect and no proceeding under section 409.4-412, RSMo is pending, registration shall become effective no later than noon of the forty-fifth day after the completed application is filed, unless the applicant has agreed to toll the forty-five (45)-day limitation. The forty-five (45)-day time period shall begin to run once a completed application, including any amendments thereto, is filed with the division. The running of this forty-five (45)-day period is tolled during the time a denial order is in effect, a proceeding under section 409.4-412, RSMo is pending, or by agreement of the applicant. The running of the forty-five (45)-day period shall resume when the denial order is vacated, or the proceeding under section 409.4-412, RSMo is no longer pending.

(B) Completeness of the Application. An application shall be considered complete when an application, including any amendments, has been filed with the division. A completed application shall contain comprehensive responses to all applicable questions and all attachments and exhibits, as required by the Act or these rules.

Pursuant to section 409.4-412(f), RSMo, the commissioner may summarily suspend an application if:

A. The commissioner, through the Securities Division staff, is seeking additional information regarding and/or relating to the application;

B. A proceeding is pending under section 409.4-412(a), (b), or (c), RSMo; or C. The applicant is subject to discipline or disqualification under the provisions of section 409.4-412(d), RSMo.

A summary suspension order issued pursuant to subparagraph (1)(C)1.A. shall remain pending for thirty (30) days after all requested information has been provided and during this time the person subject to the summary suspension order may request a hearing.

(D) Orders of Cancellation for Incomplete Applications. Any application, the filing of which is not complete within a period of one (1) year following the application’s original filing, shall be presumed subject to the entry of an order of cancellation pursuant to section 409.4-408(e), RSMo of the Act.

(2) Duration of Registration.

(A) Expiration of Registration. Every registration of a brokerdealer, agent, investment adviser, or investment adviser representative expires on December 31 of each year, unless renewed or unless sooner revoked, canceled, or withdrawn (section 409.4-406(d), RSMo).

(B) Failure to Renew. Upon expiration of a registration, any subsequent application for registration shall be considered and treated as an application for initial registration.

(C) Applications for renewal of registration filed directly with the commissioner shall be filed on the appropriate form marked renewal (see 15 CSR 30-51.020) with required information and exhibits, no earlier than sixty (60) days and no later than thirty (30) days before the expiration date of the registration concerned. Applications filed with the Central Registration Depository (CRD) System or Investment Adviser Registration Depository (IARD) System shall be timely filed in accordance with the requirements of the CRD or IARD.

(D) An applicant for renewal registration may incorporate by reference in the application documents previously filed to the extent the documents are currently accurate.

(3) Continuing Duty of Applicants and Registrants to Disclose Material Information.

(A) Amendments to Applications for Material Change.

During the pendency of any application, or effectiveness of any registration, every broker-dealer, agent, investment adviser, or investment adviser representative shall immediately report to the commissioner in writing any material change in any information, answers, responses, exhibits, or schedules submitted or circumstances disclosed in its last prior application. A correcting amendment shall be filed with the division at the time of occurrence or discovery of these changes, and not later than thirty (30) days following the specified event or occurrence. If the application was submitted through the CRD System or IARD System, any amendment shall be submitted in accordance with the guidelines of the CRD or IARD System.

(B) Termination of an Agent or Investment Adviser Representative.

Duty of broker-dealer, issuer or investment adviser.

When an agent’s or representative’s association with the broker-dealer, issuer or investment adviser is discontinued or terminated by either party, the broker-dealer, issuer or investment adviser must file a Form U-5 within thirty (30) days of the discontinuance or termination, stating the date of and reasons for the discontinuance or termination.

Duty of agent or investment adviser representative.

When an agent’s or representative’s association with a broker-dealer or investment adviser registered in Missouri is discontinued or terminated by either party, the agent or investment adviser representative must file, within thirty (30) days of the discontinuance or termination, amended documents reflecting association with another broker-dealer or investment adviser.

Transferring agents and transferring investment adviser representatives.

A. For agents and/or investment adviser representatives registered under this Act who terminate from one Missouri registered broker-dealer, investment adviser, or federal covered investment adviser and transfer to another Missouri registered broker-dealer, investment adviser, or federal covered investment adviser that file a completed application with the division within thirty (30) days after their termination and whose CRD record does not contain any new or amended disciplinary disclosure(s) within the previous twelve (12) months, their registration shall become immediately effective as of the date of the completed filing, unless an order is issued pursuant to

section 409.4-408(d), RSMo.

B. For agents and/or investment adviser representatives registered under this Act who terminate from one Missouri registered broker-dealer, investment adviser, or federal covered investment adviser and transfer to another Missouri registered broker-dealer, investment adviser, or federal covered investment adviser that file a completed application with the division within thirty (30) days after their termination and whose CRD record contains a new or amended disciplinary disclosure within the previous twelve (12) months, their registration shall become temporarily effective for thirty (30) days as of the date of the completed filing, unless an order is issued pursuant to section 409.4-408(d), RSMo. The temporary registration becomes automatically effective on the thirty-first day after the completed filing unless an order is issued pursuant to section 409.4-408(c), RSMo.

When a person or a group of persons, directly or indirectly or acting by or through one (1) or more persons, proposes to acquire a controlling interest in a broker-dealer or investment adviser registrant and when the acquirer, within the preceding ten (10) years, has committed any act that would result in a yes answer to any disciplinary question on the Form BD or ADV or would require disclosure under 15 CSR 30- 51.160(3), the resulting entity, prior to the acquisition, shall file with the division:

A. A new application for registration on the forms prescribed by rule, together with all required exhibits and fees;

B. At the time the new application is filed, a notice of withdrawal, termination or cancellation of registration of the acquired entity on the forms prescribed by rule, effective upon disposition of the new application by the division.

For purposes of this section, controlling interest means possession of the power to direct or cause the direction of the management or policies of a company, whether through ownership of securities, by contract or otherwise. Any individual or firm that directly or indirectly has the right to vote twentyfive percent (25%) or more of the voting securities of a company or is entitled to twenty-five percent (25%) or more of its profits is presumed to control that company.

(D) Written Disclosure Statement.

An investment adviser, registered or required to be registered pursuant to the Missouri Securities Act, shall furnish each advisory client and prospective advisory client with a written disclosure statement that may be either a copy of Part II of its Form ADV, or a written document containing at least the information required by Part II of Form ADV.
An investment adviser shall deliver the written disclosure statement to an advisory client or prospective advisory client not less than forty-eight (48) hours prior to entering into any written or oral investment advisory contract with such client or prospective client, or at the time of entering into any such contract, if the advisory client has a right to terminate the contract without penalty within five (5) business days after entering into the contract.
An investment adviser annually shall, without charge, deliver or offer in writing to deliver to each of its advisory clients the written disclosure statement.

(4) Withdrawal of Registration.

(A) Broker-Dealers, Investment Advisers and Federal Covered Investment Advisers.

Every broker-dealer and investment adviser who desires to withdraw their registration shall file the appropriate Form BDW or ADV-W. Every federal covered adviser who desires to withdraw their notice filing shall file the appropriate ADV-W.
Unless a proceeding is pending under sections 409.4-412, 409.6-602, 409.6-603 or 409.6-604, RSMo when the application to withdraw is filed, the withdrawal of registration by a brokerdealer or investment adviser shall become effective on the date indicated in the Form BDW or Form ADV-W, but in no event more than sixty (60) days after the filing of the Form BDW or Form ADV-W.

(B) Broker-Dealer Agents and Investment Adviser Representatives.

Unless a proceeding is pending under sections 409.4-412, 409.6-602, 409.6-603 or 409.6-604, RSMo when the application to withdraw is filed, the withdrawal of registration by an agent or investment adviser representative, pursuant to section 409.4-409, RSMo shall become effective at the earlier of the date a Form U-5 is filed, the date indicated in the Form U-5 or the date of withdrawal of the agent’s or investment adviser representative’s respective broker-dealer or investment adviser.

(5) Merger, Consolidation or Reorganization of Broker-Dealers.

In the event of a merger, consolidation, or reorganization of an existing registered broker-dealer, and the change can be effected through the CRD System, then such documentation and information shall be filed in accordance with the guidelines of the CRD System. If the change cannot be processed through the CRD System, the following documents must be filed with the commissioner by the participating broker-dealers within ten (10) days following a merger, consolidation or reorganization:

(A) The broker-dealer dissolving at the consummation of the merger or who will become a part of an existing broker-dealer upon reorganization or consolidation must file:

A termination of its broker-dealer registration on Form BDW;
A termination of all agent registrations; and 3. A complete explanation of the proposed merger, consolidation or reorganization accompanied by the agreement effecting the merger, consolidation or reorganization.

(B) The broker-dealer who will be the surviving corporation upon consummation of the merger or who will be the named broker-dealer after the reorganization or consolidation must file:

A complete explanation of the proposed merger;
Form U-4 applications plus supporting documents of all registered agents of the dissolving broker-dealer to be transferred to the surviving, consolidated or reorganized broker-dealer in accordance with 15 CSR 30-51.160(3) and 15 CSR 30-51.020; and 3. If the name of the surviving, consolidated or reorganized broker-dealer will change, an amended Form BD, as appropriate and all other properly amended documents required by 15 CSR 30-51.020 and 15 CSR 30-51.160.

Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended:

Filed Dec. 19, 1975, effective Dec. 31, 1975. Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Aug. 15, 1983, effective Aug. 29, 1983, expired Dec. 26, 1983. Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983. Amended: Filed March 27, 1989, effective June 12, 1989. Emergency amendment filed Aug. 4, 1995, effective Aug. 14, 1995, expired Dec. 11, 1995. Amended: Filed Aug. 4, 1995, effective Jan. 30, 1996. Rescinded and readopted:

Filed Dec. 17, 2001, effective July 30, 2002. Amended: Filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Sept. 9, 2003, effective Sept. 19, 2003, expired March 16, 2004. Amended:

Filed Aug. 28, 2003, effective Feb. 29, 2004. Amended: Filed Aug. 10, 2004, effective Feb. 28, 2005. *Original authority: 409.4-406, RSMo 2003; 409.4-408, RSMo 2003; 409.4-409, RSMo 2003; 409.4-411, RSMo 2003; and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-406, 409.4-408, 409.4-409, 409.4- 411(b) and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972.

15 CSR 30-51.165 Networking Arrangements Between Broker-Dealers and Banks, Trust Companies or Savings Institutions {#sec-15-csr-30-51.165 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.165}

PURPOSE: This rule prescribes the activities in which a bank, a trust company organized or chartered under the laws of Missouri, or savings institution may engage in under a networking arrangement and be excepted from the definition of broker-dealer under the Missouri Securities Act of 2003.

(1) Definition. For purposes of this rule, the reference to the term “banking institution” shall mean a bank, trust company organized or chartered under the laws of Missouri, or a savings institution.

(2) Exception from the Definition of Broker-Dealer. A banking institution shall be excepted from the definition of broker-dealer under section 409.1-102(4), RSMo if such banking institution enters into a contractual or other written arrangement with a broker-dealer registered under the Missouri Securities Act of 2003 whereupon the broker-dealer offers brokerage services on or off the premises of the banking institution and— (A) Such broker-dealer is clearly identified as the person performing the brokerage services;

(B) The broker-dealer performs brokerage services in an area that is clearly marked and, to the extent practicable, physically separate from the routine deposit-taking activities of the banking institution;

(C) Any materials used by the banking institution to advertise or promote generally the availability of brokerage services under the arrangement clearly indicate that the brokerage services are being provided by the broker-dealer and not by the banking institution;

(D) Any materials used by the banking institution to advertise or promote generally the availability of brokerage services under the arrangement are in compliance with Missouri and federal securities laws before distribution;

(E) Employees of the banking institution (other than agents of a broker-dealer who are registered under the Missouri Securities Act of 2003 and qualified pursuant to the rules of a self-regulatory organization) perform only clerical or ministerial functions in connection with brokerage transactions including scheduling appointments with the agents of a broker-dealer, except that employees of a banking institution may forward customer funds or securities and may describe in general terms the types of investment vehicles available from the banking institution and the broker-dealer under the arrangement;

(F) Employees of the banking institution do not receive incentive compensation for any brokerage transaction unless such employees are agents of a broker-dealer, are registered under the Missouri Securities Act of 2003 and are qualified pursuant to the rules of a self-regulatory organization, except that the employees of the banking institution may receive compensation for the referral of any customer if the compensation is a nominal one-time cash fee of a fixed dollar amount and the payment of the fee is not contingent on whether the referral results in a transaction;

(G) Such services are provided by the broker-dealer on a

basis in which all customers that receive any services are fully disclosed to the broker-dealer;

(H) The banking institution does not carry a securities account of the customer except as permitted under sections 3(a)(4)(B)(ii) (trust activities) or 3(a)(4)(B)(viii) (safekeeping and custody activities) of the Securities Exchange Act of 1934; and (I) The banking institution or broker-dealer informs each customer that the brokerage services are provided by the broker-dealer and not by the banking institution and that the securities are not deposits or other obligations of the banking institution, are not guaranteed by the banking institution, and are not insured by the Federal Deposit Insurance Corporation.

History

AUTHORITY: sections 409.1-102(4) and 409.6-605, RSMo Supp. 2003. Emergency rule filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Original rule filed Aug. 29, 2003, effective Feb. 29, 2004. Original authority: 409.1-102, RSMo 2003, and 409.6-603, RSMo 2003.

15 CSR 30-51.169 Fraudulent Practices of Broker-Dealers and Agents {#sec-15-csr-30-51.169 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.169}

PURPOSE: This rule identifies practices in the securities business which are generally associated with schemes to manipulate.

(1) A broker-dealer or agent who engaged in one (1) or more of the following practices shall be deemed to have engaged in an “act, practice or course of business which operates or would operate as a fraud” as used in section 409.5-501 of the Missouri Securities Act of 2003 (the Act). This rule is not intended to be all inclusive and acts or practices not enumerated in this rule may also be deemed fraudulent:

(A) Entering into a transaction with a customer in any security at an unreasonable price or at a price not reasonably related to the current market price of the security or receiving an unreasonable commission or profit;

(B) Contradicting or negating the importance of any information contained in a prospectus or other offering materials with intent to deceive or mislead or using any advertising or sales presentation in a deceptive or misleading manner;

(C) In connection with the offer, sale or purchase of a security, falsely leading a customer to believe that the broker-dealer or agent is in possession of material, nonpublic information which would have an impact on the value of the security;

(D) In connection with the solicitation of a sale or purchase of a security, engaging in a pattern or practice of making contradictory recommendations to different investors of similar investment objective for some to sell and others to purchase the same security, at or about the same time, when not justified by the particular circumstances of each investor;

(E) Failing to make a bona fide public offering of all the securities allotted to a broker-dealer for distribution by, among other things—1) transferring securities to a customer, another broker-dealer or a fictitious account with the understanding that those securities will be returned to the broker-dealer or its nominees, or 2) parking or withholding securities;

(F) Although nothing in this rule precludes application of the general anti-fraud provisions against anyone for practices similar in nature to the practices discussed as follows, the following paragraphs specifically apply only in connection with solicited offers or sales of designated securities in transactions not exempted in the following:

Failing to disclose at the time of solicitation, in either a principal or agency transaction, the price at which the brokerdealer is currently selling or offering to sell the designated security and the price at which the broker-dealer is currently buying or offering to buy the designated security, and failing to disclose those prices, which were in effect at the time of execution, on the trade confirmation of the transaction;
Failing to disclose, at the time of solicitation and on the trade confirmation, all compensation to be paid to the agent as a result of the transaction;
In connection with a principal transaction by a market maker, failing to disclose, both at the time of solicitation and on the confirmation, a short inventory position in the firm’s account of more than five percent (5%) of the issued and outstanding shares of that class of securities of the issuer;
Conducting sales contests solely with respect to a particular security;
Failing or refusing to promptly execute sell orders on behalf of a customer;
Soliciting a secondary market transaction when there has not been a bona fide distribution in the primary market;
Engaging in a pattern of enhancing the compensation of an agent with respect to sales and purchases in the same security;
In connection with the solicitation of a sale of an equity security, or a security containing an equity component, in which the difference between the bid and ask price is twentyfive percent (25%) or more of the ask price, to fail to— A. Disclose to the customer the bid and ask price of the designated security as well as its spread in both percentage and dollar amounts at the time of solicitation; and B. Include with the confirmation, in a form satisfactory to the commissioner, written explanation of the bid and ask price;
For the purposes of subsection (1)(F), the following shall be exempt transactions:

A. Transactions in which the price of the designated security is five dollars ($5) or more, provided, however, that if the designated security is a unit composed of one (1) or more securities, the unit price divided by the number of components of the unit other than warrants, options, rights or similar securities must be five dollars ($5) or more, and any component of the unit that is a warrant, option, right or similar security or a convertible security must have an exercise price or conversion price of five dollars ($5) or more;

B. Transactions that are not recommended by the brokerdealer;

C. Transactions by a broker-dealer— (I) Whose commissions, commission equivalents and mark-ups from transactions in designated securities during each of the immediately preceding three (3) months, and during eleven (11) or more of the preceding twelve (12) months, did not exceed five percent (5%) of its total commissions, commission-equivalents and mark-ups from transactions in securities during those months; and (II) Who has not been a market maker in the designated security that is the subject of the transaction in the immediately preceding twelve (12) months; and D. Any transaction(s) that, upon prior written request or upon its own motion, the commissioner conditionally or unconditionally exempts as not encompassed within the purposes of subsection (1)(F); and 10. For the purposes of subsection (1)(F)— A. The term designated security shall mean any equity security other than a security— (I) Registered, or approved for registration upon notice of issuance, on a national securities exchange recognized under 409.2-201(6), RSMo;

(II) Exempted as a foreign issuer pursuant to 15 CSR 30-54.260;

(III) Authorized, or approved for authorization upon notice of issuance, for quotation in the National Market System of the National Association of Securities Dealers Automated Quotation System;

(IV) Issued by an investment company registered under the Investment Company Act of 1940;

(V) That is a put option or call option issued by The Options Clearing Corporation; or (VI) Whose issuer has net tangible assets in excess of four (4) million dollars, as demonstrated by financial statements dated less than fifteen (15) months previously that the brokerdealer has reviewed and has a reasonable basis to believe on the date of the transaction with the person, there have been no adverse changes to the issuer’s most current financial statement and— (a) In the event the issuer is other than a foreign private issuer, the most recent financial statements for the issuer have been audited and reported on by an independent public accountant in accordance with the provisions of 17 CFR 210.2.02; or (b) In the event the issuer is a foreign private issuer, are the most recent financial statements for the issuer that have been filed with the commissioner, furnished to the commissioner pursuant to 17 CFR 240.12g3-2(b) or prepared in accordance with generally accepted accounting principles in the country of incorporation, audited in compliance with the requirements of that jurisdiction and reported on by an accountant duly registered and in good standing in accordance with the regulations of that jurisdiction;

(G) Effecting any transaction in, or inducing the purchase or sale of any security by means of any manipulative, deceptive or other fraudulent device or contrivance including, but not limited to, the use of boiler-room tactics or use of fictitious or nominee accounts; and (H) Failure to comply with any prospectus delivery requirement promulgated under federal law.

Feb. 29, 2004. Emergency amendment filed Oct. 23, 2024, effective Nov. 6, 2024, expired May 4, 2025. *Original authority: 409.2-201, RSMo 2003; 409.4-412, RSMo 2003; 409.5-501, RSMo 2003.

History

AUTHORITY: sections 409.2-201, 409.4-412, 409.5-501 and 409.6- 605, RSMo Supp. 2003. Original rule filed March 27, 1989, effective June 12, 1989. Amended: Filed June 29, 1990, effective Dec. 31, 1990.

15 CSR 30-51.170 Dishonest or Unethical Business Practices by Broker-Dealers and Agents {#sec-15-csr-30-51.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.170}

PURPOSE: This rule identifies dishonest or unethical business practices for broker-dealers or agents.

(1) Grounds for the discipline or disqualification of brokerdealers or agents shall include, in addition to other grounds specified in section 409.4-412(d) of the Missouri Securities Act of 2003 (the Act), the following “dishonest or unethical practices in the securities business”:

(A) Unreasonable and unjustifiable delaying or failing to execute orders, liquidating customers’ accounts or in making delivery of securities purchased or in paying upon request of free credit balances reflecting completed transactions of any of its customers;

(B) Entering into a transaction with or for a customer at a price not reasonably related to the current market price of the security or receiving an unreasonable commission or profit;

(C) Effecting transactions in the account of a customer without authority to do so; or exercising any discretionary power in effecting a transaction for a customer’s account without first obtaining written discretionary authority from the customer, unless the discretionary power relates solely to the time or price, or both, for the execution of orders;

(D) Inducing trading in a customer’s account that is excessive in size or frequency in view of the financial resources and character of the account for the purpose of accumulation or compounding commissions;

(E) Recommending to a customer the purchase, sale, or exchange of any security commodity or other investment without reasonable grounds to believe that this transaction or recommendation is suitable for the customer based upon reasonable inquiry concerning the customer’s investment objectives, financial situation and needs, and any other relevant information known by the applicant or registrant;

(F) Engaging in or aiding in boiler-room operations or high pressure tactics in connection with the promotion of speculative offerings or hot issues by means of an intensive telephone campaign or unsolicited calls to persons not known by, nor having an account with, the agent or broker-dealer represented by the agent, where the prospective purchaser is encouraged to make a hasty decision to buy, irrespective of his/ her investment needs and objectives;

(G) Failing to furnish to a customer purchasing securities in an offering, no later than the date of confirmation of the transaction, either a final prospectus or a preliminary prospectus and an additional document, which together include all information set forth in the final prospectus, or making oral or written statements contrary to or inconsistent with the disclosures contained in the prospectus;

(H) Making false, misleading, deceptive, exaggerated or flamboyant representations or predictions in the solicitation or sale of a security, as, for example:

That the security will be resold or repurchased;
That it will be listed or traded on an exchange or established market;
That it will result in an assured, immediate or extensive increase in value, future market price or return on investment;
With respect to the issuer’s financial condition, anticipated earnings, potential growth or success;
That there is a guarantee against risk or loss; or 6. A representation that a security is being offered to a customer at the market price or a price related to the market price unless the applicant or registrant knows or has reasonable grounds to believe that— A. A market for the security exists other than that made, created, or controlled by the applicant or registrant, or by any person for whom s/he is acting or with whom s/he is associated in the distribution, or any person controlled by, controlling, or under common control with the applicant or registrant; or B. The security is traded in an established securities market, and the fact that the applicant or registrant is in a control position with respect to the market for that security is fully disclosed to the investor;

(I) Failing to disclose a dual agency capacity or effecting transactions upon terms and conditions other than those stated per confirmations; or failing to disclose that the applicant or registrant is controlled by, controlling, receiving compensation from, affiliated with or under common control with the issuer of any security before entering into any contract with or for a customer for the purchase or sale of the security or, if this disclosure is not made in writing, failing to give or send a written disclosure at or before the completion of the transaction;

(J) Failing to make a bona fide public offering of all the securities allotted to a broker-dealer for distribution, whether acquired as an underwriter, a selling group member, or from a member participating in the distribution as an underwriter or selling group member; or entering into an underwriting or selling group agreement which establishes unfair or unreasonable terms and conditions or compensation;

(K) Establishing fictitious accounts in order to execute transactions which would otherwise be prohibited;

(L) Entering into agreements for selling concessions, discounts, commissions or allowances as consideration for services in connection with the distribution or sale of a security in Missouri to any unregistered broker-dealer or agent, or dividing or otherwise splitting the agent’s commissions, profits or other compensation from the purchase or sale of securities with any person not also registered as an agent for the same broker-dealer, or for a broker-dealer under direct or common control unless that person is not required to be registered in order to engage in the securities business in Missouri;

(M) Failing or refusing to furnish a customer, upon reasonable request, information to which s/he is entitled, or to respond to a formal written demand or complaint;

(N) Extending, arranging for, or participating in arranging for credit to a customer in violation of the regulations of the Securities and Exchange Commission or the regulations of the Federal Reserve Board;

(O) Failing to secure from the customer a properly executed written margin agreement that authorizes the existence of the margin account promptly after the initial transaction in the account;

(P) Failing to segregate customers’ free securities or securities held in safekeeping;

(Q) Hypothecating a customer’s securities without having a lien on the security unless the broker-dealer secures from the customer a properly executed written consent except as permitted by rules of the Securities and Exchange Commission;

(R) Charging unreasonable and inequitable fees for services performed, including miscellaneous services such as collection of monies due for principal, dividends, or interest, exchange or transfer of securities, appraisals, safekeeping or custody of securities and other services related to its securities business;

(S) Offering to buy from or sell to any person any security at a stated price unless the applicant or registrant is prepared to purchase or sell, as the case may be, at a price and under the conditions as are stated at the time of the offer to buy or sell;

(T) Effecting any transaction in, or inducing the purchase or sale of, any security by means of any manipulative, deceptive or fraudulent device, practice, plan, program, design or contrivance, including but not limited to— 1. Effecting any transaction in a security which involves no change in the beneficial ownership of the security; and 2. Effecting, alone or with one (1) or more other persons, a transaction or series of transactions in any security creating actual or apparent active trading in the security or raising or depressing the price of the security, for the purpose of inducing the purchase or sale of the security by others;

(U) Publishing or circulating or causing to be published or circulated any notice, circular, advertisement, newspaper

article, investment service or communication of any kind which purports to report any transaction as a purchase or sale of any security unless the applicant or registrant believes that the transaction was a bona fide purchase or sale of this security; or which purports to quote the bid or asked price for any security, unless the applicant or registrant believes that the quotation represents a bona fide bid for, or offer of, the security; or using any advertising or sales material in such a fashion as to be deceptive or misleading, such as the distribution of any nonfactual datum, material, or presentation based on conjecture, unfounded or unrealistic claims or assertions in any brochure, flyer, or display by words, pictures, graphs, or otherwise, designed to supplement, detract from, supersede, or defeat the purpose or effect of any prospectus or disclosure;

(V) Borrowing of money or securities from a customer by an agent, or for an agent to act as a custodian for money, securities, or an executed stock power of a customer;

(W) Sharing, by an agent, directly or indirectly, in profits or losses in the account of any customer without the written authorization of the customer and the broker-dealer the agent represents;

(X) Effecting securities transactions not recorded on the regular books or records of the broker-dealer the agent represents, unless the transactions are authorized in writing by the broker-dealer prior to the execution of the transaction;

(Y) Stating, implying, or otherwise indicating, in connection with the solicitation of the securities transaction, that the market price of a security is readily or generally available unless the market price of that security is reported at least daily in a bona fide newspaper that does not receive any special compensation for reporting the market price of securities or any particular issuer(s);

(Z) In connection with the solicitation of a sale or purchase of an Over the Counter (OTC) non-National Association of Securities Dealers Automated Quotation (NASDAQ) security, failing to promptly provide the most current prospectus or the most recently filed periodic report filed under Section 13 of the Securities Exchange Act when requested to do so by a customer;

(AA) Marking any order tickets or confirmations as unsolicited when in fact the transaction was solicited;

(BB) Failing to comply with any applicable provision of the Conduct Rules of Financial Industry Regulatory Authority (FINRA), any applicable fair practice or ethical standard promulgated by the Securities and Exchange Commission, or by a self-regulatory organization approved by the Securities and Exchange Commission;

(CC) Engaging in any acts or practices enumerated in 15 CSR 30-51.169; and (DD) Aiding or abetting any of the acts or practices enumerated in this rule.

(2) It shall be a dishonest or unethical practice in the securities business for a broker-dealer or its agent to use a senior specific certification or designation in connection with the offer, sale, or purchase of securities that indicates or implies that the user has special certification or training in advising or servicing elderly persons, in such a way as to mislead any person.

(A) The prohibited use of such certifications or professional designation includes, but is not limited to, the following:

Use of a certification or professional designation by a person who has not actually earned or is otherwise ineligible to use such certification or designation;
Use of a nonexistent or self-conferred certification or professional designation;
Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification or professional designation does not have; and 4. Use of a certification or professional designation that was obtained from a designating or certifying organization that is not qualified.

(B) A designating or certifying organization is “qualified” for purposes of paragraph (2)(A)4. above when the organization has been accredited by— 1. The American National Standards Institute;

The National Commission for Certifying Agencies; or 3. An organization that is on the United States Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes” and the designation or credential issued therefrom does not primarily apply to sales and/or marketing.

(C) In determining whether a combination of words (or an acronym standing for a combination of words) constitutes a certification or professional designation indicating or implying that an adviser has special certification or training in advising or servicing senior citizens or retirees, factors to be considered shall include— 1. Use of one (1) or more words such as “senior,”

“retirement,” “elder,” or like words, combined with one (1) or more words such as “certified,” “registered,” “chartered,”

“adviser,” “specialist,” “consultant,” “planner,” or like words, in the name of the certification or professional designation; and 2. The manner in which those words are combined.

(D) For purposes of this rule— 1. “Certification or professional designation” does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency when that job title— A. Indicates seniority or standing within the organization; or B. Specifies an individual’s area of specialization within the organization;

“Elderly person” is a person sixty (60) years of age or older; and 3. “Federal financial services regulatory agency” includes, but is not limited to, any agency that regulates— A. Broker-dealers;

B. Investment advisers; or C. Investment companies as defined under the Investment Company Act of 1940.

(E) Nothing in this rule shall limit the commissioner’s

(F) This rule shall take effect on January 1, 2009.

(3) The conduct set forth above is not inclusive. Engaging in other conduct such as nondisclosure or incomplete disclosure of material fact or other deceptive practices are dishonest or unethical business practices.

Amended: Filed Oct. 13, 1983, effective Jan. 13, 1984. Amended:

Filed Oct. 16, 1987, effective Feb. 12, 1987. Amended: Filed March 27, 1989, effective June 12, 1989. Amended: Filed July 3, 1989, effective Sept. 28, 1989. Amended: Filed Aug. 28, 1989, effective Feb. 11, 1990. Amended: Filed June 29, 1990, effective Dec. 31, 1990.

Feb. 29, 2004. Amended: Filed April 8, 2004, effective Oct. 30, 2004.

Amended: Filed March 31, 2008, effective Jan. 1, 2009. Amended:

Filed July 19, 2019, effective Jan. 30, 2020. Amended: Filed Dec. 15, 2022, effective July 30, 2023. Emergency amendment filed Oct. 23, 2024, effective Nov. 6, 2024, expired May 4, 2025. Amended: Filed June 30, 2025, effective Dec. 30, 2025. *Original authority: 409.6-605, RSMo 2003.

History

authority to enforce existing provisions of law.
AUTHORITY: section 409.6-605, RSMo 2016. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974.

15 CSR 30-51.171 Supervision Guidelines for Broker-Dealers {#sec-15-csr-30-51.171 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.171}

PURPOSE: This rule provides guidance for reasonable supervision by broker-dealers.

(1) The phrase “failed reasonably to supervise” under section 409.4-412(d)(9) of the Missouri Securities Act of 2003 (the Act) is a standard allowing each broker-dealer (firm) the flexibility to fashion procedures and systems that address its particular organizational and management structure. Yet the following are guidelines that provide guidance to broker-dealers of factors considered by the commissioner in evaluating reasonable supervision.

(2) The following guidelines shall be factors in considering what is reasonable supervision, whether:

(A) The firm has established current procedures and systems for supervising the activities of agents, employees, and Missouri office operations that are reasonably designed to achieve compliance with applicable state and federal securities laws and regulations, and, if applicable, the rules of the Financial Industry Regulatory Authority (FINRA);

(B) The firm has established current procedures and systems that could reasonably be expected to allow a supervisor reasonably discharging his/her supervisory duties under such established procedures to prevent and detect violations of the Act, and the firm regularly reviews these procedures and systems;

(C) The firm has reasonably implemented the procedures and (D) The firm provides appropriate initial and periodic refresher training to supervisors, employees, and agents regarding the firm’s procedures and systems and additional initial and periodic training to supervisors in the procedures and systems referred to in subsections (A) and (B) above;

(E) The firm reasonably follows up on indications of wrongdoing, “red flags.” Such red flags may consist of, but are not limited to, activities of unauthorized personnel, churning, unauthorized trading, low level of production but high expenses, regulatory actions, prior disciplinary history of one (1) or more customer complaints, and recent customer complaints;

(F) The firm has an adequate system to track and monitor the status of customer complaints;

(G) The firm has designated a qualified supervisor of the broker-dealer for each agent or employee;

(H) The designated supervisor of agents located in Missouri maintains a principal place of business in Missouri, or in a location that allows the supervisor to visit the premises of supervised agents in Missouri within a reasonable time;

(I) The designated supervisor is responsible for supervising no more agents at any one (1) time than would allow the supervisor to effectively execute his/her supervisory duties.

The appropriate number of agents which one (1) person can reasonably supervise is dependent on the nature of the business conducted by the persons supervised, technical resources available to the supervisor, additional personnel available to assist the supervisor, and other resources made available to assist the supervisor;

(J) The firm conducts annual compliance examinations of supervisory locations with effective deficiency and follow-up procedures. Unannounced examinations may be reasonable if there are compliance issues concerning agents or activities;

(K) The firm reasonably audits for compliance including reasonable follow-up and proof, independent of the agent, that mail is reviewed for customer complaints and other red flags;

(L) The firm has and implements procedures and systems for reasonable oversight of supervisors; and (M) The firm has a reasonable policy for disciplinary and progressive supervisory action, which is reasonably implemented.

Amended: Filed May 21, 2009, effective Nov. 30, 2009.

History

AUTHORITY: sections 409.4-412(d)(9) and 409.6-605, RSMo Supp. 2008. Original rule filed Jan. 23, 2004, effective July 30, 2004.

15 CSR 30-51.172 Dishonest or Unethical Business Practices by Investment Advisers and Investment Adviser Representatives {#sec-15-csr-30-51.172 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.172}

PURPOSE: This rule identifies dishonest or unethical business practices for investment advisers or investment adviser representatives.

(1) Grounds for the discipline or disqualification of investment advisers or investment adviser representatives (adviser) shall include, in addition to other grounds specified in section 409.4-412(d) of the Missouri Securities Act of 2003 (the Act), the following “dishonest or unethical practices in the securities business”:

(A) Recommending to a client to whom investment, supervisory, management, or consulting service are provided that he/she purchase, sell, or exchange any security, commodity, or other investment when the adviser does not have reasonable grounds to believe that the recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client’s overall portfolio, investment objectives, financial situation and needs, investment experience, and any other information known by the adviser;

(B) Inducing trading in a client’s account when— 1. The size or frequency of such trading is excessive given the financial resources, investment objectives, and character of the account; and 2. The adviser directly benefits from the number of securities transactions effected in a client’s account;

(D) Ordering the purchase or sale of a security for a client’s account upon a third party’s instruction without first receiving the client’s third-party trading authorization in writing;

(E) Establishing fictitious accounts in order to execute transactions, which would otherwise be prohibited;

(F) Exercising any discretionary power in ordering the purchase or sale of securities for a client without first obtaining the client’s written discretionary authority within ten (10) business days after the date of the first transaction placed pursuant to oral discretionary authority, unless the discretionary power relates solely to the price at which, or the time when, an order involving a definite amount of a specified security shall be executed, or both;

(G) Borrowing money or securities from a client unless the client is a broker-dealer, an affiliate of the investment adviser, or a financial institution engaged in the business of loaning funds;

(H) Lending money to a client unless the investment adviser is a financial institution engaged in the business of lending funds or the client is an affiliate of the adviser;

(I) Failing to furnish to a client purchasing securities in an offering, no later than the date of confirmation of the transaction, either a final prospectus or a preliminary prospectus and an additional document, which together include all information set forth in the final prospectus, or making oral or written statements contrary to or inconsistent with the disclosures contained in the prospectus;

(J) Misrepresenting to any client or prospective client the qualifications of the adviser or its employees, or to misrepresent the nature of the advisory services being offered or fees to be charged for such services, or to omit to state a material fact necessary to make the statements made regarding qualifications, services, or fees, in light of the circumstances under which they are made, not misleading;

(K) Providing to a client a report or recommendation prepared by someone other than the adviser without also disclosing to the client that someone else prepared that report or recommendation. This prohibition does not apply to an adviser’s use of published research reports or statistical analysis when rendering advice, nor when an adviser orders such a report in the normal course of providing service;

(L) Rendering advice to a client before making written disclosure to that client about any material conflict of interest relating to the adviser, its representative, or any of its employees, when that conflict could reasonably be expected to impair the rendering of unbiased and objective advice including— 1. Compensation arrangements connected with advisory services to clients which are in addition to compensation from those clients for such services; and 2. Charging a client an advisory fee for rendering advice when the adviser or its employees will also receive a commission for executing securities transactions pursuant to that advice;

(M) Failing to disclose to any client or prospective client all material facts with respect to— 1. Any financial condition of the adviser that is reasonably likely to impair the ability of the adviser to meet contractual commitments to clients, if the adviser has discretionary

(N) Charging a client an unreasonable and inequitable advisory fee in light of the fees charged by other advisers providing essentially the same services;

(O) Paying solicitor fees if such fees are not paid in accordance with 15 CSR 30-51.145(1), charging performance based fees that are not in accordance with 15 CSR 30-51.145(2), or having custody or possession of a client’s funds and/or securities if such custody or possession is not maintained in accordance with 15 CSR 30-51.100. Custody shall include holding checks drawn by the client and made out to a third party for more than one (1) business day;

(P) Guaranteeing a client that a specific result will be achieved (gain or no loss) as a result of advice that will be rendered;

(Q) Disclosing the identity, affairs, or investments of any client to any third party unless required by law to do so, or unless consented to by the client;

(R) Entering into, extending, or renewing any investment advisory contract, other than a contract for impersonal advisory services, unless such contract is in writing and discloses, in substance— 1. The services to be provided;

The term of the contract;
The advisory fee or the formula for computing the fee;
The amount or the manner of calculation of the amount of the prepaid fee to be returned in the event of contract termination or nonperformance;
Whether the contract grants discretionary power to the adviser or its representatives;
That no assignment of such contract shall be made by the adviser without the client’s written consent; and 7. That the investment adviser or investment adviser representative is authorized to record and retain information about the client’s designated trusted contact, and to inform the trusted contact person of the designation and disclose information about the client’s account in accordance with 15 CSR 30-51.075;

(S) Publishing, circulating, or distributing any advertisement that does not comply with 17 CFR section 275.206(4)-1;

(T) Failing or refusing to furnish a customer, upon reasonable request, information to which s/he is entitled, or to respond to a formal written reprimand or complaint;

(U) Engaging in any conduct or act, either directly or indirectly through any other person, which would violate any applicable professional, fair practice, or ethical standard established by state or federal law or regulation; and (V) Aiding or abetting any of the acts or practices enumerated in this rule.

(2) It shall be a dishonest or unethical practice in the securities business for an adviser to use a senior specific certification or designation in connection with the offer, sale, or purchase of securities, or the provision of advice as to the value of or the advisability of investing in, purchasing, or selling securities, either directly or indirectly or through publications or writings, or by issuing or promulgating analyses or reports relating to securities, that indicates or implies that the user has special certification or training in advising or servicing elderly persons, in such a way as to mislead any person.

(A) The prohibited use of such certifications or professional designation includes, but is not limited to, the following:

Use of a certification or professional designation by a person who has not actually earned or is otherwise ineligible to use such certification or designation;
Use of a nonexistent or self-conferred certification or professional designation;
Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification or professional designation does not have; and 4. Use of a certification or professional designation that was obtained from a designating or certifying organization that is not qualified.

(B) A designating or certifying organization is “qualified” for purposes of paragraph (2)(A)4. above when the organization has been accredited by— 1. The American National Standards Institute;

The National Commission for Certifying Agencies; or 3. An organization that is on the United States Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes” and the designation or credential issued therefrom does not primarily apply to sales and/or marketing.

“retirement,” “elder,” or like words, combined with one (1) or more words such as “certified,” “registered,” “chartered,”

“adviser,” “specialist,” “consultant,” “planner,” or like words, in the name of the certification or professional designation; and 2. The manner in which those words are combined.

(D) For purposes of this rule— 1. “Certification or professional designation” does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency, when that job title— A. Indicates seniority or standing within the organization; or B. Specifies an individual’s area of specialization within the organization;

“Elderly person” is a person sixty (60) years of age or older; and 3. “Federal financial services regulatory agency” includes, but is not limited to, any agency that regulates— A. Broker-dealers;

B. Investment advisers; or C. Investment companies as defined under the Investment Company Act of 1940.

(E) Nothing in this rule shall limit the commissioner’s

(F) This rule shall take effect on January 1, 2009.

Amended: Filed Dec. 15, 2022, effective July 30, 2023. Emergency amendment filed Oct. 23, 2024, effective Nov. 6, 2024, expired May 4, 2025. Amended: Filed June 30, 2025, effective Dec. 30, 2025. *Original authority: 409.6-605, RSMo 2003.

History

authority (express or implied) or custody over such client’s funds, assets, or securities, or requires payment of advisory fees six (6) or more months in advance and in excess of five hundred dollars ($500) per client; or 2. Any legal or disciplinary event that is material to an evaluation of the adviser’s integrity or ability to meet contractual commitments to clients;
authority to enforce existing provisions of law.
AUTHORITY: section 409.6-605, RSMo 2016. Original rule filed April 8, 2004, effective Oct. 30, 2004. Amended: Filed March 31, 2008, effective Jan. 1, 2009. Amended: Filed July 19, 2019, effective Jan. 30, 2020. Amended: Filed Nov. 1, 2021, effective April 30, 2022.

15 CSR 30-51.173 Supervision Guidelines for Investment {#sec-15-csr-30-51.173 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.173}

PURPOSE: This rule provides guidance for reasonable supervision by investment advisers.

(1) The following are factors considered by the commissioner to determine whether any firm with two (2) or more supervised persons has engaged in reasonable supervision. Whether— (A) The firm has established current procedures and systems for supervising the activities of supervised persons that are reasonably designed to achieve compliance with applicable state and federal securities laws and regulations;

(B) The firm has established current procedures and systems that could reasonably be expected to allow a chief compliance officer reasonably discharging his/her supervisory duties under such established procedures to prevent and detect violations of the Act, and the firm regularly reviews these procedures and systems;

(C) The firm has reasonably implemented the procedures and (D) The firm provides appropriate initial and periodic refresher training to supervised persons regarding the firm’s procedures and systems and additional initial and periodic training to chief compliance officers in the procedures and (E) The firm reasonably follows up on indications of wrongdoing, “red flags.” Such red flags may consist of, but are not limited to, activities of unregistered individuals, outside business activities, making unsuitable recommendations, charging unreasonable advisory fees, misrepresenting the qualifications of the supervised person, improper use of a senior designation, garnishment of wages, regulatory actions, prior disciplinary history of one (1) or more customer complaints, and recent customer complaints;

(F) The firm has an adequate system to track and monitor the status of customer complaints;

(G) The firm has designated a chief compliance officer of the investment adviser;

(H) The designated supervisor is responsible for supervising no more supervised persons at any one (1) time than would allow the supervisor to effectively execute his supervisory duties. The appropriate number of supervised persons which one (1) person can reasonably supervise is dependent on the nature of the business conducted by the persons supervised, technical resources available to the supervisor, additional personnel available to assist the supervisor, and other resources made available to assist the supervisor;

(I) The firm conducts annual compliance examinations of supervisory locations with effective deficiency and follow-up procedures. Unannounced examinations may be reasonable if there are compliance issues concerning supervised persons or activities;

(J) The firm reasonably audits for compliance including reasonable follow-up and proof, independent of the supervised person, that mail is reviewed for customer complaints and other red flags; and (K) The firm has a reasonable policy for disciplinary and progressive supervisory action, which is reasonably implemented.

Amended: Filed Sept. 9, 2010, effective March 30, 2011.

History

AUTHORITY: sections 409.4-412(d)(9) and 409.6-605, RSMo Supp. 2010. Original rule filed April 8, 2004, effective Oct. 30, 2004.

15 CSR 30-51.174 Fraudulent Practices of Investment Advisers and Investment Adviser Representatives Emergency rule filed Oct. 23, 2024, effective Nov. 6, 2024, expired May 4, 2025. {#sec-15-csr-30-51.174 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.174}

15 CSR 30-51.175 Exclusion From Definition of Broker-Dealer {#sec-15-csr-30-51.175 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.175}

PURPOSE: The commissioner is authorized by the Missouri Securities Act of 2003 to create exceptions from the definition of broker-dealer. This rule excludes from the definition certain credit unions engaged in limited broker-dealer activities under a networking arrangement with a registered broker-dealer.

(1) Networking Arrangements Between Broker-Dealers and Credit Unions. A credit union organized or chartered under the laws of the United States or under the laws of the state of Missouri, or that is organized or chartered under the laws of a state which has reciprocity with Missouri, is excluded from the definition of broker-dealer under section 409.1-102(4)(E), RSMo if such credit union’s broker-dealer activities are limited to those authorized in a contractual or other written arrangement with a broker-dealer registered under the Missouri Securities Act of 2003 whereupon the broker-dealer offers brokerage services on or off the premises of the credit union and— (A) Such broker-dealer is clearly identified as the person performing the brokerage services;

(B) The broker-dealer performs brokerage services in an area that is clearly marked and, to the extent practicable, physically separate from the routine deposit-taking activities of the credit union;

(C) Any materials used by the credit union to advertise or promote generally the availability of brokerage services under the arrangement clearly indicate that the brokerage services are being provided by the broker-dealer and not by the credit union;

(D) Any materials used by the credit union to advertise or promote generally the availability of brokerage services under the arrangement are in compliance with Missouri and federal securities laws before distribution;

(E) Employees of the credit union (other than agents of a broker-dealer who are registered under the Missouri Securities Act of 2003 and qualified pursuant to the rules of a selfregulatory organization) perform only clerical or ministerial functions in connection with brokerage transactions including scheduling appointments with the agents of a broker-dealer, except that employees of a credit union may forward customer funds or securities and may describe in general terms the types of investment vehicles available from the credit union and the broker-dealer under the arrangement;

(F) Employees of the credit union do not receive incentive compensation for any brokerage transaction unless such employees are agents of a broker-dealer, are registered under the Missouri Securities Act of 2003 and are qualified pursuant to the rules of a self-regulatory organization, except that the employees of the credit union may receive compensation for the referral of any customer if the compensation is a nominal one (1)-time cash fee of a fixed dollar amount and the payment of the fee is not contingent on whether the referral results in a transaction;

(G) Such services are provided by the broker-dealer on a

basis in which all customers that receive any services are fully disclosed to the broker-dealer;

(H) The credit union does not carry a securities account of the customer; and (I) The credit union or broker-dealer informs each customer that the brokerage services are provided by the broker-dealer and not by the credit union and that the securities are not deposits or other obligations of the credit union, are not guaranteed by the credit union, and are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

History

AUTHORITY: sections 409.1-102(4) and 409.6-605, RSMo Supp. 2003. Original rule filed Feb. 13, 2004, effective July 30, 2004. Original authority: 409.1-102, RSMo 2003 and 409.6-605, RSMo 2003.

15 CSR 30-51.180 Exemptions from Registration for Broker- Dealers, Agents, Investment Advisers, and Investment Adviser Representatives {#sec-15-csr-30-51.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.180}

PURPOSE: This rule prescribes exemptions from registration for broker-dealers, agents, investment advisers, and investment adviser representatives.

(1) Canadian Limited Registration Exemption.

(A) Broker-Dealer Exemption. A broker-dealer that is registered in Canada and who has no office or other physical presence in this state is exempted from broker-dealer registration pursuant to section 409.4-401(d), RSMo, provided it complies with the following conditions:

Registered with or is a member of a self-regulatory organization in Canada, stock exchange in Canada, or the Bureau des services financiers;
Maintains in good standing its provincial or territorial registration and its registration with or membership in a selfregulatory organization in Canada, stock exchange in Canada, or the Bureau des services financiers; and 3. Effects or attempts to effect transactions in securities— A. With or for a person from Canada who is temporarily present in this state, with whom the Canadian broker-dealer had a bona fide broker-dealer-client relationship before the person entered the United States; or B. With or for a person from Canada who is present in this state, whose transactions are in Canadian self-directed tax advantaged retirement account of which the person is the holder or contributor.

(B) Agent Exemption. An agent who represents a Canadian broker-dealer that is exempt under this rule is exempt from agent registration under section 409.4-402, RSMo.

(2) Exemption from Agent Registration for Agricultural Cooperative Agents. An individual who represents an agricultural cooperative and who effects or attempts to effect transactions in the cooperative’s securities exempted under 15 CSR 30-54.195 is exempt from registering as an issuer agent under

section 409.4-402, RSMo, provided the following conditions are met:

(A) The individual is currently employed in the capacity of store or plant manager by the issuer agricultural cooperative or an agricultural cooperative that is a member of the issuer agricultural cooperative;

(B) The individual’s name and address has been properly submitted by the agricultural cooperative in the most recent notice filing under 15 CSR 30-54.195(2)(A); and (C) General solicitation is not made in connection with the offer to sell or sale of the securities.

(3) Exemption from Investment Adviser Representative Registration for Solicitors. A person who is paid a solicitor fee pursuant to 15 CSR 30-51.145(1) is exempt from registering as an investment adviser representative.

(4) Exemption for investment advisers to private funds.

(A) Definitions. For purposes of this regulation, the following definitions shall apply:

“Private fund adviser” means an investment adviser who provides investment advice solely to one (1) or more qualifying private funds;
“Qualifying private fund” means a private fund that meets the definition of a qualifying private fund in U.S.

Securities and Exchange Commission (SEC) Rule 203(m)-1, 17 Code of Federal Regulations (CFR) 275.203(m)-1;

“3(c)(1) fund” means a qualifying private fund that is eligible for the exclusion from the definition of an investment company under section 3(c)(1) of the Investment Company Act of 1940, 15 U.S.C. 80a-3(c)(1); and 4. “Venture capital fund” means a private fund that meets the definition of a venture capital fund in SEC Rule 203(l)-1, 17 CFR 275.203(l)-1.

(B) A private fund adviser is exempt from registering as an investment adviser under section 409.4-403, RSMo, if— 1. Neither the private fund adviser nor any of its advisory affiliates are subject to a disqualification as described in Rule 262 of SEC Regulation A, 17 CFR 230.262;

The private fund adviser files with the commissioner each report and amendment thereto that an exempt reporting adviser is required to file with the SEC pursuant to SEC Rule 204-4, 17 CFR 275.204-4; and 3. In the event the private fund adviser advises at least one (1) 3(c)(1) fund that is not a venture capital fund, then the private fund adviser also— A. Reasonably believes that those 3(c)(1) funds (other than venture capital funds) are beneficially owned by persons that qualify as either— (I) An “accredited investor” as defined by 17 CFR 230.501(a)(1), (2), (3), (4), (5), (7), or (8). For purposes of this

section, an “accredited investor” under 17 CFR 230.501(a)

(8) excludes any entity which has an equity owner that only qualifies as an accredited investor under 17 CFR 230.501(a)(6); or (II) A “qualified client” as defined by 17 CFR 275.205- 3(d)(1)(iii);

B. Discloses to each beneficial owner of a 3(c)(1) fund in writing and at the time of purchase the following:

(I) All services, if any, to be provided to individual beneficial owners;

(II) All duties, if any, the investment adviser owes to the beneficial owners; and (III) Any other material information affecting the rights or responsibilities of the beneficial owners; and C. Delivers or causes to be delivered annually to each beneficial owner of the fund financial statements of each 3(c)

(1) fund that is not a venture capital fund.

(C) The report filings described in paragraph (4)(B)2. above shall be made electronically through the Investment Advisor Registration Depository (IARD). For purposes of this section, a report is filed when the report is accepted by the IARD on the state’s behalf.

(D) The above notwithstanding, a private fund adviser includes an investment adviser that— 1. Before the effective date of this rule, was exempt from registration in reliance on 15 CSR 30-51.180(4);

Advises a fund that— A. The private fund adviser advised before the effective date of this rule;

B. Has one (1) or more owners who, before the effective date of this rule, the private fund adviser reasonably believed qualified as an “accredited investor” as defined by 17 CFR 230.501(a)(6); and C. After the effective date of this rule, only sells its securities to persons who qualify as either— (I) An “accredited investor” as defined by 17 CFR 230.501(a)(1), (2), (3), (4), (5), (7), or (8). For purposes of this

section, an “accredited investor” under 17 CFR 230.501(a)

(3), 409.4-404(b)(2), and 409.6-605, RSMo 2016.* Original rule filed Dec. 28, 2001, effective July 30, 2002. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004.

Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004. Amended:

Filed May 26, 2004, effective Nov. 30, 2004. Emergency amendment filed Feb. 2, 2007, effective Feb. 12, 2007, terminated March 5, 2007.

Emergency amendment filed Feb. 23, 2007, effective March 5, 2007, expired Aug. 10, 2007. Amended: Filed Feb. 2, 2007, effective July 30, 2007. Amended: Filed April 26, 2012, effective Oct. 30, 2012.

Amended: Filed Aug. 29, 2024, effective Feb. 28, 2025. *Original authority: 409.4-401, RSMo 2003; 409.4-402, RSMo 2003; 409.4-403, RSMo 2003; 409.4-404, RSMo 2003; and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.4-401(d), 409.4-402(b)(9), 409.4-403(b)

Chapter 52 Registration of Securities

15 CSR 30-52.130 Loans and Other Material-Affiliated Transactions {#sec-15-csr-30-52.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.130}

15 CSR 30-52.150 Real Estate Investment Trusts or Other Unincorporated Real Estate Trusts {#sec-15-csr-30-52.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.150}

15 CSR 30-52.160 Redeemable Securities Issued by Open-End Management Companies {#sec-15-csr-30-52.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.160}

15 CSR 30-52.170 Certificates of Interest or Participation in Oil or Mining Titles or Leases or 2CODE OF STATE REGULATIONS {#sec-15-csr-30-52.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.170}

15 CSR 30-52.210 Securities Issued by Closed-End Investment Companies {#sec-15-csr-30-52.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.210}

15 CSR 30-52.240 Sample Form of Promoters’ Stock Escrow Agreements {#sec-15-csr-30-52.240 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.240}

15 CSR 30-52.270 Suggested Form of Offer of Refund (Rescission)(B) {#sec-15-csr-30-52.270 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.270}

15 CSR 30-52.272 Suggested Form for Escrow Agreement for Missouri Issuer Registration {#sec-15-csr-30-52.272 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.272}

15 CSR 30-52.273 Suggested Form of Refund for Missouri Issuer Registration {#sec-15-csr-30-52.273 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.273}

15 CSR 30-52.010 General Provisions {#sec-15-csr-30-52.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.010}

PURPOSE: This rule prescribes general policies, and the meaning of terms under the Act and under Chapter 52 of the regulations.

(1) Securities may be registered by coordination or qualification.

(2) The reference to a registration statement being on file for twenty (20) days with the commissioner under section 409.3-303(c), RSMo shall mean twenty (20) business days.

The term “business days” would exclude weekends and holidays.

(3) For purposes of these rules contained in

Chapter 52, an issuer in the promotional or development stage shall have the same meaning as the term “promotional or development stage company” that is defined in the North American Securities Administrators Association, Inc. (NASAA) Statement of Policy Regarding Corporate Securities Definitions.

Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Aug. 1, 1980, effective Aug. 13, 1980, expired Dec. 11, 1980. Amended: Filed Aug. 13, 1980, effective Dec. 11, 1980.

Amended: Filed Oct. 16, 1986, effective Feb. 12, 1987. Amended: Filed March 27, 1989, effective June 12, 1989. Amended: Filed Dec. 24, 1991, effective May 14, 1992. Amended:

Filed Feb. 2, 1996, effective July 30, 1996.

Sept. 12, 2003, expired March 9, 2004.

History

AUTHORITY: sections 409.3-303, 409.3-304

15 CSR 30-52.015 Applications for Registration {#sec-15-csr-30-52.015 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.015}

PURPOSE: This rule prescribes the forms and other documents required with a registration statement of securities, as well as the notifications that need to be provided to the Securities Division.

(1) Registration by Coordination or Qualification. A registration statement to register securities by coordination or qualification shall contain the following:

(A) The form U-1 and accompanying documents (including subscription agreement);

(B) Two (2) copies of the prospectus, including financial statements;

(D) The filing fee and registration fee specified in 15 CSR 30-50.030; and (E) Any additional information or documents requested by the Securities Division.

(2) Warrants and the securities underlying the warrants shall each be registered separately.

(3) All applicants for registration shall immediately notify the Securities Division in writing of the following events:

(A) Any change to the information in the registration statement;

(B) Any stop order, denial, order to show cause, suspension order, revocation order, consent order, cease and desist order, injunction, restraining order, or similar order entered or issued by any state, regulatory

Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 22, 2003, effective Feb. 29, 2004. Amended: Filed Dec. 3, 2013, effective July 30, 2014.

RSMo 2003; 409.3-305, RSMo 2003; 409.3-307, RSMo 2003, 409.6-65, RSMo 2003.

History

authority, or court, regarding the applicant, issuer, their subsidiaries or affiliates; and (C) Any request by the applicant or issuer to any other state or regulatory authority for permission to withdraw any application to register the securities covered by the registration statement. 304, 409.3-305, 409.3-307, 409.6-605, and 409.6-611, RSMo Supp. 2013. Original rule filed Aug. 30, 2002, effective Feb. 28, 2003.

15 CSR 30-52.020 Prospectus {#sec-15-csr-30-52.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.020}

PURPOSE: This rule prescribes the preparation and use of a disclosure document in the offer or sale of registered securities.

(1) Each registration statement shall include at least two (2) copies of the prospectus to be used in the proposed securities offering.

(2) Form and Content. The prospectus shall be prepared using the following forms and shall contain the information specified in the forms, together with any additional information the Securities Division may require— (A) Registration by Coordination. The prospectus for a securities registration by coordination under section 409.3-303, RSMo shall be prepared using the forms required under the Securities Act of 1933.

(B) Registration by Qualification.

Other than small company offering registrations, the prospectus for a securities registration by qualification under section 409.3-304, RSMo shall be prepared using the following forms:

A. Missouri form SR-1, Form of Prospectus for Registration of Securities by Qualification (available from the Securities Division upon request); or B. Any applicable form under the Securities Act of 1933 that substantially comports with the requirements of form SR-1.

For small company offering registrations pursuant to 15 CSR 30-52.275, the prospectus to be used shall be form U-7, as adopted and revised by North American Securities Administrators Association, Inc.

(NASAA) in September 1999.

(3) Delivery of Prospectus. As a condition of registration, an applicant shall comply with the following:

(A) A person offering or selling a security under a registration by qualification, other than through a broker-dealer, shall deliver a copy of the final prospectus to each prospective purchaser before the confirmation of a sale made by or for the account of the person.

Each subscription agreement shall contain a statement by the purchaser that the purchaser has received a copy of the prospectus; and (B) A person offering or selling a security under a registration by coordination shall deliver a copy of the prospectus as required by the Securities Act of 1933.

(4) Each prospectus must be typed and clearly legible. 304, 409.3-305, 409.3-307, 409.5-501 and amendment filed Aug. 25, 2003, effective Sept. 12, 2003, expired March 9, 2004.

Amended: Filed Aug. 25, 2003, effective Feb. *Original authority: 404.3-303, RSMo 2003, 409.3-304, RSMo 2003; 409.3-305, RSMo 2003; 409.3-307, RSMo 2003; 409.5-501, RSMo 2003; 409.6-605, RSMo 2003.

15 CSR 30-52.025 Financial Statements {#sec-15-csr-30-52.025 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.025}

PURPOSE: This rule prescribes the general standards for financial statements to be used in a registration statement.

(1) All historical financial statements in the registration statement shall be in conformity with generally accepted accounting principles (GAAP).

(2) Registration by Coordination. Financial statements filed with a registration statement by coordination shall comply with the requirements of the United States Securities and Exchange Commission.

(3) Registration by Qualification. The financial statements filed with a registration statement by qualification shall consist of the following:

(A) Audited Balance Sheet. An audited balance sheet of the issuer within four (4) months prior to the filing of the registration statement;

(B) Audited Financial Statements. Audited financial statements that include a balance sheet (fiscal year end) and statements of income, cash flows and changes in stockholders’ equity for the last fiscal year (or such shorter period as the issuer has been in business);

Reviewed financial statements for the two (2) fiscal years preceding the last fiscal year, unless audited financial statements are available for those periods. The reviewed financial statements shall include a balance sheet (fiscal year end) and statements of income, cash flow and changes in stockholders’ equity;

(D) Reviewed Interim Financial Statements. Reviewed interim financial statements between the close of the last fiscal year and the date of the balance sheet. The interim financial statements shall include statements of income, cash flow and changes in stockholders’ equity;

(E) Notes. All financial statements shall include applicable notes to the financial statements to explain accounting policies and provide other disclosures required by GAAP;

(F) Reports. An auditor’s report shall be included with the financial statements.

Audited financial statements shall include an unqualified opinion that indicates the financial statements are presented fairly, in all material respects, in conformity with GAAP.

A reviewed report shall not be modified for a departure from GAAP.

(4) The financial statements and report described in section (3) above shall be included in the prospectus under a registration by qualification.

(5) Prospective financial statements may be used in connection with a registered offering if all of the following conditions exist:

(A) The prospective financial statements shall be financial forecasts that conform with guidelines established by the American Institute of Certified Public Accountants; and (B) The financial forecasts shall be included in the prospectus.

(6) Pro formafinancial information may be used in connection with a registered offering and not be subject to the conditions of sub-

section (5)(A) above if such pro formafinancial information complies with 17 CFR 210.11-02.

rule filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Aug. 19, 9, 2004. Amended: Filed Aug. 22, 2003, effective Feb. 29, 2004.

RSMo 2003; 409,6-605, RSMo 2003.

History

AUTHORITY: sections 409.3-303, 409.3-304

15 CSR 30-52.030 NASAA Statements of Policy with other states and prescribes the guidelines to be applied to securities registrations in order to determine if the offering is fair, just, and equitable. {#sec-15-csr-30-52.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.030}

This note applies only to the reference material. The entire text of the rule is printed here.

(1) The Securities Division will apply the applicable statement of policy adopted by North American Securities Administrators Association, Inc. (NASAA) when conducting a merit review to determine whether an offering is fair, just, and equitable.

(A) The following statements of policy are hereby incorporated by reference and made a

part of this rule as published by NASAA, 750 First Street, NE, Suite 1140, Washington, DC 20002, and available at http://www.nasaa.org/regulatory-activity/statements-of-policy/.

This rule does not incorporate any subsequent amendments or additions:

Corporate Securities Definitions, as 2. Loans and Other Material Affiliated Transactions, as amended by NASAA on March 31, 2008;
Options and Warrants, as amended by 4. Preferred Stock, as amended by 5. Promoter’s Equity Investment, as 6. Promotional Shares, as amended by 7. Risk Disclosure Guidelines, as adopted by NASAA on September 9, 2001;
Specificity in Use of Proceeds, as 9. Underwriting Expenses, Underwriter’s Warrants, Selling Expenses and Selling Security Holders, as amended by NASAA on March 31, 2008;
Unsound Financial Condition, as 11. Unequal Voting Rights, as amended by NASAA on March 31, 2008;
Registration of Asset-Backed Securities, as amended by NASAA on May 7, 2007;
Mortgage Program Guidelines, as amended by NASAA on May 7, 2007;
Real Estate Programs, as revised by NASAA on May 7, 2007;
Real Estate Investment Trusts, as revised by NASAA on May 7, 2007;
Registration of Oil and Gas Programs, as amended by NASAA on May 7, 2007;
Equipment Programs, as amended by NASAA on May 7, 2007;
Commodity Pool Programs, as amended by NASAA on May 7, 2007;
Cattle-Feeding Programs, as adopted by NASAA on September 17, 1980;
Omnibus Guidelines, as amended by 4CODE OF STATE REGULATIONS NASAA on May 7, 2007; and 21. Viatical Investment Guidelines, as adopted by NASAA on October 1, 2002.

(B) The Omnibus Guidelines shall be applied to limited partnerships programs or other entities in which more specific statements of policy have not been adopted by NASAA.

(2) Cross-Reference Sheet. If requested by the Securities Division, a registration statement to register securities shall include a cross-reference table to indicate compliance with, or deviation from, the various sections of the applicable statement of policy.

(3) Suitability for Direct Participation Programs.

(A) In establishing standards of fairness and equity, the Securities Division has established the following investor suitability guidelines for direct participation programs registered under the Act:

A gross income of seventy thousand dollars ($70,000) and a net worth of seventy thousand dollars ($70,000) (exclusive of home, home furnishings and automobiles); or 2. A net worth of two hundred fifty thousand dollars ($250,000) (exclusive of home, home furnishings and automobiles);
No more than ten percent (10%) of any one (1) Missouri investor’s liquid net worth shall be invested in the securities being registered with the Securities Division.

(B) The suitability standard in subsection (3)(A) is a guideline. Higher or lower suitability standards may be established or may be required by the Securities Division as a condition of registration.

(C) The suitability standards must be disclosed in the prospectus. 304, 409.3-305, 409.3-306, 409.3-307, 409.5-501, 409.6-605, and 409.6-608, RSMo Supp. 2013.* Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Rescinded and readopted: Filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Aug. 25, 9, 2004. Amended: Filed Aug. 25, 2003, effective Feb. 29, 2004. Amended: Filed June 14, 2007, effective Jan. 30, 2008. Amended:

Filed Nov. 7, 2007, effective May 30, 2008.

Amended: Filed Dec. 3, 2013, effective July 30, 2014.

RSMo 2003; 409.3-305, RSMo 2003; 409.3-306, RSMo 2003; 409.3-307, RSMo 2003; 409.5-501, RSMo 2003; 409.6-605, RSMo 2003; and 409.6-608, RSMo 2003.

15 CSR 30-52.040 Selling Expenses and Selling Security Holders Rescinded and readopted: Filed Aug. 1, 1984, effective Nov. 11, 1984. Amended: {#sec-15-csr-30-52.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.040}

Rescinded and readopted: Filed Jan. 3, 1990, effective March 11, 1990. Rescinded: Filed Aug. 30, 2002, effective Feb. 28, 2003.

15 CSR 30-52.050 Offering Price and readopted: Filed Aug. 1, 1984, effective Nov. 11, 1984. Amended: Filed Jan. 3, 1990, effective March 11, 1990. Rescinded: Filed Aug. 30, 2002, effective Feb. 28, 2003. {#sec-15-csr-30-52.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.050}

15 CSR 30-52.060 Options and Warrants Amended: Filed June 2, 1986, effective Oct. 27, 1986. Amended: Filed Oct. 16, 1986, effective Feb. 12, 1987. Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Rescinded: {#sec-15-csr-30-52.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.060}

15 CSR 30-52.070 Promotional Shares Feb. 28, 2003. {#sec-15-csr-30-52.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.070}

15 CSR 30-52.080 Promoters’ Investment Feb. 28, 2003. {#sec-15-csr-30-52.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.080}

15 CSR 30-52.090 Escrow {#sec-15-csr-30-52.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.090}

(Rescinded January 29, 1988)

15 CSR 30-52.100 Impoundment of Proceeds with other states and prescribes procedures for impounding proceeds that are obtained from the sale of registered securities. {#sec-15-csr-30-52.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.100}

(1) The Securities Division hereby incorporates by reference the North American Securities Administrators Association, Inc.

(NASAA) Statement of Policy Regarding the Impoundment of Proceeds, as amended by NASAA on September 28, 1999.

(2) The Securities Division will apply the NASAA Statement of Policy Regarding the Impoundment of Proceeds when conducting its merit review to determine whether an offering is fair, just and equitable.

(3) As a condition of registration, the minimum amount of proceeds needed to implement the business plan shall be impounded when:

(A) The registration is sought by a promotional or developmental stage company that is financing an initial or proposed business;

(B) The registration is sought by a company in poor financial condition; or (C) The offering is not firmly underwritten.

(4) The applicant shall set a minimum amount of proceeds that is reasonably sufficient to implement the business plan so as to accomplish the purpose of the offering.

(5) The applicant shall use the Missouri form SR-4, Impoundment of Funds Agreement, as the agreement for the impoundment of proceeds, unless the Securities Division permits another similar form to be used (the form SR- 4 is available from the Securities Division upon request).

Filed Nov. 15, 1974, effective Nov. 25, 1974.

Sept. 12, 2003, expired March 9, 2004. *Original authority: 409.3-305, RSMo 2003; 409.3-306,

History

AUTHORITY: sections 409.3-305(f), 409.3- 306 and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended:

15 CSR 30-52.110 Voting Rights Filed Oct. 16, 1986, effective Feb. 12, 1987. {#sec-15-csr-30-52.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.110}

Feb. 28, 2003.

15 CSR 30-52.120 Debt Securities with other states and prescribes standards to be used in connection with the registration of debt securities. {#sec-15-csr-30-52.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.120}

(1) The Securities Division will apply the North American Securities Administrators Association, Inc. (NASAA) Statement of Policy Regarding Debt Securities when conducting a merit review of debt offerings to determine whether an offering is fair, just and equitable.

(2) The Securities Division hereby incorporates by reference the NASAA Statement of Policy Regarding Debt Securities, as adopted by NASAA on April 25, 1993.

(3) Development Stage Issuers. The issuance of debt securities by an issuer in the promotional or development stage with no substantial net earnings from normal business operations during each of its last three (3) fiscal years will be viewed by the division as being unfair, unjust and inequitable.

(4) Suitability.

(A) In establishing standards of fairness and equity, the Securities Division has established the following investor suitability guidelines for debt offerings registered under the Act:

A gross income of forty-five thousand dollars ($45,000) and a net worth of fortyfive thousand dollars ($45,000) (exclusive of home, home furnishings and automobiles); or 2. A net worth of one hundred fifty thousand dollars ($150,000) (exclusive of home, home furnishings and automobiles);
No more than ten percent (10%) of any one (1) Missouri investor’s liquid net worth shall be invested in the securities being registered with the Securities Division.

(B) The suitability standard in subsection (4)(A) is a guideline. Higher or lower suitability standards may be established or may be required by the Securities Division as a condition of registration.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Rescinded and readopted: Filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Aug. 19, 9, 2004. Amended: Filed Aug. 22, 2003, effective Feb. 29, 2004. *Original authority: 409.3-306, RSMo 2003; 409.6-605,

History

AUTHORITY: sections 409.3-306 and 409.6- 605, RSMo Supp. 2003. Original rule filed May 21, 1969, effective Aug. 1, 1969.

15 CSR 30-52.130 Loans and Other Material-Affiliated Transactions 25, 1974. Rescinded and readopted: Filed Jan. 3, 1990, effective March 11, 1990. {#sec-15-csr-30-52.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.130}

Feb. 28, 2003.

15 CSR 30-52.140 Periodic Payment Plans Filed April 14, 1992, effective Jan. 15, 1993. {#sec-15-csr-30-52.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.140}

Feb. 28, 2003.

15 CSR 30-52.150 Real Estate Investment Trusts or Other Unincorporated Real Estate Trusts 6CODE OF STATE REGULATIONS and readopted: Filed Aug. 1, 1984, effective Nov. 11, 1984. Rescinded: Filed Aug. 30, {#sec-15-csr-30-52.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.150}

15 CSR 30-52.160 Redeemable Securities Issued by Open-End Management Companies Filed Dec. 19, 1975, effective Dec. 31, 1975. {#sec-15-csr-30-52.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.160}

Amended: Filed Aug. 1, 1984, effective Nov. 11, 1984. Amended: Filed Sept. 14, 1993, effective May 9, 1994. Rescinded: Filed Aug. 30, 2002, effective Feb. 28, 2003.

15 CSR 30-52.170 Certificates of Interest or Participation in Oil or Mining Titles or Leases or in Payments Out of Production Thereunder {#sec-15-csr-30-52.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.170}

(Rescinded February 11, 1979)

Original rule filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 5, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Rescinded:

History

AUTHORITY: section 409.413, RSMo 1969.

15 CSR 30-52.180 Limited Partnerships 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Amended: {#sec-15-csr-30-52.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.180}

Amended: Filed June 2, 1986, effective Oct. 27, 1986. Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Amended: Filed March 27, 1989, effective June 12, 1989.

Amended: Filed April 14, 1992, effective Jan. 15, 1993. Rescinded: Filed Aug. 30, 2002, effective Feb. 28, 2003.

15 CSR 30-52.190 Foreign Real Estate Securities 25, 1974. Amended: Filed July 3, 1989, effective Sept. 28, 1989. Rescinded: Filed Aug. 30, 2002, effective Feb. 28, 2003. {#sec-15-csr-30-52.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.190}

15 CSR 30-52.200 Offer of Refund Prior to Registration {#sec-15-csr-30-52.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.200}

PURPOSE: This rule requires, as a prerequisite to securities registration, that rescission be offered to all investors having a cause of action against the applicant or issuer.

An offer of refund (rescission), pursuant to

section 409.5-510, RSMo, to each person having a cause of action against the applicant or the issuer, within the meaning of section 409.5-509, RSMo, shall be a prerequisite to the registration of securities. A suggested form of offer of refund (rescission) is located at 15 CSR 30-52.260.

History

AUTHORITY: sections 409.3-306, 409.5- 509, 409.5-510 and 409.6-605, RSMo Supp. 2003. Original rule filed July 21, 1972, Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, Original authority: 409.3-306, RSMo 2003; 409.5-501, RSMo 2003; 409.5-510, RSMo 2003; 409.6-605, RSMo 2003.

15 CSR 30-52.210 Securities Issued by Closed-End Investment Companies 409.413(a) RSMo 1986. Original rule filed Dec. 19, 1975, effective Dec. 31, 1975. {#sec-15-csr-30-52.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.210}

Feb. 28, 2003.

15 CSR 30-52.220 Cattle Feeding and Similar Programs {#sec-15-csr-30-52.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.220}

(Rescinded February 11, 1979)

Original rule filed Dec. 19, 1975, effective Dec. 31, 1975. Rescinded: Filed Aug. 11, 1978, effective Feb. 11, 1979.

History

AUTHORITY: section 409.413, RSMo 1969.

15 CSR 30-52.230 Sample Form of Security Escrow Agreement Readopted: Filed Jan. 3, 1990, effective March 11, 1990. Rescinded: Filed Aug. 30, {#sec-15-csr-30-52.230 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.230}

15 CSR 30-52.240 Sample Form of Promoters’ Stock Escrow Agreements {#sec-15-csr-30-52.240 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.240}

(Rescinded January 29, 1988)

15 CSR 30-52.250 Impoundment of Proceeds {#sec-15-csr-30-52.250 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.250}

History

AUTHORITY: sections 409.305 and and readopted: Filed Jan. 3, 1990, effective March 11, 1990. Rescinded: Filed Aug. 30,

15 CSR 30-52.260 Suggested Form of Offer of Refund (Rescission) {#sec-15-csr-30-52.260 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.260}

PURPOSE: This rule suggests a simplified form of rescission offer to be provided to investors.

(1) The sample rescission letter contained in this regulation is based upon a violation of

section 409.3-301, RSMo but may be adapted for any other violations of the Missouri Securities Act of 2003.

(2) The Securities Division suggests the following letter be used to offer rescission:

Certified/Return Receipt Requested Dear Investor:

This letter is to inform you of your rights under the Missouri Securities Act of 2003,

Chapter 409, RSMo (the “Act”). The (describe securities) that you were sold constitute “securities” under the Act.

Section 409.3-301, RSMo, requires that any security offered or sold in Missouri must be registered, exempt from registration or a federal covered security. The securities that you purchased were not registered, exempt or federal covered securities. (Include herein any other statutory violation, along with an explanation of the violation).

Section 409.5-509, RSMo, provides that any person who sells a security in violation of

section 409.3-301, RSMo is liable to the purchaser for the amount of the consideration paid for the security, together with interest of eight percent (8%) per year from the date of purchase, costs and reasonable attorney fees, less the amount of any income received on the security.

This letter is to inform you of these rights and to offer to rescind your securities purchase.

Attached is a statement as to whether or not you wish to take advantage of this offer.

Please fill out the attached form and return it to this office within thirty (30) days of your receipt of this notice. If you wish to take advantage of the rescission, the amount you originally invested plus eight percent (8%) interest, less any income you received, will be returned to you within ten (10) business days of the receipt of your rescission request.

If you do not respond to this offer within thirty (30) days of the date you receive it, your right to rescind your purchase will be extinguished as provided in the Act.

(Name of Issuer)

(Signature)

(Printed Name of Signatory)

I have been informed of my right to rescission under the Missouri Securities Act of 2003 by (name of firm offering rescission). I do/do not (circle one) wish to take advantage of this rescission offer.

(Investor’s Signature)

rule filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Rescinded and readopted:

Sept. 12, 2003, expired March 9, 2004. *Original authority: 409.5-509, RSMo 2003; 409.5-510,

History

AUTHORITY: sections 409.5-509, 409.5-510

15 CSR 30-52.270 Suggested Form of Offer of Refund (Rescission)(B) {#sec-15-csr-30-52.270 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.270}

(Rescinded November 11, 1984)

History

AUTHORITY: sections 409.411 and 409.413(a), RSMo 1969. Original rule filed 25, 1974. Rescinded: Filed Aug. 1, 1984, effective Nov. 11, 1984.

15 CSR 30-52.271 Missouri Issuer Registration 1986. Original rule filed April 14, 1992, Aug. 30, 2002, effective Feb. 28, 2003. {#sec-15-csr-30-52.271 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.271}

15 CSR 30-52.272 Suggested Form for Escrow Agreement for Issuer Registration 1986. Original rule filed April 14, 1992, Aug. 30, 2002, effective Feb. 28, 2003. {#sec-15-csr-30-52.272 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.272}

15 CSR 30-52.273 Suggested Form of Refund for Missouri Issuer Registration 1986. Original rule filed April 14, 1992, Aug. 30, 2002, effective Feb. 28, 2003. {#sec-15-csr-30-52.273 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.273}

15 CSR 30-52.275 Small Company Offering Registrations (formerly Missouri Issuer Registration) with other states and facilitates capital formation for small business owners. {#sec-15-csr-30-52.275 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.275}

(1) The commissioner of securities hereby incorporates by reference the North American Securities Administrators Association, Inc. (NASAA) Statement of Policy Regarding Small Company Offering Registrations (SCOR), as adopted by NASAA, 750 First Street, NE, Suite 1140, Washington, DC 20002, on April 28, 1996, and available at http://www.nasaa.org/industry-resources/corporation-finance/scor-overview/scor-statementof-policy/.

This rule does not incorporate any subsequent amendments or additions.

(2) A registration statement to register securities under SCOR shall contain the following:

(A) The form U-1 and accompanying documents (including subscription agreement);

(B) Two (2) copies of the prospectus, including financial statements;

(C) Copies of any documents filed with the U.S. Securities and Exchange Commission in connection with the registration statement;

(D) The filing fee and registration fee specified in 15 CSR 30-50.030; and (E) Any additional information or documents requested by the Securities Division.

(3) Financial Statements. The financial statements for SCOR offerings shall comply with 15 CSR 30-52.025(3), but only need to be reviewed as determined under the NASAA Statement of Policy Regarding SCOR.

(4) The Securities Division may apply any

rule contained in Chapter 52 to SCOR offerings.

Filed Dec. 3, 2013, effective July 30, 2014. *Original authority: 409.3-304, RSMo 2003; 409.3-305, RSMo 2003; 409.3-306, RSMo 2003; 4093-307, RSMo 2003; 409.6--605, RSMo 2003.

History

AUTHORITY: sections 409.3-304, 409.3- 305, 409.3-306, 409.3-307, and 409.6-605, RSMo Supp. 2013. Original rule filed Nov. 1, 1996, effective June 30, 1997. Rescinded 8CODE OF STATE REGULATIONS Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, 22, 2003, effective Feb. 29, 2004. Amended:

15 CSR 30-52.280 Withdrawal of a Registration Statement {#sec-15-csr-30-52.280 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.280}

PURPOSE: This rule prescribes policies and procedures for withdrawing a registration statement prior to effectiveness.

(1) The withdrawal of an application (prior to effectiveness) may be issued by the commissioner upon the request of the applicant.

(2) The abandonment of an application, where there has been no activity on the application by the applicant for a period of six (6) months or more, may be considered to signify a request for withdrawal.

History

AUTHORITY: sections 409.3-305(h) and effective Aug. 1, 1972. Amended: Filed March 21, 1974, effective April 1, 1974. 25, 1974. Rescinded and readopted: Filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004.

15 CSR 30-52.290 Effectiveness {#sec-15-csr-30-52.290 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.290}

History

AUTHORITY: sections 409.302(c), 409.303(c), 409.304(c), 409.305(h) and

15 CSR 30-52.300 Post-Effective Amendments and Notices to a Registration Statement {#sec-15-csr-30-52.300 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.300}

PURPOSE: This rule prescribes policies and procedures for amending a registration statement.

(1) During the effective period of a registration statement, except as mentioned in section (2) below, the registrant shall notify the Securities Division within fifteen (15) business days of the following:

(A) Any change to any of the documents contained in the registration statement on file with the Securities Division.

(B) Any inaccurate, incorrect, or misleading statements contained in the registration statement.

(C) Any material change relating to the issuer, offering or registration statement that includes, but is not limited to, the following:

Change in issuer’s address;
Change in issuer’s law firm or accounting firm;
Change in risk factors;
Change in the use of proceeds;
Change in the underwriting or plan of distribution;
Change in management or control or transactions with management;
Change in ownership of principal properties;
Acquisition, revaluation or disposition of principal assets;
Legal proceedings, other than in the ordinary course of business;
Defaults upon senior or subordinate securities;
Release of securities or funds from escrow or impoundment, or modification of escrow arrangements;
Issuance, purchase or exercise of options;
Increase or decrease in authorized securities;
Change in stock transfer agent;
Change in securities, amount offered, offering price, par value, stock dividends or splits, rights of shareholders or matters of vote by security holders; and 16. Change in financial condition or financial statements, including financial forecasts.

(D) Any stop order, denial, order to show cause, suspension order, revocation order, consent order, cease and desist order, injunction, restraining order, or similar order entered or issued by any state, regulatory

(E) Any request by the registrant or issuer to any other state or regulatory authority for permission to withdraw any application to register the securities covered by the registration statement or of any termination by the issuer of the offering in any state where the securities are registered.

(F) Any other information requested by the Securities Division in connection with the offering or the registration statement.

(2) For registrations by coordination, the registrant shall promptly forward to the commissioner all amendments and supplements to the registration statement within one (1) business day after these documents are filed with the U.S. Securities and Exchange Commission.

(3) Enclosed with each amendment shall be a written cover letter that describes the material changes to the registration statement.

Additionally, the amended prospectus shall be redlined or marked to reflect the changes.

History

authority or court, regarding the applicant, registrant, issuer, their subsidiaries or affiliates.
AUTHORITY: sections 409.3-303(b)(3) and (4), 409.3-304, 409.3-305, 409.3-306 and Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, RSMo 2003; 409.3-305, RSMo 2003; 409.3-306, RSMo 2003, 409.6-605, RSMo 2003.

15 CSR 30-52.310 Report of Completion of a Registration Statement {#sec-15-csr-30-52.310 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.310}

PURPOSE: This rule prescribes the notice to be provided to the Securities Division upon the completion of an offering in Missouri.

(1) Within thirty (30) days of the completion of an offering in Missouri, the registrant shall provide a written statement to the Securities Division that states the following:

(A) The date the offering was completed in Missouri; and (B) The number and amount of registered securities sold in Missouri.

(2) The written statement needs to be signed by an officer, director or agent of the issuer or by an authorized signatory of the registrant.

History

AUTHORITY: sections 409.3-305(i) and Feb. 28, 2003. Amended: Filed Nov. 26, 2002, effective Aug. 30, 2003. Emergency Sept. 12, 2003, expired March 9, 2004.

15 CSR 30-52.320 Annual Report for the Renewal of a Registration Statement {#sec-15-csr-30-52.320 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.320}

PURPOSE: This rule requires that an annual report be provided to the Securities Division for the renewal of the effective period of a registration statement.

(1) To renew a registration statement for an additional year, the registrant shall file with the Securities Division a completed form SR- 2 within thirty (30) days before the anniversary of the effective date of the registration statement in Missouri.

(2) The registrant shall include a filing fee of one hundred dollars ($100).

Filed March 21, 1974, effective Nov. 25, 1974. Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Rescinded and readopted:

Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 22, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.3-305(b), (h) and (i), and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended:

15 CSR 30-52.330 Records to be Preserved by Issuers {#sec-15-csr-30-52.330 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.330}

PURPOSE: This rule prescribes the records to be preserved by issuers who effect sales of registered securities other than through broker-dealers.

(1) All issuers who effect sales of registered securities, other than through a broker-dealer, shall preserve the following records for at least three (3) years following the expiration of the registration:

(A) Copies of all documents contained in the registration statement;

(B) Copies of all advertisements, including a record of the dates, names and addresses of media carrying those advertisements;

(C) Copies of all communications received and sent by the issuer pertaining to the offer, sale and transfer of the securities, including purchase agreements and confirmations; and (D) A list of the name, address and telephone number of each investor to whom the securities were sold, and for each such person, information regarding— 1. The type of securities sold;

The number and amount of securities sold;
The type of consideration paid; and 4. The name of the agent that sold the securities.

(2) An issuer will need to retain the records set forth in section (1) for each investor at least three (3) years after the investor’s investment has terminated, even if more than three (3) years has lapsed since the expiration of the registration.

(3) Records may be stored in paper form or electronically.

History

AUTHORITY: sections 409.3-305(g) and Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, Original authority: 409.3-305, RSMo 2003; 409.6-605;

15 CSR 30-52.340 Mortgage Revenue Bonds {#sec-15-csr-30-52.340 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.340}

PURPOSE: This rule specifies the securities registration requirements created by sections 108.450–108.470, RSMo which require certain mortgage revenue bonds to comply with

Chapter 409, RSMo. It details the information which issuers must submit and limits the method to registration by qualification. It also provides a new form to be used for this type of registration.

(1) Mortgage revenue bonds issued pursuant to authority contained in sections 108.450–108.470, RSMo must be registered by qualification.

(A) The information listed for registration statements by qualification under section 409.3-304(b), RSMo is required, modified or omitted as follows for the purpose of registering mortgage revenue bonds authorized by sections 108.450–108.470, RSMo. (Note:

The numbers without brackets listed in this

rule correspond to the bracketed numbers in

section 409.3-304(b), RSMo):

The issuer’s name, address and form and date of organization (Other items from this subsection should be omitted);
With respect to every elected official performing legislative functions for the issuer, the chief executive officer of the issuer and the chief appointed fiscal officer of the issuer; his/her name, address and position; a description of any material interest held by any such person in any material transaction with the issuer or any of its agencies effected within the past three (3) years or proposed to be effected (Other items from this subsection 3. (Information from this subsection 4. (Information from this subsection 5. (Information from this subsection 6. (Information from this subsection 7. (Information from this subsection 8. The kind and amount of securities to be offered; the proposed offering price or the method by which it is to be computed; any variations therefrom at which any proportion of the offering is to be made to any person or class or persons other than underwriters, with a specification of any such person or class; the basis upon which the offering is to be made if otherwise than for cash; the estimated aggregate underwriting and selling discounts or commissions and finder’s fees (including, listed separately, cash, securities, contracts or anything else of value to accrue to the underwriters or finders in connection with the offering) or, if the selling discounts or commissions are variable, the basis for determining them and their maximum and minimum amounts; the estimated amounts of other selling expenses, including legal, engineering and accounting charges; the name and address of every underwriter and every recipient of a finder’s fee; a copy of any underwriting or selling group agreement pursuant to which the distribution is to be made or the proposed form of any such agreement whose terms may not yet have been determined; and a description of the plan of distribution of any securities which are to be 10CODE OF STATE REGULATIONS offered otherwise than through an underwriter;
The estimated cash proceeds to be received by the issuer from the offering; the purposes for which the proceeds are to be used by the issuer; the amounts to be used for each purpose; the order or priority in which the proceeds will be used for the purposes stated; the amounts of any funds to be raised from other sources to achieve the purposes stated; and the sources of any such funds (Other items from this subsection should be omitted);
(Information from this subsection 11. (Information from this subsection 12. (Information from this subsection 13. A copy of any preliminary official statement, prospectus, pamphlet, circular, form letter, advertisement or other sales literature intended as of the effective date to be used in connection with the offering;
A specimen or copy of the security being registered and a copy of any indenture or other instrument covering the security to be registered (Other items from this subsection should be omitted);
A copy of the form of an opinion of counsel which will be executed upon delivery of the bonds to the underwriter or other purchaser and which opines as to the legality of the bonds being registered, whether the bonds when, if and as delivered, will be legally issued and whether the bonds will be binding obligations of the issuer (Other items from this subsection should be omitted);
The written consent of any accountant, engineer, appraiser or other person whose profession gives authority to a statement made by him/her, if any such person is named as having prepared or certified a report or valuation (other than a public and official document or statement) which is used in connection with the registration statement;
(Information from this subsection should be omitted); and 18. The following additional information:

A. A description of the trustee;

B. A description of the terms and conditions of any indenture covering the bonds (which may be included in the official statement);

C. A description of the mortgage pool insurance and any other insurance policies relating to the mortgage loans or loans to mortgage lenders;

D. A general description of terms and conditions of the purchase of, investment in, or assignment of mortgage loans from mortgage lenders or loans made to mortgage lenders, provisions for the security of the loans and provisions requiring the proceeds of the loans to be used by those mortgage lenders for the making of new mortgages for single family residential housing; provisions for securing new mortgages; and a general description of the terms and conditions of new mortgage loans including origination, service and administration of the new mortgage loans;

E. The plans covering the events of default and remedies;

F. A copy of the ordinance or court order authorizing issuance of the bond;

G. Statement indicating the provisions made by the political subdivision to secure the payment of the bonds including the creation of reserve and capitalized interest funds; action taken by the political subdivision with respect to the setting and collection of fees and charges deemed necessary to pay the debt service on the bonds; statement indicating whether there are provisions permitting or restricting the issuance of additional securities, the release or substitution of assets securing the issue, the modification of terms of the security; statement indicating the terms and conditions, if any, under which the holders, or any specified percentage of the holders, of the bonds or any coupons representing interest accrued on the bonds or coupons may, by civil action, compel the issuer to perform all duties imposed upon it by statute (that is, sections 108.450–108.470, RSMo) and to enforce the performance of any and all of the covenants made by the issuer with respect to the issuance of the bonds; and statement of the provisions relating to maturity, redemption, amortization, sinking fund or retirement;

H. Statement indicating whether there is litigation of any nature pending or threatened against the issuer, as of the date of the registration statement, to restrain or enjoin the issuance, sale, execution or delivery of the bond or in any way contesting or affecting the validity of the bonds or the security of the bonds, or contesting the validity of any proceedings of the issuer taken with respect to the issuance or sale; and form of certificate to be signed at time of closing; and I. Statement of factual assumptions that were made by the issuer that must occur to enable it to make full and timely payments of principal, or premiums, if any, and interest on the bonds, service fees, insurance premiums, trustee’s fees and the paying agent’s fees.

(2) An issuer must submit form SR-5, Application for Registration of Single Family Mortgage Revenue Bonds, which is hereby adopted and approved for filing with the Securities Division (the Securities Division will provide a copy of this form upon request).

rule filed Sept. 11, 1980, effective Dec. 11, 1980. Amended: Filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, *Original authority: 409.3-304, RSMo 2003; 409.3-307,

History

AUTHORITY: sections 409.3-304, 409.3-307 and 409.6-605, RSMo Supp. 2003. Emergency rule filed Aug. 8, 1980, effective Aug. 18, 1980, expired Dec. 26, 1980. Original

15 CSR 30-52.350 Seasoned Issuer Registration by Filing {#sec-15-csr-30-52.350 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-52.350}

Original rule filed June 2, 1986, effective Oct. 27, 1986. Rescinded: Filed Aug. 30,

History

AUTHORITY: section 409.413, RSMo 1986.

Chapter 53 Sales and Advertising Literature

15 CSR 30-53.010 Promotional Materials To Be Filed, Permitted Without Filing and Prohibited {#sec-15-csr-30-53.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-53.010}

PURPOSE: This rule prescribes the requirements for filing sales and advertising literature of the public offering of securities, and the types of advertising that are permitted and those that are prohibited.

(1) Any advertisement, display, pamphlet, brochure, letter, article, or communication published in any newspaper, magazine or periodical, or script of any recording, radio or television announcement, broadcast, or commercial to be used or circulated in connection with the sale and promotion of a public offering of securities will be subject to the following requirements and restrictions:

(A) All sales and advertising literature and promotional material, other than that exempted by the Missouri Securities Act of 2003 (the Act) (section 409.5-504) and this rule, shall be governed by the following:

The applicant shall file with the commissioner, at least five (5) days before its intended dissemination, one (1) copy of each item of literature or material;
If not disallowed by the commissioner by written notice or otherwise within three (3) business days from the date filed, the literature or material may be disseminated;
No formal approval of the literature or material shall be issued by the commissioner; and 4. The disseminator of the literature or material shall be responsible for the accuracy and reliability of the literature and material, and its conformance with the Act and this

rule;

(B) The following devices or sales presentation, and the use thereof, will be deemed deceptive or misleading practices:

Comparison charts or graphs showing a distorted, unfair, or unrealistic relationship between the issuer’s past performance, progress or success and that of another company, business, industry, or investment media;
Layout, format, size, kind, and color of type used so as to attract attention to favorable or incomplete portions of the advertising matter, or to minimize less favorable, modified, or modifying portions necessary to make the entire advertisement a fair and truthful representation;
Statements or representations which predict future profit, success, appreciation, performance, or otherwise relate to the merit or potential of the securities unless the statements or representations clearly indicate that they represent solely the opinion of the publisher thereof;
Generalizations, generalized conclusions, opinions, representations, and general statements based upon a particular set of facts and circumstances unless those facts and circumstances are stated and modified or explained by additional facts or circumstances as are necessary to make the entire advertisement a full, fair, and truthful representation;
Sales kits or film clips, displays, or exposures, which, alone or by sequence and progressive compilation, tend to present an accumulative or composite picture or impression of certain, or exaggerated potential, profit, safety, return, or assured or extraordinary investment opportunity or similar benefit to the prospective purchaser;
Distribution of any nonfactual or inaccurate data or material by words, pictures, charts, graphs or otherwise, based on conjectural, unfounded, extravagant, or flamboyant claims, assertions, predictions, or excessive optimism; and 7. Any package or bonus deal, prize, gift, gimmick, or similar inducement, combined with or dependent upon the sale of some other product, contract, or service, unless that unit or combination has been fully disclosed and specifically described and identified in the application as the security being offered; and (C) All sales and advertising literature and promotional material other than that described in subsection (3)(A) of this rule and including that intended for broker-dealer and internal use only shall be submitted to the commissioner for comment upon request.

Literature and material containing representations inconsistent with the offering document and that employing deceptive and misleading practices as described in subsection (1)(B) of this rule shall be prohibited.

(2) No sales or advertising literature or promotional material containing any ranking or rating of offering terms or prospective program performance shall be disseminated unless specifically permitted by the commissioner by written notice or otherwise.

(3) The following forms and types of advertising are permitted without the necessity for filing or prior authorization by the commissioner, unless specifically prohibited:

(A) So-called tombstone advertising, containing no more than the following information:

Name and address of issuer;
Identity or title of security;
Per unit offering price, number of shares, and amount of offering;
Brief, general description of business;
Name and address of underwriter, or address where offering circular or prospectus can be obtained; and 6. Date of issuance;

(B) Dividend notices, proxy statements, and reports to shareholders, including investment company quarterly and semi-annual reports;

(C) Unless requested by the commissioner pursuant to subsection (1)(C) of this rule, sales literature, advertising, or market letters prepared in conformity with the applicable regulations and in compliance with the filing requirements of the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), or an approved securities exchange;

(D) Factual or informative letters, bulletins, or releases, similar to newsletters, relating to issuer’s progress or activities, status of the offering, or current financial condition; and (E) Dissemination of any data incorporated in the offering circular or prospectus, so long as the use of that material, out of context, does not tend to detract from, distort, supersede, or express a different meaning of the representations or disclosures contained in this rule.

(4) Any person who prepares, distributes, or causes to be issued or published any sales literature which is knowingly inaccurate, false, misleading, or tending to mislead in any material respect or otherwise in violation of the provisions in this rule may be held responsible and accountable therefor in any administrative or civil proceeding arising under the Act or these rules.

Filed Oct. 9, 1970, effective Oct. 19, 1970.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed March 21, 1974, effective April 1, 1974. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended:

Filed March 27, 1989, effective June 12, 1989. Amended: Filed July 30, 1992, effective April 8, 1993. Emergency amendment filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 26, 2003, effective Feb. 29, 2004. Amended:

Filed May 21, 2009, effective Nov. 30, 2009. *Original authority: 409.2-201, RSMo 2003; 409.2-203, RSMo 2003; 409.3-303, RSMo 2003; 409.3-304, RSMo 2003; 409.5-501, RSMo 2003; 409.5-504, RSMo 2003; and 409.6-605, RSMo 2003.

ROBINCARNAHAN(10/31/09)

History

AUTHORITY: sections 409.2-201(7), 409.2- 203, 409.3-303, 409.3-304, 409.5-501, 409.5-504, and 409.6-605, RSMo Supp. 2008. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended:

Chapter 54 Exemptions and Federal Covered Securities

15 CSR 30-54.030 Bank, Savings Institution or Trust Company Securities {#sec-15-csr-30-54.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.030}

15 CSR 30-54.040 Federal Savings and Loan Association or State Building and Loan {#sec-15-csr-30-54.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.040}

15 CSR 30-54.050 Railroad, Other Common Carrier, Public Utility and Holding {#sec-15-csr-30-54.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.050}

15 CSR 30-54.140 Fifteen Transactions in Twelve Months Exemption {#sec-15-csr-30-54.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.140}

15 CSR 30-54.160 Offers to Existing Security Holders Exemption {#sec-15-csr-30-54.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.160}

15 CSR 30-54.180 Securities and Exchange Commission Registration Nonissuer {#sec-15-csr-30-54.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.180}

15 CSR 30-54.200 Transactional Exemption for Oil, Gas or Mining {#sec-15-csr-30-54.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.200}

15 CSR 30-54.220 Transaction Exemption for Securities Listed on Certain Quotation {#sec-15-csr-30-54.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.220}

15 CSR 30-54.230 Exemption for Certain Unit Investment Trust Units {#sec-15-csr-30-54.230 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.230}

15 CSR 30-54.010 General {#sec-15-csr-30-54.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.010}

PURPOSE: This rule prescribes general policies and procedures applicable to exemptions from the registration of securities.

(1) The commissioner may render interpretative opinions upon the request of applicants with respect to the availability of any exemption (section 409.6-605(d) of the Missouri Securities Act of 2003 (the Act)). For fees, see 15 CSR 30-50.030. The opinions of the commissioner do not constitute any approval of the securities or transactions concerned and it is unlawful for an applicant to represent to any prospective purchaser, customer, or client that the commissioner has announced approval (section 409.5-506, RSMo).

(2) The burden of proof that the offer and sale of large blocks of securities by any person or of any securities by controlling persons (15 CSR 30-50.010(1)(I)) is not directly or indirectly for the benefit of the issuer and therefore eligible for the nonissuer exemptions of section 409.2-202 of the Act, is upon the person claiming the exemption (section 409.5-503, RSMo).

For purposes of this rule, sales of securities in accordance with

rule 144 or any similar rule promulgated under the Securities Act of 1933 are deemed to be not directly or indirectly for the benefit of the issuer.

(3) All issuers who effect sales of securities pursuant to the exemptions specified in sections 409.2-201(7) and 409.2-203, RSMo, shall preserve the following records during the period of six (6) years following the completion of the sales:

(A) A copy of the application for the exemption and all exhibits to the application;

(B) A copy of all literature by which the issuer made disclosure to offerees of the offers for sale;

(C) Original copies of all communications received and copies of all communications sent by the issuer pertaining to the offer, sale, and transfer of the securities, including purchase agreements and confirmations; and (D) A list of the names and addresses of all persons to whom the securities were sold, the type and amount of securities sold to each, the consideration paid or promised by each, the method of payment, for example, cash, check, property, services, note, and the name of each person(s) who represented the issuer in effecting each sale.

Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Amended: Filed Feb. 18, 2003, effective Aug. 30, 2003. Emergency amendment filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 26, 2003, effective Feb. 29, 2004. Amended: Filed Dec. 3, 2013, effective July 30, 2014. *Original authority: 409.2-202, RSMo 2003; 409.2-203, RSMo 2003; 409.5-503, RSMo 2003; 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.2-202, 409.2-203, 409.5-503, and 409.6- 605, RSMo Supp. 2013. Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969.

15 CSR 30-54.015 Notice Filings for Investment Companies {#sec-15-csr-30-54.015 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.015}

PURPOSE: This rule prescribes the notice to be filed for investment companies as federal covered securities.

(1) The initial notice required under section 409.3-302(a), to be filed for investment companies, that include an open-end or closed-end investment company, unit investment trust or face amount certificate company, as those persons are classified in the Investment Company Act of 1940, shall consist of the following:

(A) The Uniform Investment Company Notice Filing Form (Form NF) and accompanying documents;

(B) Form U-2, Consent to Service of Process; and (C) The fee described in 15 CSR 30-50.030.

(2) No documents filed by investment companies with the U.S.

Securities and Exchange Commission need to be filed with the notice described in section (1) above.

(3) Annual Sales Report or Termination. For investment companies, the following notice shall be filed with the division when applicable:

(A) An annual sales report on the Form NF and the fee described in 15 CSR 30-50.030 within sixty (60) days of the company’s fiscal year end; or (B) A termination notice on the Form NF and the fee described in 15 CSR 30-50.030 (this notice needs to be filed with the division on the completion of the offering in Missouri).

(4) Renewals. The annual renewal for investment companies shall consist of the Form NF and a one hundred dollar ($100) filing fee. This notice needs to be filed with the division within thirty (30) days before the anniversary of the company’s effective date in Missouri or at the time of the company’s fiscal year end.

(5) Amendments. During the period of the offering, the investment company shall take steps necessary to insure that all material information contained in the notice remains current and accurate.

Emergency amendment filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 26, 2003, effective Feb. 29, 2004. *Original authority: 409.3-302, RSMo 2003; 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.3-302 and 409.6-605, RSMo Supp. 2003. Original rule filed Feb. 18, 2003, effective Aug. 30, 2003.

15 CSR 30-54.020 Government Issued or Guaranteed Securities {#sec-15-csr-30-54.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.020}

PURPOSE: This rule prescribes policies and procedures applicable to filings for the exemption of government issued or guaranteed securities.

(1) Any security (including a revenue obligation), for the purposes of section 409.2-201(1) of the Missouri Securities Act of 2003, shall be construed to include loan or lease arrangement guarantees, as well as revenue obligations to which they relate.

Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Amended: Filed Dec. 22, 1987, effective Aug. 11, 1988. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 26, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.2-201(1) and 409.6-605, RSMo Supp.

15 CSR 30-54.030 Bank, Savings Institution or Trust Company {#sec-15-csr-30-54.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.030}

History

AUTHORITY: sections 409.402(a)(3) and 409.413(a), RSMo 1986. 15, 1974, effective Nov. 25, 1974. Amended: Filed March 27, 1989, effective June 12, 1989. Emergency rescission filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded: Filed Aug. 26, 2003, effective Feb. 29, 2004.

15 CSR 30-54.040 Federal Savings and Loan Association or State Building and Loan or Similar Association Securities {#sec-15-csr-30-54.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.040}

Filed Aug. 26, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.402(a)(4) and 409.413(a), RSMo 1986. 15, 1974, effective Nov. 25, 1974. Emergency rescission filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded:

15 CSR 30-54.050 Railroad, Other Common Carrier, Public Utility and Holding Company Securities {#sec-15-csr-30-54.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.050}

PURPOSE: This rule prescribes policies applicable to the exemption of securities of railroads, other common carriers, public utilities and holding companies.

(1) A common carrier, for the purposes of section 409.2-201(5) of the Missouri Securities Act of 2003 (the Act), shall be construed to include a contract carrier (section 3(a)(6), Securities Act of 1933; Section 214, Interstate Commerce Act, as amended).

Amended: Filed Aug. 26, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.2-201(5) and 409.6-605, RSMo Supp.

15 CSR 30-54.060 Stock Exchange Listed Securities {#sec-15-csr-30-54.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.060}

PURPOSE: This rule prescribes policies applicable to the exemption on approved stock exchanges of securities listed or approved for listing upon notice of issuance.

(1) Stock exchanges specified by or approved under section 409.2-201(6) of the Missouri Securities Act of 2003 are as follows:

(A) The Chicago Stock Exchange;

(B) The Chicago Board Options Exchange;

Nov. 25, 1974. Amended: Filed Sept. 25, 1991, effective Feb. 6, 1992.

Amended: Filed Dec. 1, 1994, effective June 30, 1995. Amended:

Filed Feb. 18, 2003, effective Aug. 30, 2003. Emergency amendment filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004.

Amended: Filed Aug. 26, 2003, effective Feb. 29, 2004. Amended:

Filed July 26, 2006, effective Jan. 30, 2007.

History

AUTHORITY: sections 409.2-201(6) and 409.6-605, RSMo Supp. 2005. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-54.070 Not-for-Profit Securities {#sec-15-csr-30-54.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.070}

PURPOSE: This rule adopts a new rule that complies with the Missouri Securities Act of 2003 and that describes the terms and conditions of the request for exemption authorization under

section 409.2-201(7)(B) of the Missouri Securities Act of 2003 that became effective September 1, 2003.

(1) The Securities Division will apply the applicable statement of policy adopted by the North American Securities Administrators Association, Inc. (NASAA) as listed in section (2) below when reviewing requests for exemption authorization pursuant to

section 409.2-201(7)(B) of the Missouri Securities Act of 2003 (the Act).

(2) The following statements of policy are hereby incorporated by reference:

(A) Church Bonds as adopted by NASAA on April 14, 2002; and (B) Church Extension Fund Securities as amended and published by NASAA on April 18, 2004. A copy of this policy can be obtained from NASAA, 750 First Street, NE, Suite 1140, Washington, DC 20002, and is available online at http://www. nasaa.org/wp-content/uploads/2011/07/39-Church_Extension_ Fund_Securities.pdf. This rule does not incorporate any subsequent amendments or additions.

(3) Cross-Reference Sheet. If requested by the Securities Division, a request for exemption authorization shall include a cross-reference table to indicate compliance with, or deviation from, the various sections of the applicable NASAA statement of policy.

(4) Documents. The request for exemption shall include the documents listed in section II.A.3, of the NASAA Statement of Policy Regarding Church Bonds.

(5) Sales Literature. All sales and advertising literature shall be filed with the Securities Division prior to use and shall comply with the applicable NASAA statement of policy.

(6) Filing Fee. Each request for exemption under section 409.2– 201(7)(B), RSMo shall include a filing fee of one hundred dollars ($100) as specified in Missouri regulation 15 CSR 30-50.030.

(7) Effective Period. The securities that qualify for the exemption under section 409.2-201(7)(B), RSMo are exempt when ordered by the commissioner. The exemption is effective for one (1) year from the date that the securities were ordered to be exempt by the commissioner.

(8) Renewal. If the securities offering is not completed during the request for the exemption and a fee of one hundred dollars ($100). The renewal must be filed with the commissioner within thirty (30) days before the end of the one (1) year effective date. With each renewal, the commissioner may require a cross-reference sheet to demonstrate compliance with the applicable NASAA statement of policy.

Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed March 21, 1974, effective April 1, 1974. Amended: Filed June 3, 1974, effective June 17, 1974. Amended: Filed Nov. 15, 1974, effective Nov.

Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Rescinded and readopted: Filed Feb. 18, 2003, effective Aug. 30, 2003. Emergency rescission and rule filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded and readopted: Filed Aug. 26, 2003, effective Feb. 29, 2004. Amended: Filed March 27, 2006, effective Sept. 30, 2006. Amended: Filed Dec. 3, 2013, effective July 30, 2014.

History

AUTHORITY: sections 409.2-201(7)(B) and 409.6-605, RSMo Supp. 2013. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-54.080 Commercial Paper Securities {#sec-15-csr-30-54.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.080}

Filed Aug. 27, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.402(a)(10) and 409.413(a), RSMo 1986. 15, 1974, effective Nov. 25, 1974. Emergency rescission filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded:

15 CSR 30-54.090 Employees’ Benefit Plan Securities {#sec-15-csr-30-54.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.090}

Emergency rescission filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded: Filed Aug. 27, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.402(a)(11) and 409.413(a), RSMo 1986.

15 CSR 30-54.100 Manual Exemption {#sec-15-csr-30-54.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.100}

PURPOSE: This rule prescribes recognized securities manuals and policies applicable to nonissuer distributions of securities of issuers reported in the manuals.

(1) For the purpose of the manual exemption (section 409.2- 202(2)(D) of the Missouri Securities Act of 2003 (the Act)), “nationally recognized securities manual or its electronic equivalent” shall mean: Fitch Investors Service, Mergent’s Investor Service, and OTC Markets Group Inc. with respect to securities included on the OTCQX or OTCQB markets.

(2) The exemption specified in section 409.2-202(2)(D) of the Act shall be available only when a recognized manual has contained the required information for a period of not less than ninety (90) days prior to the transaction.

Amended: Filed March 27, 1989, effective June 12, 1989. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004. Amended: Filed April 12, 2018, effective Sept. 30, 2018. *Original authority: 409.2-202, RSMo 2003, 2005; 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.2-202(2)(D) and 409.6-605, RSMo 2016. 25, 1974. Amended: Filed Jan. 14, 1987, effective June 11, 1987.

15 CSR 30-54.110 Unsolicited Order to Buy Exemption {#sec-15-csr-30-54.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.110}

PURPOSE: This rule prescribes procedures applicable to the exemption of nonissuer transactions effected by or through a registered broker-dealer pursuant to an unsolicited order to buy.

(1) Any purchaser acquiring a security pursuant to the exemption specified in section 409.2-202(6) of the Missouri Securities Act of 2003 shall acknowledge in writing that his/her order to buy was unsolicited; provided, that no such acknowledgment shall be required if the confirmation furnished the purchaser is clearly marked “Unsolicited Order” or the broker-dealer furnishes the purchaser before or concurrently with the delivery of the confirmation a memorandum stating that the transaction is based upon an unsolicited order to buy.

Nov. 25, 1974. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.2-202(6) and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-54.120 Mortgage-Note Exemption {#sec-15-csr-30-54.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.120}

PURPOSE: This rule prescribes policies on the availability of the exemption of evidence of indebtedness and the related security documents offered or sold as a unit.

(1) The exemption specified in section 409.2-202(11) of the Missouri Securities Act of 2003 shall not be considered to extend to any transaction in a security in the nature of an investment contract or profit-sharing agreement.

History

AUTHORITY: sections 409.2-202(11) and 409.6-605, RSMo Supp.

5 CSR 30-54.125 Institutional Buyer Exemption {#sec-5-csr-30-54.125 omnilex-key=us-mo-regs-official--title-15--5 CSR 30-54.125}

Original rule filed June 2, 1986, effective Oct. 27, 1986. Emergency rescission filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded: Filed Aug. 29, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.402(b)(8) and 409.413(a), RSMo 1986.

15 CSR 30-54.130 Limited Offering Exemption {#sec-15-csr-30-54.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.130}

PURPOSE: This rule prescribes the meaning of terms and conditions used in the transactional exemption of section 409.2-202(14) under the Missouri Securities Act of 2003.

(1) In determining the number of purchasers under section 409.2-202(14)(A), RSMo, purchasers shall include as many persons as there are record and beneficial owners of equity interests in any corporation, partnership, association, joint stock company, trust, limited liability company or unincorporated organization or other entity organized for the purpose of owning those securities of the issuer or which is merely a medium through or by which an individual invests or trades in securities and where that entity has no other substantial business. A tenancy by the entirety is one (1) person.

(2) General solicitation under section 409.2-202(14)(B), RSMo does not include an offer to sell or sale of securities where the offeror or the seller is the issuer or an agent of the issuer and the offeror or seller has a familial or substantive preexisting relationship with the offeree or purchaser.

Nov. 25, 1974. Emergency rescission and rule filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded and readopted: Filed Aug. 27, 2003, effective Feb. 29, 2004. *Original authority: 404.2-202, RSMo 2003; 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.2-202(14) and 409.6-605, RSMo Supp. 2003. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-54.140 Fifteen Transactions in Twelve Months {#sec-15-csr-30-54.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.140}

Amended: Filed Aug. 11, 1978, effective Feb. 11, 1979. Amended:

Filed Oct. 16, 1986, effective Feb. 12, 1987. Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Emergency rescission and rule filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004.

Rescinded: Filed Aug. 27, 2003, effective Feb. 29, 2004.

History

AUTHORITY: sections 409.402(b)(10) and 409.413(a), RSMo 1986.

15 CSR 30-54.150 Suggested Form of Investment Letter {#sec-15-csr-30-54.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.150}

PURPOSE: This rule suggests the form of an investment letter for securities offered pursuant to section 409.2-202(14), RSMo. ___________________ 20______ (Name and Address of Issuer)

Dear Sir or Madam:

This is a statement of my intention to purchase (description of securities) of the (issuer) knowing that said (securities) are not registered for offer or sale under the Missouri Securities Act of 2003 (Chapter 409, RSMo).

Pursuant to subsection (D), of section 409.2-202(14) of the Missouri Securities Act of 2003, I hereby represent that I am purchasing said (securities) solely for investment and do not intend to divide my participation with others or to resell or otherwise dispose of all or any part of said (securities) in Missouri. In making the foregoing representations I understand that the statutory exemption of section 409.2-202(14) of the Missouri Securities Act of 2003 would not be available if I were acquiring said (securities) for resale or other disposition upon the occurrence or nonoccurrence of some predetermined event.

I acknowledge that the (issuer) is relying on the statutory exemption of section 409.2-202(14) of the Missouri Securities Act of 2003, and is basing his/her reliance in part on my said representations.

Further, I acknowledge that, unless said (securities) are registered under the Missouri Securities Act of 2003, I may not resell, hypothecate, transfer, or assign or make other disposition of said (securities) in the state of Missouri, except in transactions exempted from the registration requirements of the Act.

I have received and examined financial statements of the (issuer) for the (period or periods) and (other data) which I consider sufficient to enable me to form a decision concerning my purchase. ________________________________________________________ (Name and Address of Purchaser)

Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004. Amended: Filed Dec. 3, 2013, effective July 30, 2014.

History

AUTHORITY: sections 409.2-202(14) and 409.6-605, RSMo Supp. 2013. Original rule filed July 21, 1972, effective Aug. 1, 1972.

15 CSR 30-54.160 Offers to Existing Security Holders {#sec-15-csr-30-54.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.160}

History

AUTHORITY: sections 409.402(b)(11) and 409.413(a), RSMo 1986. 15, 1974, effective Nov. 25, 1974. Amended: Filed Dec. 19, 1975, effective Dec. 31, 1975. Emergency rescission filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded: Filed Aug. 27, 2003, effective Feb. 29, 2004.

15 CSR 30-54.170 Preeffective Offer Exemption {#sec-15-csr-30-54.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.170}

PURPOSE: This rule prescribes policies applicable to the availability of transactional exemptions to offers of securities as to which registration statements have been filed under both the Securities Act of 1933 and Chapter 409, RSMo.

(1) The exemption specified in section 409.2-202(16) of the Missouri Securities Act of 2003 (the Act) shall not be available to any offer made after the later of either effectiveness of registration under the Act or effectiveness of the registration statement filed under the Securities Act of 1933.

History

AUTHORITY: sections 409.2-202(16) and 409.6-605, RSMo Supp.

15 CSR 30-54.175 Solicitation of Interest {#sec-15-csr-30-54.175 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.175}

PURPOSE: This rule prescribes the procedures and the record that needs to be provided to offerees to comply with section 409.2- 202(17) of the Missouri Securities Act of 2003.

(1) Scope of the Exemption. The solicitation of interest exemption under section 409.2-202(17) of the Missouri Securities Act of 2003 (the Act) is only available to issuers that are eligible and relying on an exemption under the Securities Act of 1933.

(2) Form and Content. The record to offerees shall consist of a preliminary offering document that meets the following requirements:

(A) The outside front cover page shall comply with subsection 230.255(a)(1) of regulation A under the Securities Act of 1933 or shall state— A registration statement pursuant to the Missouri Securities Act of 2003 relating to these securities has been filed with the Missouri Securities Division. This Preliminary Offering Document is being distributed pursuant to the exemption under section 409.2-202(17) of the Missouri Securities Act of 2003.

Information contained in this Preliminary Offering Document is subject to completion or amendment.

These securities may not be sold nor may offers to buy be accepted prior to the time an offering document which is not designated as a Preliminary Offering Document is delivered and the offering statement filed with the Division becomes qualified. This Preliminary Offering Document shall not constitute an offer to sell or the solicitation of an offer to buy. Under no circumstances shall the issuer collect any funds for the securities while relying upon the exemption under section 409.2-202(17) of the Missouri Securities Act of 2003. and (B) The preliminary offering document shall contain substantially the information required in an offering circular under the form 1-A or form U-7.

(3) Filing. The issuer shall file the preliminary offering document and all related documents with the Securities Division as part of the registration statement prior to making any solicitations of interest under the exemption of section 409.2-202(17).

(4) No funds can be collected by the issuer for the securities while relying upon the exemption under section 409.2-202(17).

History

AUTHORITY: sections 409.2-202(17), 409.6-605 and 409.6-608, RSMo Supp. 2003. Emergency rule filed Oct. 10, 2003, effective Nov. 3, 2003, expired April 30, 2004. Original rule filed Oct. 10, 2003, effective April 30, 2004. Original authority: 409.2-202, RSMo 2003; 409.6-605, RSMo 2003; and 409.6-608, RSMo 2003.

15 CSR 30-54.180 Securities and Exchange Commission Registration Nonissuer Exemption {#sec-15-csr-30-54.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.180}

(Rescinded February 11, 1979)

Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Rescinded:

Filed Aug. 11, 1978, effective Feb. 11, 1979.

History

AUTHORITY: section 409.413, RSMo 1969. Original rule filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Oct. 19, 1973, effective Nov. 1, 1973. Amended: Filed March 21, 1974, effective April 1, 1974.

15 CSR 30-54.183 Exemption for Reporting Company Securities {#sec-15-csr-30-54.183 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.183}

PURPOSE: This rule prescribes the circumstances under which certain transactions in securities of reporting companies are exempted from the registration requirements of the Missouri Securities Act of 2003.

(1) The exemption specified in section 409.2-202(4) of the Missouri Securities Act of 2003 shall be available only when the reports filed under Section 13 of the Securities Exchange Act of 1934 have been on file for a period of not less than ninety (90) days prior to the transaction.

History

AUTHORITY: sections 409.2-202(4) and 409.6-605, RSMo Supp. 2003. Original rule filed Jan. 14, 1987, effective June 11, 1987.

15 CSR 30-54.190 New Generation Processing Entity {#sec-15-csr-30-54.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.190}

PURPOSE: This rule complies with the Missouri Securities Act of 2003 and prescribes the qualifications for the exemption under the Missouri Securities Act of 2003 for securities issued by and representing an interest in a new generation processing entity.

(1) Definition. A “new generation processing entity” shall be defined as an “eligible new generation processing entity” as defined under section 348.432.1(4), RSMo which defines the term as a partnership, corporation, cooperative, or limited liability company organized or incorporated pursuant to the laws of this state consisting of not less than twelve (12) members, approved by the Missouri Agricultural and Small Business Development Authority, for the purpose of owning or operating within this state a development facility or a renewable fuel production facility in which producer members:

(A) Hold a majority of the governance or voting rights of the entity and any governing committee;

(B) Control the hiring of management; and (C) Deliver agricultural commodities or products to the entity for processing, unless processing is required by multiple entities.

(2) Securities Exemption. The commissioner, pursuant to the provisions of section 409.2-203, RSMo, exempts from the registration requirements of section 409.3-301, RSMo securities issued by and representing an interest in a new generation processing entity if:

(A) A notice filing by the new generation processing entity is made with the commissioner that consists of the following:

A completed Form SE-1, Statement of Claim for the Exemption of Securities of a New Generation Processing Entity;
A completed Form U-2, Consent to Service of Process;
A completed Form U-2A, Uniform Form of Corporate Resolution;
A copy of the prospectus or offering document that shall have a minimum disclosure consisting of the following:

A. The name and address of the issuer;

B. The type of security being issued;

C. The total amount of securities being issued;

D. A risk factors section;

E. A description of the business or proposed business;

F. An itemized use of proceeds;

G. A plan of distribution section;

H. A summary of capitalization; and I. Historical financial statements of the issuer for the past three (3) fiscal years or since the issuer’s inception, whichever is shorter, that are in conformity with generally accepted accounting principles (GAAP) and have been reviewed by a certified public accountant. If the balance sheet in the above financial statements is more than one hundred twenty (120) days old on the date of making the notice filing or if the issuer has not completed its first fiscal year, reviewed financial statements not more than one hundred twenty (120) days old shall be included and in conformity with GAAP;

A copy of the bylaws, operating agreement or similar document;
A copy of any advertising materials or any summaries of the offering document to be used in the offer or sale of the 7. A copy of any underwriting or selling agreements;
A copy of the subscription agreement; and 9. A filing fee of one hundred dollars ($100);

(B) All proceeds raised by the new generation processing entity from the sale of securities pursuant to this exemption are held in escrow until the Missouri Agricultural and Small Business Development Authority provides final approval to the new generation processing entity for the new generation cooperative incentive tax credits. If the Missouri Agricultural and Small Business Development Authority does not provide final approval to the new generation processing entity for the new generation cooperative incentive tax credits, then the proceeds raised by new generation processing entity from the offer and sale of its securities under this exemption will be returned to investors.

(3) The securities of the new generation processing entity qualifying for the exemption under this regulation are exempt when ordered by the commissioner.

(4) Effective Period. The exemption under this regulation for the securities issued by or representing an interest in a new generation processing entity is effective for one (1) year from the date that the securities were ordered to be exempt by the commissioner.

(5) Amendments. The new generation processing entity shall file all amendments with the division in which there has been a material change to documents previously filed with the division. The new generation processing entity shall file with the division all advertising materials to be used in the offer or sale of the securities exempt under this regulation.

(6) Renewal. If the securities offering is not completed during the notice filing and a fee of one hundred dollars ($100). The renewal needs to be received by the commissioner within thirty (30) days before the end of the one (1) year effective date.

(7) Any new generation processing entity that meets the qualifications of the exemption under section 409.2-201(8), RSMo can rely on the exemption of section 409.2-201(8), RSMo and need not qualify for the exemption under this regulation. 2003.* Emergency rule filed Aug. 11, 1978, effective Aug. 23, 1978, expired Dec. 21, 1978. Original rule filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed April 6, 1983, effective April 16, 1983, expired Aug. 14, 1983. Rescinded and readopted: Filed April 6, 1983, effective July 11, 1983. Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Rescinded: Filed Nov. 8, 2001, effective June 30, 2002. Readopted: Filed Nov. 1, 2001, effective June 30, 2002.

Emergency rescission and rule filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Rescinded and readopted: Filed Aug. 27, 2003, effective Feb. 29, 2004.

15 CSR 30-54.195 Missouri Agricultural Cooperatives {#sec-15-csr-30-54.195 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.195}

(1) Definition. An “agricultural cooperative” shall be defined as a cooperative corporation organized under the Missouri Nonprofit Cooperative Marketing Law, in which farmers act together— (A) In processing, preparing for market, handling, and/or marketing the farm products of person so engaged; or (B) In purchasing, testing, grading, processing, distributing and/or furnishing farm supplies and/or farm business services; provided, however, that such cooperative corporations are operated for the mutual benefit of the members thereof as such producers or purchasers and conform to one (1) or both of the following requirements:

No member of the cooperative corporation is allowed more than one (1) vote because of the amount of stock or membership capital s/he may own therein;
The cooperative corporation does not pay dividends on stock or membership capital in excess of eight percent (8%) per year; and 3. The cooperative corporation does not deal in farm products, farm supplies, and farm business services with or for nonmembers in an amount greater in value than the total amount of such business transacted by it with or for members; further, all business transacted by any such cooperative corporation for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such agricultural cooperative corporation.

(A) A notice filing by the agricultural cooperative is made with the commissioner that consists of the following:

A completed Form SE-2, Statement of Claim for the Exemption of Securities of a Missouri Agricultural Cooperative;
A completed Form U-2, Consent to Service of Process;
A completed Form U-2A, Uniform Form of Corporate Resolution;
A copy of the prospectus or offering document that shall have a disclosure of material facts consisting of the following:

A. The name and address of the issuer;

B. The type of security being issued;

C. The total amount of securities being issued;

D. Summary information, which provides a brief overview of key aspects of the offering;

E. A risk factors section, which discloses general risk factors related to suitability and the failure to diversify, and any factors that make the offering speculative or risky, including, but not limited to: lack of recent profits from operations, poor financial position, lack of market for cooperative’s securities, inexperience of management, factors related to the cooperative’s business, and/or the dependency of the cooperative on retaining a particular customer or group of customers;

F. A description of the business or proposed business;

G. An itemized use of proceeds;

H. A description of directors, officers and other principal management, including a summary of compensation;

I. A plan of distribution section;

J. A summary of capitalization;

K. A description of any material pending legal proceedings other than ordinary routine litigation incidental to its business; and L. Historical financial statements of the issuer for the past three (3) fiscal years or since the issuer’s inception, whichever is shorter, that are in conformity with generally accepted accounting principles (GAAP) and have been audited by a certified public accountant. If the balance sheet in the above financial statements is more than one hundred twenty (120) days old on the date of making the notice filing, or if the issuer has not completed its first fiscal year, reviewed financial statements not more than one hundred twenty (120) days old shall be included and in conformity with GAAP;

A copy of the bylaws, operating agreement or similar document;
A copy of any advertising materials or any summaries of the offering document to be used in the offer or sale of the 7. A copy of any underwriting or selling agreements;
The names, business addresses, and a brief description of employment responsibilities for each of the agents who will represent the agricultural cooperative in the offer or sale of the 9. A copy of the subscription agreement; and 10. A filing fee of one hundred dollars ($100).

(3) The securities of the agricultural cooperative qualifying for the exemption under this regulation are exempt when ordered by the commissioner.

(4) Effective Period. The exemption under this regulation for the securities issued by or representing an interest in an agricultural cooperative is effective for one (1) year from the date that the securities were ordered to be exempt by the commissioner.

(5) Amendments. The agricultural cooperative shall file all amendments with the division in which there has been a material change to documents previously filed with the division. The agricultural cooperative shall file with the division all advertising materials to be used in the offer or sale of the securities exempt under this regulation.

(7) Agent Exemption. Agents of the agricultural cooperative may be exempt from agent registration under 15 CSR 30-51.180.

(8) Any agricultural cooperative that meets the qualifications of the exemption under section 409.2-201(8), RSMo can rely on the exemption of section 409.2-201(8), RSMo and need not qualify for the exemption under this regulation. 2004.* Original rule filed May 26, 2004, effective Nov. 30, 2004.

Amended: Filed Dec. 10, 2004, effective June 30, 2005.

15 CSR 30-54.200 Transactional Exemption for Oil, Gas or Mining {#sec-15-csr-30-54.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.200}

(Rescinded November 11, 1984)

rule filed Aug. 7, 1981, effective Nov. 12, 1981. Emergency amendment filed April 6, 1983, effective April 16, 1983, expired Aug. 14, 1983. Amended: Filed April 6, 1983, effective July 11, 1983.

Emergency rescission filed Aug. 1, 1984, effective Aug. 11, 1984, expired Nov. 11, 1984. Rescinded: Filed Aug. 1, 1984, effective Nov. 11, 1984.

History

AUTHORITY: sections 409.402 and 409.413, RSMo 1978. Original

15 CSR 30-54.205 Notice Filing Requirement for Regulation A–Tier 2 Offering {#sec-15-csr-30-54.205 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.205}

PURPOSE: This rule prescribes the policies and procedures applicable to offerings made in Missouri under Tier 2 of federal

Regulation A and Section 18(b)(3) or Section 18(b)(4) of the Securities Act of 1933.

(1) Initial filing. The initial notice filing is effective for twelve (12) months from the date of the filing with this state. An issuer intending to offer and sell securities in this state in reliance on an exemption under Tier 2 of federal Regulation A shall file the following with the commissioner:

(A) Copies of all documents filed with the Securities and Exchange Commission, including Form 1-A;

(B) A cover letter providing the date on which the first sale of securities had occurred in Missouri or whether no sales have yet occurred in Missouri;

(C) A consent to service of process on Form U-2; and (D) The filing fee of one hundred dollars ($100) as prescribed by section 409.3-302(e).

(2) Pursuant to 15 CSR 30-50.020(2), the documents listed in section (1) shall be filed either through paper filing with the commissioner or through transmittal to the Electronic Filing Depository operated by the North American Securities Administrators Association.

(3) Each notice filing made in accordance with section (1) shall be filed no later than fifteen (15) calendar days after the first sale of the securities in Missouri, unless the due date falls on a Saturday, Sunday, or holiday, in which case the due date is the first business day following.

(4) Late fees. Any filing or fee received after the fifteenth day after the first sale of securities in Missouri shall be subject to a late fee of fifty dollars ($50).

(5) Amendments. During the period of the offering, the issuer shall take steps necessary to ensure that all material information contained in the notice filing remains current and accurate.

(6) Renewal. For each additional twelve- (12-) month period in which the same offering is continued, an issuer conducting a Tier 2 offering under federal Regulation A may renew the unsold portion of its notice filing by filing the following on or before the expiration of the notice filing:

(A) The Regulation A-Tier 2 notice filing form marked “renewal” and/or a cover letter or other document requesting renewal; and (B) The renewal fee of one hundred dollars ($100) as prescribed by section 409.3-302(b), RSMo.

History

AUTHORITY: section 409.3-302, RSMo Supp. 2025, and section 409.6-605, RSMo 2016. Original rule filed Aug. 7, 2020, effective Jan. 30, 2021. Amended: Filed June 30, 2025, effective Dec. 30, 2025. Original authority: 409.3-302, RSMo 2003, amended 2020, and 409.6-605, RSMo 2003.

15 CSR 30-54.210 Notice Filings for Transactions under {#sec-15-csr-30-54.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.210}

Regulation D, Rule 506

PURPOSE: This rule prescribes the policies and procedures applicable to transactions in Missouri under Regulation D, Rule 506.

(1) Rule 506. The issuer shall file a notice under section 409.3- 302(c), RSMo, as stated in sections (2) and (3) below.

(2) Notice Filings for Rule 506. The notice filing required for transactions in Missouri under 17 CFR 230.506, unless the securities or transactions would qualify for an exemption under sections 409.2-201, 409.2-202, or 409.2-203 of the Act, shall meet the requirements of subsection (A) or (B).

(A) Paper Filing. A paper filing shall be made with the commissioner and shall consist of— 1. One (1) paper copy of the electronic Form D filed with the SEC;

The filing fee of one hundred dollars ($100) as described in 15 CSR 30-50.030; and 3. A cover letter stating the date on which the first sale of securities had occurred in Missouri or whether no sales have yet occurred in Missouri.

(B) Electronic Filing. A notice filing and related fees as described in 15 CSR 30-50.030 shall be transmitted to the Electronic Filing Depository, operated by the North American Securities Administrators Association, pursuant to 15 CSR 30- 50.020(2).

(3) Each notice filing made pursuant to section (2) shall be filed no later than fifteen (15) calendar days after the first sale of the securities in Missouri, unless the due date falls on a Saturday, Sunday, or holiday, in which case the due date is the first business day following.

(4) Amendments. During the period of the offering, the issuer shall take steps necessary to insure that all material information contained in the notice filing remains current and accurate.

Rescinded and readopted: Filed Feb. 18, 2003, effective Aug. 30, 2003. Emergency amendment filed Aug. 26, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004. Amended: Filed Nov. 30, 2010, effective May 30, 2011. Emergency amendment filed Jan. 21, 2015, effective Jan. 31, 2015, expired July 29, 2015. Amended: Filed Jan. 21, 2015, effective Aug. 30, 2015. Amended: Filed April 12, 2018, effective Sept. 30, 2018. *Original authority: 409.2-203, RSMo 2003; 409.3-302, RSMo 2003; and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.2-203, 409.3-302, and 409.6-605, RSMo 2016. Emergency rule filed Aug. 12, 1982, effective Aug. 22, 1982, expired Dec. 10, 1982. Original rule filed Aug. 11, 1982, effective Dec. 11, 1982. Emergency amendment filed Aug. 1, 1984, effective Aug. 11, 1984, expired Nov. 11, 1984. Amended: Filed Aug. 1, 1984, effective Nov. 11, 1984. Amended: Filed Jan. 14, 1987, effective June 25, 1987. Amended: Filed Oct. 15, 1987, effective Jan. 29, 1988. Amended: Filed Jan. 3, 1990, effective March 11, 1990.

15 CSR 30-54.215 Missouri Accredited Investor Exemption {#sec-15-csr-30-54.215 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.215}

PURPOSE: This rule more clearly describes the exemption of offers and sales to accredited investors from the requirements of sections 409.3-301 and 409.5-504 of the Missouri Securities Act of 2003.

(1) The commissioner, pursuant to the provisions of section 409.2-203 of the Missouri Securities Act of 2003 (the Act), exempts any offer or sale of a security by an issuer in a transaction that meets the requirements of this rule from the requirements of section 409.3-301 and 409.5-504 of the Act.

Sales of securities shall be made only to persons who are or the issuer reasonably believes are accredited investors. “Accredited investor” is defined in 17 CFR 230.501(a).

(2) The exemption is not available to an issuer that is in the development stage that either has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person.

(3) The issuer reasonably believes that all purchasers are purchasing for investment and not with the view to or for sale in connection with a distribution of the security. Any resale of a security sale in reliance on this exemption within twelve (12) months of sale shall be presumed to be with a view to distribution and not for investment, except a resale pursuant to a registration statement effective under section 409.3-301 of the Act or to an accredited investor pursuant to an exemption available under section 409.2-203 of the Act.

(4) The exemption is not available to an issuer if the issuer, any of the issuer’s predecessors, any affiliated issuer, any of the issuer’s directors, officers, general partners, beneficial owners of ten percent (10%) or more of any class of its equity securities, any of the issuer’s promoters presently connected with the issuer in any capacity, any underwriter of the securities to be offered, or any partner, director or officer of such underwriter:

(A) Within the last five (5) years, has filed a registration statement which is the subject of a currently effective registration stop order entered by any state securities administrator or the United States Securities and Exchange Commission;

(B) Within the last five (5) years, has been convicted of any criminal offense in connection with the offer, purchase or sale of any security, or involving fraud or deceit;

(C) Is currently subject to any state or federal administrative enforcement order or judgment, entered within the last five (5) years, finding fraud or deceit in connection with the purchase or sale of any security; or (D) Is currently subject to any order, judgment or decree of any court of competent jurisdiction, entered within the last five (5) years, temporarily, preliminarily or permanently restraining or enjoining such party from engaging in or continuing to engage in any conduct or practice involving fraud or deceit in connection with the purchase or sale of any security.

(5) Section (4) shall not apply if:

(A) The party subject to the disqualification is licensed or registered to conduct securities related business in the state in which the order, judgment or decree creating the disqualification was entered against such party;

(B) Before the first offer under this exemption, the state securities administrator, or the court or regulatory authority that entered the order, judgment, or decree, waives the disqualification; or (C) The issuer establishes that it did not know and in the exercise of reasonable care, based on a factual inquiry, could not have known that a disqualification existed under this

section.

(6) A general announcement of the proposed offering may be made by any means.

(7) The general announcement shall include only the following information, unless additional information is specifically permitted by the commissioner:

(A) The name, address and telephone number of the issuer of the securities;

(B) The name, a brief description and price (if known) of any security to be issued;

(D) The type, number and aggregate amount of securities being offered;

(E) The name, address and telephone number of the person to contact for additional information; and (F) A statement that:

Sales will only be made to accredited investors;
No money or other consideration is being solicited or will be accepted by way of this general announcement; and 3. The securities have not been registered with or approved by any state securities agency or the U.S. Securities and Exchange Commission and are being offered and sold pursuant to an exemption from registration.

(8) The issuer, in connection with an offer, may provide information in addition to the general announcement under section (7), if such information:

(A) Is delivered through an electronic database that is restricted to persons who have been prequalified as accredited investors; or (B) Is delivered after the issuer reasonably believes that the prospective purchaser is an accredited investor.

(9) No telephone solicitation shall be permitted unless prior to placing the call, the issuer reasonably believes that the prospective purchaser to be solicited is an accredited investor.

(10) Dissemination of the general announcement of the proposed offering to persons who are not accredited investors shall not disqualify the issuer from claiming the exemption under this rule.

(11) The issuer shall file with the securities division a Form AI, a consent to service of process, a copy of the general announcement, and a notice filing fee in compliance with rule

15 CSR 30-50.030 within fifteen (15) days after the first sale in this state. 2005.* Original rule filed March 27, 1989, effective June 12, 1989. {#sec-15-csr-30-50.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-50.030}

Amended: Filed Jan. 3, 1990, effective March 11, 1990. Amended:

Filed Aug. 3, 1992, effective April 8, 1993. Emergency amendment Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004. Emergency rescission and rule filed Sept. 1, 2004, effective Sept. 11, 2004, expired March 9, 2005. Rescinded and readopted: Filed Sept. 1, 2004, effective Feb. 28, 2005. Amended: Filed Sept. 21, 2005, effective March 30, 2006.

15 CSR 30-54.220 Transaction Exemption for Securities Listed on Certain Quotation Systems {#sec-15-csr-30-54.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.220}

PURPOSE: This rule prescribes the circumstances under which transactions in securities listed on the National Association of Securities Dealers, Inc., Automated Quotation System are exempt from the requirements of sections 409.3-301 and 409.5-504 of the Missouri Securities Act of 2003.

(1) The commissioner, pursuant to the provisions of section 409.2-203 of the Missouri Securities Act of 2003 (the Act), exempts the following transactions from the requirements of sections 409.3-301 and 409.5-504 of the Act:

(A) The offer or sale of a security designated or approved for designation upon notice of issuance (including initial public offerings) on the National Market of the National Association of Securities Dealers, Inc., Automated Quotation System (NASDAQ) and any other security of the same issuer that is of senior or substantially equal rank, any security called for by subscription rights or warrants or any warrant or right to purchase or subscribe to any of the foregoing securities;

(B) The administrator shall have the authority, after notice and hearing and upon written Findings of Fact and Conclusions of Law subject to judicial review:

To terminate this exemption if the administrator finds that the designation standards have been so changed or insufficiently applied that the protection of investors contemplated by the original designation standards is no longer afforded;
To deny the exemption from registration of, or revoke, a specific issue of securities; and 3. To deny the exemption by rulemaking to a category of securities when necessitated by the public interest and for the protection of investors; and (C) For purposes of the exemption granted in this section of the Act, the commissioner shall apply the following standards for designation of additional quotation systems:
The association providing the automated quotation system (association) shall require at least the following standards to be met for designation of securities of an issuer on the quotation system:

Alt. No. 1 Alt. No. 2 Net Tangible Assets 1/ $4,000,000 $12,000,000 Public Float $ 500,000 $ 1,000,000 Pretax Income $ 750,000 __________ Net Income $ 400,000 __________ Shareholders 2/ 800/400 800/400 Market Value of Float $3,000,000 $15,000,000 Minimum Bid $ 5/Share __________ Operating History _________ 3 Years The rules of each association shall require at least two (2) authorized market makers for each issuer;

The association shall require at least the following minimum corporate governance standards for its domestic issuers:

A. Distribution of annual and interim reports.

(I) Each issuer shall distribute to shareholders copies of an annual report containing audited financial statements of the company and its subsidiaries. The report shall be distributed to shareholders a reasonable period of time prior to the company’s annual meeting of shareholders and shall be filed with the association at the time it is distributed to shareholders.

(II) Each issuer which is subject to U.S. Securities and Exchange Commission (SEC) Rule 13A-13 shall make available to shareholders copies of quarterly reports, including statements of operating results, either prior to or as soon as practicable following the company’s filing its Form 10-Q with the SEC. If the form of the quarterly report differs from the Form 10-Q, both the quarterly report and the Form 10-Q shall be filed with the association. The statement of operations contained in quarterly reports shall disclose, at a minimum, any substantial items of an unusual or nonrecurrent nature and net income and the amount of estimated federal taxes.

(III) Each issuer which is not subject to SEC Rule 13A-13 and which is required to file with the SEC or another federal or state regulatory authority interim reports relating primarily to operations and financial position, shall make available to shareholders reports which reflect the information contained in those interim reports. These reports shall be made available to shareholders either before or as soon as practicable following filing with the appropriate regulatory authority. If the form of the interim report made available to shareholders differs from that filed with the regulatory authority, both the report to shareholders and the report to the regulatory authority shall be filed with the association;

B. Independent directors. Each issuer shall maintain a minimum of two (2) independent directors on its board of directors. For purposes of subsection (1)(C), independent director shall mean a person other than an officer or employee of the company or its subsidiaries or any other individual having a relationship which, in the opinion of the board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director;

C. Audit committee. Each issuer shall establish and maintain an audit committee, a majority of the members of which shall be independent directors;

D. Shareholder meetings. Each issuer shall hold an annual meeting of shareholders and shall provide notice of the meeting to the association;

E. Quorum. Each issuer shall provide for a quorum as specified in its bylaws for any meeting of the holders of common stock; provided, however, that in no case shall the quorum be less than thirty-three and one-third percent (33 1/3%) of the outstanding shares of the company’s common voting stock;

F. Solicitation of proxies. Each issuer shall solicit proxies and provide proxy statements for all meetings of shareholders and shall provide copies of the proxy solicitation to the association;

G. Conflicts of interest. Each issuer shall conduct an appropriate review of all related party transactions on an ongoing basis and shall use the company’s audit committee or a comparable body for the review of potential conflict of interest situations where appropriate; and H. Shareholder approval policy. Each issuer shall require shareholder approval of the issuance of securities in connection with the following:

(I) Options, plans or other special remuneration plans for directors, officers or key employees;

(II) Actions resulting in a change in control of the issuer; and (III) The acquisition, direct or indirect, of a business, a company, tangible or intangible assets or property or securities representing any such interests— (a) From a director, officer or substantial security holder of the company (including its subsidiaries and affiliates) or from any company or party in which one of these persons has a direct or indirect interest; and (b) Where the present or potential issuance of common stock or securities convertible into common stock could result in an increase in outstanding common shares of twenty-five percent (25%) or more;

Voting rights.

A. The rules of each association shall provide as follows: No rule, stated policy, practice or interpretation of this association shall permit the designation on the NASDAQ System’s National Market (authorization), or the continuance of authorization, of any common stock or other equity security of a domestic issuer if, on or after July 7, 1988, the issuer of the security issues any class of security or takes other corporate action with the effect of nullifying, restricting or disparately reducing the per share voting rights of holders of an outstanding class(es) of common stock of the issuer registered pursuant to Section 12 of the Securities Exchange Act of 1934.

B. For purposes of subparagraph (1)(C)3.A., the following shall be presumed to have the effect of nullifying, restricting or disparately reducing the per share voting rights of an outstanding class(es) of common stock:

(I) Corporate action to impose any restriction on the voting power of shares of the common stock of the issuer held by a beneficial owner or record holder based on the number of shares held by the beneficial or record holder;

(II) Corporate action to impose any restriction on the voting power of shares of the common stock of the issuers held by a beneficial or record holder based on the length of time the shares have been held by that beneficial or record holder;

(III) Any issuance of securities through an exchange offer by the issuer for shares of an outstanding class of common stock of the issuer, in which the securities issued having voting rights greater than or less than the per share voting rights of any outstanding class of the common stock of the issuer; and (IV) Any issuance of securities pursuant to a stock dividend, or any other type of distribution of stock, in which the securities issued have voting rights greater than the per share voting rights of any outstanding class of the common stock of the issuer.

C. For purposes of subparagraph (1)(C)3.A., the following, standing alone, shall be presumed not to have the effect of nullifying, restricting or disparately reducing the per share voting rights of holders of an outstanding class(es) of common stock:

(I) The issuance of securities pursuant to an initial registered public offering;

(II) The issuance of any class of securities, through a registered public offering, with voting rights not greater than the per share voting rights of any outstanding class of the common stock of the issuer;

(III) The issuance of any class of securities to effect a bona fide merger or acquisition, with voting rights not greater than the per share voting rights of any outstanding class of the common stock of the issuer; and (IV) Corporate action taken pursuant to state law requiring a state’s domestic corporation to condition the voting rights of a beneficial or record holder of a specified threshold percentage of the corporation’s voting stock on the approval of the corporation’s independent shareholders.

D. Definitions. The following terms shall mean, for purposes of this subsection, and the rules of each association shall include these definitions for the purposes of the prohibition in subparagraph (1)(C)3.A. of this rule:

(I) The term common stock shall include any security of an issuer designated as common stock and any security of an issuer, however designated which, by statute or by its terms, is common stock (for example, a security which entitles the holders of the security to vote generally on matters submitted to the issuer’s security holders for a vote);

(II) The term domestic issuer shall mean an issuer that is not a foreign private issuer as defined in Rule 3b-4 under the Securities Exchange Act of 1934 (17 CFR 240.3b-4);

(III) The term equity security shall include any equity security defined as such pursuant to Rule 3a11-1 under the Securities Exchange Act of 1934 (17 CFR 240.3a11-1); and (IV) The term security shall include any security defined as such pursuant to Section 3(a)(10) of the Securities Exchange Act of 1934, but shall exclude any class of security having a preference or priority over the issuer’s common stock as to dividends, interest payments, redemption or payments in liquidation, if the voting rights of the securities only become effective as a result of specified events, not relating to an acquisition of the common stock or the issuer, which reasonably can be expected to jeopardize the issuer’s financial ability to meet its payment obligations to the holders of that class of securities;

Maintenance criteria. After designation or authorization for quotation on a quotation system, a security must meet the following criteria to continue to be designated or authorized for quotation on the quotation system:

A. The issuer of the security has net tangible assets of at least— (I) Two (2) million dollars if the issuer has sustained losses from continuing operations or net losses, or both, in two (2) of its three (3) most recent fiscal years; or (II) Four (4) million dollars if the issuer has sustained losses from continuing operations or net losses, or both, in three (3) of its four (4) most recent fiscal years;

B. There are at least two hundred thousand (200,000) publicly held shares;

C. There are at least four hundred (400) shareholders or at least three hundred (300) shareholders of round lots; and D. The aggregate market value of publicly held shares is at least one (1) million dollars;

The associations promptly shall notify the commissioner of the revocation of designation of an issue of securities by their marketplace; and 6. The marketplace receiving an exemption will use its best efforts to make available on a timely basis information from existing data bases regarding offerings of securities subject to the exemption. 2003.* This rule was previously filed as 15 CSR 30-54.200. Original

rule filed Aug. 7, 1981, effective Nov. 12, 1981. Emergency rescission filed Aug. 1, 1984, effective Aug. 11, 1984, expired Nov. 11, 1984.

Rescinded and readopted: Filed Aug. 1, 1984, effective Nov. 11, 1984.

Amended: Filed March 27, 1989, effective June 12, 1989. Amended:

Filed Jan. 3, 1990, effective March 11, 1990. Emergency amendment

15 CSR 30-54.230 Exemption for Certain Unit Investment Trust Units {#sec-15-csr-30-54.230 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.230}

History

AUTHORITY: section 409.402(c), RSMo 1986. Original rule filed Oct. 16, 1986, effective Feb. 12, 1987. Rescinded: Filed Oct. 10, 2003, effective April 30, 2004.

15 CSR 30-54.240 Missouri Issuer Exemption {#sec-15-csr-30-54.240 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.240}

Original rule filed June 2, 1986, effective Oct. 27, 1986. Amended:

Filed Oct. 15, 1987, effective Jan. 29, 1988. Amended: Filed March 27, 1989, effective June 12, 1989. Amended: Filed Jan. 3, 1990, effective March 11, 1990. Rescinded: Filed Oct. 10, 2003, effective April 30, 2004.

History

AUTHORITY: sections 409.402(c) and 409.413(a), RSMo 1986.

15 CSR 30-54.250 Missouri Qualified Fund Exemption {#sec-15-csr-30-54.250 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.250}

PURPOSE: This rule provides an exemption for securities offered pursuant to section 100.390, RSMo when certain conditions are met.

(1) The commissioner, pursuant to the provisions of 409.2-203, RSMo, exempts the following securities from the requirements of sections 409.3-301 and 409.5-504 of the Missouri Securities Act of 2003 (the Act):

(A) Any securities issued by a qualified fund as defined in section 100.390, RSMo which shall be approved by one (1) or more qualified economic development organizations after a review by the Department of Economic Development and provided that the securities are sold pursuant to a disclosure document which has been filed with the Missouri commissioner of securities thirty (30) days prior to the offer or sale of the securities. The prospectus shall state on its cover in bold type that this is a high risk, speculative investment and that these securities are not approved by, guaranteed by or associated with Missouri;

(B) No commission or other remuneration may be paid or given directly or indirectly for soliciting or selling to any person in this state for reliance on this exemption except to securities brokers, dealers and agents licensed in this state;

(C) The applicants shall file with the commissioner a copy of the offering document, together with a fee of one hundred dollars ($100), as well as a copy of the contract with the economic development center which has approved the qualified fund; and (D) The qualified fund shall make the following provisions:

No officer, director or employee of the fund shall have any interest in a company receiving money from the fund;
The fund agrees to seek input from the innovation center in its review of investment;
The fund would require any company receiving funding from it to agree to be a client of the innovation center at the discretion of the innovation center;
The fund would submit quarterly reports to the innovation center on the progress of the companies the fund invested in; and 5. Investors in the fund shall have an annual gross income of at least sixty thousand dollars ($60,000) and net worth of sixty thousand dollars ($60,000) or one hundred twenty thousand dollars ($120,000) net worth, exclusive of home, home furnishings and automobiles. 2003.* Original rule filed March 27, 1989, effective June 12, 1989.

15 CSR 30-54.260 Foreign Issuer Exemption {#sec-15-csr-30-54.260 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.260}

PURPOSE: This rule exempts the securities of foreign issuers that satisfy certain standards.

(1) The commissioner, pursuant to the provisions of section 409.2-203, RSMo, of the Missouri Securities Act of 2003 (the Act), exempts the following transactions from the requirements of sections 409.3-301 and 409.5-504 of the Act:

(A) Any non-issuer transaction by a registered broker-dealer in a security traded on a foreign stock exchange, foreign automated quotation system, or an American Depository Receipt; provided— 1. The security is sold at a price reasonably related to the current market price of that security at the time of the transaction;

The security does not constitute the whole or part of an unsold allotment to, or subscription or participation by, the broker-dealer as an underwriter of that security; and either 3. The securities qualify for inclusion on the list of foreign margin stocks compiled by the United States Federal Reserve Board and meet the requirements of section 220.11(c)1–5 of

Regulation T under the Securities Exchange Act of 1934; or 4. At the time of the transaction, Mergent’s Investor Service, Mergent’s International Manual, or, with respect to securities included on the OTCQX or OTCQB markets, OTC Markets Group Inc. contains a description of the issuer’s business or operations, the names of the issuer’s officers and directors or their corporate equivalents in the issuer’s country of domicile, an audited balance sheet of the issuer as of a date within eighteen (18) months, and audited profit and loss statements for each of the issuer’s two (2) fiscal years immediately preceding that date; or 5. The security is senior in rank to the common stock of the issuer, both as to interest or dividends and upon liquidation, and the security has been outstanding in the hands of the public for at least five (5) years and the issuer has not defaulted during the current fiscal year or within the five (5) preceding years of the payment of principal, interest, or dividend on the security;

(B) The exemption in subsection (1)(A) of this rule shall not be available for any security unless at the time of the transaction— 1. The security is a class which has been outstanding in the hands of the public for at least ninety (90) days;

The issuer of the security is a going concern actually engaged in business and not in the organizational stage or in bankruptcy or receivership;
The issuer of the security, including any predecessors, has been in continuous business or operations for at least five (5) years;
The issuer has net tangible assets, as reflected in the manual, of at least twenty (20) million dollars;
The issuer had an average net income after taxes, as reflected in the manual, of at least one (1) million dollars over the last three (3) years of operation; and 6. There are either two (2) or more authorized market makers for the issuer’s securities in the United States, or at least one (1) market maker who is registered as a broker-dealer under the Securities Exchange Act of 1934 and has net capital of at least twenty-five (25) million dollars.

(2) In designating a foreign jurisdiction under section 409.2- 202(23), RSMo, the commissioner shall determine whether a foreign jurisdiction’s laws provide substantially similar protection to investors as is provided by the Securities Exchange Act of 1934 with respect to securities listed on a national securities exchange in the United States. The exchange in which designation is sought under this exemption shall file with the commissioner an undertaking to supply to him/her copies of public information in its files relating to any particular issuer whose securities are listed on the exchange if the commissioner requests such an undertaking.

The commissioner will determine upon application by any interested party whether the laws of any particular country meet the standards of this provision.

(3) For purposes of section 409.2-202(23), RSMo, the following are designated securities exchanges:

(A) The Montreal Stock Exchange; and (B) The TSX Venture Exchange.

Amended: Filed May 11, 2016, effective Nov. 30, 2016. Amended:

Filed April 12, 2018, effective Sept. 30, 2018. Amended: Filed July 19, 2019, effective Jan. 30, 2020. *Original authority: 409.2-202, RSMo 2003, amended 2005; 409.2-203, RSMo 2003; and 409.6-605, RSMo 2003.

History

AUTHORITY: sections 409.2-202(23), 409.2-203, and 409.6-605, RSMo 2016. Original rule filed March 27, 1989, effective June 12, 1989. Amended: Filed June 29, 1990, effective Dec. 31, 1990. 29, 2004. Amended: Filed Nov. 8, 2005, effective May 30, 2006.

15 CSR 30-54.280 Tax Credit Exemption {#sec-15-csr-30-54.280 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.280}

Emergency rule filed April 14, 1993, effective April 30, 1993, expired Aug. 27, 1993. Original rule filed Feb. 5, 1993, effective July 8, 1993.

Rescinded: Filed Oct. 10, 2003, effective April 30, 2004.

History

AUTHORITY: section 409.413(a), RSMo 1986. Emergency rule filed Dec. 21, 1992, effective Dec. 31, 1992, expired April 29, 1993.

15 CSR 30-54.290 Canadian-United States Cross-Border Trading Exemption {#sec-15-csr-30-54.290 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-54.290}

PURPOSE: This rule prescribes transactions exempted pursuant to section 409.2-203, RSMo, for Canadians who are temporarily a resident in or visiting this state and persons in the state who are holders of or contributors to Canadian self-directed tax advantaged retirement accounts.

(1) Any offer or sale of a security effected by a Canadian brokerdealer exempted from broker-dealer registration pursuant to

15 CSR 30-51.180 is exempted from the securities registration requirements of section 409.3-301, RSMo. 2003.* Original rule filed Dec. 28, 2001, effective July 30, 2002. {#sec-15-csr-30-51.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-51.180}

Chapter 55 Hearings Under Securities Act

15 CSR 30-55.120 Instituting Hearing Before Commissioner Under the Missouri (9/30/21) JOHN R. ASHCROFT Act {#sec-15-csr-30-55.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.120}

15 CSR 30-55.010 Who May Request {#sec-15-csr-30-55.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.010}

PURPOSE: This rule sets out who may request hearings upon matters under the Missouri Securities Act.

(1) Hearings Before Commissioner.

(A) In all contested cases under Chapter 409, RSMo, including matters involving discipline or disqualification of broker-dealers, agents, investment advisers, or investment adviser representatives under section 409.4- 412, RSMo, or administrative enforcement under section 409.6-604, RSMo, the Enforcement Section of the Securities Division may initiate the matter by submitting to the commissioner a petition for administrative relief. The commissioner may act summarily if authorized by law, or may give notice and set the matter for hearing. Any hearing shall be governed by Chapter 536, RSMo. No order of revocation or suspension under section 409.4-412(b), RSMo, may be issued by the commissioner, unless the matter has been referred to the Administrative Hearing Commission as provided in subsection (2)(B).

(B) Any person aggrieved by a suspension or denial of an application summarily for a broker-dealer, agent, investment adviser, or investment adviser representative registration pursuant to section 409.4-412(f), RSMo may request a hearing before the commissioner.

The hearing shall be governed by Chapter 536, RSMo.

(C) Any person aggrieved by the denial, suspension, postponement or revocation of a securities registration summarily, or the denial or revocation of exemptions from registration may request a hearing before the commissioner. Pursuant to section 409.3- 306(d), RSMo the hearing shall be governed by Chapter 536, RSMo.

(D) Any person aggrieved by the denial, revocation, suspension, summary postponement or summary suspension of a commodity broker-dealer or sales representative registration under the Missouri Commodities Code, sections 409.800–409.863, RSMo may request a hearing before the commissioner.

The hearing shall be governed by Chapter 536, RSMo.

(E) Any person aggrieved by an order issued by the commissioner pursuant to

Chapter 409, RSMo, and not afforded an opportunity for hearing prior to the issuance of the order may request a hearing before the commissioner, except those provided for in subsection (2)(A). The hearing shall be governed by Chapter 536, RSMo.

(2) Hearings Before the Administrative Hearing Commission.

(A) Any person aggrieved by denial of a broker-dealer, agent, investment adviser, or investment adviser representative registration by the commissioner may file a petition with the Administrative Hearing Commission in accordance with section 409.4-412(j), (B) In matters involving the revocation or suspension of the registration of broker-dealers, agents, investment advisers, or investment adviser representatives under section 409.4-412(b), RSMo, the Enforcement Section of the Securities Division shall initiate the matter by submitting to the commissioner in addition to the petition for administrative relief provided in subsection (1)(A), a proposed complaint for filing before the Administrative Hearing Commission. The commissioner may then refer the matter to the Administrative Hearing Commission in accordance with section 409.4-412(k), RSMo. Attorneys for the commissioner may petition the Administrative Hearing Commission for findings of fact and conclusions of law to support grounds for disqualification under section 409.4-412(b) and/or (d), RSMo. The Administrative Hearing Commission shall, after opportunity for hearing, issue findings of fact and conclusions of law.

The matter shall then be referred back to the commissioner for consideration of sanctions and final order.

Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended:

Filed Aug. 11, 1978, effective Feb. 11, 1979.

Amended: Filed Aug. 22, 1986, effective Jan. 30, 1987. Amended: Filed July 3, 1989, effective Sept. 28, 1989. Rescinded and readopted: Filed Nov. 1, 2001, effective May 30, 2002. Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended: Filed May 26, 2004, effective Nov. 30, 2004. *Original authority: 409.3-306, RSMo 2003; 409.4-412, RSMo 2003; 409.6-605, RSMo 2003; 409.836, RSMo 1985.

History

AUTHORITY: sections 409.3-306(d), 409.4- 412 and 409.6-605, RSMo Supp. 2003 and 409.836, RSMo 2000. Original rule filed June 25, 1968, effective Aug. 1, 1968.

15 CSR 30-55.020 Instituting Hearing Before the Commissioner {#sec-15-csr-30-55.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.020}

PURPOSE: This rule describes the form and content of the request for hearing, time for filing, number of copies to be filed, the order of hearing, and how notice will be served.

(1) Request for Hearing. A request for hearing shall be filed with the commissioner by any party or interested person aggrieved by any order or refusal to make an order under this chapter. Any request for hearing shall contain:

(A) A brief statement of the facts;

(B) A summary of factual and legal issues involved;

(D) Suggestions in support of relief sought including relevant statutes;

(E) The name of the party requesting the hearing; and (F) The name of attorney representing the party, if any.

(2) Time for Filing. Any person entitled to request a hearing in any matter within the jurisdiction of the commissioner must do so within the statutory time limits, if any, applicable in those cases. If there is no time limit, filing should be within a reasonable period of time not to exceed thirty (30) days from the date of receipt of any notice of action or refusal to take action by the commissioner.

(3) Number of Copies to be Filed. Three (3) copies of a request for hearing or other related material shall be filed with the commissioner. One (1) copy shall be served by mail on any other party to the matter.

(4) Hearing Order. The commissioner may order a hearing on any matter within his/her jurisdiction under Chapter 409, RSMo. The commissioner may immediately set the matter for hearing, and may also schedule a prehearing conference. The hearing must be set within fifteen (15) days of filing a request for hearing. Subject to more restrictive statutory limitations, a proceeding under the provisions of these rules shall be set for a date not more than ninety (90) days from the date of request. The hearing order shall contain:

(A) Caption and number of the case;

(B) Name of party filing;

(D) Time, place and date of the hearing;

(E) If a petition was submitted by the Securities Division and the request for hearing has raised a dispute of facts or any affirmative defenses, the date an answer must be filed; and (F) Citation to rules promulgated by the commissioner regarding hearings.

(5) Notice to Parties. All parties and, in the discretion of the commissioner, other interested persons shall be notified promptly by the commissioner upon the filing of a request for hearing or related material filed. The commissioner shall provide notice by serving copies of all documents filed including the request for hearing and the hearing order.

History

AUTHORITY: sections 409.6-605, RSMo Supp. 2003 and 409.836, RSMo 2000. Original rule filed Aug. 11, 1978, effective Feb. 11, 1979. Amended: Filed Aug. 22, 1986, effective Jan. 30, 1987. Rescinded and readopted: Filed Nov. 1, 2001, effective May 30, 2002. Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expires March 9, 2004. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Original authority: 409.6-605, RSMo 2003; 409.836, RSMo 1985.

15 CSR 30-55.025 General Prehearing Procedures {#sec-15-csr-30-55.025 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.025}

PURPOSE: This rule describes the general procedures for contested matters.

(1) Rules of Procedure. The hearings before the commissioner and Administrative Hearing Commission are governed by Chapter 536, RSMo. The commissioner and Administrative Hearing Commission may also be guided by the Missouri Rules of Civil Procedure.

(2) Place of Filing. If the matter is to be heard by the commissioner, all pleadings shall be filed with the commissioner. If the matter is to be heard by the Administrative Hearing Commission, all pleadings must be filed with the commission. The party filing pleadings or documents shall serve by mail or, by consent of the parties, electronic mail, copies of all filed pleadings or documents on all parties.

(3) Continuances. The commissioner shall grant written requests for continuances upon good cause shown. A hearing shall be held no later than ninety (90) days after the request for hearing unless a later date is agreed to by all parties to the matter, or justice requires a continuance, and the commissioner by order continues the hearing.

Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended: Filed July 19, 2019, effective Jan. 30, 2020. *Original authority: 409.6-605, RSMo 2003 and 409.836, RSMo 1985.

History

AUTHORITY: sections 409.6-605 and 409.836, RSMo 2016. Original rule filed Nov. 1, 2001, effective May 30, 2002. Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004.

15 CSR 30-55.030 Answers and Supplementary Pleadings {#sec-15-csr-30-55.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.030}

PURPOSE: This rule describes the form and content of the answer and supplementary pleadings and how they shall be filed.

(1) Answers.

(A) Matters Prosecuted by Securities Division Before the Commissioner. In any proceeding in which the Securities Division has filed a petition with the commissioner, a party challenging the factual basis for an order shall file an answer to allegations made by the Securities Division in its petition. The answer shall be filed within thirty (30) days of receipt of the hearing order, unless the commissioner orders additional time. All answers shall be in writing and should admit those portions of the petition which respondent believes are true and deny those portions of the petition which respondent believes are not true. The answer shall contain a short and concise statement of those facts, which the respondent believes are true and relevant to the issues raised in the complaint. The respondent or legal counsel must sign the answer.

(B) Matters Prosecuted by Others Before the Commissioner. In those cases where an applicant has filed a petition and the Securities Division files an answer, the answer shall set forth the factual and legal basis for the action of the commissioner. Unless the answer specifically pleads that petitioner has failed to comply with 15 CSR 30-55.020, objections for failure to comply will be deemed as waived by the Securities Division.

Absent a showing that the division has complied with the law and these rules, no complaint of an applicant shall be dismissed without a hearing on the merits.

(C) Matters Prosecuted by the Securities Division Before the Administrative Hearing Commission. In any proceeding that the commissioner has referred to the Administrative Hearing Commission, the respondent shall file an answer within ten (10) days after respondent receives a copy of the complaint.

However, the failure to file an answer within the time provided in this rule will not prevent the Administrative Hearing Commission from holding a prehearing conference or a hearing at the time and place specified in the notice. Neither will the failure to file an answer divest the commissioner or Administrative Hearing Commission of jurisdiction to render a decision in the case.

(D) Matters Prosecuted by Others Before the Administrative Hearing Commission. In those cases where an applicant has filed a petition and the commissioner files an answer, the answer shall set forth the factual and legal basis for the action of the commissioner.

(2) Amendments and Supplementary Pleadings.

(A) A petition may be modified or amended without leave of the commissioner or Administrative Hearing Commission at any time preceding the filing of an answer or other responsive pleading by the respondent.

After respondent has filed his/her responsive pleading, leave must be granted to amend or modify any petition.

(B) Answers may be modified or amended without leave of the commissioner or Administrative Hearing Commission at any time up to five (5) days preceding the date on which the hearing in the case is actually held. After this time, all modifications or amendments to answers may be made only upon leave being granted by the commissioner or Administrative Hearing Commission.

(C) Any pleading, other than a complaint or an answer, may be filed in any case pending before the Administrative Hearing Commission if leave is first granted.

Supp. 2003.* Original rule filed Aug. 11,

15 CSR 30-55.040 Notice of Hearing {#sec-15-csr-30-55.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.040}

PURPOSE: This rule sets out the timing and content of the notice of hearing.

(1) Immediately upon setting a hearing, the commissioner or Administrative Hearing Commission shall serve notice by mail on all parties to the matter. Service of notice shall be made by mailing a copy of the hearing order required by 15 CSR 30-55.020(4) to all parties. If a party cannot be reached at the last known address, notice shall be given by (12/31/19) JOHN R. ASHCROFT publication pursuant to Missouri Rule of Civil Procedure 54.17.

(2) The commissioner may serve notice of the hearing on any person the commissioner determines should have notice of the hearing.

(3) If there is a large group whose rights would be affected by the proceeding, notice will be given to a sufficient number of class members as the commissioner determines will give adequate notice to the class.

Supp. 2003.* Original rule filed Aug. 11,

15 CSR 30-55.050 Prehearing Conferences {#sec-15-csr-30-55.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.050}

PURPOSE: This rule describes the setting and subject matter of the prehearing conference.

(1) Setting.

(A) In proceedings before the commissioner all prehearing conferences shall be held within thirty (30) days of the hearing order issued by the commissioner, unless continued by the commissioner for good cause.

(B) In proceedings before the Administrative Hearing Commission, any party or legal counsel may petition the Administrative Hearing Commission to hold a prehearing conference at a time prior to the setting of a conference by order of the commission.

(C) The legal counsel who will actually handle the hearing shall be present at all prehearing conferences, unless excused by the commissioner or Administrative Hearing Commission. Parties to an action may appear in person with counsel at a prehearing conference.

(2) Subject Matter.

(A) Legal counsel for all parties shall attend the prehearing conference and be prepared to discuss the following items:

The simplification of the issues;
The necessity or desirability of amendments to the pleadings;
The possibility of obtaining admission of fact and of documents which will avoid unnecessary proof;
The limitation of the number of expert and character witnesses;
A discovery schedule, if necessary for the orderly administration of the proceeding;
The manner and conditions upon which depositions can be taken;
Schedule for disposition of any prehearing motions that have been filed;
The anticipated length of the hearing and the time and location of conducting the hearing; and 9. Other matters as may aid in the disposition of the action.

Supp. 2003.* Original rule filed Aug. 11,

15 CSR 30-55.060 Public Hearing {#sec-15-csr-30-55.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.060}

PURPOSE: This rule states that all hearings will be public and that the parties may attend and be represented by counsel.

All hearings shall be open to the public.

Notice of the hearing will be posted prominently in the Office of the Secretary of State, Securities Division, Missouri State Information Center, Room 229, 600 W. Main, Jefferson City, MO 65101. 2016.* Original rule filed Aug. 11, 1978, effective Feb. 11, 1979. Emergency amendment filed Oct. 29, 1982, effective Nov. 8, 1982, expired March 8, 1983. Amended:

Filed Oct. 29, 1982, effective Feb. 11, 1983.

Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended: Filed April 23, 2021, effective Oct. 30, 2021.

15 CSR 30-55.065 Appearance Before the Commissioner {#sec-15-csr-30-55.065 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.065}

PURPOSE: This rule provides for the appearance of parties in matters before the commissioner.

(1) Any party that files a request for hearing pursuant to 15 CSR 30-55.020(1) is required to appear in person at the hearing scheduled under 15 CSR 30-55.020(4). Failure to appear at the time and location designated in the hearing order provides grounds for the commissioner to sanction the non-appearing party. The commissioner may utilize discretion in imposing such sanction, including, but not limited to, refusing to allow the party to support or oppose claims or defenses, striking pleadings, not allowing the introduction of evidence or the examination of witnesses, and finding the party in default.

(2) It is not sufficient for an individual to appear through counsel.

(3) Any entity that is a party must be represented by a Missouri-licensed attorney.

(4) The Enforcement Section must be represented by a Missouri-licensed attorney who is a designee of the commissioner.

(5) The commissioner may allow a party to appear via other means or to appear through an attorney. Any motion for such must be filed fifteen (15) days prior to the date of the hearing scheduled under 15 CSR 30- 55.020(4). 2016.* Original rule filed April 23, 2021, effective Oct. 30, 2021.

15 CSR 30-55.070 Record of Hearing Before the Commissioner {#sec-15-csr-30-55.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.070}

PURPOSE: This rule states what shall be included in the record of the hearing.

(1) Pursuant to section 536.070, RSMo, the commissioner will cause all proceedings to be suitably recorded either electronically or by court reporter.

(2) Upon the request and at the expense of any party to the proceeding, the commissioner will cause the hearing to be transcribed.

Any other party may obtain a copy of the transcript upon payment of the costs of preparation.

(3) The record for judicial review will contain:

(A) If requested and paid for by the requesting party, the transcript of any proceedings;

JOHN R. ASHCROFT (9/30/21)*

(B) All petitions, answers, motions, discovery pleadings, and other materials or documents filed by any party with or subsequent to the request for hearing;

(D) All matters officially noticed;

(E) Formal questions and offers of proof, objections and rulings; and (F) All written decisions and orders of the commissioner including his/her findings of fact, conclusions of law, and final order.

Supp. 2003.* Original rule filed Aug. 11,

15 CSR 30-55.080 Discovery {#sec-15-csr-30-55.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.080}

PURPOSE: This rule outlines procedures for, and permits time limits on, discovery.

(1) Discovery Schedule. The commissioner or the Administrative Hearing Commission may issue orders setting reasonable time limits for completion of discovery and may shorten or lengthen the time parties have to file answers to discovery requests.

(2) Interrogatories. Any party may serve upon any other party written interrogatories, upon and under the same conditions, as in civil actions in the circuit court pursuant to Missouri Rules of Civil Procedure, Rule 57, except as limited by section 536.073, RSMo.

(3) Depositions. Any party may take and use depositions in the same manner, upon and under the same conditions, as in civil actions in the circuit court pursuant to Missouri Rules of Civil Procedure, Rule 57, except as limited by section 536.073, RSMo.

(4) Requests for Production of Documents and Things. Any party may serve upon any other party a request for documents and things, upon and under the same conditions, as in civil actions in the circuit court pursuant to Missouri Rules of Civil Procedure, Rule 58, except as limited by section 536.073, (5) Admission of Facts and of Genuineness of Documents. Any party may serve upon any other party a written request for the admission of facts or of the genuineness of documents, upon and under the same conditions, as in civil actions in the circuit court pursuant to Missouri Rules of Civil Procedure, Rule 59, except as limited by section 536.073, (6) Enforcement of Discovery: Sanctions.

The commissioner or the Administrative Hearing Commission may enforce discovery or sanction parties, upon and under the same conditions, as in civil actions in the circuit court pursuant to Missouri Rules of Civil Procedure, Rule 61, except as limited by section 536.073, RSMo.

Supp. 2003.* Original rule filed Aug. 11,

15 CSR 30-55.090 Procedure at Hearing {#sec-15-csr-30-55.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.090}

PURPOSE: This rule states the procedures and rules of evidence to be followed at the hearing.

(1) Prehearing Motions. The commissioner or Administrative Hearing Commission may consider any motions to dismiss, motion to vacate, motions for summary judgment, or any other dispositive motions prior to commencement of the hearing on the merits.

(2) Evidence. The order in which the evidence will be presented is as follows:

(A) The Securities Division shall present its evidence first. The burden of proof in a hearing on the merits in matters relating to an order of the commissioner, or the failure of the commissioner to act, shall be on the Securities Division. The burden of proof for affirmative defenses, including exemptions and exceptions from definition, shall be upon the party claiming the affirmative defense.

(B) All witnesses may be cross-examined on any relevant issue even though that matter was not the subject of direct examination and may be impeached regardless of which party first called him/her to testify;

(D) Each party has the right to rebut the evidence presented;

(E) The commissioner and Administrative Hearing Commission shall have the authority to administer oaths and affirmations, to rule on the admission or inclusion of evidence, and to take the necessary steps to insure a fair and orderly conduct of the hearing. S/he shall follow section 536.070, RSMo governing admission of evidence in administrative hearings; and (F) The commissioner and Administrative Hearing Commission shall take official notice of all matters of which courts take judicial notice. Technical facts, not judicially cognizable may be officially noted if they are within his/her competence provided that the parties are notified and are given a chance to contest these facts or show that official notice would not be proper.

(3) Closing Arguments. All parties may make closing statements. The party with the burden of proof shall have the opportunity for rebuttal argument.

Supp. 2003.* Original rule filed Aug. 11, *Original authority: 409.6-605; RSMo 2003.

15 CSR 30-55.100 Subpoenas {#sec-15-csr-30-55.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.100}

PURPOSE: This rule sets out the manner in which subpoenas may be obtained.

(1) The commissioner shall have the authority to issue subpoenas and subpoenas duces tecum.

(A) Subpoenas other than subpoenas duces tecum shall be issued upon the request of any party, provided the requesting party provide the following information:

Caption and number of the case;
Name of witness being subpoenaed; and 3. Date for appearance.

(B) Subpoenas duces tecum may be issued by the commissioner when s/he determines the circumstances are proper. Any party requesting a subpoena duces tecum must submit the information required by subsection (1)(A) and a list of documents requested for the commissioner’s consideration.

(2) Subpoenas shall extend to all parts of the state and be served and returned as in civil actions in the circuit court.

(3) Witnesses shall be entitled to the same (9/30/21)* JOHN R. ASHCROFT fees and travel and attendance fees if compelled to travel more than forty (40) miles from home, as provided for civil actions in the circuit court.

(4) Fees for service and witness and travel fees are to be paid by the party requesting the subpoena.

(5) The commissioner shall apply to the circuit court for enforcement of subpoenas pursuant to sections 409.6-602 and 536.077, RSMo, except those issued under the provisions of section 409.820, RSMo. Subpoenas issued under the provisions of section 409.820, RSMo are governed by these provisions.

rule filed Aug. 11, 1978, effective Feb. 11, 1979. Amended: Filed Aug. 22, 1986, effective Jan. 30, 1987. Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended:

Filed July 19, 2019, effective Jan. 30, 2020. *Original authority: 409.6-602, RSMo 2003; 409.6-605, RSMo 2003; and 409.820, RSMo 1985.

History

AUTHORITY: sections 409.6-602, 409.6- 605, and 409.820, RSMo 2016. Original

15 CSR 30-55.110 Motions, Suggestions and Legal Briefs {#sec-15-csr-30-55.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.110}

PURPOSE: This rule states when motions, suggestions and legal briefs may be filed and answered.

(1) Motions and Suggestions. Each party shall be entitled to file motions and to present written suggestions, accompanied by oral argument if the party so chooses. Motions and written suggestions may be filed at any time during the pendency of the proceeding.

Opposing parties shall file any responsive pleadings within five (5) business days, unless the commissioner or Administrative Hearing Commission grants additional time.

(2) Briefs. At any time prior to submitting the case for consideration at the close of the hearing, a party may seek leave to file a brief. If leave is granted, a party shall have twenty (20) days after leave is granted to prepare and file its brief. The other parties will be given twenty (20) days to file responsive briefs.

Three (3) copies of briefs must be filed with the commissioner or Administrative Hearing Commission. The filing party shall also mail all briefs filed to all other parties.

Supp. 2003.* Original rule filed Aug. 11,

15 CSR 30-55.120 Instituting Hearing Before Commissioner Under the Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.120}

15 CSR 30-55.130 Answers and Supplementary Pleadings for Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.130}

15 CSR 30-55.140 Notice of Hearing for Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.140}

15 CSR 30-55.150 Prehearing Conferences for Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.150}

15 CSR 30-55.160 Public Hearing Under Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.160}

15 CSR 30-55.170 Record of Hearing Under Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.170}

15 CSR 30-55.180 Discovery Under Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.180}

15 CSR 30-55.190 Procedure and Evidence Under Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.190}

15 CSR 30-55.200 Subpoenas Under Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.200}

15 CSR 30-55.210 Briefs Under Missouri Commodities Act Oct. 12, 1985, expired Feb. 9, 1986. {#sec-15-csr-30-55.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.210}

15 CSR 30-55.220 Hearing Officers {#sec-15-csr-30-55.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-55.220}

PURPOSE: This rule provides for the appointment of hearing officers by the secretary of state.

(1) In all proceedings before the commissioner initiated under provisions of Chapter 409, RSMo, the secretary of state or his/her designee may appoint a hearing officer to conduct the proceeding.

(2) Upon the written request of a party, the commissioner may modify any interim ruling of the hearing officer, but no hearing on the request must be provided.

(3) When the adjudicatory proceeding has been completed, the hearing officer shall recommend Findings of Fact and Conclusions of Law to the commissioner. The commissioner shall dispose of the matter in the manner applicable to proceedings conducted by the commissioner. No hearing on the recommendations of the hearing officer must be provided.

Supp. 2003.* Original rule filed Aug. 3, 1992, effective April 8, 1993. Amended:

Filed Nov. 1, 2001, effective May 30, 2002.

Emergency amendment filed Aug. 29, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004.

Chapter 56 Take-Over Bid Disclosure: General Provisions

15 CSR 30-56.010 Provision to be Included in Certain Take-over Bid Information to Offerees Aug. 23, 1978, expired Dec. 21, 1978. {#sec-15-csr-30-56.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.010}

Feb. 11, 1979. Rescinded: Filed June 24,

15 CSR 30-56.015 Filing Requirements {#sec-15-csr-30-56.015 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.015}

PURPOSE: This rule specifies the filing requirements of the Missouri Takeover Bid Disclosure Act.

(1) Every person filing the registration statement required by section 409.511, RSMo shall pay a fee of two thousand five hundred dollars ($2,500) to be remitted by check, draft or money order payable to the Director of Revenue, State of Missouri.

(2) Every filing of a registration statement pursuant to section 409.511, RSMo shall include the tender offer statement required by

section 14(d) of the Securities Exchange Act of 1934, 15 USC 78n(d). The submission of the tender offer statement will be considered to satisfy the requirements of sections 409.511.2. and 409.516.1(2)–(8) and (11), RSMo.

(3) Every filing of a registration statement pursuant to section 409.511, RSMo shall include a notification in letter form which answers the requirements of section 409.516.1(1), (9), (10) and (12). The letter notification shall contain the numbers of the items of section 409.516, RSMo with the text omitted. The answers to the items shall indicate clearly the coverage of the items.

Answer every item. If an answer is inapplicable or the answer is in the negative, so state.

(4) If the take-over bid is not subject to the requirements of section 14(d) of the Securities Exchange Act of 1934, 15 USC 78n(d), a notification in letter form which answers the items required by sections 409.511.2., 409.516.1(2)–(8) and (11) and 409.561(1)–(6), RSMo shall be prepared as previously mentioned in section (3) and included with the registration statement required by section 409.511, RSMo.

History

AUTHORITY: section 409.531, RSMo 1986. Original rule filed March 27, 1989, effective June 12, 1989. Original authority: 409.531, RSMo 1986.

15 CSR 30-56.020 Fee S Aug. 23, 1978, expired Dec. 21, 1978. {#sec-15-csr-30-56.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.020}

Feb. 11, 1979. Rescinded: Filed June 24,

15 CSR 30-56.025 Tender Offer {#sec-15-csr-30-56.025 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.025}

PURPOSE: This rule clarifies the meaning of tender offer as defined in the Missouri Takeover Bid Disclosure Act.

(1) A Tender Offer or Request or Invitation for Tenders Within the Meaning of Section 409.500, RSMo. The Missouri Take-over Disclosure Act is a publicly made invitation addressed to all shareholders to tender shares at a given price, characterized by active or widespread solicitation or pressure to accept or reject an offer quickly.

History

AUTHORITY: section 409.531, RSMo 1986. Original rule filed March 27, 1989, effective June 12, 1989. Original authority: 409.531, RSMo 1986.

15 CSR 30-56.030 False or Misleading Statements Aug. 23, 1978, expired Dec. 21, 1978. {#sec-15-csr-30-56.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.030}

Feb. 11, 1979. Rescinded: Filed June 24,

15 CSR 30-56.040 Fraudulent, Deceptive or Manipulative Practices Aug. 23, 1978, expired Dec. 21, 1978. {#sec-15-csr-30-56.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.040}

Feb. 11, 1979. Rescinded: Filed June 24,

15 CSR 30-56.050 Hearing Procedure Aug. 23, 1978, expired Dec. 21, 1978. {#sec-15-csr-30-56.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-56.050}

Feb. 11, 1979. Rescinded: Filed June 24, MATTBLUNT(11/30/02)

Chapter 57 Take-Over Bid Disclosure: Disclosure Filings

15 CSR 30-57.010 When to File Disclosure Statement Aug. 23, 1978, expired Dec. 21, 1978. Orig- {#sec-15-csr-30-57.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.010}

15 CSR 30-57.020 Precondition to Making Bid {#sec-15-csr-30-57.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.020}

PURPOSE: This rule sets out hearing conditions to be met after disclosure is made, before making the bid to offerees.

(1) Before making the take-over bid and after the disclosure statement, 15 CSR 30-57.060, has been filed, one (1) of the following conditions must be met:

(A) No hearing shall have been ordered by the commissioner within fifteen (15) days following the filing; and (B) The commissioner shall have determined in a hearing that the offeror proposes to make full, fair and adequate disclosure to offerees of all information material to a decision to accept or reject an offer.

History

AUTHORITY: section 409.413, RSMo 1986. Aug. 23, 1978, expired Dec. 21, 1978. Orig- 11, 1979. Original authority: 409.413, RSMo 1967.

15 CSR 30-57.030 Solicitation Material Aug. 23, 1978, expired Dec. 21, 1978. Orig- {#sec-15-csr-30-57.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.030}

15 CSR 30-57.050 Material Changes Aug. 23, 1978, expired Dec. 21, 1978. Orig- {#sec-15-csr-30-57.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.050}

15 CSR 30-57.060 Disclosure Statement Aug. 23, 1978, expired Dec. 21, 1978. Orig- {#sec-15-csr-30-57.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.060}

15 CSR 30-57.070 Filing of Recommendation Statement Aug. 23, 1978, expired Dec. 21, 1978. Orig- {#sec-15-csr-30-57.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.070}

15 CSR 30-57.080 Material Changes in Recommendation Statement Aug. 23, 1978, expired Dec. 21, 1978. Orig- MATTBLUNT(11/30/02) {#sec-15-csr-30-57.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-57.080}

Chapter 57óTake-over Bid Disclosure: Disclosure Filings15 CSR 30-57

Chapter 58 Take-Over Bid Disclosure: Exemptions

15 CSR 30-58.010 General Provisions {#sec-15-csr-30-58.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-58.010}

(Rescinded February 26, 1993)

Emergency rule filed Aug. 11, 1978, effective Aug. 23, 1978, expired Dec. 21, 1978. Original rule filed Aug. 11, 1978, effective Feb. 11, 1979. Rescinded: Filed June 24, 1992, effective Feb. 26, 1993.

History

AUTHORITY: section 409.413, RSMo 1986.

15 CSR 30-58.020 Offers Exempted as Not Being Within the Purposes of the Act {#sec-15-csr-30-58.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-58.020}

(Rescinded February 26, 1993)

MATTBLUNT(11/30/02)

Chapter 58óTake-over Bid Disclosure: Exemptions15 CSR 30-58

History

AUTHORITY: section 409.413, RSMo 1986.

Chapter 59 Registration and Operations of Commodity Broker-Dealers and Sales Representatives

15 CSR 30-59.010 Definitions {#sec-15-csr-30-59.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.010}

PURPOSE: The commissioner of securities under the direction of the secretary of state administers the Missouri Model Commodities Code, sections 409.800–409.836, RSMo. The commissioner may make rules, forms, and orders as are necessary to carry out the provisions of the Code and may define terms, whether or not used in the Code, insofar as the definitions are not inconsistent with the Code. This rule defines certain terms used in the administration of the Code and in the rules, forms, and orders.

(1) When the terms listed in subsections (1)(A)–(Q) are used in sections 409.800– 409.863, RSMo, this chapter of rules, the forms, and the orders of the commissioner issued under sections 409.800–409.863, RSMo 1986, and this chapter of rules, the following meanings shall apply (unless the context requires otherwise), to the extent that they are not inconsistent with definitions provided in sections 409.800–409.863, RSMo:

(A) Affiliate means a person who, directly or indirectly, through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, another person;

(B) Applicant means the person executing an application or an entity on whose behalf an application is submitted;

(C) Application means the form prescribed or approved by the commissioner for filing in connection with registration as a broker-dealer or sales representative and any information, document, report, or memorandum filed as a part of that form or is incorporated by reference and any other documentation, information, report, or memorandum required to be filed in connection with registration;

(D) Broker-dealer means commodity broker-dealer as defined in subsection (1)(H) for the purposes of this chapter only;

(E) Certified means, when used in connection with financial statements, certified by an independent certified public accountant in accordance with generally accepted accounting practices;

(F) CFTC means the Commodity Futures Trading Commission;

(G) Code means sections 409.800– 409.863, RSMo, (Senate Committee Substitute for House Bill Nos. 409 and 532 enacted into law by the 83rd General Assembly), otherwise known as the Missouri Model Commodities Code;

(H) Commodity broker-dealer means any one (1) person engaged in the business of effecting transactions in commodities under any commodity contract or under any commodity option for the account of other or for his/her own account. Commodity brokerdealer does not include a sales representative (but an individual who is a commodity broker-dealer may also be a sales representative);

(I) Commodity sales representative means any individual (including an individual who is a broker-dealer, a partner, officer, or director of a broker-dealer, or a person occupying a similar status or performing similar functions) who represents a broker-dealer in effecting or attempting to effect purchases or sales of commodities;

(J) Division means the Division of Securities, Office of Secretary of State for Missouri or the Office of the Commissioner of Securities of Missouri;

(K) FINRA means the Financial Industry Regulatory Authority;

(L) NFA means the National Futures Association;

(M) For offer or offer to sell, see Kreis v.

Mates Investment Fund, Inc., 473 F.2d 1208 (1973);

(N) Parent means an affiliate controlling another person;

(O) Predecessor means a person, a major portion of whose business, assets, or control has been acquired by another;

(P) Registrant means an applicant for whom a registration has become effective;

(Q) Sales representative means commodity sales representative as defined in subsection (1)(I) for the purposes of this chapter only.

History

AUTHORITY: section 409.836, RSMo 2000. Oct. 12, 1985, expired Feb. 9, 1986. Origi- 30, 1987. Amended: Filed May 21, 2009, effective Nov. 30, 2009.

15 CSR 30-59.020 General Instructions {#sec-15-csr-30-59.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.020}

PURPOSE: This rule covers general instructions applicable to persons applying for registration as broker-dealers or sales representatives.

(1) A broker-dealer or agent may be registered or renewed as such under the Missouri Model Commodities Code (the Code), if the commissioner finds that the applicant is qualified, has sufficient training, knowledge and experience in the commodities business, is of good repute and has otherwise fully satisfied the requirements of the Code and this chapter. In determining which activities require registration under the Code, see sections 409.803 and 409.840, RSMo.

(2) The applicant, if an individual, shall have attained the age of eighteen (18) years.

(3) A foreign corporation shall furnish a copy of the certificate of authority to transact business in Missouri or an opinion of counsel stating no such authority is required (section 351.570, RSMo).

(4) Any applicant who will engage in or transact business in Missouri under a name shall furnish evidence of registration of fictitious name (section 417.200, RSMo).

(5) A broker-dealer shall have and maintain at least one (1) sales representative.

(6) Any application for registration as a sales representative shall not be registered as representing more than one (1) broker-dealer at any one (1) time, except as follows:

(A) Where control and management of the broker-dealers or issuers are essentially identical; or (B) Where there is no conflict of interests and where prior to the dual registration, both broker-dealers have filed, written statements acknowledging the proposed dual agency and affirming that there will be no conflict. The statements must display an original signature of the appropriate signatory of the principal.

History

AUTHORITY: section 409.836, RSMo 2000. 60.010. Emergency rule filed Oct. 2, 1985, Jan. 30, 1987. Amended: Filed Feb. 13, 2003, effective Aug. 30, 2003.

15 CSR 30-59.030 Fees {#sec-15-csr-30-59.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.030}

PURPOSE: This rule prescribes policies and procedures for charging registration and other fees.

(10/31/09) ROBIN CARNAHAN

(1) All fees shall accompany the application or other filing to which they pertain.

(2) Fees shall be remitted by check, draft or money order (cash is not acceptable) payable to the Director of Revenue, State of Missouri, in accordance with the following:

(A) Registration of broker-dealers (section 409.850, RSMo)

Initial Registration$100;
Renewal Registration$ 75;

(B) Registration of each branch office of a broker-dealer 1. Initial Registration$ 50;

Renewal Registration$ 30;

(D) Copies of documents and records in the division, or reports relating to the documents or records, certified upon request, may be provided for a charge of:

First Five (5) Pages50¢ Additional Pages15¢ Plus For Certification$1.50;

(sections 28.160 and 409.836, RSMo);

(E) Interpretative opinions may be provided to interested persons for a charge of fifty dollars ($50) (section 409.836, RSMo); and (F) No refund of filing fees shall be permitted in the instances of applications for registration of broker-dealers and sales representatives even though the applications are denied or withdrawn (section 409.850(5), RSMo).

History

AUTHORITY: sections 409.836 and 409.850(5), RSMo 1986. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987. Original authority: 409.836, RSMo 1985 and 409.850,

15 CSR 30-59.040 Forms {#sec-15-csr-30-59.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.040}

PURPOSE: This rule prescribes the forms adopted and approved for filing with the commissioner.

(1) The following forms have been adopted and approved for filing with the division:

(A) C-4 Broker-Dealer, Sales Representative Statutory Bond (Broker-Dealer Fidelity Bond (Use commercial bond form)); and (B) C-16 Application for Renewal Registration As Sales Representative.

History

AUTHORITY: section 409.836, RSMo 1986. Oct. 12, 1985, expired Feb. 9, 1986. Origi- 30, 1987.

15 CSR 30-59.050 Broker-Dealer, Sales Representative Statutory Bond {#sec-15-csr-30-59.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.050}

(Rescinded August 30, 2003)

Oct. 12, 1985, expired Feb. 9, 1986. Origi- 30, 1987. Rescinded: Filed March 12, 2003, effective Aug. 30, 2003.

History

AUTHORITY: section 409.836, RSMo 1986.

15 CSR 30-59.060 Application for Renewal Registration as Sales Representative {#sec-15-csr-30-59.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.060}

(Rescinded August 30, 2003)

Oct. 12, 1985, expired Feb. 9, 1986. Origi- 30, 1987. Rescinded: Filed March 12, 2003, effective Aug. 30, 2003.

History

AUTHORITY: section 409.836, RSMo 1986.

15 CSR 30-59.070 Application for Registration {#sec-15-csr-30-59.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.070}

PURPOSE: This rule prescribes the information to be contained in and the documents to accompany, applications for registration as broker-dealer or sales representative.

Therefore, the material which is so incorporated is on file with the agency who filed this

rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency’s headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the rule is printed here. This note refers only to the incorporated by reference material.

(1) The application for registration as brokerdealer shall contain the information as follows:

(A) As to initial registration, the information specified in the application (Form BD), accompanied by the filing fee (section 409.850, RSMo), consent to service of process (Form BD) (section 409.838, RSMo), copies of articles of incorporation and any corporate resolutions, audited financial statement (15 CSR 30-59.090), unaudited financial statement accompanied by a computation of net capital (FOCUS Report, Form X-17A-5)(15 CSR 30-59.100(5)), general plan of business or appropriate schedule of Form BD, a surety bond if required (15 CSR 30-59.120), fidelity bond (15 CSR 30- 59.120), bank reference letter or letter of credit, offering circular sample forms and stationery and an appropriate personal information schedule of Form BD for each officer, director, partner and proprietor; or (B) As to renewal registration, the information specified in the execution page of the Form BD, attached to any amendments to the Form BD not filed previously, accompanied by the filing fee (section 409.830, RSMo and 15 CSR 30-59.030(2)), a disclosure statement (15 CSR 30-59.190) and applicable financial statement accompanied by a net capital computation (FOCUS Report Form X-17A-5) (15 CSR 30-59.100(5)) (see also 15 CSR 30-59.170(3)–(6)).

(2) The application for initial and renewal registration as sales representative shall contain the information as follows:

(A) Initial registration of sales representatives, the information specified in the Form U-4 (see 15 CSR 30-59.020, accompanied by the filing fee (section 409.850, RSMo), a photograph taken within one (1) year, a surety bond if required (15 CSR 30-59.120) and proof of passing any required examinations (15 CSR 30-59.080); and (B) As to renewal registration of sales representatives of broker-dealers, the information specified in the application (Form C-16, see 15 CSR 30-59.040) and accompanied by the filing fee (section 409.850, RSMo and 15 CSR30-59.030(2)).

(3) Any amendment of an application shall be filed, by the appropriate form marked “AMENDED” (section 409.858(7), RSMo), with the commissioner.

(4) Any application which has been on file for a period of six (6) months or more without any affirmative action by the applicant to complete the application shall be considered to have been withdrawn.

History

AUTHORITY: sections 409.850, 409.858(7) and 409.836, RSMo 1986. This rule was previously filed as 15 CSR 30-60.020. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule Original authority: 409.836, RSMo 1985; 409.850, RSMo 1985; and 409.858, RSMo 1985.

15 CSR 30-59.080 Examination {#sec-15-csr-30-59.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.080}

PURPOSE: This rule prescribes the policies and procedures for administering examinations of applicants for registration as brokerdealers and as sales representatives.

(1) Unless specifically exempted as provided in this rule, a written examination in the form and content prescribed or approved by the commissioner shall be taken and passed by every applicant for registration as a brokerdealer or sales representative, before the applicant shall be considered qualified for registration (section 409.853, RSMo. An applicant, other than an individual, shall qualify by examination taken and passed by an executive officer of the applicant or other person approved by the commissioner. The following examinations are required for the following applicants:

(A) Sales representatives of broker-dealers are required to take and pass the USASLE (Series 63) examinations and the NCFE (Series 3); and (B) Qualifying officers of broker-dealers are required to take and score eighty percent (80%) or better on the NCFE (Series 3) and to take and pass the USASLE (Series 63) examinations.

(2) If an applicant has previously taken an examination which does not fall within the requirements set out in section (1), the applicant may submit a written request for substitution; if the commissioner deems it appropriate, a passing grade on another examination will be accepted in lieu of a passing grade on a required examination.

(3) Applicants fully qualified, with respect to the general securities or commodities business and with respect to the Code and this

chapter, by virtue of special education or fulltime active experience for five (5) years or more, will be granted a waiver from the examination requirements upon submission of a written request for the waiver. No waiver will be granted for the examination requirements of the qualifying officer unless the commissioner determines that extraordinary circumstances warrant the waiver.

History

AUTHORITY: section 409.853, RSMo 1986. 60.030. Emergency rule filed Oct. 2, 1985, Jan. 30, 1987. Original authority 409.853, RSMo 1985.

15 CSR 30-59.090 Financial Statements {#sec-15-csr-30-59.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.090}

PURPOSE: This rule prescribes the content of financial statements filed by persons applying for registration, and by persons registered, as broker-dealers.

Therefore, the material which is so incorporated is on file with the agency who filed this

(1) A financial statement shall consist of a balance sheet, a profit and loss statement, statement of change in financial condition, certified unless otherwise prescribed in this

rule or permitted by the commissioner (section 409.858, RSMo).

(2) Every applicant for initial registration as broker-dealer shall file a financial statement as follows:

(A) As to initial registration as a brokerdealer, the applicant shall file a certified financial statement as of a date within thirty (30) days prior to the filing; provided if the applicant has been engaged in business one (1) year or more, s/he may file a certified financial statement as of the end of his/her last fiscal period together with a balance sheet, which need not be certified, as of a date within thirty (30) days prior to the filing;

(B) If the annual financial statement is more than six (6) months old, s/he shall also file a semi-annual financial statement, which need not be certified. The semi-annual financial statement may consist wholly of a completed FOCUS report for that period.

(3) Every registered broker-dealer shall file a certified financial statement within ninety (90) days after the end of its fiscal period, unless an extension of time is granted upon written request.

(4) A net capital computation (FOCUS Report, Form X-17A-5), as of the date of the balance sheet, shall accompany the financial statements.

(5) Registered broker-dealers shall file a semi-annual financial statement, which need not be certified, within sixty (60) days after the end of the six (6)-month period following the end of the fiscal year. A completed FOCUS report may be substituted for semiannual net capital computations and financial statements.

(6) Every applicant for renewal registration as broker-dealer shall file a financial report consisting of a balance sheet and net capital computation, or a completed FOCUS report, as of a date within sixty (60) days of the date of filing.

History

AUTHORITY: section 409.858, RSMo 1986. 60.040. Emergency rule filed Oct. 2, 1985, Jan. 30, 1987.

15 CSR 30-59.100 Net Capital Requirements for Broker-Dealers {#sec-15-csr-30-59.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.100}

PURPOSE: This rule prescribes the minimum net capital and ratio between net capital and aggregate indebtedness required of registered broker-dealers.

(1) A broker-dealer shall have the net capital necessary to comply with all of the following conditions:

(A) The aggregate indebtedness to all other persons of a broker-dealer who has been registered under section 409.850, RSMo shall not exceed one thousandth percent (.001%) of his/her net capital; and (B) S/he shall have and maintain net capital of not less than twenty thousand dollars ($20,000).

(2) The commissioner, by order, which may apply individually or to a class, may establish a lower net capital requirement, a lower cash reserve requirement or a higher maximum ratio of aggregate indebtedness to net capital either unconditionally or upon special terms or conditions, for a broker-dealer who satisfied the commissioner that because of the special nature of his/her business and his/her financial condition and the safeguards that have been established for the protection of customers’ funds, investors would not be adversely affected.

(3) A broker-dealer not in compliance with the aggregate indebtedness, net capital or cash reserve requirements shall cease soliciting new business and immediately shall notify the commissioner in writing.

(4) For the purposes of this rule and to insure uniform interpretation, the terms, aggregate indebtedness and net capital shall have the respective meanings as defined in rule15c3-1 under the Securities Exchange Act of 1934. A copy of any pertinent subordination agreement shall be filed with the commissioner within ten (10) days after agreement has been entered into and shall meet the requirements of a satisfactory subordination agreement as that term is defined in rule 15c3-1.

History

AUTHORITY: section 409.858, RSMo 1986. 60.050. Emergency rule filed Oct. 2, 1985, Jan. 30, 1987.

15 CSR 30-59.110 Broker-Dealer Notice of Net Capital Deficiency to furnish the commissioner notice of impending net capital deficiency and announces that the commissioner, once a year and without prior notice, may require all registered broker-dealers to furnish a net capital report. {#sec-15-csr-30-59.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.110}

(1) Every registered broker-dealer shall make a computation of its net capital and ratio of its aggregate indebtedness to its net capital not less than monthly and shall comply with the following requirements:

(A) No withdrawal or any part of its net worth, including subordinated indebtedness, whether by redemption, retirement, repurchase, repayment or otherwise, shall be permitted or effected that will cause its net capital to be less than one hundred twenty percent (120%) of the amount prescribed in

15 CSR 30-59.100 or its aggregate indebtedness to exceed one thousand five hundred percent (1,500%) of its net capital, without notice to the commissioner as follows in subsections (1)(B) and (C) (section 409.858, RSMo); {#sec-15-csr-30-59.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.100}

(B) Every broker-dealer to which this rule is applicable, whose net capital is less than one hundred twenty percent (120%) of the amount prescribed in 15 CSR 30-59.100 or whose aggregate indebtedness exceeds one thousand five hundred percent (1,500%) of its net capital, promptly shall notify the commissioner in writing of the deficiency and its extent; and (C) Every broker-dealer to which this rule is applicable shall file with the commissioner a report in writing on its net capital and ratio of its aggregate indebtedness to its net capital as of the end of each month in which its net capital is less than one hundred twenty percent (120%) of the amount prescribed in 15 CSR 30-59.100 or its aggregate indebtedness exceeds one thousand two hundred percent (1,200%) of its net capital, promptly after it has knowledge of that fact and in no event later than fifteen (15) days after the end of each such month.

(2) The commissioner, in coordination with the securities administrators of other states and in addition to any other reports s/he may require, may require all registered brokerdealers to which section (1) is applicable to file reports on their net capital and aggregate indebtedness as of the end of any month, without prior notice, once during each year (section 409.858(2), RSMo).

History

AUTHORITY: section 409.858, RSMo 2016. 60.060. Emergency rule filed Oct. 2, 1985, Jan. 30, 1987. Amended: Filed July 19, 2019, effective Jan. 30, 2020.

15 CSR 30-59.120 Bonds {#sec-15-csr-30-59.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.120}

PURPOSE: This rule prescribes surety bonding requirements for registered broker-dealers and sales representatives and fidelity bonding requirements for registered brokerdealers.

(1) Every registered broker-dealer shall post surety bond on Form C-4 (see 15 CSR 30- 59.040) in the amount of twenty thousand dollars ($20,000), except that no such bond is required of any broker-dealer whose net capital exceeds two hundred thousand dollars ($200,000).

(2) Every registered sales representative of a broker-dealer shall post security (surety) bond on Form C-4 in the amount of five thousand dollars ($5,000), except that no such bond is required of any sales representative of a registered broker-dealer whose net capital exceeds two hundred thousand dollars ($200,000).

(3) Employees and officers of every registered broker-dealer shall be covered by a fidelity bond in the following minimum amounts: Less than six (6) individuals covered fifty thousand dollars ($50,000); more than five (5) and less than eleven (11) individuals covered seventy-five thousand dollars ($75,000); more than ten (10) persons one hundred twenty-five thousand dollars ($125,000). The coverage provided shall be under a Brokers Blanket Bond Standard Form 14 or its equivalent. Individual broad coverage commercial bonds may be carried when the total number of individuals covered is less than six (6). Any fidelity bond coverage meeting the requirements of the American Stock Exchange, the Boston Stock Exchange, the Midwest Stock Exchange, Inc., the New York Stock Exchange, Inc., the Pacific Stock Exchange, Inc., the PBW Stock Exchange, Inc. or the Chicago Board Options Exchange, Inc. shall be deemed in compliance. Authenticated copies of fidelity bonds shall be filed with the commissioner.

(4) Every insurer shall agree to notify the commissioner, in writing, at least thirty (30) days prior to any cancellation.

(5) All bonds, other than those secured by cash or securities, shall be executed by a corporate surety approved and authorized to do business in Missouri by the director of insurance. If any bond is executed by an attorneyin-fact, a true and authenticated copy of his/her authority shall be attached to the bond.

History

AUTHORITY: section 409.858(4), RSMo CSR 30-6.070. Emergency rule filed Oct. 2, 1986. Original rule filed Aug. 22, 1986,

15 CSR 30-59.130 Segregation of Accounts by Broker-Dealers {#sec-15-csr-30-59.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.130}

PURPOSE: This rule prescribes the commingling by broker-dealers of their personal funds and commodities with those of their customers and provides for the maintenance of separate records.

(1) Every broker-dealer shall at all times keep its customers’ funds and commodities in trust and segregated from its own funds and commodities provided, however, that compliance with Securities and Exchange Commission or Commodity Futures Trading Commission regulations governing the use, commingling and hypothecation of customers’ commodities and free credit balances shall be deemed in compliance with this rule.

(2) Every broker-dealer which engages in more than one (1) enterprise or activity shall maintain separate books of accounts and records relating to its commodities business and its other businesses and the assets relating to its commodities business shall not be commingled with those of such other businesses. Every broker-dealer shall maintain a clearly defined division among such businesses with respect to income and expenses.

History

AUTHORITY: sections 409.858(6) and 409.863, RSMo 1986. This rule was previously filed as 15 CSR 30-60.080. Emergency Original authority: 409.858, RSMo 1985 and 409.863,

15 CSR 30-59.140 Confirmations to confirm transactions in customers’ commodities. {#sec-15-csr-30-59.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.140}

(1) Confirmations by broker-dealers of all purchases and sales of commodities and notices of all other debits and credits for securities, cash and other items for the account of customers, officers, agents, partners and employees shall be given or sent to such persons at or before completion of each transaction and shall disclose at least the following:

(A) The account for which entered;

(B) Instructions, terms and conditions, including price, quantity and description of the transaction whether executed or unexecuted;

(D) Whether the broker-dealer is acting for its own account, as agent for some other person or as an agent for both the customer and some other person;

(E) If a broker-dealer is acting as agent for the customer, the following additional information or a statement that the information will be furnished upon request:

The name of the person from whom the security was purchased or to whom it was sold, the date and time the transaction occurred; and 2. Source and amount of commission or remuneration received or to be received in connection with the transaction;

(F) Name or identification number of sales representative handling transaction;

(G) Whether the transaction was solicited or unsolicited; and (H) Whether the broker-dealer is a market maker or has holdings in the commodity in excess of one (1) million dollars.

History

AUTHORITY: sections 409.858(6) and 409.863, RSMo 1986. This rule was previously filed as 15 CSR 30-60.090. Emergency Original authority: 409. 858, RSMo 1985 and 409.863,

15 CSR 30-59.150 Records Required of Broker-Dealers and Sales Representatives {#sec-15-csr-30-59.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.150}

PURPOSE: This rule prescribes the books and records to be kept by broker-dealers and sales representatives.

(1) Every broker-dealer shall make and keep current the following books and records relating to his/her business (provided, however, that compliance with the requirements of the Commodity Futures Trading Commission or Securities and Exchange Commission with respect to maintenance of books and records shall be deemed to be compliance with this

rule):

(A) Blotters (or other records of original entry) containing an itemized daily record of all purchases and sales of commodities, all receipts and deliveries of commodities, all receipts and disbursements of cash and all other debits and credits. This record shall show the account for which each such transaction was effected, the type and amount of commodities, the unit and aggregate purchase or sale price (if any), the trade date and the name or other designation of the person from whom purchased or received or to whom sold or delivered;

(B) Ledgers (or other records) reflecting all assets and liabilities, income and expense and capital accounts;

(C) Ledger accounts itemized separately as to cash and margin account of every customer and of that broker-dealer, its partners, agents and employees, all purchases, sales receipts and deliveries of commodities for that account and all other debits and credits to that account;

(D) Ledgers (or other records) reflecting the following:

Commodities in transfer;
Appreciation or depreciation on investment;
Commodities borrowed and commodities loaned; and 4. Moneys borrowed and moneys loaned (together with a record of the collateral and substitutions in that collateral);

(E) A memorandum of each brokerage order and of any other instruction, given or received for the purchases or sale of commodities, whether executed or unexecuted.

This memorandum shall show the terms and conditions of the order and of any other instruction, given or cancellation of, the account for which entered, the time of entry, the price at which executed and, to the extent feasible, the time of execution or cancellation. Orders entered pursuant to the exercise of discretionary power by the broker-dealer or any employee shall be so designated. The term instruction shall include instructions between partners and employees of a brokerdealer. The term time of entry shall mean the time when the broker-dealer transmits the order or instructions for execution or, if it is not so transmitted, the time when it is received;

(F) A memorandum of each purchase and sale of commodities for the account of the broker-dealer showing the price and, to the extent feasible, the time of execution;

(G) Copies of confirmations of all purchases and sales of commodities, copies of all memoranda forwarded to purchasers executing unsolicited orders and copies of all other debits and credits for securities, commodities, cash and other items for the account of customers and partners of the broker-dealer;

(H) A record in respect of each cash and margin account with the broker-dealer containing the name and address of the beneficial owner of the account and, in the case of a margin account, the signature of the owner; provided that, in the case of a joint account or an account of a corporation, these records are required only in respect of the person(s) authorized to transact business for the account.

(2) Every sales representative shall make and keep current the following records relating to his/her business:

(A) Cross reference sheets for each type and grade of commodity reflecting the customer’s name, the amount of commodity purchased or sold (if any), the unit and aggregate purchase or sale price (if any), the trade dates and the aggregate net gain or loss; and (B) Holding pages for each customer reflecting for each type and grade of commodity, the amount of commodity purchased or sold (if any), the unit and aggregate purchase or sale price (if any), the trade dates and the aggregate net gain or loss.

History

AUTHORITY: section 409.858(6), RSMo CSR 30-60.100. Emergency rule filed Oct. 2, 1986. Original rule filed Aug. 22, 1986,

15 CSR 30-59.160 Records to be Preserved by Broker-Dealers {#sec-15-csr-30-59.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.160}

PURPOSE: This rule prescribes periods of time books and records of broker-dealers must be preserved.

(1) Every broker-dealer shall preserve for a period of not less than six (6) years, the first two (2) years in an easily accessible place, all records required to be made pursuant to these rules.

(2) Every broker-dealer shall preserve for a period of not less than three (3) years and, for the first two (2) years, in an easily accessible place, the following:

(A) All check books, bank statements, cancelled checks, voided checks and cash reconciliations;

(B) All bills, receivable or payable (or copies) paid or unpaid relating to the business of the broker-dealer;

(C) Originals of all communications received and copies of all communications sent by the broker-dealer (including interoffice memoranda and communications) relating to his/her broker-dealer business;

(D) All net capital computations, trial balances, financial statements, branch office reconciliations and internal audit working papers, relating to the business of the brokerdealer;

(E) All guarantees of accounts and all powers of attorney and other evidence of the granting of any discretionary authority given in respect to any account and copies of resolutions empowering an agent to act on behalf of a corporation; and (F) All written agreements (or copies) entered into by that broker-dealer relating to his/her business, including agreements with respect to any account.

(3) For a period of not less than six (6) years after the closing of any customer’s account, every such broker-dealer shall preserve any account cards or records which relate to the terms and conditions with respect to the opening and maintenance of such account.

(4) During the life of the enterprise, and of any successor enterprise, every broker-dealer shall preserve all partnership articles or, in the case of a corporation, all articles of incorporation or charter, minute books and stock certificate books.

(5) After a record or other document has been preserved for two (2) years, its photograph on film may be substituted for the balance of the required time.

(6) Compliance with the requirements of the Commodity Futures Trading Commission or Securities and Exchange Commission with respect to preservation of records shall be deemed to be compliance with this rule.

History

AUTHORITY: section 409.858(6), RSMo CSR 30-60.110. Emergency rule filed Oct. 2, 1986. Original rule filed Aug. 22, 1986,

15 CSR 30-59.170 Effectiveness and Post- Effective Requirements {#sec-15-csr-30-59.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.170}

PURPOSE: This rule specifies when the registration of broker-dealers and sales representatives becomes effective, reports required during effectiveness and procedures for terminating the effectiveness and effecting withdrawal of registrations.

(1) If no suspension or denial orders are in effect or proceedings for these orders are pending, registration shall become effective no later than noon of the thirtieth day after the filing of an application is complete, but an earlier effective date may be specified by the commissioner (section 409.856, RSMo). Filing shall be considered complete when the application and all attachments and exhibits, as required by the commissioner, have been filed in the division and are satisfactory to the commissioner and the examination of the applicant has been accepted by the commissioner. Any application, the filing of which is not considered complete within a period of one (1) year following the original filing, shall be presumed subject to the entry of an order of cancellation pursuant to section 409.863(1), RSMo.

(2) During the pendency of any application, or effectiveness of any registration, every broker-dealer or sales representative immediately and in no event later than thirty (30) days following the specified event or occurrence, shall report to the commissioner, in writing, any material change in any information, exhibits, or schedules submitted or circumstances disclosed in its last prior application and a correcting amendment shall be filed in the division at the time of occurrence or discovery of these changes, which include, but are not limited to, the following:

(A) Change in firm name, ownership, management or control or change in any partners, officers or persons in similar positions, or business address, or the creation or termination of a branch office in Missouri;

(B) Change in type of entity, general plan or character of business, method of operation or type of commodities in which dealing or trading is being effected;

(C) Insolvency, dissolution, or liquidation or a material adverse change or impairment of working capital or noncompliance with the minimum capital or bond requirements specified previously;

(D) Termination of business or discontinuance of activities as a broker-dealer or sales representative;

(E) The filing of a criminal charge or civil or administrative action, in which a fraudulent, dishonest, or unethical act is alleged or a violation of a securities or commodities law is involved; or (F) Entry of an order or proceeding by any court or administrative agency denying, suspending, or revoking a registration or expelling the firm or individual from membership in any stock exchange, the Financial Industry Regulatory Authority (FINRA), or National Futures Association or threatening to do so, or enjoining it from engaging in or continuing any conduct or practice in the securities or commodities business.

(3) Every registration of a broker-dealer or sales representative expires on the first December 31 following registration, unless renewed or unless sooner revoked, cancelled or withdrawn (section 409.856(2), RSMo).

(4) Applications for renewal of registration filed directly with the commissioner shall be filed on the appropriate form marked renewal (see 15 CSR 30-59.040) with required information and exhibits no earlier than sixty (60) days and no later than thirty (30) days before the expiration date of the registration concerned.

(5) An applicant for renewal registration may incorporate by reference in the application documents previously filed to the extent the documents are currently accurate.

(6) Upon expiration of a registration, any subsequent application for registration shall be considered and treated as an application for initial registration.

(7) When a sales representative’s association with the broker-dealer or issuer who appoints him/her as sales representative is discontinued or terminated by either party, the brokerdealer must file within ten (10) days of that discontinuance or termination, a notice of that fact, stating the date of and reasons for the discontinuance or termination (Form U-5 or by letter). If the termination is for cause, the broker-dealer shall furnish the commissioner a detailed statement of the reasons.

Failure to file the notice of termination by the broker-dealer principal required by this rule within the specified ten (10)-day period will afford grounds for the suspension of the license of the broker-dealer to transact business in Missouri (sections 409.856(3) and (5), RSMo).

(8) Every broker-dealer who desires to withdraw his/her registration shall file an application (Form BDW). The request of a brokerdealer shall include a statement of financial condition as of a date within ten (10) days of that statement in detail as will disclose the nature and amount of assets and liabilities, net worth, unsatisfied judgments and liens and a statement of where and in whose custody the books and records will be kept, and, in the case of the broker-dealer, a schedule of commodities in which it has an interest and the market value of the commodities.

(9) In the event of a merger, consolidation, or reorganization of an existing registered broker-dealer— (A) The following documents must be filed:

The broker-dealer who will dissolve upon consummation of the merger or who will become a part of an existing broker-dealer upon reorganization or consolidation must file at least ten (10) days prior to a merger, consolidation, or reorganization— A. A termination of its broker-dealer registration on Form BDW;

B. A termination of all sales representative registrations; and C. A complete explanation of the proposed merger, consolidation or reorganization accompanied by the agreement effecting the merger, consolidation, or reorganization;

The broker-dealer who will be the surviving corporation upon consummation of the merger or who will be the named brokerdealer after the reorganization or consolidation must file the following documents at least ten (10) days prior to the merger, consolidation, or reorganization:

A. A complete explanation of the proposed merger;

B. Form U-4 applications plus supporting documents of all registered sales representatives of the dissolving broker-dealer to be transferred to the surviving, consolidated, or reorganized broker-dealer in accordance with 15 CSR 30-59.070 and section (7) of this rule; and C. If the name of the surviving, consolidated, or reorganized broker-dealer will change, an amended Form BD, as appropriate and all other properly amended documents required by 15 CSR 30-59.020 and this

rule.

History

AUTHORITY: sections 409.836 and 409.850– 409.856, RSMo 2016. This rule was previously filed as 15 CSR 30-60.120. Emergency Amended: Filed Feb. 13, 2003, effective Aug. 30, 2003. Amended: Filed July 19, 2019, effective Jan. 30, 2020. Original authority: 409.836, RSMo 1985, 409.850– 409.856 see Missouri Revised Statutes.

15 CSR 30-59.180 Denial, Revocation and Suspension of Registration {#sec-15-csr-30-59.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.180}

PURPOSE: This rule prescribes grounds for the denial, revocation or suspension of the registration of broker-dealers and sales representatives.

(1) Grounds for the denial, revocation and suspension of registration shall include, in addition to other grounds specified in section 409.863(1), RSMo, the following “unethical or dishonest conduct or practice in the investment commodities or securities business”:

(A) Delaying unreasonably and unjustifiably or failing to execute orders, liquidate customers’ accounts or in making delivery of securities or commodities purchased or in the payment upon request of free credit balances reflecting completed transactions of any of its customers;

(B) Entering into a transaction with or for a customer at a price not reasonably related to the current market price of the commodity or security or receiving an unreasonable commission or profit;

(C) Effecting transactions in the account of a customer without authority to do so; or exercising any discretionary power in effecting a transaction for a customer’s account without first obtaining written discretionary authority from the customer, unless the dis cretionary power relates solely to the time, price, or both, for the execution of orders;

(D) Willful switching, churning, overtrading or reloading of commodities or securities in a customer’s account for the purpose of accumulating or compounding commission or inducing trading in a customer’s account which is excessive in size or frequency in view of the financial resources and character of the account;

(E) Recommending to a customer the purchase, sale or exchange of any commodity or security without reasonable grounds to believe that the transaction or recommendation is suitable for the customer based upon reasonable inquiry concerning the customer’s investment objectives, financial situation and needs and any other relevant information known by the applicant or registrant;

(F) Engaging in or aiding in boiler room operations or high pressure tactics in connection with the promotion of speculative offerings or hot issues by means of an intensive telephone campaign or unsolicited calls to persons not known by, nor having an account with, the sales representative or broker-dealer represented by the sales representative, where the prospective purchaser is encouraged to make a hasty decision to buy, irrespective of his/her investment needs and objectives;

(H) Failing to furnish to a customer purchasing commodities, no later than the date of confirmation of the transaction, a disclosure statement as required in 15 CSR 30- 59.190, or making oral or written statements contrary to or inconsistent with the disclosures contained in the statement;

(I) Making false, misleading, deceptive, exaggerated or flamboyant representations or predictions in the solicitation or sale of commodity or security, as, for example 1. That the commodity or security will be resold or repurchased;

That it will be listed or traded on an exchange or established market;
That it will result in an assured, immediate or extensive increase in value, future market price or return on investment;
With respect to the issuer’s financial condition, anticipated earnings, potential growth or success;
That there is a guarantee against risk or loss; or 6. Representing that a commodity or security is being offered to a customer at the market or a price related to the market price unless the applicant or registrant knows or has reasonable grounds to believe that A. A market for that commodity or security exists other than that made, created or controlled by the applicant or registrant, or by any person for whom s/he is acting or with whom s/he is associated in such distribution, or any person controlled by, controlling or under common control with the applicant or registrant; and B. The commodity or security is traded in an established commodities or securities market, and the fact that the applicant or registrant is in a control position with respect to the market for that commodity or security is fully disclosed to the investor;

(J) Failing to disclose a dual agency capacity or effecting transactions upon terms and conditions other than those stated per confirmations, or failing to disclose that the applicant or registrant is controlled by, controlling, affiliated with or under common control with the issuer of any security before entering into any contract with or for a customer for the purchase or sale of security, or if the disclosure is not made in writing, failing to give or send a written disclosure at or before the completion of the transaction;

(K) Failing to make a bona fide public offering of all of the securities allotted to a broker-dealer for distribution, whether acquired as an underwriter, a selling group member or from a member participating in the distribution as an underwriter or selling group member; or entering into an underwriting or selling group agreement which establishes unfair or unreasonable terms and conditions or compensation;

(L) Establishing fictitious accounts in order to execute transactions which would otherwise be prohibited;

(M) Entering into agreements for selling concessions, discounts, commissions or allowances as consideration for services in connection with the distribution or sale of a commodity or security in Missouri to any unregistered broker-dealer or sales representative, or dividing or otherwise splitting the sales representative’s commissions, profits or other compensation from the purchase or sale of commodities or securities with any person not also registered as a sales representative for the same broker-dealer, or for a brokerdealer under direct or common control unless such person is not required to be registered in order to engage in the commodities or securities business in Missouri;

(N) Operating a commodities or securities business while being unable to meet current liabilities, or violating any rule or order relating to minimum capital, bond, record-keeping and reporting requirements, or provisions concerning use, commingling or hypothecation of commodities or securities;

(O) Failing or refusing to furnish a customer, upon reasonable request, information to which s/he is entitled, or to respond to a formal written demand or complaint;

(P) Extending, arranging for or participating in arranging for credit to a customer in violation of the regulations of the Commodity Futures Trading Commission (CFTC), Securities and Exchange Commission (SEC) or the regulations of the Federal Reserve Board;

(Q) Executing any transaction in a margin account without securing from the customer a properly executed written margin agreement, including, but not limited to, written authorization for the existence of such an account, within ten (10) days after the initial transaction in the account;

(R) Hypothecating a customer’s commodities or securities without having a lien on the commodities or securities unless the brokerdealer secures from the customer a properly executed written consent except as permitted by rules of the CFTC or SEC;

(S) Charging unreasonable and inequitable fees for services performed, including miscellaneous services such as collection of moneys due for principal, dividends or interest, exchange or transfer of commodities or securities, appraisals, safekeeping or custody of commodities or securities and other services related to its commodities or securities business;

(T) Offering to buy from or sell to any person any commodity or security at a stated price unless the applicant or registrant is prepared to purchase or sell, as the case may be, at a price and under conditions as are stated at the time of the offer to buy or sell;

(U) Effecting any transaction in or inducing the purchase or sale of any commodity or security by means of a manipulative, deceptive or fraudulent device, practice, plan, program, design or contrivance including, but not limited to:

Effecting any transaction in a commodity or security which involves no change in the beneficial ownership; and 2. Effecting, alone or with one (1) or more other persons, a transaction or series of transactions in any commodity or security creating actual or apparent active trading in the commodity or security or raising or depressing the price of the commodity or security for the purpose of inducing the purchase or sale of the commodity or security by others;

(V) Publishing or circulating or causing to be published or circulated, any notice, circular, advertisement, newspaper article, investment service or communication of any kind which purports to report any transaction as a purchase or sale of any commodity or security unless the applicant or registrant believes that the transaction was a bona fide purchase or sale of the commodity or security; or which purports to quote the bid or asked price for any commodity or security, unless the applicant or registrant believes that the quotation represents a bona fide bid for, or offer of, the commodity or security; or using any advertising or sales material in such a fashion as to be deceptive or misleading, such as the distribution of any nonfactual datum, material or presentation based on conjecture, unfounded or unrealistic claims or assertions in any brochure, flyer, or display by words, pictures, graphs or otherwise, designed to supplement, detract from, supersede or defeat the purpose or effect of any prospectus or disclosure;

(W) Borrowing of money, commodities or securities from a customer by a sales representative, or for a sales representative to act as a custodian for money, commodities or securities or an executed stock power of a customer;

(X) Sharing, by a sales representative, directly or indirectly in profits or losses in the account of any customer without the written authorization of the customer and the brokerdealer a sales representative represents; and (Y) Effecting commodities or securities transactions not recorded on the regular books or records of the broker-dealer the sales representative represents, unless the transactions are authorized in writing by the broker-dealer prior to the execution of the transaction.

History

AUTHORITY: sections 409.836 and 409.863, RSMo 1986. This rule was previously filed as 15 CSR 30-60.130. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987. Original authority: 409.836, RSMo 1985 and 409.863,

15 CSR 30-59.190 Disclosure Statements or sales representatives to furnish the customer disclosure regarding the commodity and the broker-dealer company. {#sec-15-csr-30-59.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.190}

(1) Broker-dealers or sales representatives must furnish to each customer purchasing commodities, no later than the date of confirmation of the transaction, a disclosure statement, which must set forth all of the information as follows:

(A) Risk factors including a statement regarding the stability of the specific commodity market and competition in this type of business;

(B) Explanation of the specific commodity market including place where trades are made and whether market was created or controlled by the broker-dealer company;

(C) Explanation of the broker-dealer company organizational structure including the names of officers, directors and affiliates of the broker-dealer company;

(D) Explanation of the broker-dealer’s longevity of operation in the commodities business and the name of the state under the laws of which it was organized;

(E) Statement setting forth the capitalization of the broker-dealer company; and (F) Description of any pending material litigation or administrative proceedings that involve the broker-dealer company or its officers, directors or affiliates. Include similar information as to any such proceedings known to be contemplated by governmental authorities.

(2) A copy of a disclosure statement (schedules of Form BD, see 15 CSR 30-51.020) must accompany each renewal application (Form BD, see 15 CSR 30-51.020) of brokerdealers filed under 15 CSR30-59.070(1)(B) and 15 CSR 30-59.170(4).

History

AUTHORITY: sections 409.810, 409.818 and 409.836, RSMo 1986. This rule was previously filed as 15 CSR 30-60.140. Emergency Original authority: 409.810, RSMo 1985; 409.818, RSMo 1985; and 409.836, RSMo 1985.

15 CSR 30-59.200 Promotional Materials to be Filed, Permitted Without Filing and Prohibited {#sec-15-csr-30-59.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-59.200}

PURPOSE: This rule prescribes the requirements for filing sales and advertising literature of the public offering of commodities and the types of advertising that are permitted and those that are prohibited.

(1) Any advertisement, display, pamphlet, brochure, letter, article or communication published in any newspaper, magazine or periodical, or script of any recording, radio or television announcement, broadcast or commercial to be used or circulated in connection with the sale and promotion of a public offering of commodities will be subject to the following requirements and restrictions:

(A) All sales and advertising literature and promotional material, other than that exempted by this rule, shall be governed by the following:

The applicant shall file with the commissioner, at least five (5) days before its intended dissemination, one (1) copy of each item of literature or material;
If not disallowed by the commissioner by written notice or otherwise within three (3) business days from the date filed, the literature or material may be disseminated;
No formal approval of the literature or material shall be issued by the commissioner; and 4. The disseminator of the literature or material shall be responsible for the accuracy and reliability of the literature and material and its conformance with the Missouri Uniform Securities Act and this rule; and (B) The following devices or sales presentation, and their use, will be deemed deceptive practices that cheat or defraud investors:
Comparison charts or graphs showing a distorted, unfair or unrealistic relationship between the commodity’s past performance and that of another commodity or investment media;
Layout, format, size, kind and color of type used so as to attract attention to favorable or incomplete portions of the advertising matter, or to minimize less favorable, modified or modifying portions necessary to make the entire advertisement a fair and truthful representation;
Statements or representations which predict future profit, success, appreciation, performance or otherwise relate to the merit or potential of the commodities unless the statements or representations clearly indicate that they represent solely the opinion of the publisher;
Generalizations, generalized conclusions, opinions, representations and general statements based upon a particular set of facts and circumstances unless those facts and circumstances are stated and modified or explained by additional facts or circumstances as are necessary to make the entire advertisement a full, fair and truthful representation;
Sales kits or film clips, displays or exposures, which, alone or by sequence and progressive compilation, tend to present an accumulative or composite picture or impression of certain, or exaggerated potential, profit, safety, return or assured or extraordinary investment opportunity or similar benefit to the prospective purchaser;
Distribution of any nonfactual or inaccurate data or material by words, pictures, charts, graphs or otherwise, based on conjectural, unfounded, extravagant or flamboyant claims, assertions, predictions or excessive optimism; and 7. Any package or bonus deal, prize, gift, gimmick or similar inducement, combined with or dependent upon the sale of some other product, contract or service, unless that unit or combination has been fully disclosed and specifically described and identified in the application as the security being offered.

(2) The following forms and types of advertising are permitted without the necessity for filing or prior authorization by the commissioner, unless specifically prohibited:

(A) So-called tombstone advertising, containing no more than the following information:

Name and address of broker-dealer;
Identity, type or grade of commodity;
Per unit offering price and amount of offering; and 4. Brief, general description of commodity; and (B) Dissemination of any data incorporated in the disclosure statement (15 CSR 30- 59.190), so long as the use of that material, out of context, does not tend to detract from, distort, supersede or express a different meaning of the representations or disclosures contained in the statement.

(3) Any person who prepares, distributes or causes to be issued or published any sales literature which is knowingly inaccurate, false, misleading or tending to mislead in any material respect or otherwise in violation of the provisions of these rules may be held responsible and accountable in any administrative or civil proceeding arising under sections 409.800 409.863, RSMo or this chapter.

History

AUTHORITY: sections 409.810, 409.818 and 409.836, RSMo 1986. This rule was previously filed as 15 CSR 30-60.150. Emergency Original authority: 409.810, RSMo 1985; 409.818, RSMo 1985; 409.836, RSMo 1985.

Chapter 60spnotice * - moved to 15 CSR 30-59

15 CSR 30-60spnotice * - moved to 15 CSR 30-59 {#sec-15-csr-30-60spnotice omnilex-key=us-mo-regs-official--title-15--15 CSR 30-60spnotice}

MATTBLUNT(11/30/02)

Rules of ELECTED OFFICIALS Division 30óSecretary of State SPECIAL NOTICE

Chapter 60 On January 30, 1987, Division 30, Chapter 60ó Registration and Operations of Commodity, Broker-Dealers and Sales Representatives transferred to Division 30, Chapter 59óRegistration and Operations of Commodity Broker-Dealers and Sales Representatives. The rules of the Registration and Operations of Commodity Broker-Dealers and Sales Representatives may be found at 15 CSR 30-59.

Chapter 70 Safe at Home: Address Confidentiality Program

15 CSR 30-70.010 Definitions RSMo. {#sec-15-csr-30-70.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.010}

This rule provides definitions of terms in addition to those found in section 589.660, RSMo for the administration of the program.

(1) Address—A residential street address, school address, or work address of a Safe at Home Program participant.

(2) Address Confidentiality Program—A program to protect victims of domestic violence, rape, sexual assault, human trafficking, stalking, or other crimes who fear for their safety, as well as the safety of individuals residing in the same household as the victim, by authorizing the use of designated addresses for such victims, their minor children, and individuals residing with them.

(3) Authorization card/letter—Card or letter issued by the secretary of state to a Safe at Home Program participant upon certification to the Safe at Home Program, which includes the Safe at Home Program participant’s name, authorization code, voter code, designated address, signature, and certification expiration date.

(4) Authorization code—A number assigned to a Safe at Home Program participant upon acceptance into the Safe at Home Program.

(5) Application—Standard application form provided by the secretary of state which must be completed by an applicant to the Safe at Home Program facilitated by an application assistant as defined by section 589.663, RSMo.

(6) Application assistant—An employee or volunteer of a government agency, or of a nonprofit program that provides counseling, referral, shelter, or other specialized service to victims of domestic violence, rape, sexual assault, human trafficking, stalking, or other crimes and who has been designated by the respective agency or program, and who has been trained and registered by the secretary of state to assist individuals in the completion of the Safe at Home Program participation applications.

(7) Certification—The process by which an applicant is determined eligible to participate in the Safe at Home Program.

(8) Designated address—The address assigned to a Safe at Home Program participant by the secretary.

(9) Mailing address—An address that is recognized for delivery by the United States Postal Service.

(10) Program—The Safe at Home: Address Confidentiality Program established in section 589.663, RSMo.

(11) Program manager—Employee of the Office of the Secretary of State designated by the secretary to administer the Safe at Home Program pursuant to sections 589.660–589.681, RSMo.

(12) Program participant—A person certified by the secretary of state as eligible to participate in the Safe at Home Program.

(13) Qualified agency—A government agency or nonprofit program that provides counseling, referral, shelter, or other specialized service to victims of domestic violence, rape, sexual assault, human trafficking, stalking, or other crimes.

(14) Secretary—The secretary of state. This may also include the secretary of state’s office and the secretary’s designee.

(15) Voter code—A code assigned to a Safe at Home Program participant upon acceptance into the Safe at Home Program which is to be used for identification purposes when registering to vote or when voting.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

Emergency amendment filed Aug. 23, 2018, effective Sept. 2, 2018, expired Feb. 28, 2019. Amended: Filed Aug. 23, 2018, effective Feb. 28, 2019.

15 CSR 30-70.020 Application Assistant Training, Registration, and Renewal RSMo. {#sec-15-csr-30-70.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.020}

This rule describes the manner and process for application and registration to the program by application assistants.

(1) All application assistants shall be trained and registered by the secretary in order to participate in the program.

(2) The application assistant may only be registered when the prospective application assistant— (A) Is an employee or volunteer with a qualified agency and can confirm to the secretary relevant qualifications to work with victims of domestic violence, rape, sexual assault, human trafficking, stalking, or other crimes;

(B) Successfully completes a program orientation and training session sponsored by the secretary;

(C) Completes an application assistant agreement form provided by the secretary. The application assistant agreement form, 2018, incorporated herein by reference, is published by the Missouri Secretary of State, PO Box 1767, Jefferson City, MO 65102-1767. This form does not include any amendments or additions. The form is available at the secretary of state’s office or may be obtained by email to safeathome@sos.mo.gov or by mailing a written request to Safe at Home, PO Box 1409, Jefferson City, MO 65102-1409;

(D) Agrees to adhere to the policies, procedures, and directions provided by the program manager for rendering assistance to program applicants;

(E) Agrees to adhere to the instructions and terms provided in the application assistant agreement including the obligation to notify the secretary of any change of employment; and (F) Registers with the secretary as a voter registration solicitor on a form provided by the secretary, if the prospective application assistant would otherwise be required to register as a voter registration solicitor under section 115.205 RSMo.

(3) Application assistant registration shall be valid for two (2) years, unless terminated sooner as provided in these rules.

(4) The application assistant shall agree not to discriminate against any client or potential program participant pursuant to Missouri law.

(5) The application assistant performing under this contract is not deemed to be an employee of the secretary or an agent of the secretary in any manner whatsoever. The application assistant will not hold oneself out as, nor claim to be an officer or employee of the secretary or of the state of Missouri simply by holding the title of program application assistant and will not make any claim, demand, or application to or for any right or privilege applicable to an officer or employee of the secretary or of the state of Missouri.

(6) An application assistant’s registration may be terminated by the secretary for failing to abide by any requirement in this

rule or for failing to act in accordance with requirements of the program.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

Emergency amendment filed Aug. 23, 2018, effective Sept. 2, 2018, expired Feb 28, 2019. Amended: Filed Aug. 23, 2018, effective Feb. 28, 2019.

15 CSR 30-70.030 Program Participant Application and Certification Process RSMo. {#sec-15-csr-30-70.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.030}

This rule describes the manner and process for application and certification to the program by prospective participants.

PUBLISHER’S NOTE: The secretary of state has determined that publication of the entire text of the material that is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this

(1) An applicant to the program shall complete and sign the standard application form provided by the secretary and provide all the information required under section 589.663, RSMo, and these rules. The standard application form shall include, but not be limited to, the date the application was prepared; the applicant’s signature; and the signature and registration number of the application assistant who assisted the applicant in applying to become a program participant, as provided in section 589.663, RSMo; a designation of the secretary as agent for purposes of service of process and for receipt of first-class mail, legal documents, and certified mail; a signed statement that the applicant has good reason to believe that the applicant is a victim as defined by the statute or resides in the same household as a victim and fears future harm; a mailing address where the applicant may be contacted by the secretary and the telephone number or numbers where the applicant may be called by the secretary; and one (1) or more address(es) that the applicant requests not be disclosed for the reason that disclosure will jeopardize the applicant’s safety or increase the risk of violence to the applicant or members of the applicant’s household. The applicant shall be provided the option to sign a form authorizing the secretary, or the secretary’s designee, to open and review legal documents addressed to the program participant at the designated address, including, but not limited to, summonses, writs, demands, notices, or service of process that are delivered by personal service, certified mail, or United States Postal Service before forwarding such documents to the participant, to enable the secretary to notify the participant if an immediate response is required from the participant. The applicant may attach any relevant supporting documentation such as police reports or court documents to the application. The program participant application form, 2018, incorporated herein by reference, is published by the Missouri Secretary of State, PO Box 1767, Jefferson City, MO 65102-1767. This form does not include any amendments or additions. The form is available at the secretary of state’s office or may be obtained by email to safeathome@sos.mo.gov or by mailing a written request to Safe at Home, PO Box 1409, Jefferson City, MO 65102-1409.

(2) The application assistant who assists the applicant shall provide the applicant with the opportunity to register to vote or to change the name or address on the applicant’s voter registration record on forms provided by the secretary. The completed voter registration application shall not contain the applicant’s address. The completed voter registration application shall be transmitted to the secretary with the applicant’s completed program application.

(3) The application assistant shall assist the applicant in accessing and completing the application form. Under no circumstances shall the application assistant retain, reproduce, or store a copy of the completed application. If electronic submission is unavailable, the secretary may, upon request, provide the application assistant with a printed application and a return envelope. Upon completion, the application assistant shall— (A) Submit the application electronically; or (B) Mail the completed application within twenty-four (24) hours, if electronic submission is not available.

(4) A properly completed application shall be effective on the day that it is certified by the program manager. The program manager shall, within five (5) business days of receipt of a completed application, either certify the applicant for participation in the program or notify the applicant of the reason(s) why the applicant was not certified.

(5) An individual who is certified as a program participant shall be issued an authorization card/letter which includes the participant’s name, authorization code, designated address, voter code, signature, and certification expiration date immediately upon certification by the program manager.

(6) The term of a program participant’s certification shall be four (4) years following the certification date of the application unless the certification is withdrawn by the participant or canceled by the secretary before that date pursuant to section 589.666, RSMo, or these rules. The program manager shall send a program participant notification of an expiring certification and a renewal form not later than four (4) weeks prior to the expiration of the program participant’s certification.

(7) If there is a change in the program participant’s name, mailing address, or other address from the one (1) listed on the application, the program participant shall notify the program manager of such change within ten (10) days of the change on a form prescribed by the secretary.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

Emergency amendment filed Aug. 23, 2018, effective Sept. 2, 2018, expired Feb 28, 2019. Amended: Filed Aug. 23, 2018, effective Feb. 28, 2019. Amended: Filed June 3, 2025, effective Jan. 30, 2026.

15 CSR 30-70.040 Cancellation of Program Certification RSMo. {#sec-15-csr-30-70.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.040}

This rule describes the manner and process for cancellation of certification to the program.

(1) Program certification shall be canceled if any of the following occur:

(A) The program participant fails to notify the program manager in writing signed by the participant of a change in the program participant’s name or mailing address within ten (10) business days of the change; or (B) The participant relocates outside of the state of Missouri; or (C) The applicant or program participant violates subdivision (2) of section 589.663.

(2) Upon notification of cancellation of a participant’s program certification, the program participant shall immediately destroy the authorization card/letter by cutting it into at least two (2) pieces and returning the pieces to the program manager.

(3) If certification for the program is canceled based on one (1) of the conditions set forth in section 589.666, RSMo or this rule, the program manager shall notify the program participant of the cancellation and the reasons for the cancellation by mail addressed to the participant’s last known mailing address not less than two (2) weeks before the date that the cancellation will be effective.

(4) A program participant whose certification has been canceled, withdrawn, or expired may reapply for certification.

(5) The secretary shall not make a former program participant’s address available for inspection or copying except as provided for by sections 589.664, 589.672, and 589.675, RSMo.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

15 CSR 30-70.050 Exercise of Program Participant’s Privileges RSMo. {#sec-15-csr-30-70.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.050}

This rule describes the manner and process of exercise of program participant privileges.

(1) A program participant shall request that a court or government agency use the designated address assigned by the secretary as the participant’s address at the time of creation of any new record.

(2) A program participant shall show the authorization card/ letter to the court or government agency official creating a new record and request address confidentiality through use of the designated address. The designated address shall appear on the program participant’s authorization card/letter.

(3) Authorized court or government agency personnel may make a file photocopy of the authorization card/letter and shall immediately return the authorization card/letter to the program participant.

(4) A court or government agency shall accept the designated address unless the agency has received a written record disclosure determination from the secretary under section 589.669 or 589.672, RSMo and these rules.

(5) A court or government agency shall not question the program participant about the details or circumstances of the participant’s inclusion in the program. Rather, the court or agency shall accept the determination made by the secretary that the participant is a certified program participant.

(6) Authorized court or government agency personnel may request verification from the secretary of a program participant’s residency in a geographic service district where such information is necessary to determine eligibility for agency services for the program participant or the participant’s minor children, including but not limited to, the verification of the participant’s residence in a school or library district. Such requests shall be made in writing to the secretary of state and include the participant’s name, authorization number, and the identified geographic area or service district where the participant must reside to receive services from the agency, or the request may be made on a form prescribed by the secretary. The secretary may respond verbally to such requests and confirm residency in the district without disclosing the program participant’s address.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

15 CSR 30-70.060 Service of Process RSMo. {#sec-15-csr-30-70.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.060}

This rule describes the manner and process for service of process.

(1) The secretary shall be an agent of the program participant upon whom any summons, writ, notice, demand, or process may be served.

(2) Service on the secretary of any such summons, writ, demand, notice, or process shall be made by mailing to Safe at Home - PO Box 1409, Jefferson City, MO, 65102 or by hand delivering to the secretary, located at 600 West Main Street, Jefferson City, MO, 65101, two (2) copies of the summons, writ, notice, demand, or process.

(3) If a summons, writ, notice, demand, or process is served on the secretary, the secretary shall immediately forward a copy to the program participant at the participant’s current mailing address as shown on the records of the program by certified mail.

(4) The secretary shall maintain, in the program participant’s file, a record of all summonses, writs, notices, demands, and processes served upon the secretary for that participant. The secretary shall include in the file the date of such service and the secretary’s action upon receipt of service.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

15 CSR 30-70.070 Program Participant Renewal RSMo. {#sec-15-csr-30-70.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.070}

This rule describes the manner and process for program participant certification renewal.

(1) A program participant may renew program participation by filing a properly completed renewal form with the program manager. The renewal form shall be sent to the participant with the notification of lapsing certification required by

section 589.663, RSMo and these rules at least four (4) weeks before the expiration of the participant’s current certification.

(2) The program manager shall certify a program participant, who has filed a properly completed certification renewal form, to participate in the program for an additional four- (4-) year term unless the certification is withdrawn or canceled before that date. The renewal need only be signed by the participant and need not be made before an application assistant.

(3) Upon receipt of a properly completed renewal form, the program manager shall issue to the program participant a new authorization card/letter which includes the program participant’s name, authorization code, voter code, designated address, signature, and new certification expiration date. Upon receipt of the new authorization card/letter, the participant shall destroy the expired card.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

15 CSR 30-70.080 Agency Disclosure Request RSMo. {#sec-15-csr-30-70.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.080}

This rule describes the manner and process for agency disclosure requests.

(1) The director or equivalency of a government agency or the designee of the director or equivalency requesting disclosure of a program participant’s address under sections 589.669 and 589.672, RSMo, must— (A) Provide the following information in writing to the secretary:

Identification of the statute or administrative rule which demonstrates the agency’s bona fide requirement and
Identification of the specific program participant whose address is requested;
Identification of the individuals who will have access to the record or records; and 4. An explanation of why the agency cannot meet its statutory or administrative obligations by changing its procedures or rules; or (B) Submit the request on a form prescribed by the secretary.

(2) The secretary shall review an agency’s request for disclosure.

The secretary shall attempt to notify the program participant of the request for disclosure using the last known contact information of the participant.

(3) During the review and evaluation or reconsideration of an agency’s disclosure request, the agency shall accept the use of a program participant’s designated address.

(4) The secretary’s determination to grant or deny a disclosure request shall be based on, but not limited to, an evaluation of the information provided under this rule in conformance with the statutory standard of a bona fide statutory or administrative requirement for the use of a program participant’s address and mailing address.

(5) If the secretary determines that an agency has a bona fide statutory or administrative requirement for the use of a program participant’s address and that the address will be used only for those statutory and administrative purposes, the secretary may issue a written disclosure order for the agency.

The secretary shall inform the program participant of the disposition of the request for disclosure using the last known contact information. When granting disclosure, the secretary may include:

(A) Any obligations for the agency to maintain the confidentiality of a program participant’s address information;

(B) Any limitations on use and access to that address (C) Any term during which the disclosure is authorized for the agency;

(D) Any designation of the record format on which the address information may be maintained;

(E) Any designation of an address information disposition date after which the agency may no longer maintain a record of the address information. The agency shall notify the secretary in writing of the disposition; and (F) Any other provisions and qualifications determined appropriate by the secretary.

(6) When a program participant requests use of the designated address in a record, and the agency has received a disclosure order for that record from the secretary— (A) The agency shall immediately provide a copy of the written order to the requesting program participant; and (B) The agency shall notify the program manager of the occurrence and denial of the program participant’s request.

(7) The secretary’s denial of an agency disclosure request shall be made in writing and include a statement of the specific reasons therefore.

(8) An agency may seek reconsideration of the denial of its request by resubmitting its written request within sixty (60) days of the issuance of a denial. The request shall be accompanied by additional information and an explanation of corrective action taken to alleviate concerns and considerations included in the secretary’s denial determination. Final administrative determination shall be made by the secretary.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

History

authority for the use of the address and mailing address of an individual or individuals;

15 CSR 30-70.090 Disclosure to Law Enforcement RSMo. {#sec-15-csr-30-70.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-70.090}

This rule describes the manner and process for disclosure to law enforcement.

(1) A law enforcement agency requesting a program participant’s address under section 589.672, RSMo, must provide the request to the secretary. The law enforcement agency must— (A) Provide the following information in writing to the secretary:

The reason the address is required by that law enforcement officer or agency;
Identification of the specific program participant whose address is requested;
Identification of the individuals who will have access to the record;
An explanation of why the law enforcement agency cannot meet its obligations by changing its procedures or rules; and 5. Identification of the requesting individual’s direct supervisor and contact information for that supervisor; or (B) In the event of an emergency that requires immediate disclosure, as determined by the secretary, verbally provide all of the requirements of (1)(A)1.–5. as well as the emergency circumstances that necessitate the immediate disclosure of information; or (C) Submit the request on a form prescribed by the secretary.

(2) The secretary shall review the request. The secretary shall attempt to notify the program participant of the request for disclosure using the last known contact information of the participant.

(3) The secretary’s determination to grant or deny a disclosure request shall be based on, but not limited to, an evaluation of the information provided under this rule.

(4) If the secretary determines that a law enforcement agency has a bona fide requirement for the use of a participant’s address and that the address will be used only for the purpose of satisfying that requirement, the secretary may issue a written or verbal disclosure order for the law enforcement agency.

A written record shall be maintained of the facts relating to a verbal order. The secretary shall inform the program participant of the disposition of the request for disclosure using the last known contact information of the participant. When granting the request, the secretary may include:

(A) Any obligation for the law enforcement agency to maintain the confidentiality of a program participant’s address (B) Any limitations on use and access to that address (C) Any term during which the disclosure is authorized for the law enforcement agency;

(D) Any designation of the record format on which the address information may be maintained;

(E) Any designation of an address information disposition date after which the law enforcement agency may no longer maintain a record of the address information. The law enforcement agency shall notify the secretary in writing of the disposition; and (F) Any other provisions and qualifications determined appropriate by the secretary.

(5) When a program participant requests use of the designated address in a record, and the law enforcement agency has received a written disclosure order for that record from the secretary— (A) The law enforcement agency shall immediately provide a copy of the written order to the requesting program participant; and (B) The law enforcement agency shall notify the program manager of the occurrence and denial of the program participant’s request.

(6) The secretary’s denial of a law enforcement agency’s disclosure request shall be made in writing and include a statement of the specific reasons therefore.

(7) A law enforcement agency may seek reconsideration of the denial of its request by resubmitting its request within sixty (60) days of the issuance of a denial. The request shall be accompanied by additional information and an explanation of corrective action taken to alleviate concerns and considerations included in the secretary’s denial determination. Final administrative determination shall be made by the secretary.

Aug. 17, 2007, effective Aug. 28, 2007, expired Feb. 28, 2008.

Chapter 80 Business Entities

PURPOSE: This rule establishes procedures for redacting Social Security numbers and specific dates of birth from business entity filings.

(1) The Business Services Division may redact information from a business entity filing image when that information appears to be an individualís Social Security number or date of birth.

(2) The Business Services Division will use procedures reasonably practicable under the circumstances to prevent an individualís Social Security number or date of birth submitted on a business entity filing from appearing on imaged documents available online or otherwise accessible to the public.

The person submitting a business entity filing to the Business Services Division assumes the ultimate responsibility for providing unnecessary personal information, such as Social Security numbers and dates of birth, within a business entity filing that is a public record pursuant to Chapter 610, RSMo.

MATTBLUNT(9/30/03)

Chapter 80óBusiness Entities15 CSR 30-80

History

AUTHORITY: sections 351.660, 355.061, 356.031 and 610.035, RSMo 2000. Emergency rule filed May 1, 2003, effective May 11, 2003, expired Nov. 6, 2003. Original rule filed May 1, 2003, effective Oct. 30, 2003. Original authority: 351.660, RSMo 1943; 355.061, RSMo 1994; 356.031, RSMo 1986; 610.035, RSMo 1998, amended 1999.

Chapter 90 Uniform Commercial Code

15 CSR 30-90.010 Definitions {#sec-15-csr-30-90.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.010}

PURPOSE: This rule gives meaning to terminology used throughout this chapter.

(1) As used in this chapter, the following terms mean:

(A) “ACH account” is a method of payment via electronic funds transfer under the National Automated Clearing House Association rules;

(B) “Address” means either a street address, route # (may include box) or PO Box number, plus the city, state and zip code;

(C) “Amendment” means a Uniform Commercial Code (UCC) record that amends the information contained in a financing statement. Amendments include assignments, continuations and terminations;

(D) “Assignment” is an amendment that assigns all or a part of a secured party’s power to authorize an amendment to a financing statement;

(E) “Certified search” is certified documentation of information maintained by the filing office;

(F) “Continuation statement” shall have the meaning prescribed by section 400.9-102, (G) “Fees” include all fees required by statute, including fees for the Technology Trust Fund;

(H) “File number” s hall have the meaning prescribed by section 400.9-519, RSMo;

(I) “Filing office” means the appropriate place for filing UCC documents at the Office of the Secretary of State or county recorder of deeds;

(J) “Filing officer” means the secretary of state or the county recorders of deeds;

(K) “Filing officer statement” means a statement of correction entered into the filing office’s information system to correct an error by the filing office;

(L) “Financing statement” shall have the meaning prescribed by section 400.9-102, (M) “Image” means the image of a document as stored in the UCC information management system;

(N) “Individual” means a human being, or a decedent who was a debtor;

(O) “Information statement” means a UCC record that indicates that a financing statement is inaccurate or wrongfully filed;

(P) “Initial financing statement” means a UCC record containing the information required by section 400.9-502, RSMo, which, when filed, causes the filing office to establish the initial record in the filing office’s UCC information management system;

(Q) “Organization” means a legal person who is not an individual;

(R) “Organizational number” means the identifying number issued to an entity upon registration in the entity’s state of formation;

(S) “Remitter” means a person who tenders a UCC record to the filing officer for filing, whether the person is a filer or an agent of a filer responsible for tendering the record for filing. “Remitter” does not include a person responsible merely for the delivery of the record to the filing office, such as the postal service or a courier service but does include a service provider who acts as a filer’s representative in the filing process;

(T) “Secured party of record” shall have the meaning prescribed in section 400.9-511, (U) “Termination statement” shall have the meaning prescribed in section 400.9-102, (V) “UCC” means the Uniform Commercial Code as adopted in this state;

(W) “UCC record” means an initial financing statement, an amendment, an assignment, a continuation, a termination or an information statement and shall not be deemed to refer exclusively to paper or paper-based writing; and (X) “UCC website” means the series of related Internet web pages provided for online filing and search functions in this state.

Supp. 2013.* Original rule filed Sept. 30, 2002, effective March 30, 2003. Emergency amendment filed Aug. 16, 2013, effective Aug. 28, 2013, expired Feb. 27, 2014.

Amended: Filed Aug. 16, 2013, effective Feb. 28, 2014.

15 CSR 30-90.020 Delivery of Records {#sec-15-csr-30-90.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.020}

PURPOSE: This rule describes acceptable means of delivering records.

(1) Uniform Commercial Code (UCC) records may be tendered for filing at the filing office as follows:

(A) Personal delivery, at the filing office;

(B) Courier delivery, at the filing office’s street address;

(D) Electronic filing as established and maintained by the filing office.

(2) UCC records shall be processed and assigned a number in the order they are received. The filing time for any UCC record delivered to the filing office by personal delivery, courier service, or electronic delivery shall be the actual time of receipt in the UCC division of the filing office. The filing time for any UCC record delivered to the filing office by postal delivery shall be 8:00 a.m. on the date it is received.

(3) UCC paper search requests may be delivered by any means by which UCC paper records may be delivered to the filing office.

Search requests shall only be accepted on the UCC-11 form.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.030 Forms {#sec-15-csr-30-90.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.030}

PURPOSE: This rule specifies the acceptable forms to be used in Uniform Commercial Code (UCC) filings.

(1) The only forms accepted by the filing office are:

(A) The forms prescribed in section 400.9- 521, RSMo; or (B) Forms promulgated and approved by the International Association of Commercial Administrators and approved by the Office of the Secretary of State. The filing office shall make such forms available to prospective filers and remitters upon request.

(2) Anyone tendering Uniform Commercial Code (UCC) records for filing at the filing office shall not include tax ID numbers or Social Security numbers on such UCC records. If anyone tendering UCC records for filing at the filing office does include tax ID numbers or Social Security numbers, the filer shall also tender to the filing office an authorization signed by the holder of such tax ID number or Social Security number which authorizes the filing office to publicly disclose such number.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.040 Fees {#sec-15-csr-30-90.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.040}

PURPOSE: This rule specifies the appropriate fees due upon filing.

(1) If the filing office is the secretary of state:

(A) The fees for filing and indexing a Uniform Commercial Code (UCC) record, including, but not limited to continuations, amendments, assignments, terminations and financing statements pursuant to section 400.9-502(c), RSMo, are seventeen dollars ($17) for the first page and one dollar ($1) for each subsequent page. If the record is communicated by electronic medium authorized by filing office rule the fees shall be seventeen dollars ($17).

(B) The fees for responding to a paper request for information from the filing office, including for communicating whether or not the requested name of a particular debtor is on file are twenty-seven dollars ($27). Copy requests for requested filings are one dollar ($1) for each page copied.

(C) No fee is assessed for online search information available for filings and images from the secretary of state website.

(2) If the filing office is other than the secretary of state, then the fees are those that are otherwise provided by law. Other filing offices may enact a similar fee structure.

(3) If a filing is paid with an insufficient funds check, the filer will then be notified that the filing will be voided and removed from the system with a notation on the record that it was void due to insufficient funds.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.050 Methods of Payment {#sec-15-csr-30-90.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.050}

PURPOSE: This rules specifies the appropriate methods of payment for filing fees.

(1) Payments may be made in the following manner:

(A) Payment in cash shall be accepted only if paid in person at the filing office;

(B) Payment by Automatic Clearing House transfer of funds shall be accepted (ACH accounts) for electronic filings and in accordance with procedures prescribed by the secretary of state. The filing office shall make information on such procedures available to prospective filers and remitters upon request;

(C) Personal checks, cashier’s checks and money orders made payable to the Department of Revenue, including checks in an amount to be filled in by a filing officer but not to exceed a particular amount, shall be accepted for payment if they are drawn on a bank acceptable to the filing office and if the drawer is acceptable to the filing office; and (D) The secretary of state shall accept payment by specified types of debit and credit cards issued by approved debit or credit card issuers. The secretary of state accepts such payment by mail, in person and electronically. Remitters shall provide the secretary of state with:

The card number;
The expiration date of the card;
The name of the approved card issuer;
The name of the person or entity to whom the card was issued; and 5. The billing address for the card.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.060 Overpayment and Underpayment of Fee {#sec-15-csr-30-90.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.060}

PURPOSE: This rule provides a procedure for the overpayment and underpayment of fees.

(1) The filing officer shall refund the amount of an overpayment of five dollars ($5) or more to the remitter. The filing officer shall refund an overpayment of less than five dollars ($5) only upon the written or verbal request of the remitter.

(2) Upon receipt of a record with an insufficient fee, the filing officer shall return the record to the remitter. The insufficient fee may be returned as received, or a refund may be delivered under separate cover.

(3) All refunds shall be made in the form of a warrant issued by the state treasurer. Those warrants shall be redeemed within one hundred eighty (180) days from the date of issue.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.070 Filing Officer’s Duties are Ministerial {#sec-15-csr-30-90.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.070}

PURPOSE: This rule clarifies the duties of the filing officer.

(1) The duties and responsibilities of the filing officer with respect to the administration of the Uniform Commercial Code (UCC) are ministerial. By accepting for filing, or refusing to file, a UCC record pursuant to these rules, the filing officer does not:

(A) Determine the legal sufficiency or insufficiency of a record;

(B) Determine that a security interest in collateral exists or does not exist;

part;

(D) Create a presumption that information in the record is correct or incorrect, in whole or in part.

(2) Every filing will be imaged and available for public view and inspection on the secretary of state website.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.075 Bulk Records {#sec-15-csr-30-90.075 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.075}

PURPOSE: This rule provides for requests of bulk records.

(1) Bulk data from the Uniform Commercial Code (UCC) information management system shall be available in a format approved by the filing office. A list of available data elements from the UCC information management system, and the file layout of those data elements, is available from the filing officer upon request. A written agreement between the filing office and the purchaser shall determine the amount charged for the bulk data.

Supp. 2001.* Original rule filed Sept. 30, *Original authority: 400.9-526, RSMo.

15 CSR 30-90.076 Multiple Names {#sec-15-csr-30-90.076 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.076}

PURPOSE: This rule provides the method of filing under multiple names.

(1) To file multiple debtor names on an initial financing statement, a filer must provide the additional names in either Box 2 of the Uniform Commercial Code (UCC) Financing Statement or Box 11 of the UCC Financing Statement Addendum. Debtor names appearing in other boxes or on attachments will not be indexed. There is no limit to the number of addendum pages that may be attached.

4CODE OF STATE REGULATIONS

(2) To file multiple secured party names on an initial financing statement, the filer must provide the additional names in only Box 7 of the national UCC Financing Statement Amendment. Secured party names appearing in other boxes or attachments will not be indexed. There is no limit to the number of addendum pages that may be attached.

(3) When filing via an electronic method there is no limit to the number of secured party names or debtor names that may be indexed by the filer online.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.080 Notification of Defects {#sec-15-csr-30-90.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.080}

PURPOSE: This rule provides a clarification of filing officer’s duties relating to defects.

(1) Nothing in these rules prevents a filing officer from communicating to a filer or a remitter that the filing officer noticed apparent potential defects in a Uniform Commercial Code (UCC) record, whether or not it was filed or refused for filing. The filing office is under no obligation to do so and may not have the resources to observe, identify, or communicate such defects. The remitters are responsible for the legal sufficiency of records.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.090 Refusal to File; Cancellation; Defects in Filing {#sec-15-csr-30-90.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.090}

PURPOSE: This rule provides guidelines for when a filing officer may refuse acceptance of records.

(1) The filing officer may refuse to accept filing of a Uniform Commercial Code (UCC) record for the reasons specified in section 400.9-516, RSMo.

(2) Defects that do not warrant a filing officer’s refusal to accept a record include, but are not limited to, the following:

(A) The UCC record contains or appears to contain a misspelling or other erroneous information;

(B) The UCC record appears to identify a debtor incorrectly;

(D) The UCC record contains additional or extraneous information of any kind;

(E) The UCC record contains less than the information required by law except for information allowing rejection pursuant to 400.9- 516(b), RSMo; and (F) The UCC record incorrectly identifies collateral, or contains an illegible or unintelligible description of collateral, or appears to contain no such description.

(3) If the record contains more than one (1) debtor name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings. The filing officer may provide a notice to the remitter containing the file number of the record, identification of the debtor name that was indexed, and a statement that any debtors with illegible or missing names or addresses were not indexed.

(4) If the record contains more than one (1) secured party or assignee name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings. The filing officer may provide a notice to the filer containing the file number of the record, identification of the secured party name that was indexed, and a statement that the secured parties with illegible or missing names or addresses were not indexed.

(5) If an amendment requests multiple actions, the filing officer shall file and index the information in accordance with the requested actions as long as adequate information can be indexed with the appropriate finance number.

(6) If, within thirty (30) days of the date that a record is rejected, a secured party or a remitter demonstrates to the satisfaction of the filing officer that a UCC record should not have been refused, the filing officer shall file the UCC record. The record shall be given a filing date and time reflecting the date and time the document would have been filed if it had been accepted when originally tendered for filing.

(7) The secretary of state may refuse to accept filing of a UCC record when the secretary of state determines that the record is not created pursuant to Chapter 400.9, RSMo, or is otherwise intended for an improper purpose, such as to hinder, harass, or otherwise wrongfully interfere with any person.

(8) The secretary of state shall cancel a previously filed record if— (A) An information statement alleging that a previously filed record was wrongfully filed and that it should have been rejected under

section (7) of this rule;

(B) Such information statement includes a written certification, under oath, by the person that the contents of the information statement are true and accurate to the best of the person’s knowledge; and (C) The secretary of state, without undue delay, determines that the contested record was wrongfully filed and should have been rejected. In order to determine whether the record was wrongfully filed, the secretary of state may require the person filing the correction statement and the secured party to provide any additional relevant information requested by the secretary of state, including an original or a copy of any security agreement that is related to the record. If the secretary of state finds that the record was wrongfully filed and should have been rejected under section (7) of this rule, the secretary of state shall cancel the record and it shall be void and of no effect.

(9) The secretary of state shall cancel a previously filed record if— (A) An information statement alleging that the person who filed the record was not entitled to do so under section 400.9-509(d);

(B) The person filing the information statement is a secured party of record with respect to the financing statement to which the record relates;

(C) Such information statement includes a written certification, under oath, by the person that the contents of the informa tion statement are true and accurate to the best of the person’s knowledge; and (D) The secretary of state, without undue delay, determines that the person who filed the contested record was not entitled to do so under section 400.9-509(d) and should have been rejected. In order to determine whether the person who filed the record was not entitled to do so, the secretary of state may require the person filing the information statement and the person who filed the contested record to provide any additional relevant information requested by the secretary of state, including an original or a copy of any security agreement that is related to the record. If the secretary of state finds that the person who filed the record was not entitled to do so, the secretary of state shall cancel the record and it shall be void and of no effect.

(10) If the secretary of state cancels a record under section (8) or (9), the secretary shall communicate to the person that presented the record the fact of and reason for the cancellation.

(11) If the secretary of state refuses to accept a record for filing pursuant to section (7) of this rule or cancels a wrongfully filed record pursuant to section (8) of this rule, or cancels a record pursuant to section (9) of this rule, the secured or affected party may file an appeal within thirty (30) days after the refusal or cancellation in the Circuit Court of Cole County.

(A) Filing a petition requesting to be allowed to file the document commences the appeal. The petition shall be filed with the court and the secretary of state and shall have the record attached to it. Upon the commencement of an appeal, it shall be advanced on the court docket and heard and decided by the court as soon as possible.

(B) Upon consideration of the petition and other appropriate pleadings, the court may order the secretary of state to file the record or take other action the court considers appropriate, including the entry of orders affirming, reversing, or otherwise modifying the decision of the secretary of state. The court may order other relief, including equitable relief, as may be appropriate.

Supp. 2013.* Emergency rule filed Feb. 10, 2003, effective Feb. 20, 2003, expired March 30, 2003. Original rule filed Sept. 30, 2002, effective March 30, 2003. Emergency amendment filed Aug. 16, 2013, effective Aug. 28, 2013, expired Feb. 27, 2014. Amended: Filed Aug. 16, 2013, effective Feb. 28, 2014.

15 CSR 30-90.100 Deadline to Refuse Filing {#sec-15-csr-30-90.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.100}

PURPOSE: This rule provides a time limit and procedure for refusal.

(1) The secretary of state shall determine whether a reason exists to refuse a Uniform Commercial Code (UCC) record for filing not later than the third business day after receipt and shall index an accepted UCC record within the same time period beginning January 1, 2003.

(2) If the secretary of state finds reasons pursuant to section 400.9-516, RSMo, to refuse a UCC record, the secretary of state shall return the record, if written, to the remitter and may refund or credit the filing fee. The secretary of state shall send a notice that contains the date and time the record would have been filed had it been accepted for filing and a brief description of the reason for refusal to accept the record. The notice shall be sent to the address indicated in Section B of the UCC-1, 3, and 11 forms available at www.sos.state.mo.us, the acknowledgement address, no later than the third business day after the determination to refuse acceptance of the record beginning January 1, 2003. A refund, if made, will be sent to the same address under separate cover.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.105 Acknowledgements {#sec-15-csr-30-90.105 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.105}

PURPOSE: This rule provides the duties of the filing officer when a document is accepted.

(1) The filing officer shall send to a filer an image of the record of the Uniform Commercial Code (UCC) document showing the file number assigned to it and the date and time of the filing, if there is no reason for refusal of the document, and the filer has requested an image as indicated in Box B of the National Form. A notice or acknowledgment shall be transmitted to the remitter electronically or by other means prescribed by the Office of the Secretary of State and the filer shall be responsible for the record’s accuracy for filings tendered by online access.

(2) The acknowledgment shall show the debtor name and address as it was recorded.

The filer shall be responsible for verifying that the information was recorded accurately.

If an input error is detected, the filer shall notify the filing office within thirty (30) days of the date of filing and the record will be corrected. If the filer communicates no objection to the filing officer within thirty (30) days, the record shall be deemed identical to the filing submitted.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.110 Filing Office Data Entry {#sec-15-csr-30-90.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.110}

PURPOSE: This rule specifies procedures for the filing office.

(1) The filing office shall enter information from a Uniform Commercial Code (UCC) record presented for filing into the filing system database exactly as it appears on the record and in accordance with the designations given by the filer.

(2) The name fields in the UCC database are fixed in length. Any name that exceeds the fixed length shall be entered as submitted to the filing office, up to the maximum length allowed by the data entry field.

(3) A filing must designate whether a name is a name of an individual or an organization.

The filing shall designate the first, middle, last name and any appropriate suffix for the names of individuals. The following rules apply to the data entry of debtor names:

(A) Organization names are entered into the UCC information management system exactly as set forth in the UCC document, even if it appears that multiple names are set forth in the document or if it appears that the name of an individual has been included in the field designated for an organization name;

(B) For individual names, the form designates separate fields for first, middle and last names and any suffix. The filing officer enters the names into the first, middle and last name and suffix fields in the UCC information management system exactly as set forth on the UCC document. A filer must place the name of a debtor with a single name (e.g., “Cher”) in the last name field. The filing officer assumes no responsibility for accurate designation of the components of a name, but will accurately enter the data in accordance with the filer’s designations;

(C) The filing office requires the use of forms that designate separate fields for individual and organization names and, for individual names, separate fields for first, middle, last names and any suffix. Such forms diminish the possibility of filing office error and help assure that filers’ expectations are met. However, filers should be aware that the inclusion of names in an incorrect field or failure to transmit names accurately to the filing office may cause filings to be ineffective.

All UCC documents transmitted in a method authorized by the secretary of state will require the use of designated name fields;

(D) Titles and prefixes, such as “doctor,”

“reverend,” “Mr.,” and “Ms.,” should not be provided by the filer. When a UCC document is submitted with designated name fields, the data will be entered in the UCC 6CODE OF STATE REGULATIONS information management system exactly as it appears; and (E) Suffixes that indicate titles of lineage, such as “senior,” “junior,” “I,” “II,” and “III,” may be provided by the filers and will be entered in the UCC information management system in the appropriate field designated for name suffixes exactly as it appears.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.120 Status of Parties upon Filing Initial Financing Statement {#sec-15-csr-30-90.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.120}

PURPOSE: This rule provides the status of parties upon filing initial financing statement.

(1) Each financing statement has a status of active or inactive denoted in the information management system. Active Uniform Commercial Code (UCC) records include all unlapsed records and all lapsed records that have not reached the one (1)-year anniversary of their lapse date. Inactive filings include all lapsed filings that have reached the one (1)year anniversary of their lapse dates. Upon the filing of an initial financing statement the status of the parties and the status of the financing statement shall be as follows:

(A) Each secured party named on an initial financing statement shall be a secured party of record, except if the UCC record names an assignee, the assignor shall not be a secured party of record and the assignee shall be the secured party of record;

(B) The status of a debtor named on the record shall be active and shall continue as active until one (1) year after the financing statement lapses;

(C) The status of the financing statement shall be active and shall continue as active until one (1) year after its lapse date. A lapse date shall be calculated, five (5) years from the file date of initial financing statement;

(D) If the initial financing statement is filed with respect to a public financing transaction or a manufactured-home transaction, the lapse date shall be thirty (30) years from the file date; and (E) If the initial financing statement is filed with respect to a transmitting utility, there shall be no lapse date and the financing statement remains active until one (1) year after it is terminated with respect to all secured parties of record.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.130 Status of Parties upon Filing an Amendment of parties upon filing an amendment. {#sec-15-csr-30-90.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.130}

(1) After an amendment is filed the status of the parties and the status of the financing statement shall be as follows:

(A) An amendment that amends only the collateral description or one (1) or more addresses shall not affect the status of any debtor or secured party. If an amendment is authorized by less than all of the secured parties, or in the case of an amendment that adds collateral, less than all of the debtors, the amendment affects only the interests of each authorizing secured party or debtor;

(B) An amendment that changes a debtor’s name shall not affect the status of any debtor or secured party, except that the related initial financing statement and all Uniform Commercial Code (UCC) records that identify the initial financing statement shall be crossindexed in the UCC information management system so that a search under either the debtor’s old name or the debtor’s new name shall reveal the initial financing statement and related UCC records. Such an amendment affects only the rights of its authorizing secured party;

(C) An amendment that changes the name of a secured party shall not affect the status of any debtor or any secured party, but the new name is added to the index as if it were a new secured party of record;

(D) An amendment that adds a new debtor name shall not affect the status of any party to the financing statement, except the new debtor name shall be added as a new debtor on the financing statement. The addition shall affect only the rights of the secured party authorizing the statement of amendment;

(E) An amendment that adds a new secured party shall not affect the status of any party to the financing statement, except that the new secured party name shall be added as a new secured party on the financing statement;

(F) An amendment that deletes a debtor shall not affect the status of any party to the financing statement, even if the amendment purports to delete all debtors;

(G) An amendment that deletes a secured party of record shall not affect the status of any party to the financing statement, even if the amendment purports to delete all secured parties of record; and (H) An amendment shall not affect the status of the financing statement, except that a continuation may extend the period of effectiveness of a financing statement.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.140 Status of Party upon Filing an Assignment of parties upon filing an assignment. {#sec-15-csr-30-90.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.140}

(1) An assignment shall not affect the status of the financing statement or the status of the parties to the financing statement, except that each assignee named in the assignment shall become a secured party of record.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.150 Status of Party upon Filing a Continuation of parties upon filing a continuation. {#sec-15-csr-30-90.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.150}

(1) Upon the timely filing of a continuation as prescribed in section 400.9-515, RSMo, by any secured party of record; the lapse date of the financing statement shall be postponed for five (5) years.

(2) The filing of a continuation shall not affect the status of any party to the financing (3) Upon the timely filing of a continuation statement, the status of the financing statement remains active and does not lapse.

(4) If there is not a timely filing of a continuation, with respect to a financing statement, the financing statement lapses on its lapse date and the filing office takes no action. On the first year anniversary of the lapse date, the financing statement is rendered inactive and the financing statement shall no longer be made available to a searcher unless the searcher requests inactive statements and the financing statement is still retrievable by the information management system.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.160 Status of Parties upon Filing a Termination of parties upon filing a termination. {#sec-15-csr-30-90.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.160}

(1) The filing of a termination shall not affect the status of any party to the financing statement.

(2) A termination shall not affect the status of the financing statement. The financing statement shall remain active in the information management system until one (1) year after it lapses. If the termination relates to a financing statement against a transmitting utility, the financing statement shall become inactive one (1) year after it is terminated with respect to all secured parties of record.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.170 Status of Parties upon Filing an Information Statement of parties upon filing a correction statement. {#sec-15-csr-30-90.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.170}

(1) The filing of an information statement shall not affect the status of any party to the financing statement.

(2) An information statement shall not affect the status of the financing statement.

Supp. 2013.* Original rule filed Sept. 30, 2002, effective March 30, 2003. Emergency amendment filed Aug. 16, 2013, effective Aug. 28, 2013, expired Feb. 27, 2014.

Amended: Filed Aug. 16, 2013, effective Feb. 28, 2014.

15 CSR 30-90.180 Time Limit for Filing a Continuation Statement {#sec-15-csr-30-90.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.180}

PURPOSE: This rule sets a time limit for filing a continuation statement.

(1) The filing office may refuse to file a continuation statement that is not filed within the time period provided by section 400.9-516, RSMo, for the proper filing of a continuation (2) The first day on which a continuation may be filed is the date of the month corresponding to the date six (6) months preceding the month in which the financing statement would lapse. If there is no such corresponding day, the first day on which a continuation may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse.

(3) The last day on which a continuation may be filed is the date upon which the financing statement lapses.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.190 Errors in Filing {#sec-15-csr-30-90.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.190}

PURPOSE: This rule provides procedure for handling filing office errors.

(1) The filing office may correct the errors of filing office personnel in the Uniform Commercial Code (UCC) information management system at any time. If the correction occurs after the filing officer has issued a certification date, the filing officer may file a filing officer statement in the UCC information management system identifying the UCC record to which it relates, the date of the correction, and an explanation of the corrective action taken. The record shall be preserved as long as the record is preserved in the UCC information management system.

(2) An error by a filer is the responsibility of the filer. The filer may correct the error by filing an amendment. Additionally, a debtor may file a correction statement to indicate that an error may exist in the filing.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.200 Notice of Bankruptcy {#sec-15-csr-30-90.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.200}

PURPOSE: This rule provides procedures following receipt of a notice of bankruptcy.

(1) The filing officer shall take no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding involving a debtor named in the Uniform Commercial Code (UCC) information management system. The filing officer shall obey all lawful orders of court served upon the officer.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.201 UCC Information Management System {#sec-15-csr-30-90.201 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.201}

PURPOSE: This rule provides information about the UCC Information Management System.

(1) The filing officer uses an information management system to store, index, and retrieve information relating to financing statements. The information management system includes an index of the names of debtors named on financing statements and is maintained for public inspection.

Supp. 2001.* Original rule filed Sept. 30, 2002, effective March 30, 2002.

15 CSR 30-90.202 Non-XML Filing and Search {#sec-15-csr-30-90.202 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.202}

PURPOSE: This rule establishes non-XML filing and search procedures.

(1) Direct online filing and search services are available to any person with Internet access to the Uniform Commercial Code (UCC) website. Online filings require payment by credit card, Automated Clearing House (ACH) account number or another specified payment method approved by the secretary of state.

(2) Initial financing statements and amendments may be filed electronically using the UCC website. A UCC record filed in this manner is subject to all of the provisions of this chapter as if it were a paper document submitted to the filing office.

(3) Searches performed electronically via the UCC website on a particular debtor name may be obtained at no charge. Images of filings that may be printed from the website are also available at no charge.

8CODE OF STATE REGULATIONS

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.203 XML Records {#sec-15-csr-30-90.203 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.203}

PURPOSE: This rule establishes policies for the XML records system.

(1) This state shall use the Extensible Markup Language (XML format), as adopted by the International Association of Commercial Administrators, for electronic transmission of UCC records. At the request of an authorized XML remitter, the filing officer shall identify which versions and releases of the XML format are acceptable to the filing office.

(2) The implementation guide for the XML format and technical specifications are available online at the International Association of Commercial Administrators’ website at www.iaca.org/xml.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.204 Primary Data Elements {#sec-15-csr-30-90.204 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.204}

PURPOSE: This rule defines the data elements that the Uniform Commercial Code (UCC) information management system will use as primary data elements.

(1) The primary data elements used in the Uniform Commercial Code (UCC) information management system are the following:

(A) Identification numbers.

A file number as described identifies each initial financing statement. Identification of the initial financing statement is stamped on written UCC records or otherwise permanently associated with the record maintained for UCC records in the UCC information management system. A record is created in the information management system for each initial financing statement and all information comprising a record is maintained in the system. The record is identified by the same information assigned to the initial financing statement.
A unique filing number assigned by the filing officer identifies a UCC record other than an initial financing statement. In the information management system, records of all UCC records, other than initial financing statements, are linked to the record of their related initial financing statement;

(B) Type of record. The type of UCC record from which data is transferred is identified in the information management system from information supplied by the remitter;

(C) Filing date and filing time. The filing date and filing time of UCC records are stored in the information management system. The calculation of the lapse date of an initial financing statement is based upon the filing date;

(D) Identification of parties. The name and addresses of debtors and secured parties are transferred from UCC records to the UCC information management system using one or more data entry or transmittal techniques;

(E) Status of financing statement. Each financing statement has a status of active or inactive in the information management system;

(F) Page count. The total number of pages in a UCC record is maintained in the information management system; and (G) Lapse indicator. The information management system uses an indicator to identify whether or not a financing statement will lapse and, if it does, when it will lapse. The lapse date is determined as provided in sub-

section (1)(C) of this rule.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.210 Searches {#sec-15-csr-30-90.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.210}

PURPOSE: This rule details the content of search requests and responsibility of the filing officer in regard to searches.

(1) The filing officer shall maintain a searchable index of all Uniform Commercial Code (UCC) records for public inspection. The index shall allow retrieval of a record by the name of the debtor and by the file number of the initial financing statement, and each filed UCC record relating to the initial financing (2) A search request must be submitted on the National UCC-11 Information Request form and shall contain the information required by this section. The searcher must provide a separate UCC-11 form for each debtor name to be searched.

(3) Search requests shall contain the following information:

(A) The name of the debtor to be searched, specifying whether the debtor is an individual or an organization. A search request shall be processed using the name in the exact form it is submitted;

(B) The name and address of the person to whom the search report is to be sent must be included on the search request; and (C) The appropriate fee, payable by a method approved by the filing officer.

(4) Search requests may contain any of the following information:

(A) A request for copies of UCC records identified on the search response; and (B) A request may include lapsed and/or active records as indicated on the request.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.220 Search Logic {#sec-15-csr-30-90.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.220}

PURPOSE: This rule explains the method through which the filing officer shall conduct searches.

(1) Search results shall be produced by applying standardized search logic to the name presented to the filing officer. Human judgment does not play a role in determining the results of the search, except with respect to supplemental responses regarding individual debtor names that are not automated. The following guidelines apply to searches:

(A) There is no limit to the number of matches that may be returned in response to the search criteria;

(B) The characters searched are letters “a” through “z” and numbers “0” through “9” and all other characters are disregarded;

(D) Punctuation marks, accents and suffixes are disregarded;

(E) Words and abbreviations at the end of a name that indicate the existence or nature of an organization are disregarded in the search.

Such words include, but are not limited to: association, bank, church, college, company, corporation, club, foundation, fund, incorporated, institute, limited, society, syndicate, trust, union, limited partnership, LP, limited liability company, LLC, limited liability partnership, LLP, or like words or abbreviations of the foregoing. These words and abbreviations are set forth in the “Ending Noise Words” list as promulgated and adopted by the International Association of Commercial Administrators (IACA);

(F) The words “a” and “the” at the beginning of the search criteria are disregarded;

(G) All spaces are disregarded;

(H) For first and middle names of individuals, initials are treated as the logical equivalent of all names that begin with such initials, and the first name and no middle name or initial is equated with all middle names and initials. For example, a search request for “John A. Smith” would cause the search to retrieve all filings against all individual debtors with “John” or the initial “J” as the first name, “Smith” as the last name, and with the initial “A” or any name beginning with “A” in the middle name field or no name or initial in the middle name field. Additionally, a search request for “John Smith” (first and last names with no designation in the middle name field), would cause the search to retrieve all filings against individual debtors with “John” or the initial “J” as the first name, “Smith” as the last name and any name or initial or no name or initial in the middle name; and (I) The word “and” and the symbol “&” are equated with each other.

(2) After using the preceding rules to modify the name of the requested debtor to be searched, the search results will reveal only active filings unless the search request explicitly states that lapsed filings are to be included in the search results.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.230 Search Reports {#sec-15-csr-30-90.230 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.230}

PURPOSE: This rule specifies the contents of search reports.

(1) Reports created in response to a search request shall include the following:

(A) Identification of the filing officer and the certification of the search report if requested;

(B) The date the report was generated;

(D) If requested the certification date and time for which the search is effective;

(E) Identification of each financing statement, that has not lapsed, filed on or prior to the certification date and time corresponding to the search criteria, by name of debtor, by financing statement file number, and by file date and file time. If requested by the searcher and available on the index, lapsed filings will be identified on the search report;

(F) For each initial financing statement on the report, a listing of all related Uniform Commercial Code (UCC) records filed by the filing officer on or prior to the certification date; and (G) The number of pages of all UCC records revealed by the search report that may be requested by the searcher.

Supp. 2001.* Original rule filed Sept. 30,

15 CSR 30-90.240 Transition Searches {#sec-15-csr-30-90.240 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-90.240}

PURPOSE: This rule explains the manner in which searches will be conducted during the transition period.

(1) During the transition period of July 1, 2001 to July 1, 2006, the secretary of state may provide public access to a database that produces search results beyond exact name matches. The supplemental database shall not be considered part of the standard search logic and shall not constitute an official search of the secretary of state.

Supp. 2001.* Original rule filed Sept. 30, 10CODE OF STATE REGULATIONS

Chapter 100 Secretary of State-Notary Commission

15 CSR 30-100.015 Request for Hearing on Suspension or an Appeal on a Denial of an {#sec-15-csr-30-100.015 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.015}

15 CSR 30-100.005 Notary Complaint Process {#sec-15-csr-30-100.005 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.005}

PURPOSE: This rule lays out the process for filing a complaint against a notary.

(1) A complaint may be filed by an individual or by the Notary Commission Unit. All complaints must be— (A) In writing and signed;

(B) Submitted to the Notary Commission Unit either by mail to commissions@sos.mo.gov or PO Box 784, Jefferson City, MO 65102;

Circumstances surrounding the situation; and 2. The notary’s name, commission number (if known), and the county in which the alleged wrong doing allegedly took place;

(D) The complaint should include, if known, the names and contact information of any witnesses or parties; including addresses and telephone number, all documents related to the transaction; including copies of the notarized document in question, and any police report filed or investigative information if referred by another agency, and any contact information for legal representative;

(E) Upon receipt of the complaint the Notary Commission Unit will review the matter and determine if further action is required;

(F) If further action is required, the Notary Commission Unit will notify the notary and may request additional information from the notary;

(G) A notary has thirty (30) days from receipt of such notification from the Notary Commission Unit in which to respond.

Failure to respond shall constitute grounds for suspension of the notary commission until compliance with the request is met;

(H) The Notary Commission Unit will review the response from the notary, and if necessary, make follow-up request for information;

(I) Upon completion of their review, the Notary Commission Unit will forward the matter to the Director of Business Services or their designee who will review the matter to determine appropriate action;

(J) Upon a decision by the Director of Business Services or their designee, the complainant and notary shall be notified of the decision made; and (K) If the action taken by the Director of Business Services or their designee is to suspend or revoke the notary’s commission, the notary may appeal such decision as outlined under the rules.

History

AUTHORITY: sections 486.815.1 and 486.830, RSMo Supp. 2020. Emergency rule filed Aug. 31, 2020, effective Sept. 15, 2020, expired March 13, 2021. Original rule filed Aug. 31, 2020, effective Feb. 28, 2021. Original authority: 486.815, RSMo 2020 and 486.830, RSMo 2020.

15 CSR 30-100.010 Approval, Revocation, and Suspension of Notary Commission {#sec-15-csr-30-100.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.010}

PURPOSE: This rule sets out the general nature of how a notary commission may be revoked or suspended.

(1) Before a notary’s commission may be revoked, the notary shall receive written notice alleging why the notary’s commission should be revoked and of the right to a hearing. The notary may request a hearing on the revocation as provided in 15 CSR 30-100.020. If the notary fails to request a hearing as provided in 15 CSR 30-100.020, the notary thereby waives his/her right to a hearing and the revocation shall proceed. If a notary’s commission is ordered revoked after a hearing, the notary shall have the right to appeal the revocation order.

(2) The secretary of state’s office may immediately suspend a notary’s commission upon written notice sent to the notary by certified mail when the secretary of state’s office deems the situation has a serious unlawful effect on the general public. The notary may request a hearing on the suspension as provided in 15 CSR 30-100.015.

(3) An individual who has been convicted of a felony involving dishonesty or moral turpitude, committed in the last five (5) years, will be denied approval to be a notary commission.

Filed April 17, 2017, effective Oct. 30, 2017.

Emergency amendment filed Aug. 31, 2020, effective Sept. 15, 2020, expired March 13, 2021. Amended: Filed Aug. 31, 2020, effective Feb. 28, 2021. *Original authority: 486.605, RSMo and 486.815, RSMo 2020.

History

AUTHORITY: sections 486.605 and 486.815.1, RSMo Supp. 2020. Original rule filed Dec. 16, 1985, effective April 11, 1986. Amended:

15 CSR 30-100.015 Request for Hearing on Suspension or an Appeal on a Denial of an Application {#sec-15-csr-30-100.015 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.015}

PURPOSE: This rule provides the manner by which a notary may request a hearing when the notary has received a notice of suspension.

(1) When a notary has received a notice of suspension as provided in 15 CSR 30- 100.010, the notary may request a hearing on the suspension. A request for hearing on the suspension must be received by the secretary of state’s office no later than ten (10) business days after the notary receives the written notice of suspension, or the notary will have waived his/her right to a hearing on the suspension.

(2) A request for hearing must be signed by the notary or his/her attorney, contain the ber(s) of the notary, and, if applicable, the notary’s attorney’s name, Missouri bar number, address, telephone number, facsimile number, and electronic mail address, if any, and shall be filed with the Office of the PO Box 784, Jefferson City, MO 65102.

(3) If the notary desires the hearing on the suspension to be conducted by telephone, the notary must include that request in his/her request for hearing and provide the telephone number that the notary will use during the hearing.

(4) Hearings held under this regulation will be subject to the requirements of 15 CSR 30- 100.060.

(5) An applicant who has been denied a notary commission may appeal the denial to the Director of Business Services or his or her designee. This appeal does not include a right to a hearing.

Amended: Filed Aug. 31, 2020, effective Feb. 28, 2021. *Original authority: 486.815, RSMo 2020.

History

AUTHORITY: section 486.815.1, RSMo Supp. 2020. Original rule filed April 17, 2017, effective Oct. 30, 2017. Emergency amendment filed Aug. 31, 2020, effective Sept. 15, 2020, expired March 13, 2021.

15 CSR 30-100.020 Notice of Revocation and Request for a Hearing {#sec-15-csr-30-100.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.020}

PURPOSE: This rule sets out how notice of revocation will be given, the contents of the notice, and how a notary can request a hearing.

(1) Upon receipt of a complaint and a decision to seek revocation of a notary commission, written notice shall be mailed by certified mail to the notary at the address on file with the secretary of state’s office. The notice shall contain the following information:

(A) The notary’s name and address;

(B) The date the notary’s commission was granted and the expiration date of that commission;

(C) The specific allegations stating what grounds exist for revoking the notary’s commission. The allegations shall indicate the notary’s alleged misconduct, the date and place of the misconduct (if applicable and known), and the name(s) of potential witnesses on behalf of the secretary of state; and (D) Instructions for requesting a hearing on the revocation.

(2) When a notary has received a notice of revocation, the notary may request a hearing on the revocation.

(A) A request for hearing on the revocation must be received by the secretary of state’s office no later than thirty (30) calendar days after the notary receives the written notice of revocation, or the notary will have waived his/her right to a hearing on the revocation.

(B) A request for hearing must be signed by the notary or his/her attorney, contain the ber(s) of the notary, and, if applicable, the notary’s attorney’s name, Missouri bar number, address, telephone number, facsimile number, and electronic mail address, if any, and shall be filed with the Office of the PO Box 784, Jefferson City, MO 65102.

(C) If the notary desires the hearing on the revocation to be conducted by telephone, the notary must include that request in his/her request for hearing and provide the telephone number that the notary will use during the hearing.

(D) Hearings held under this regulation will be subject to the requirements of 15 CSR 30-100.060. *Original authority: 486.385, RSMo

15 CSR 30-100.030 Response to Notice of Revocation {#sec-15-csr-30-100.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.030}

PURPOSE: This rule describes the form and content of the response and how it shall be filed.

(1) Response.

(A) A notary may file a response to a notice of revocation.

(B) Any response shall be in writing and shall contain a short and concise statement of the facts which the notary believes are true and relevant to the issues raised in the notice of revocation. The response must be signed by the notary or his/her attorney, contain the ber of the notary, and, if applicable, the attorney’s name, Missouri bar number, address, telephone number, facsimile number, and electronic mail address, if any, and shall be filed with the Office of the Secretary of State, Commissions Division, PO Box 784, Jefferson City, MO 65102.

(C) All responses shall be filed with the notary’s request for hearing as provided in 15 CSR 30-100.020. *Original authority: 486.385, RSMo 1977, amended 2004.

15 CSR 30-100.040 Prehearing Conference {#sec-15-csr-30-100.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.040}

(Rescinded October 30, 2017)

Original rule filed Dec. 16, 1985, effective April 11, 1986. Rescinded: Filed

15 CSR 30-100.050 Subpoenas {#sec-15-csr-30-100.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.050}

(Rescinded October 30, 2017)

Original rule filed Dec. 16, 1985, effective April 11, 1986. Rescinded: Filed

15 CSR 30-100.060 Hearings {#sec-15-csr-30-100.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.060}

PURPOSE: This rule describes the nature of the hearing to revoke a notary public’s commission.

(1) A revocation or suspension hearing will be conducted in the following manner:

(A) All hearings will be open to the public.

All parties have a right to be present and to be represented by counsel, if they so desire.

Notice of the hearing will be posted prominently in the Office of the Secretary of State, Commissions Division, 600 W. Main Street, Jefferson City, MO 65101;

(B) All hearings will be audio recorded.

Upon request, and at the expense of a party to the proceeding making the request, the secretary of state’s office will cause the hearing to be transcribed by a court reporter present for the hearing. Any other party may obtain a copy of the transcript upon the payment of the costs of preparation;

(C) If the hearing is not transcribed, the audio record will contain— 1. A listing of all materials filed in connection with the hearing;

A listing of all documents and exhibits submitted as evidence;
All matters officially noticed; and 4. All offers of proof, objections, and rulings;

(D) Evidence shall be received in the following manner:

Oral evidence shall be taken only on oath or affirmation;
Each party shall have the right to call and examine witnesses, to introduce exhibits, to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not subject to the direct examination, to impeach any witness regardless of which party first called him/her to testify, and to rebut the evidence against him/her; and 3. Copies of writings, documents, and records shall be admissible without proof that the originals thereof cannot be produced if it appears by testimony or otherwise that the copy offered is a true copy of the original; and (E) The order in which evidence will be presented is as follows:
The secretary of state’s representative shall present evidence first;
The notary shall then have the opportunity to present his/her evidence in the same manner;
Each party has the right to rebut the evidence presented; and 4. Closing statements may be made by each party in the order evidence was presented; and (F) The burden of proof will be on the secretary of state’s representative, and the standard of proof shall be a preponderance of the evidence.

(2) Notice of the date, time, and place of the hearing will be sent by certified mail to the notary at the address on file with the secretary of state’s office.

(1/29/21) JOHN R. ASHCROFT

(3) A revocation hearing may be conducted by telephone upon request of the notary as set forth in 15 CSR 30-100.015 (suspension) or

15 CSR 30-100.020 (revocation). {#sec-15-csr-30-100.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.020}

(A) The telephone hearing will be scheduled with notice sent by certified mail to the notary at the address on file with the secretary of state.

(B) Telephone hearings shall have the following additional requirements:

The attorney and any witnesses for the secretary of state may be present in person while the notary is present by telephone;
Parties to telephone hearings shall mail copies of potential exhibits to the other party in sufficient time for the exhibit to reach those locations prior to the hearing;
A notary or his/her attorney shall mail potential exhibits to the Office of the PO Box 784, Jefferson City, MO 65102; and 4. Each potential exhibit shall be designated as a potential exhibit and paginated.

(C) Telephone hearings are evidentiary proceedings conducted for the convenience of the notary, and the parties have the following responsibilities:

The connection must be of sufficient quality that the persons participating can be clearly heard, and the call will not be unintentionally disconnected (due to things such as poor cellular reception);
The hearing shall not be subject to interruptions by the parties to attend to nonhearing matters;
The parties should be in a location where there will not be unreasonable background noise.

(D) Any witnesses participating by telephone are subject to the same requirements as in subsection (3)(C).

(E) If a party or witness leaves the phone for any reason, or the connection is disconnected, all such action shall be considered voluntary, and the hearing shall proceed without such party or witness. *Original authority: 486.385, RSMo

15 CSR 30-100.070 Surrender of Commission {#sec-15-csr-30-100.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.070}

PURPOSE: This rule states how a notary public may surrender his/her commission.

(1) A notary may surrender his/her commission at any time after receiving notice of revocation and prior to adjudication. This surrender shall be executed in writing and need not admit or deny the allegations in the notice of revocation, but shall state that the notary voluntarily agrees to surrender his/her commission and will not seek to obtain another commission for a period of three (3) years.

Amended: Filed April 17, 2017, effective Oct. 30, 2017. *Original authority: 486.310, RSMo 1977, amended 2004, and 486.385, RSMo

History

AUTHORITY: sections 486.310 and 486.385.2, RSMo 2016. Original rule filed Dec. 16, 1985, effective April 11, 1986.

15 CSR 30-100.080 Appeal {#sec-15-csr-30-100.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-100.080}

PURPOSE: This rule describes how a notary public may appeal a decision revoking his/her commission.

(1) A notary who has received findings of fact, conclusions of law, and decision from the secretary of state’s office (final adjudication) revoking his/her commission may seek judicial review as provided in Chapter 536. *Original authority: 486.385, RSMo 1977, amended 2004.

Chapter 110 Notary Use of Electronic Signatures and Seals

15 CSR 30-110.010 Electronic Notary Definitions {#sec-15-csr-30-110.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.010}

(Rescinded February 28, 2021)

Emergency rule filed Dec. 21, 2016, effective Dec. 31, 2016, expired June 28, 2017. Original rule filed Dec. 21, 2016, effective June 30, 2017. Rescinded: Filed Aug. 31, 2020, effective Feb. 28, 2021.

History

AUTHORITY: section 486.275, RSMo 2016.

15 CSR 30-110.020 Electronic Signatures and Seals {#sec-15-csr-30-110.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.020}

(Rescinded February 28, 2021)

History

AUTHORITY: section 486.275, RSMo 2016.

15 CSR 30-110.030 Remote Online Notarization (RON) Approval {#sec-15-csr-30-110.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.030}

PURPOSE: This rule provides the process that vendors must go through to have their software approved for use by electronic notaries in Missouri.

(1) Vendors wishing to have their software approved for use by electronic notaries in Missouri must make an application to do so to the Commission Unit. The information on the application must include:

(A) Name of the vendor’s company;

(B) Name of the software to be used;

(D) Contact information for customer inquiries; and (E) List of other states the software is approved in.

(2) Upon filing of an application, the Commission Unit will review the software for compliance.

(3) Each software requesting approval must undergo a live demonstration by the Commission Unit.

(4) Once the Commission Unit has determined the software meets compliance, a certificate of acceptability will be issued to the vendor.

(5) A list of all approved software will be published on the Missouri Secretary of State’s (SOS) website.

Original rule filed Aug. 31, 2020, effec-

15 CSR 30-110.040 Remote Online Notarization (RON) Criteria {#sec-15-csr-30-110.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.040}

PURPOSE: This rule states the criteria that remote online notary (RON) must meet for use by electronic notaries in Missouri.

(1) Remote online notary (RON) must meet the following RON Credential Analysis and Authentication to be approved for use in Missouri:

(A) The software must allow for at least two (2) types of the following authentications as described in section 110.050, RSMo:

Credential Analysis of Government Issued Identification;
Dynamic Knowledge-Based Authentication; and 3. Biometrics;

(B) The software must provide for a live session using audio-video communication integrated with electronic document processing as described in section 110.060, RSMo;

(C) The software must be able to capture the necessary details for the notary to keep an accurate record of the transaction as described in section 110.070, RSMo; and (D) The software must provide an audit trail for each session as described in section 110.080, RSMo.

Original rule filed Aug. 31, 2020, effec-

15 CSR 30-110.050 Remote Online Notarization (RON) Credentials {#sec-15-csr-30-110.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.050}

PURPOSE: This rule sets out the credentials that remote online notary (RON) must meet for use by electronic notaries in Missouri.

(1) Remote Online Notarization (RON) providers must use automated software processes to aid the notary in verifying each principal’s identity.

(2) The credential must pass an authenticity test, consistent with sound commercial practices that— (A) Uses appropriate technology to confirm the integrity of visual, physical, or cryptographic security features;

(B) Uses appropriate technology to confirm that the credential is not fraudulent or inappropriately modified;

(C) Uses information held or published by the issuing source or authenticity source(s), as available, to confirm the validity of credential details; and (D) Provides the output of the authenticity to the notary.

(3) The credentials analysis procedure must enable the notary to visually compare both of the following for consistency:

(A) The information and photo on the presented credential image; and (B) The principal as viewed by the notary in real time through the audio/video system.

(4) Credentials must be a government issued document meeting the requirements of the state that issued the document, may be imaged, photographed, and video recorded under state and federal law, and can be subject to credential analysis.

(5) The credential image capture procedure must confirm that— (A) The principal is in possession of that credential at the time of the notarial act;

(B) That the credential image submitted for analysis has not been manipulated; and (C) The credential image matches the credential in the principal’s possession.

(6) The following general principles should be considered in the context of image resolution:

(A) The captured image resolution should be sufficient for the service provider to perform credential analysis per the requirements above;

(B) The image resolution should be sufficient to enable visual inspection by the notary, including legible text and clarity of photographs, barcodes, and other credential features; and (C) All images necessary to perform visual inspection and credential analysis must be captured - e.g. U.S. Passport requires identity page; state driver’s license requires front and back.

(7) A Dynamic Knowledge-Based Authentication (KBA) procedure must meet the following requirements:

(A) Each principal must answer questions and achieve a passing score from— 1. At least five (5) questions drawn from public or private data sources;

A minimum of five (5) possible answer choices per question;
At least four (4) of the five (5) questions answered correctly to pass (a passing score of eighty percent (80%)); and 4. All five (5) questions answered within two (2) minutes.

(B) Each principal must be provided a reasonable number of attempts per signing session.

If a principal fails their first quiz, they may attempt up to two (2) additional quizzes within forty-eight (48) hours from the first failure.
During any quiz retake a minimum of forty percent (40%), or two (2), of the prior questions must be replaced;

(C) The RON system provider must not include the KBA procedure as part of the video recording or as part of the system provided person-to-person video interaction between the notary and the signatory; and must not store the data or information presented in the KBA questions and answers.

However, the output of the KBA assessment procedure must be provided to the notary.

(D) Biometric sensing technology includes, but is not limited to, facial, voice, and fingerprint recognition.

Original rule filed Aug. 31, 2020, effec-

15 CSR 30-110.060 Audio and Video Quality {#sec-15-csr-30-110.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.060}

PURPOSE: This rule sets out the requirements for audio/video quality used by electronic notaries in Missouri.

(1) A reliable Remote Online Notarization (RON) operating model should consist of continuous, synchronous audio and video feeds with good clarity such that all participants can be clearly seen and understood at all times during the notarial act.

(2) Inherent in online audio/video technology is the presence of temporary surges or spikes in quantitative measures like bitrate and/or frequency of communications and no simple technical limits are practical or prudent.

Rather, a sounder approach to ensuring reliable real-time communications is to rely on the judgment of the notary to determine the adequacy of the communications and provide direction to terminate the session if those conditions are not met.

(3) The audio/video recording must include the person-to-person interaction required as

part of the Notarial Act as defined by the state, must be logically associated to the electronic Audit Trail, and must be capable of being viewed and heard using broadly available audio/video players.

(4) Video capture of documents or credentials that contain non-public personal information during the RON is not required as part of these standards.

Original rule filed Aug. 31, 2020, effec-

15 CSR 30-110.070 Storage and Retention of Notarial Records {#sec-15-csr-30-110.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.070}

PURPOSE: This rule sets out the requirements for storage and retention of notarial records used by electronic notaries in Missouri.

(1) Remote Online Notarization (RON) systems.

(A) RON must— 1. Facilitate the process of collecting the required notarial records;

Provide a method by which a notary can access and/or export the notarial records; and 3. Provide automated backup of the notarial records and audio/video recording to ensure redundancy.

(B) RON technology solution must employ data protection safeguards consistent with generally accepted information security standards.

(C) Retention of the audio/video recording and notarial records by either the notary or their designated third party, as directed by the notary, must adhere to the laws, directives, rules, and regulations of the state.

(2) A notary must retain an electronic journal and an audio-visual recording created under

Chapter 486, RSMo in a computer or other electronic storage device that protects the journal and recording against unauthorized access by password or cryptographic process.

(A) The recording must be created in an industry standard audio-visual file format and must not include images of any electronic record on which the remotely located individual executed an electronic signature.

(B) An electronic journal must be retained for at least ten (10) years after the last notarial act chronicled in the journal. An audiovisual recording must be retained for at least the ten (10) years after the recording is made.

(C) A notary must take reasonable steps to ensure that a backup of the electronic journal and audio-visual recording exists and is secure from unauthorized use.

History

AUTHORITY: sections 486.1110 and 486.1195, RSMo Supp. 2020. Emergency rule filed Aug. 31, 2020, effective Sept. 15, 2020, expired March 13, 2021. Original rule filed Aug. 31, 2020, effective Feb. 28, 2021. Original authority: 486.1110, RSMo 2020 and 486.1195, RSMo 2020.

15 CSR 30-110.080 Audit Trail {#sec-15-csr-30-110.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-110.080}

PURPOSE: This rule states the requirements for the remote online notarization (RON) audit trail for use by electronic notaries in Missouri.

(1) Significant actions completed as part of a RON signing session should be recorded in an audit trail. Each entry in this audit trail should clearly indicate the action performed (e.g. addition of an elec tronic signature), the date/time of its performance (e.g., Coordinated Universal Time, 2018-08-21 01:14:22 UTC), the name of the party performing the action (e.g. John Doe), and the IP address of the party performing the action.

(2) Each document completed as part of a RON should be electronically signed and rendered Tamper-Evident.

Original rule filed Aug. 31, 2020, effec- (1/29/21) JOHN R. ASHCROFT

Chapter 120 * - Family Trust Company

15 CSR 30-120.020 Application to Register as a Family Trust Company {#sec-15-csr-30-120.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.020}

15 CSR 30-120.030 Application to Register as a Foreign Family Trust Company {#sec-15-csr-30-120.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.030}

15 CSR 30-120.010 Definitions {#sec-15-csr-30-120.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.010}

(Moved to 20 CSR 1140-120.010)

15 CSR 30-120.020 Application to Register as a Family Trust Company {#sec-15-csr-30-120.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.020}

(Moved to 20 CSR 1140-120.020)

15 CSR 30-120.030 Application to Register as a Foreign Family Trust Company {#sec-15-csr-30-120.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.030}

(Moved to 20 CSR 1140-120.030)

15 CSR 30-120.040 Annual Registration Report {#sec-15-csr-30-120.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.040}

(Moved to 20 CSR 1140-120.040)

15 CSR 30-120.050 Records {#sec-15-csr-30-120.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.050}

(Moved to 20 CSR 1140-120.050)

15 CSR 30-120.060 Examination {#sec-15-csr-30-120.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.060}

(Moved to 20 CSR 1140-120.060)

15 CSR 30-120.070 Application Process and Forms {#sec-15-csr-30-120.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-120.070}

(Moved to 20 CSR 1140-120.070)

Chapter 130 Professional Employer Organization Act

15 CSR 30-130.010 Definitions {#sec-15-csr-30-130.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.010}

PURPOSE: This rule facilitates the administration of the Professional Employer Act in accordance with sections 285.700–285.750, RSMo. This rule provides definitions of terms in addition to those found in section 285.705, RSMo for the administration of the Act.

(1) “Assurance Organization” means an independent and qualified entity approved by the secretary of state to certify the qualifications of a PEO for registration pursuant to the alternative registration provisions and procedures of the Act, these PEO rules and the standards and procedures of the assurance organization.

(2) “Business experience” (as used in the application and renewal forms) shall mean a narrative detailed description of businessrelated achievements, credentials, and experience of an individual. Alternatively, a resume may be used in lieu of a narrative description if it contains, at a minimum, the following information: current contact information, relevant degree(s)/certification(s), and a five- (5-) year work history.

(3) “PEO” as used in this rule shall mean a professional employer organization including a PEO Group, a controlling person of a PEO, or a person offering PEO services.

(4) “Secretary” shall mean the secretary of state or his designee.

History

AUTHORITY: section 285.705, RSMo Supp. Original authority: 285.705, RSMo 2018.

15 CSR 30-130.020 Applications, Interim Operating Permits, and Forms {#sec-15-csr-30-130.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.020}

PURPOSE: This rule provides instructions for full, limited, or group applications along with renewals. It also provides instructions for obtaining an interim operating permit pursuant to section 285.715, RSMo.

(1) Every application shall conform to the requirements within section 285.715, RSMo including evidence of business experience and an audited financial statement. The audited financial statement may not express any ongoing concerns.

(2) A professional employer organization (PEO) not registered in Missouri, must decline to provide services or notify the secretary within five (5) business days of obtaining knowledge that an existing client not based in Missouri has employees or operations in Missouri.

(A) If the PEO does not decline to provide services to the existing client, the PEO must immediately file a limited registration application if the client has less than fifty (50) employees based in Missouri.

(B) The PEO may request an interim operating permit until such application is approved. The secretary may issue an interim operating permit if— 1. The PEO is currently registered or licensed by another state;

The PEO makes the request for an interim operating permit in writing indicating in what other states it is licensed or registered;
The secretary determines it is in the best interest of the potential covered employees to grant an interim operating permit; and 4. The PEO has filed a limited registration application.

(3) Application and renewal forms may be found on the secretary’s website at www.sos.mo.gov/peo.

15 CSR 30-130.030 Fees {#sec-15-csr-30-130.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.030}

PURPOSE: This rule provides the fee structure for professional employer organization (PEO) applications and renewal.

(1) The following fees for a PEO shall apply:

(A) Full Application - $500.00;

(B) Full Renewal - $250.00;

(D) Limited Renewal - $250.00;

(E) Group Application - $500.00, plus $250.00 for each entity in the PEO Group;

(F) Group Renewal - $250.00, plus $125.00 for each entity in the PEO Group.

History

AUTHORITY: section 285.725, RSMo Supp. Original authority: 285.725, RSMo 2018.

15 CSR 30-130.040 Approval of Assurance Organizations {#sec-15-csr-30-130.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.040}

PURPOSE: This rule addresses how an assurance organization may be approved to submit applications and renewals on behalf of their members.

(1) An applicant or registered professional employer organization (PEO) may enter into an agreement with an assurance organization approved by the secretary to act on its behalf in accomplishing the provisions of the Professional Employer Organization Act or these rules.

(2) The approval of an assurance organization by the secretary, to act on behalf of an applicant or registered PEO, does not relieve the applicant or registered PEO from the ultimate responsibility to comply with its obligations pursuant to the Act or these rules.

(3) An assurance organization desiring to become approved by the secretary shall submit to the secretary— (A) A letter requesting approval;

(B) Evidence that the assurance organization is qualified to perform the functions on behalf of the applicant or registered PEO; and (C) An explanation of how the assurance organization will certify each of the criteria and obligations required of the applicant or registered PEO by the Act or rule.

(4) An assurance organization’s approval by the secretary shall remain in effect until such time the secretary, after written notice, terminates the approval, or until such time the assurance organization, by written notice, withdraws or terminates its status as an approved assurance organization.

(5) An assurance organization that has been approved by the secretary shall notify the secretary annually, in writing, on the anniversary of its approval date, of any material change in the assurance organization’s national accreditation and financial assurances during the previous year.

(6) The secretary shall make available to the public a current list of approved assurance organizations, upon request.

(7) The secretary shall notify the assurance organization, in writing, if the secretary becomes aware of any information that indicates that the assurance organization is failing to adequately monitor or provide compliance assistance as intended by the Act.

(8) The assurance organization shall respond to the secretary within thirty (30) days of its receipt of such notification of deficiency. The secretary may terminate an assurance organization’s approval based on a finding that the assurance organization is no longer in compliance.

15 CSR 30-130.050 Use of Assurance Organization by Applicant {#sec-15-csr-30-130.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.050}

PURPOSE: This rule sets forth the process for an applicant to use a secretary-approved assurance organization.

(1) The secretary shall accept an approved assurance organization’s written certification as evidence that an applicant has met, and continues to meet, the criteria and obligations set forth in the Act and rules. The secretary retains the right to independently verify any information or certification provided by the assurance organization, including the ability to verify information contained in the assurance organization’s regulatory portal that applicant has authorized assurance organization to share with the secretary.

(2) For an applicant using an assurance organization, satisfactory assurance of compliance and the secretary’s continuous electronic access to information regarding applicant will satisfy the application requirements of

section 285.715, RSMo. Additionally, renewal requirements under section 285.715, RSMo, will be waived provided that the appropriate renewal fee is paid prior to the due date.

(3) An approved assurance organization shall notify the secretary in writing no later than ten (10) days after it has made a determination that an applicant or registered professional employer organization (PEO) it represents is— (A) Not in compliance with its obligations under the Act;

(B) In violation of assurance organization’s standards; or (C) No longer accredited by assurance organization.

(4) In the event that a registered PEO loses its accreditation with an assurance organization, the secretary reserves the right to immediately suspend the license of the PEO and require the registered PEO to submit relevant documents and information directly to the secretary in order to comply with the application requirements of the Act. Failure to timely do so will result in the secretary taking appropriate disciplinary action against the PEO.

15 CSR 30-130.060 Proof of Positive Working Capital, Bonds, and Letters {#sec-15-csr-30-130.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.060}

PURPOSE: This rule describes positive working capital, as well as, the posting of bonds and letters of credit.

(1) An applicant or registered professional employer organization (PEO) must demonstrate positive working capital. This must be demonstrated in the financial audit that— (A) Was prepared in accordance with generally accepted accounting principles;

(B) Was audited by an independent certified public accountant without qualification as to the ongoing concern status of the applicant or registered PEO;

(C) Reflects positive working capital; and (D) Is based on adequate reserves for taxes, insurance, and incurred claims that are not paid.

(2) An applicant who does not have a positive working capital may provide a bond— (A) With a minimum market value equaling the deficiency plus one hundred thousand dollars ($100,000);

(B) Held by a lender authorized to do business in the state of Missouri and found on https://treasurer.mo.gov/LinkedDepositProgr amParticipatingInstitutions/default.aspx;

(C) Is payable to the Missouri secretary of state; and (D) States that the surety will provide the secretary written notice sixty (60) days prior to cancelling the bond.

(3) In the alternative, an applicant who does not have a positive working capital may provide a letter of credit with a minimum market value equaling the deficiency plus one hundred thousand dollars ($100,000) that— (A) Is irrevocable;

(B) Is issued by a financial institution authorized to do business in the state of Missouri and which is financially responsible for the amount of the letter;

(C) Does not require examination of the performance of the underlying transaction between the secretary and the applicant;

(D) Is payable to the secretary on sight or within a reasonable period of time after presentation of all required documents; and (E) Does not include any condition that makes payment to the secretary contingent upon the consent of, or other actions by, the applicant or other party.

History

AUTHORITY: section 285.725, RSMo Supp. Original authority: 285.725, RSMo 2018.

15 CSR 30-130.070 Disciplinary Actions {#sec-15-csr-30-130.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.070}

PURPOSE: This rule describes the disciplinary action the secretary may take pursuant to section 285.750, RSMo, and the notice provided to initiate a disciplinary action.

(1) Upon a decision to take disciplinary action for violation of section 285.750, RSMo, the secretary shall mail such professional employer organization (PEO) written notice, by certified mail, at the address on file with the secretary.

(2) The secretary shall notify a PEO, in writing, by certified mail that the secretary intends to take disciplinary action. The notice shall contain the following information:

(A) The PEO’s name and address;

(B) The specific allegations for the disciplinary action; and (C) Instructions for requesting a hearing.

(3) If disciplinary action is taken against a PEO who registered through an assurance organization, the secretary may provide such notice to the assurance organization. Such notice shall constitute sufficient notice for

section 285.750.3, RSMo.

4CODE OF STATE REGULATIONS

(4/30/19) JOHNR. ASHCROFT

15 CSR 30-130.080 Request for Hearing {#sec-15-csr-30-130.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.080}

PURPOSE: This rule prescribes how a professional employer organization (PEO) may request a hearing for any disciplinary action the secretary intends to take.

(1) When a PEO receives a notice of disciplinary action from the secretary, the PEO may request a hearing. A request for hearing must be received by the secretary no later than thirty (30) calendar days after the PEO receives the notice of discipline. Failure to file a request for hearing within thirty (30) calendar days of receipt of said notice shall constitute waiver of a hearing.

(2) If a PEO does not request a hearing, or fails to request a hearing within thirty (30) calendar days, as outlined in section (1) above, the secretary shall still make findings pursuant to section 285.750.3, RSMo.

(3) A request for hearing must be signed by the PEO or its attorney. It must also contain the name, mailing address, and telephone number of the PEO (or the name, address, and telephone number of the PEO’s attorney). The request for hearing must be mailed to the Office of the Secretary of State, PEO Registration, PO Box 1767, Jefferson City, MO 65102.

(4) A PEO may request that a hearing be conducted by telephone. If so, the PEO must include that information in its request for hearing and provide a good telephone number that the PEO will use during the hearing. The PEO is responsible for a good connection if it requests a telephone hearing, and the secretary is not responsible for any disruption caused by a poor cell phone signal. If a party or witness leaves the phone for any reason, or the connection is disconnected, all such action shall be considered voluntary, and the hearing shall proceed without such party or witness.

15 CSR 30-130.090 Hearings {#sec-15-csr-30-130.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.090}

PURPOSE: This rule describes the nature and process of disciplinary hearings conducted by the secretary.

(1) All disciplinary hearings shall be governed by the administrative hearing process found in Chapter 536, RSMo.

(2) No disciplinary hearing will be held less than thirty (30) days after the secretary receives a written request for a hearing.

(3) Notice of hearing will be provided to the professional employer organization (PEO) by certified mail and shall include the date, time, and place of the hearing.

(4) Hearings will be open to the public and notice of the hearing shall be posted pursuant to Chapter 610, RSMo.

(5) All hearings will be audio recorded unless the PEO requests the hearing be transcribed by a court reporter. If a PEO requests a court reporter, the PEO is responsible for the cost of the court reporter and all copies of the transcripts.

(6) Oral evidence shall be taken on oath or affirmation. Each party shall have the right to call and examine witnesses, introduce exhibits, and cross-examine witnesses on any relevant issue related to the disciplinary action.

(7) Each party shall provide copies of all exhibits it intends to use at the hearing to the other party and the secretary no later than five (5) working days prior to the hearing.

(8) A list of all documents and exhibits submitted at the hearing shall become part of the record and officially noted in the transcript/recording.

(9) Copies of writings, documents, and records shall be admissible without proof that the originals thereof cannot be produced if it appears by testimony or otherwise that the copy offered is a true copy of the original.

(10) The secretary or his/her representative shall present evidence first. The PEO shall then have the opportunity to present its evidence in the same manner. Each party has the right to rebut the evidence presented and present closing statements.

(11) The secretary shall issue written findings of facts and conclusions of law. Such findings shall include the violations found and the disciplinary action to be taken as authorized under section 285.750, RSMo. Such findings shall be a final adjudication of the matter.

15 CSR 30-130.100 Appeals {#sec-15-csr-30-130.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-130.100}

PURPOSE: This rule describes how a professional employer organization (PEO) may appeal the secretary’s findings that disciplinary action should be taken against it.

(1) A PEO who receives findings of fact and conclusions of law as provided in 15 CSR 30- 130.090 upholding any disciplinary action may seek judicial review as provided for in

Chapter 536, RSMo.

Chapter 150 * - Franchise Tax-moved to 12 CSR 10-9

15 CSR 30-150.010 Forms for Franchise Ta x {#sec-15-csr-30-150.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.010}

(Moved to 12 CSR 10-9.100)

15 CSR 30-150.020 Form: Request for Extension of Time to File {#sec-15-csr-30-150.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.020}

(Moved to 12 CSR 10-9.110)

15 CSR 30-150.030 Form: Request for Franchise Tax Clearance {#sec-15-csr-30-150.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.030}

(Moved to 12 CSR 10-9.120)

15 CSR 30-150.040 Form: Authorization for Release of Confidential Information {#sec-15-csr-30-150.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.040}

(Moved to 12 CSR 10-9.130)

15 CSR 30-150.110 General {#sec-15-csr-30-150.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.110}

(Moved to 12 CSR 10-9.140)

15 CSR 30-150.120 Definitions {#sec-15-csr-30-150.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.120}

(Moved to 12 CSR 10-9.150)

15 CSR 30-150.130 Exceptions {#sec-15-csr-30-150.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.130}

(Moved to 12 CSR 10-9.160)

15 CSR 30-150.140 Tax Year {#sec-15-csr-30-150.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.140}

(Moved to 12 CSR 10-9.170)

15 CSR 30-150.150 Payment {#sec-15-csr-30-150.150 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.150}

(Moved to 12 CSR 10-9.180)

15 CSR 30-150.160 Information Confidential, Exceptions {#sec-15-csr-30-150.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.160}

(Moved to 12 CSR 10-9.190)

15 CSR 30-150.170 Report, Contents, Date Due {#sec-15-csr-30-150.170 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.170}

(Moved to 12 CSR 10-9.200)

15 CSR 30-150.180 Extension of Time to File {#sec-15-csr-30-150.180 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.180}

(Moved to 12 CSR 10-9.210)

15 CSR 30-150.190 Audits {#sec-15-csr-30-150.190 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.190}

(Moved to 12 CSR 10-9.220)

15 CSR 30-150.200 Assessments {#sec-15-csr-30-150.200 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.200}

(Moved to 12 CSR 10-9.230)

15 CSR 30-150.210 Final Determinations, Hearings {#sec-15-csr-30-150.210 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.210}

(Moved to 12 CSR 10-9.240)

15 CSR 30-150.220 Review by the Administrative Hearing Commission {#sec-15-csr-30-150.220 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.220}

(Moved to 12 CSR 10-9.250)

15 CSR 30-150.230 Overpayments {#sec-15-csr-30-150.230 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.230}

(Moved to 12 CSR 10-9.260)

15 CSR 30-150.240 Amended Reports {#sec-15-csr-30-150.240 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.240}

(Moved to 12 CSR 10-9.270)

15 CSR 30-150.250 Limitations on Collection of Tax, Refunds {#sec-15-csr-30-150.250 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.250}

(Moved to 12 CSR 10-9.280)

15 CSR 30-150.300 Compliance with the Americans with Disabilities Act {#sec-15-csr-30-150.300 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-150.300}

(Moved to 12 CSR 10-9.290)

Rebecca McDowell Cook (12/31/99)

Chapter 200 State Library

15 CSR 30-200.010 State and Federal Grants—Definitions {#sec-15-csr-30-200.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.010}

PURPOSE: This rule defines terms utilized in connection with the requirements, procedures, and administration of state and federal grants administered by the state librarian under the direction of the secretary of state.

(1) As used in 15 CSR 30-200.010 to 15 CSR 30-200.100, the following terms shall mean:

(A) Academic library is a library which is controlled and operated by a two- (2-) or four- (4-) year college or university, either publicly supported or private, and which is designated primarily to serve faculty and students of that college or university;

(B) Appropriation is state or federal funding specifically set aside for the state library;

(C) Grant is a non-repayable fund distributed by the state or federal government, a public or private corporation, a public or private foundation, or a trust;

(D) Institutional library is a library that serves the residents of an institution supported with state funds. These institutions include, but are not limited to, correctional, youth, veteran, and health organizations;

(E) Library consortium is any local, statewide, regional, interstate, or international cooperative association of library entities which provides for the systematic and effective coordination of the resources of school, public, academic, and special libraries and information centers and for improved services for the clientele of such library entities;

(F) Public library is a library established and maintained under the provisions of the library laws or other laws of the state related to libraries, primarily supported by public funds and designed to serve the general public;

(G) School library is a library controlled and operated by elementary or secondary schools, either publicly supported or private, and designated to serve faculty and students of that school;

(H) Secretary is the Missouri secretary of state;

(I) Secretary’s Council on Library Development is a committee established by the secretary of state made up of representatives from all areas of the state which may include legislators, public library trustees, citizens, and librarians from all types of libraries. This committee advises the state librarian and the secretary of state on statewide library concerns, federal grant programs, state aid to public libraries, and all matters that relate to Missouri libraries and library service to Missouri citizens; recommends policy and programs; and communicates the value of libraries to people in the state and to those responsible for libraries;

(J) Signature, for purposes of appropriations and grants and the paperwork associated with them, may include an electronic signature, electronic facsimile of the original signed document, or a pdf of the original signed document which shall be prima facie evidence for all purposes that the document actually was signed by the person whose signature appears on the page, facsimile, or pdf document. An electronic facsimile of a signature that is attached to an electronic file shall also be considered a signature under this definition;

(K) Special library is a library established by an organization and designed to serve the special needs of its employees or clientele; and (L) State aid to public libraries is a sum appropriated by the legislature for distribution among the public libraries of the state as specified in section 181.060, RSMo.

Amended: Filed Nov. 13, 2015, effective April 30, 2016. Amended:

Filed Feb. 7, 2019, effective July 30, 2019. *Original authority: 28.700, RSMo 2001; 181.021, RSMo 1955, amended 1991, 1995, 2004 and 181.060, RSMo 1945, amended 1955, 1959, 1981, 1987, 1991, 2011.

History

AUTHORITY: sections 28.700, 181.021, and 181.060, RSMo 2016. Emergency rule filed Nov. 18, 1996, effective Nov. 28, 1996, expired May 26, 1997. Original rule filed Nov. 18, 1996, effective May 30, 1997. Amended: Filed Oct. 31, 2011, effective April 30, 2012.

15 CSR 30-200.015 Library Certification Requirement for the Protection of Minors {#sec-15-csr-30-200.015 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.015}

PURPOSE: For the protection of minors defined in 15 CSR 30- 200.030(1)(E), this rule establishes a certification requirement for any library defined in 15 CSR 30-200.010 that receives funds pursuant to 15 CSR 30-200.020 and 15 CSR 30-200.025.

(1) Notwithstanding any provision of 15 CSR 30-200.020 and

15 CSR 30-200.025 to the contrary, the state librarian shall not distribute any funds to any library defined in 15 CSR 30-200.010 that receives funds pursuant to 15 CSR 30-200.020 and 15 CSR 30-200.025 unless such library certifies in writing each of the following: {#sec-15-csr-30-200.025 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.025}

(A) The library has or will adopt a written, publicly accessible collection development policy addressing how selections are made in considering the appropriateness by age of any minor, as defined in 15 CSR 30-200.030;

(B) No funds received shall be used to purchase or acquire material that constitutes “child pornography,” is “pornographic for minors,” or is “obscene,” as those terms are defined in

section 573.010, RSMo;

(C) The library has or will adopt a written, publicly accessible policy allowing a minor’s parent or guardian to determine what materials and access will be available to that minor, and no person employed by or acting on behalf of the library shall knowingly grant access to a minor to any material in any form not approved by that minor’s parent or guardian;

(D) No age-inappropriate materials in any form, as defined in the library’s collection development policy, shall be knowingly displayed in the library in areas designated by the library as containing materials predominantly for minors;

(E) No event or presentation shall be held at the library without an age-appropriate designation affixed to any publication, website, or advertisement for such event or presentation; and (F) The library has or will adopt a written, publicly accessible library materials challenge policy by which any parent or guardian of a minor within the library district may dispute or challenge the library’s age-appropriate designation affixed to any presentation, event, material, or display in the library, and the results of any such dispute or challenge shall be disclosed to the public and published on the library’s website.

(2) The library shall submit a copy of its written policies to the state librarian annually by July 31, and shall submit, within thirty (30) days, any revisions to such policies to the state librarian.

(4/30/23) John R. Ashcroft

History

AUTHORITY: sections 181.021, 181.060, and 182.812, RSMo 2016. Original rule filed Oct. 14, 2022, effective May 30, 2023. 1945, amended 1955, 1959, 1981, 1987, 1991, 2011; 182.812, and RSMo 1983, amended 1995.

15 CSR 30-200.020 State and Other Grants-in-Aid {#sec-15-csr-30-200.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.020}

PURPOSE: This rule establishes eligibility requirements and procedures for the administration of state and other types of grants-in-aid appropriated to the state library for the improvement of library services, including state aid for public libraries. These funds are administered by the state librarian under the direction of the secretary of state.

(1) The state librarian will administer and distribute moneys appropriated by the general assembly for state grants-in-aid, including state aid for public libraries, in accordance with the provisions set forth herein and applicable state laws.

(2) Each of the following requirements must be met for participation in state grants-in-aid:

(A) A public library must be legally established according to the provisions of Chapter 182, RSMo, or other laws of the state related to libraries;

(B) A public library must receive from tax funds an amount equal to ten cents per one hundred dollars (10¢:$100) assessed valuation authorized in accordance with the applicable provisions within Chapter 182 or section 137.030, RSMo. A city library which is not supported by a library tax must receive an appropriation from the city of an amount equal to ten cents per one hundred dollars (10¢:$100) assessed valuation. The requisite funds must be assessed and levied, or in the case of a city library not supported by a library tax, otherwise expended, for the fiscal year preceding that in which the grant is made.

No grant shall be affected because of a reduction in the rate of levy which is required by the provisions of section 137.073, RSMo, or because of a voluntary reduction in the levy following the enactment of a district sales tax under section 182.802, RSMo, if the proceeds from the sales tax equal or exceed the reduction in revenue from the levy;

(C) The rate of tax levy or appropriation for the public library must be maintained at the rate in force on December 31, 1946, or on the date of its establishment; and (D) Additional eligibility requirements and local funding matches appropriate to the project may be established for state grants-in-aid awarded under section 181.021(7), RSMo, and for other grants-in-aid appropriated by the general assembly.

Where applicable, and if approved by the secretary of state, such additional eligibility requirements will be defined in the call for applications for each type of grant-in-aid.

(3) Per Capita Grants of State Aid for Public Libraries.

(A) During each fiscal year, the state librarian will distribute to eligible public libraries on a per capita basis at least fifty percent (50%) of all moneys appropriated by the general assembly as state aid to public libraries, the allocation of which shall be made in accordance with section 181.060.2, RSMo.

(B) All eligible public libraries shall file the certification required by section 181.060.3, RSMo, with the state library no later than July 31 of each year. The state library will provide certification forms with instructions to all public libraries annually and upon request.

(C) All certification forms will be examined by state library staff for completeness, compliance with eligibility criteria, and adherence to instructions. Requests to the applying library for additional information or verification of information must be responded to within the time frames specified by state library staff.

(D) Failure of a public library to timely file the requisite certification forms or to timely respond to requests for or verifications of additional information, upon notice of the state librarian, shall cause the library to forfeit its per capita state aid.

(E) After review by state library staff, the certification forms shall be presented to the state librarian who shall then certify to the commissioner of administration the appropriate amount to be paid to each eligible library.

(F) Per capita state aid grants will be remitted to all certified libraries.

(G) All libraries receiving per capita grants of state aid shall report to the state librarian in connection with the annual survey of services the expenditures made from the per capita grant of state aid.

(4) Other Grants of State Aid To Public Libraries Under Section 181.060, RSMo.

(A) For each fiscal year, the state librarian, in his or her discretion, shall administer and supervise grants to public libraries of the balance of all moneys appropriated by the general assembly pursuant to, in accordance with, and for the purposes set forth in section 181.060.4, RSMo.

(B) State aid grants to newly established library districts may be made in accordance with the certification process in section 181.060.4, RSMo.

(5) Audit Requirements.

(A) Grantees must comply with the audit requirements set forth in Missouri statutes for local governmental units.

The grantee is responsible for ensuring that the state library receives copies of the audit report in a timely fashion.

(B) Specific accounting requirements for competitive grants awarded under the administration of the state library are— 1. Grant money must be deposited in an auditable account.

When grant funds are deposited in an interest-bearing account, all interest over one hundred dollars ($100) must be applied to the project;

Grant work will be monitored in progress. State library staff may visit the project site(s) for review at any time during the grant cycle;
The grantee must submit report(s) on the grant project, by the date and using the form(s) provided by the state library.

The report shall indicate the work completed, and include a financial status report;

Any items or services purchased by the grantee must conform to the competitive bid requirements of section 34.040, RSMo. Proof of bid solicitation on all such items must be submitted with the financial reports;
Projects using in-kind contributions as local matches will need to include appropriate proof (for example, records of hours worked) with the financial reports;
Requests for extension of the grant period, budget changes, or other modifications to the project shall be made in writing to the state library no later than three (3) weeks prior to the end of the grant period. The state librarian may, at his or her discretion, allow an amendment subject to the appropriation and availability of funds;

(10/31/22) John R. Ashcroft 7. In the event of default on the grant project by the grantee, the grant will be revoked and all funds must be returned to the state library. The grantee will be notified by letter by the state library and will receive thirty (30) days written notice of noncompliance before the grant is revoked; and 8. The grantee shall prepare a final report on the grant project. Forms will be provided for both segments of the final report, 1) project summary and evaluation and 2) final financial report.

(6) Federal and Other Types of Grants to Libraries. Unless otherwise expressly provided for, any appropriations made by the general assembly other than appropriations made under

section 181.060, RSMo, with respect to which the state library is designated as the administering agent shall be distributed pursuant to applications or requests for proposals governed to the greatest degree practicable by the procedures set forth in sections (4) through (5) hereinabove with the following exceptions:

(A) Funds received from federal sources will follow the federal statutes and regulations of the program involved in addition to applicable state and local statutes and regulations; and (B) Funds received from other private or public sources will follow program guidelines and regulations from the funding source in addition to applicable state and local statutes and regulations.

History

AUTHORITY: sections 181.021, 181.060, 182.802, and 182.812(3), RSMo 2016. Emergency rule filed Nov. 18, 1996, effective Nov. 28, 1996, expired May 26, 1997. Original rule filed Nov. 18, 1996, effective May 30, 1997. Amended: Filed Oct. 31, 2011, effective April 30, 2012. Amended: Filed Feb. 7, 2019, effective July 30, 2019. 1945, amended 1955, 1959, 1981, 1987, 1991, 2011; 182.802, RSMo 2011; and 182.812(3), RSMo 1983, amended 1995.

15 CSR 30-200.025 Application and Payment Procedures for Appropriations or Grants {#sec-15-csr-30-200.025 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.025}

PURPOSE: This rule establishes the application and payment procedures followed by the state library for appropriations and grants.

(1) For appropriations or grants which designate a directed distribution of funds to libraries which meet specific eligibility criteria (such as meeting the definition of an academic library, institutional library, library consortium, public library, school library, or special library, as defined in 15 CSR 30-200.010), the state library shall request information from the institutions to determine which ones are eligible for participation. In some instances, additional published data from various sources, including state and federal agencies, may be used to determine eligibility.

(2) For appropriations or grants with funds awarded on a competitive basis, the following application process will be used:

(A) Applications must be submitted in the form and manner prescribed by the state library and must include all required signatures;

(B) Additional information may be requested by the state library as appropriate to the type of applications;

(C) All applications will be examined by state library staff for completeness, compliance with regulations and eligibility criteria, and adherence to instructions, but meeting these elements does not obligate the state librarian or secretary of state to award any grant; and (D) The state librarian shall review the applications and provide the secretary of state with recommendations for grant awards. The secretary of state shall make the final decision on approving, in whole or in part, or denying a grant.

History

AUTHORITY: sections 181.021, 181.060, and 182.812(3), RSMo 2016. Emergency rule filed Feb. 7, 2019, effective Feb. 17, 2019, expired Aug. 15, 2019. Original rule filed Feb. 7, 2019, effective July 30, 2019. 1945, amended 1955, 1959, 1981, 1987, 1991, 2011; and 182.812(3), RSMo 1983, amended 1995.

15 CSR 30-200.030 Public Access Computers in Public Libraries {#sec-15-csr-30-200.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.030}

PURPOSE: This rule establishes procedures for the administration of public library public access computers for the purposes of limiting access to material that is pornographic to minors. These procedures are administered by the state librarian under the direction of the secretary of state.

(1) Definitions. As used in this rule, the following terms shall mean:

(A) “Public library” is a library established and maintained under the provisions of the library laws or other laws of the state related to libraries, primarily supported by public funds and designed to serve the general public. A public library must be legally established according to the provisions of current or other laws of the state related to libraries;

(B) “Secretary” is the Missouri secretary of state;

(D) “Pornographic for minors,” as that term is defined in

section 573.010, RSMo;

(E) “Minor,” as that term is defined in section 573.010, RSMo;

(F) “Public access computer,” as that term is defined in

section 182.825, RSMo.

(2) The state librarian will administer procedures in accordance with the provisions set forth herein and in applicable state laws.

(3) One (1) of the following requirements must be met by a public library in regards to limiting access to material that is pornographic to minors:

(A) A public library must equip any public access computer with software that will limit minors’ ability to gain access to material that is pornographic for minors or purchase Internet connectivity from an Internet service provider that provides filter services to limit access to material that is pornographic for minors; or (B) Develop and implement by January 1, 2003, a policy that is consistent with community standards and establishes measures to restrict minors from gaining computer access to material that is pornographic for minors.

(4) Certification of Compliance.

(4/30/23) John R. Ashcroft (A) In order to be found in compliance with the state library’s

rule, a public library must certify itself to be in compliance— 1. By filing a certification form, designated by the state library and posted on the state library’s website , with the state librarian or his/her designee and by demonstrating at least one (1) of the following:

A. The Library has an Internet usage policy in accordance with section 182.827.3(2), RSMo; or B. The Library uses filtering software on its public access computers.

(B) This certification is to be submitted— 1. In the first year of certification, by the date set by the Missouri State Library.

Each subsequent year, by the date state aid forms are required to be filed.

(5) Noncompliance.

(A) Any “public library or public library board member, officer, employee or trustee” not willing to submit such certification of compliance will be found noncompliant with this rule.

(6) Compliance forms, designated by the state library and available on the state library’s website http://www.sos.state. mo.us/library/, should be filed with the State Library, which is located in Room 200 of the James C. Kirkpatrick State Information Center, 600 West Main Street, Jefferson City, Missouri.

rule filed Nov. 13, 2002, effective Nov. 23, 2002, expired April 29, 2003. Original rule filed Nov. 13, 2002, effective April 30, 2003.

Amended: Filed Feb. 7, 2019, effective July 30, 2019. *Original authority: 182.825, RSMo 2002 and 182.827, RSMo 2002.

History

AUTHORITY: sections 182.825 and 182.827, RSMo 2016. Emergency

15 CSR 30-200.100 State Publications Access Program {#sec-15-csr-30-200.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 30-200.100}

PURPOSE: This rule establishes the requirements for state agencies and participating libraries to comply with the State Publications Access Program.

(1) State Agencies.

(A) The director of each state agency shall assign a designee or designees as a contact for this program. Designee information shall be updated annually by the agencies to the Missouri State Library via the designee form provided by the Missouri State Library. The form shall include the following information: the name of the agency, the name of the agency director, the director’s office telephone number and e-mail address, the name of the division, the name of the division designee for this program, and the designee’s office telephone number and e-mail address.

(B) It shall be the responsibility of the designees and agencies to— 1. Submit a single digital file for each requested publication to the Missouri State Library;

Submit five (5) paper copies, of those publications still produced in paper, for each requested publication to the Missouri State Library, free of charge;
Submit requested publications to the Missouri State Library in an accessible format chosen by the Missouri State Library and within forty-five (45) days of publication;
Review the list of requested publications and update the Missouri State Library with information about new publications, discontinued publications, and other relevant publication information;
Inform the Missouri State Library of any designee changes, and promptly assign a new designee within thirty (30) days when the designee needs replacement; and 6. Contact the Missouri State Library for further guidance in submission procedures and policies.

(C) Each state agency digitizing older publications previously issued in paper shall provide a digital copy to the Missouri State Library.

History

AUTHORITY: section 181.110, RSMo Supp. 2018. Original rule filed Feb. 16, 2006, effective Sept. 30, 2006. Amended: Filed Feb. 7, 2019, effective July 30, 2019. Original authority: 181.110, RSMo 1976, amended 1983, 1991, 2004, 2014, 2018.

Division 40 State Auditor

Chapter 1 Organization

15 CSR 40-1.010 Function and Organization of Auditor’s Office {#sec-15-csr-40-1.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-1.010}

PURPOSE: This rule states the function and general organization of the Missouri State Auditor’s Office to comply with the requirements of section 536.023, RSMo.

(1) The function of the state auditor’s office is to perform the duties as defined by Article IV, Section 13, Missouri Constitution; and

Chapter 29, RSMo. In auditing Missouri offices, agencies, and political subdivisions, the auditor verifies the accountability of program administrators to the people of Missouri.

(2) The auditor shall establish appropriate systems of accounting for all public officials, institutions, and political subdivisions. These systems shall conform with generally accepted financial practices.

(3) All audits shall conform to the standards for auditing of governmental organizations, programs, activities, and functions established by the comptroller general of the United States.

(4) The office of the state auditor is located in the state capitol building and the Truman State Office Building, 301 West High Street, Jefferson City, MO 65101. Internal organization reflects the objectives and standards set by the auditor. Any information requested by the public can be obtained by writing the Missouri State Auditor, PO Box 869, Jefferson City, MO 65102, (573) 751-4824 or (573) 751-4213.

Filed Jan. 24, 1984, effective May 11, 1984.

Amended: Filed June 14, 1994, effective Nov. 30, 1994. Amended: Filed Dec. 21, 2016, effective June 30, 2017. *Original authority: 29.100, RSMo 1945, amended 1993, 1995 and 536.023, RSMo 1975, amended 1976, 1997, 2004.

Op. Atty. Gen. No. 209, Lehr (10-20-75).

Raw files, work papers, and other documents and meetings held preparatory to the issuance of signed audit reports of the state auditor issued pursuant to section 29.270 RSMo (1969) shall not be open to the public.

History

AUTHORITY: sections 29.100 and 536.023, RSMo 2016. Original rule filed April 8, 1976, effective Aug. 12, 1976. Amended:

15 CSR 40-1.020 Recognized Governmental Auditing Practices {#sec-15-csr-40-1.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-1.020}

(Rescinded November 30, 1994)

Original rule filed June 14, 1982, effective Sept. 11, 1982. Rescinded: Filed June 14, 1994, effective Nov. 30, 1994.

JOHNR. ASHCROFT(5/31/17)

History

AUTHORITY: section 29.100, RSMo 1986.

Chapter 2 Rules Applying to State Agencies

15 CSR 40-2.010 Delivery to W-2 Federal Wage and Tax Statement {#sec-15-csr-40-2.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-2.010}

15 CSR 40-2.020 Format of Independent Audit and Accounting Procedures {#sec-15-csr-40-2.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-2.020}

15 CSR 40-2.010 Delivery of W-2 Federal Wage and Tax Statement {#sec-15-csr-40-2.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-2.010}

(Rescinded February 26, 1988)

History

AUTHORITY: section 24.100, RSMo 1986. Original rule filed Jan. 14, 1971, effective June 24, 1971. Rescinded: Filed Nov. 16, 1987, effective Feb. 26, 1988.

15 CSR 40-2.020 Format of Independent Audit and Accounting Procedures {#sec-15-csr-40-2.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-2.020}

(Rescinded May 12, 1983)

Rescinded: Filed Feb. 8, 1983, effective May 12, 1983.

History

AUTHORITY: section 29.100, RSMo 1978 and Article IV, section 13, Missouri Constitution. Original rule filed Oct. 6, 1971, effective Oct. 16, 1971. Amended: Filed Dec. 30, 1975, effective Jan. 9, 1976.

15 CSR 40-2.030 Information Kept for Inventory Control {#sec-15-csr-40-2.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-2.030}

(Rescinded April 13, 1978)

Rescinded: Filed Jan. 16, 1978, effective April 13, 1978.

History

AUTHORITY: section 29.100 RSMo 1969; section 34.125 RSMo Supp 1977. Original rule filed March 10, 1972, effective March 20, 1972.

15 CSR 40-2.031 Control of Fixed Assets {#sec-15-csr-40-2.031 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-2.031}

PURPOSE: The state auditor has the authority to establish rules for the control of nonexpendable property by state agencies. This rule establishes the criteria for determining the property which must be controlled and the data which must be documented on each piece of controlled property.

(1) Definitions.

(A) Department means any department, office, board, commission, bureau, institution or any other agency of the state, except the legislative and judicial departments.

(B) Fixed assets mean tangible real or personal property, with a useful life of at least two (2) years. Fixed assets include land, land improvements, buildings, equipment, and additions and betterments to property.

(C) The cost of a fixed asset item means the purchase price or construction cost, plus any ancillary charges necessary to place the asset in its intended location and condition for use. Ancillary charges include costs such as freight and transportation charges, site preparation expenditures, professional fees, and legal claims directly attributable to asset acquisition.

(2) Each department shall establish and maintain a system of control for fixed assets. As part of these responsibilities, a department should periodically review its system and adjust or modify the level of control to correct deficiencies.

(3) All fixed assets acquired by a department, whether by purchase, construction, lease-purchase, donation or other means, are to be used for state business and not for personal benefit.

(4) Those items with a cost (or estimated fair value if actual cost not available) over the following threshold amounts are required to be accounted for as fixed assets under this rule:

(A) Land—all parcels of land (no threshold amount);

(B) Land improvements—fifteen thousand dollars ($15,000) or more;

(D) Equipment—five thousand dollars ($5,000) or more;

(E) Additions or betterments to buildings—fifteen thousand dollars ($15,000) or more; and (F) Additions or betterments to equipment five thousand dollars ($5,000) or more.

(5) If more than one (1) set of fixed asset requirements apply (for example, federal grant requirements) the more stringent set of requirements shall apply.

(6) Each department shall ensure that controls are adequate over property items, with a cost under the threshold amounts, that are considered attractive or easily pilfered. These sensitive items may include: audiovisual equipment, calculators, computers and accessories, dictating equipment, television sets, recorders and power tools. Each department shall identify its sensitive items, implement appropriate procedures for adequate control and perform annual inventories. The preferred method is to include these sensitive items on the fixed asset control system. Regardless of the method used, adequate accountability shall be provided. Property items under the threshold amounts that are not considered sensitive should have a tag designating ownership (for example, “Property of Missouri State Highway Patrol”) affixed to the item in a prominent location.

(7) Each fixed asset item shall be identified by a sequential numbering system including a numbered tag or reasonable substitute physically attached to the item. If it is not possible to attach a tag (for instance, to land), a number shall be assigned to the item for control and identification purposes.

(8) Each department shall keep fixed asset control records.

These records shall be maintained by fund of acquisition and asset classification and shall contain the following data for each item: identification number; description of the item to include name, make, model and serial number, where appropriate; acquisition cost; date of acquisition; estimated useful life at date of acquisition; physical location in sufficient detail to readily locate the item; and method and date of disposition.

(9) Each department shall perform an annual physical inventory of all fixed assets in its possession and reconcile this inventory with the fixed asset control records and with the prior annual physical inventory, accounting for all acquisitions and dispositions in the interim. Each department shall annually prepare a statement of changes in fixed assets to summarize the transactions occurring during the fiscal year.

Amended: Filed June 15, 2023, effective Dec. 30, 2023. *Original authority: 34.125, RSMo 1965, amended 1977.

History

AUTHORITY: section 34.125, RSMo 2016. Original rule filed Jan. 16, 1978, effective April 13, 1978. Amended: Filed Aug. 16, 1979, effective Nov. 12, 1979. Amended: Filed Sept. 14, 1989, effective July 1, 1990. Amended: Filed May 4, 2000, effective Dec. 30, 2000.

Chapter 3a Rules Applying to Political Subdivisions

15 CSR 40-3.120 alculation and Revision of Property Tax Rates {#sec-15-csr-40-3.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.120}

(Rescinded November 30, 20 16)

SR 40-3.125 alculation and Revision of Property Tax Rates by School Districts ......

SR 40-3.130 alculation and Revision of Property Tax Rates by School Districts alculating a Separate Property Tax Rate for Each Sub-Class of operty ........................................................

15 CSR 40-3.135 Calculation and Revision of Property Tax Rates by Political ubdivisions Other Than School Districts ........................... {#sec-15-csr-40-3.135 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.135}

SR 40-3.140 alculation and Revision of Property Tax Rates by School Districts tha t Calculate a Single Property Tax Rate Applied to All Property SR 40-3.150 alculation and Revision of Property Tax Rates by Political ubdivisions Other Than School Districts Calculating a Separate operty Tax Rate for Each Sub-Class of Property ....................

SR 40-3.160 alculation and Revision of Property Tax Rates by Political ubdivisions Other Than School Districts that Calculate a Single operty Tax Rate Applied to All Property SR 40-3.170 Addendum Filed with the A uditor’s Office SR 40-3.180 Municipal C ourt Certifications Filed with the Auditor’s Office .........

15 CSR 40-3.010 Bond Registration {#sec-15-csr-40-3.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.010}

PURPOSE: This rule provides that in order to adequately review bond transcripts for compliance with various statutory requirements, two days are needed.

(1) A complete signed and sealed copy of all bonds to be certified by the Missouri state auditor must be submitted with the transcript of proceedings authorizing the issuance of the bonds at least five (5) working days before the certification date. This will provide the auditor sufficient time to review the legal compliance of the bond transaction.

(2) When the state auditor determines that good cause exists to waive the five (5)-working-day requirement, the bonds will be certified immediately after compliance with the laws has been found to exist.

History

AUTHORITY: section 29.100, RSMo 2000 and section 108.240, RSMo Supp. 2010. Original rule filed June 27, 1974, effective July 7, 1974. Amended: Filed March 16, 2011, effective Sept. 30, 2011. Original authority: 29.100, RSMo 1945, amended 1993, 1995 and 108.240, RSMo 1939, amended 1977, 1983, 2002.

15 CSR 40-3.020 Reasonable Notice for Bonds Sold at Public Sale {#sec-15-csr-40-3.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.020}

PURPOSE: This rule defines the reasonable notice provision of

section 108.170.1., RSMo, applicable to the public sale of bonds issued by Missouri’s political subdivisions and assures that notice of the public sale of bonds is reasonably calculated to give potential bond purchasers an opportunity to bid at the public sale(s).

(1) In determining whether or not to register bonds sold at a public sale pursuant to section 108.170.1., RSMo, compliance shall be deemed by the state auditor if the sale meets the following conditions:

(A) Notice of the public sale of bonds contains the following:

The name of the issuer;
The issue date, maturity date, amount to mature on each maturity date, and interest payment date;
The time, date, and place where bids will be received;
The name, address, and telephone num ber of a person from whom additional infor mation may be obtained; and 5. Any additional information desired by the issuer;

(B) Notice of the public sale of bonds is given— 1. By publication in at least one (1) news paper of general circulation within the bound aries of the issuer of the bonds or, if no news paper exists, in at least one (1) newspaper of general circulation within the county where the major portion of the issuer of the bond lies. The notice of public bond sale shall be published within a reasonable time prior to the date of public bond sale. Publication of the notice of public bond sale not more than twenty-five (25) days nor less than ten (10) days prior to the date of bond sale is prima facie reasonable; and 2. In addition, notice of public bond sale shall be given by one (1) of the following methods:

A. By mailing copies of the notice of public bond sale within a reasonable time prior to the date of bond sale to a reasonable number of banks, investment banking firms, and other potential bond purchasers which are engaged in the purchase and sale of bonds issued by Missouri political subdivisions and to all other persons and firms requesting copies of the notice of public bond sale. Mailing the notice of the public bond sale at least ten (10) days prior to the date of bond sale is prima facie reasonable; or B. By publication in at least one (1) newspaper which is frequently subscribed to by banks, investment banking firms, and other potential bond purchasers which are engaged in the purchase and sale of bonds issued by Missouri political subdivisions. The notice shall be published within a reasonable time prior to the date of bond sale. Publication of the notice of public bond sale not more than twenty-five (25) days nor less than ten (10) days prior to the date of bond sale is prima facie reasonable.

(2) A list of banks, investment banking firms, and other potential bond purchasers which are engaged in the purchase and sale of bonds issued by Missouri political subdivisions may be obtained by contacting the Local Government Analyst, Missouri State Audi tor’s Office, PO Box 869, Truman State Office Building, 301 West High, Jefferson City, MO 65102. Telephone (573) 751-4213.

Amended: Filed March 1, 2012, effective Aug. 30, 2012. *Original authority: 29.100, RSMo 1945, amended 1993, 1995 and 108.240, RSMo 1939, amended 1977, 1983, 2002.

History

AUTHORITY: section 29.100, RSMo 2000, and section 108.240, RSMo Supp. 2011. Original rule filed May 11, 1982, effective Aug. 12, 1982. Amended: Filed Jan. 24, 1984, effective May 11, 1984.

15 CSR 40-3.030 Annual Financial Reports of Political Subdivisions {#sec-15-csr-40-3.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.030}

PURPOSE: This rule implements section 105.145, RSMo, which provides for the state auditor to prescribe by rule the form of annual financial report to be filed by political subdivisions and the time within which the annual financial report shall be filed.

(1) An annual financial report shall be filed with the State Auditor’s Office by every political subdivision. The annual financial report shall be set forth on the financial report form available from the State Auditor’s Office and on its website, or may be in a form determined by the political subdivision which shall contain, at a minimum, the following:

(A) The balance at the beginning of the reporting period of each fund;

(B) A summary of the receipts during the reporting period (C) A summary of the disbursements during the reporting period of each fund;

(D) The balance at the end of the reporting period of each fund;

(E) A statement of the bonded indebtedness at the beginning and end of the reporting period; and (F) The property tax rate levied for each fund expressed in cents per one hundred dollars ($100) assessed valuation.

(2) In lieu of filing an annual financial report, a political subdivision may file an independent audit report prepared by a certified public accountant which, at a minimum, must contain the items listed in section (1) above.

(3) Notwithstanding any other provision of this rule, a political subdivision whose cash receipts for the reporting period are ten thousand dollars ($10,000) or less may file an annual financial report in a form determined by the political subdivision which need only contain the following:

(A) The cash balance at the beginning of the reporting period (B) A summary of cash receipts during the reporting period (C) A summary of cash disbursements during the reporting period of each fund; and (D) The cash balance at the end of the reporting period of each fund.

(4) The annual financial report shall be mailed to the State Auditor’s Office at PO Box 869, Jefferson City, MO 65102, or emailed to LocalGovernment@auditor.mo.gov.

(5) An unaudited annual financial report shall be submitted within six (6) months after the end of the political subdivision’s fiscal year; an audit report prepared by a certified public accountant shall be submitted within six (6) months after the end of the political subdivision’s fiscal year; any such reports due between August 28, 2015, and November 30, 2015, may be filed on or before December 31, 2015.

History

AUTHORITY: section 105.145, RSMo Supp. 2023. Original rule filed Oct. 13, 1983, effective Jan. 13, 1984. Amended: Filed June 29, 2006, effective Jan. 30, 2007. Amended: Filed March 1, 2012, effective Aug. 30, 2012. Amended: Filed Sept. 23, 2014, effective April 30, 2015. Emergency amendment filed Sept. 1, 2015, effective Sept. 11, 2015, expired March 8, 2016. Amended: Filed Sept. 1, 2015, effective March 30, 2016. Amended: Filed May 25, 2023, effective Nov. 30, 2023. Original authority: 105.145, RSMo 1965, amended 1983, 2009, 2016, 2017, 2022.

15 CSR 40-3.040 Revision of Property Tax Rates by School Districts {#sec-15-csr-40-3.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.040}

History

AUTHORITY: section 137.073, RSMo 1986. Original rule filed April 15, 1985, effective Aug. 26, 1985. Rescinded: Filed Jan. 14, 1992,

15 CSR 40-3.050 Revision of Property Tax Rates by Political Subdivisions Other Than School Districts {#sec-15-csr-40-3.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.050}

History

AUTHORITY: section 137.073, RSMo 1986. Original rule filed April 15, 1985, effective Aug. 26, 1985. Rescinded: Filed Jan. 14, 1992,

15 CSR 40-3.060 Revision of 1986 Property Tax Rates by School Districts {#sec-15-csr-40-3.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.060}

History

AUTHORITY: 137.073, RSMo 1986. Original rule filed July 31, 1986, effective Oct. 11, 1986. Rescinded: Filed Jan. 14, 1992, effective Aug. 6, 1992.

15 CSR 40-3.070 Revision of 1986 Property Tax Rates by Political Subdivisions Other Than School Districts {#sec-15-csr-40-3.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.070}

History

AUTHORITY: section 137.073, RSMo 1986. Original rule filed July 31, 1986, effective Oct. 11, 1986. Rescinded: Filed Jan. 14, 1992,

15 CSR 40-3.080 Revision of 1987 Property Tax Rates by School Districts {#sec-15-csr-40-3.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.080}

Rescinded: Filed Jan. 14, 1992, effective Aug. 6, 1992.

History

AUTHORITY: sections 137.073, RSMo 1986 and 137.115, RSMo Supp. 1987. Original rule filed Sept. 1, 1987, effective Dec. 12, 1987.

15 CSR 40-3.090 Revision of 1987 Property Tax Rates by Political Subdivisions Other Than School Districts {#sec-15-csr-40-3.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.090}

History

AUTHORITY: sections 137.073, RSMo 1986. Original rule filed Sept. 1, 1987, effective Dec. 12, 1987. Rescinded: Filed Jan. 14, 1992,

15 CSR 40-3.100 Revision of Property Tax Rates by School Districts {#sec-15-csr-40-3.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.100}

(Rescinded February 28, 2001)

Filed July 14, 2000, effective Feb. 28, 2001.

History

AUTHORITY: section 137.073.6., RSMo 1994. Original rule filed Jan. 3, 1992, effective Aug. 6, 1992. Amended: Filed June 14, 1994, effective Nov. 30, 1994. Emergency amendment filed June 14, 1996, effective June 24, 1996, expired Dec. 20, 1996. Amended: Filed June 14, 1996, effective Nov. 30, 1996. Emergency rescission filed July 14, 2000, effective July 24, 2000, expired Feb. 22, 2001. Rescinded:

15 CSR 40-3.110 Revision of Property Tax Rates by Political Subdivisions Other Than School Districts {#sec-15-csr-40-3.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.110}

(Rescinded February 28, 2001)

Filed July 14, 2000, effective Feb. 28, 2001.

History

AUTHORITY: section 137.073.6., RSMo 1994. Original rule filed Jan. 3, 1992, effective Aug. 6, 1992. Amended: Filed June 14, 1994, effective Nov. 30, 1994. Emergency amendment filed June 14, 1996, effective June 24, 1996, expired Dec. 20, 1996. Amended: Filed June 14, 1996, effective Nov. 30, 1996. Emergency rescission filed July 14, 2000, effective July 24, 2000, expired Feb. 22, 2001. Rescinded:

15 CSR 40-3.120 Calculation and Revision of Property Tax Rates {#sec-15-csr-40-3.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.120}

(Rescinded November 30, 2016)

rule was previously filed as 15 CSR 40-3.100 and 15 CSR 40-3.110.

Emergency rule filed July 14, 2000, effective July 24, 2000, expired Feb. 22, 2001. Emergency rescission filed Sept. 24, 2004, effective Oct. 4, 2004, expired April 1, 2005. Original rule filed July 14, 2000, effective Feb. 28, 2001. Rescinded: Filed March 24, 2016, effective Nov. 30, 2016.

History

AUTHORITY: section 137.073.6., RSMo Supp. 1999. A version of this

15 CSR 40-3.125 Calculation and Revision of Property Tax Rates by School Districts {#sec-15-csr-40-3.125 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-3.125}

PURPOSE: This rule clarifies the current procedure that applies to all school districts and is designed to implement section 137.073, RSMo, as it applies to calculating and revising property tax rates.

Under the Missouri Constitution, Article X, Section 22, and section 137.073, RSMo, school districts must calculate their annual tax rate ceilings and submit them to the Missouri State Auditor’s Office.

(1) The following forms may be used by school districts as applicable to substantiate the tax rate ceilings before submission of the information via the Missouri State Auditor’s Office website portal, which is accessible by obtaining a username and password from the Missouri State Auditor’s Office. If a school district is unable to submit the information via the website, the school district may submit these forms via mail to, Missouri State Auditor’s Office, Attention: Tax Rate

Section, PO Box 869, Jefferson City, MO 65102.

(2) Single Tax Rate—The following forms with instructions for single tax rate review have been adopted and approved for use by school districts (not wholly in St. Louis County):

(A) Summary Page, included herein;

(B) Form A, included herein;

(D) Form C, included herein;

(E) Informational Data, included herein;

(F) Form G, included herein; and (G) Form H, included herein.

(3) Multi Tax Rate—The following forms with instructions for multi tax rate review have been adopted and approved for use by school districts levying a separate rate on each subclass of property (wholly in St. Louis County):

(A) Summary Page, included herein;

(B) Form A, included herein;

(D) Form C, included herein;

(E) Informational Summary Page, included herein;

(F) Informational Form A, included herein;

(G) Informational Form B, included herein;

(H) Form G, included herein; and (I) Form H, included herein.

(4) If revisions or amendments to any information on the tax rate forms need to be made after submission to the State Auditor’s Office, the revisions shall be made via the Missouri State Auditor’s Office website portal.

A.Prior year tax rate ceiling as defined in Chapter 137, RSMo, revised if the prior year data changed or a voluntary reduction was taken in a non-reassessment year (Prior year Summary Page, Line F minus Line H in odd numbered year or prior year Summary Page, Line F in even numbered year)

B.Current year rate computed pursuant to Article X, Section 22, of the Missouri Constitution and Section 137.073, RSMo, if no voter approved increase (Form A, Line 22)

C.Amount of rate increase authorized by voters if same purpose (Form B, Line 8)OR OR Increase to the total operating levy up to $2.75 per Amendment 2, if applicable Date the School Board decided to use Amendment 2 (if using)

D.Rate to compare to maximum authorized levy to determine tax rate ceiling (Line B if no election, otherwise Line C )

E.Maximum authorized levy greater of the 1984 rate or most recent voter approved rate F.Current year tax rate ceiling maximum legal rate to comply with Missouri laws Political subdivisions tax rate (Lower of Line D or E)

G1.Less required Proposition C (sales tax) reduction taken from tax rate ceiling (Line F), if applicable Circle the type of waiver your district has Full Partial No Attach a copy of the DESE Prop C Reduction Worksheet if there is no waiver.

G2.Less 20% required reduction 1st class charter county school district NOT submitting an estimated non-binding tax rate to the county(ies) taken from tax rate ceiling (Line F)

H.Less voluntary reduction by school district taken from tax rate ceiling (Line F)

WARNING: A voluntary reduction taken in an even numbered year will lower the tax rate ceiling for the following year.

I.Plus allowable recoupment rate added to the tax rate ceiling (Line F) If applicable, attach Form G or H.

J.Tax rate to be levied (Line F - Line G1 - Line G2 - Line H + Line I)

AA.

Rate to be levied for debt service, if applicable (Form C, Line 12)

BB.Additional special purpose rate authorized by voters after the prior year tax rates were set (Form B, Line 8 if a different purpose)

Certification I, the undersigned,(Office) of(School District) levying a rate in (County(ies)) do hereby certify that the data set forth above and on the accompanying forms is true and accurate to the best of my knowledge and belief. Please complete Line G through BB, sign this form, and return to the county clerk(s) for final certification.

(Date)(Signature)(Print Name)(Telephone)

Proposed rate to be entered on tax books by the county clerk based on the certification from the political subdivision: LinesJAABB

Section 137.073.7 RSMo, states that no tax rate shall be extended on the tax rolls by the county clerk unless the political subdivision has complied with the foregoing provisions of this section.

(Date)(County Clerk's Signature)(County)(Telephone)

The information to complete the Summary Page is available from prior year forms, computed on the attached forms, or computed on this page. Information on this page takes into consideration any voluntary reduction(s) taken in previous even numbered year(s). If in an even numbered year, the political subdivision wishes to no longer use the lowered tax rate ceiling to calculate its tax rate, it can hold a public hearing and pass a resolution, a policy statement, or an ordinance justifying its action prior to setting and certifying its tax rate. The information in the Informational Data, at the end of these forms, provides the rate that would be allowed had there been no previous voluntary reduction(s) taken in an even numbered year(s).

For Political Subdivision Use in Calculating its Tax Rate (Form Revised 04-2021)

Since the prior year tax rate computation, some political subdivisions may have held elections where the voters approved an increase to an existing tax or approved a new tax. Form B is designed to document the election. 1.Date of election 2.Ballot language Attach a sample ballot or state the proposition posed to the voters exactly as it appeared on the ballot. 3.Election results (Yes)(No) 4.Expiration date Enter the last year the levy will be in effect, if applicable. 5.New Proposition C waiver Indicate whether the district obtained a new waiver to eliminate part or all of the required Proposition C Reduction.

Indicate the election results on the Proposition C waiver (Yes)(No) 6.Amount of increase approved by voters (An "increase/decrease of/by") OR (a)

Stated Rate Approved by Voters (An "increase/decrease to")

(b)

Form B(Form Revised 04-2021)

Calculation ofNew Voter Approved Tax Rate or Tax Rate Increase Form B Prior year tax rate ceiling or voluntarily reduced rate to apply voter approved increase to (Summary Page, Line A if increase to an existing rate, otherwise 0) 7.

Voter approved increased tax rate to adjust (If an "increase of/by" ballot, Line 6a + Line 7, if an "increase to" ballot, Line 6b) 8.

Informational Summary Page A.Prior year tax rate ceiling (Prior year Informational Summary Page, Line F)

B.Current year rate computed (Informational Form A, Line 22 below)

C.Amount of increase authorized by voters for current year (Informational Form B, Line 8 below)

D.Rate to compare to maximum authorized levy (Line B if no election, otherwise Line C)

E.Maximum authorized levyGreater of the 1984 rate or most recent voter approved rate F.Tax rate ceiling if no voluntary reductions were taken in a prior even numbered year (Lower of Line D or E)

Informational Form B 7.Prior year tax rate ceiling to apply voter approved increase to (Informational Summary Page, Line A if increase to an existing rate, otherwise 0) 8.Voter approved increased tax rate to adjust (If an "increase of/by" ballot, Form B, Line 6a + Line 7, if an "increase to" ballot, Form B, Line 6b)

Based on Prior Year Tax Rate Ceiling as if No Voluntary Reductions were Taken Informational Form A 9.Percentage increase in adjusted valuation(Form A, Line 4 - Line 8 / Line 8 x 100) 10.Increase in Consumer Price Index (CPI) certified by the State Tax Commission 11.Adjusted prior year assessed valuation(Form A, Line 8) 12.(2019) Tax rate ceiling from prior year (Informational Summary Page, Line A from above) 13.Maximum prior year adjusted revenue from locally assessed property that existed in both years(Line 11 x Line 12 / 100) 14.Maximum prior year adjusted revenue from state assessed property before reductions, provided by DESE 15.Total adjusted prior year revenue(Line 13 + Line 14) 16.Permitted reassessment revenue growth The percentage entered on Line 16 should be the lower of the actual growth (Line 9), the CPI (Line 10), or 5%.

A negative figure on Line 9 is treated as a 0 for Line 16 purposes. Do not enter less than 0, nor more than 5%. 17.Additional reassessment revenue permitted(Line 15 x Line 16) 18.Total revenue permitted in current yearfrom property that existed in both years (Line 15 + Line 17) 19.Estimated current year revenue from state assessed property before reductions, estimated by school district 19aNew construction and improvements (Line 19 - Line 14, if negative enter 0) 19bAdjusted estimated current year revenue from state assessed property before reductions (Line 19 - Line 19a) 20.Revenue permitted from existing locally assessed property (Line 18 - Line 19b) 21.Adjusted current year assessed valuation(Form A, Line 4) 22.Maximum tax rate permitted by Article X, Section 22, and Section 137.073, RSMo, if no voluntary reduction was taken (Line 20 / Line 21 x 100)

This page shows the information that would have been on the line items for the Summary Page, Form A, and/or Form B had no voluntary reduction(s) been taken in prior even numbered year(s). The information on this page should not be used in the current year unless the taxing authority wishes to reverse any voluntary reduction(s) taken in prior even numbered year(s) and follows the following steps in an even numbered year.

Step 1The governing body should hold a public hearing and adopt a resolution, a policy statement, or an ordinance justifying its action prior to setting and certifying its tax rate.

Step 2Submit a copy of the resolution, policy statement, or ordinance to the State Auditor's Office for review.

Informational Data(Form Revised 04-2021)

Informational Data A.

Prior year tax rate ceilingas defined in Chapter 137, RSMo, revised if prior year data changed or a voluntary reduction was taken in a non-reassessment year (Prior year Summary Page, Line F minus Line H in odd numbered year or prior year Summary Page, Line F in even numbered year)

Current year rate computedpursuant to Article X, Section 22, of the Missouri Constitution and Section 137.073 RSMo, i f no voter approved increase (Form A, Line 41 & Line 27 prior method)

Amount of rate increase authorized by votersif same purpose (Form B, Line 9 & Line 12 prior method)

OR Increase of the total operating levy up to $2.75 per Amendment 2, if applicable Date the School Board decided to use Amendment 2:

Rate to compare to maximum authorized levy to determine tax rate ceiling (Line B if no election, otherwise Line C)

Maximum authorized levy greater of the 1984 rate or most recent voter approved rate F.

Current year tax rate ceiling maximum legal rate to comply with Missouri laws G.1.

Less required Proposition C (sales tax) reduction taken from tax rate ceiling (Line F), if applicable. Circle the type of waiver your district has. Full Partial No Attach a copy of the DESE Prop C Reduction Worksheet if there is no waiver.

G.2.

Less 20% required reduction 1st class charter county school district NOT submitting an estimated non-binding tax rate to the county(ies) taken from tax rate ceiling (Line F)

Less voluntary reduction by school district taken from tax rate ceiling (Line F)

WARNING: A voluntary reduction taken in an even numbered year will lower the tax rate ceiling for the following year.

Plus allowable recoupment rateadded to tax rate ceiling (Line F)

If applicable attach Form G or H.

Tax rate to be levied(Line F - Line G1 - Line G2 - Line H + Line I)

AA.

Rate to be levied for debt service, if applicable (Form C, Line 12)

BB.

Additional special purposed rate authorized by votersafter the prior year tax rates were set (Form B, Line 9 & Line 12 prior method if a different purpose)

Real Estate Personal Property CommercialResidential Prior Method Single Rate Agriculture (Date)

(County Clerk's Signature)

(County)

(Telephone)

The information on the Informational Summary Page, at the end of these forms, provides the rate that would be allowed had there been no previous voluntary reduction(s) taken in an even numbered year(s).

Proposed rate to be entered on tax books by county clerk based on the certification from the political subdivision:

Lines:J AA BB CERTIFICATION I, the undersigned,(Office) of(Political Subdivision) levying a rate in(County(ies)) do hereby certify that the data set forth above and on the accompanying forms is true and accurate to the best of my knowledge and belief.

Please complete Line G through BB, sign this form, and return to the county clerk(s) for final certification.

(Date)

(Signature)

(Print Name)

(Telephone)

Section 137.073.7 RSMo, states that no tax rate shall be extended on the tax rolls by the county clerk unless the political subdivision has complied with the foregoing provisions of the section.

(Form Revised 04-2021)

For School Districts Calculating a Separate Rate on Each Subclass of Property

Chapter 4 Audits of Fire Protection Districts in St. Louis and Greene Counties

15 CSR 40-4.010 Requirements for Districts {#sec-15-csr-40-4.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-4.010}

PURPOSE: The state auditor has authority to establish standards and reporting requirements for audits performed on fire protection districts in St. Louis and Greene Counties.

This rule sets forth requirements to be met directly by the district.

(1) The district is responsible for preparing and providing financial information to be included in the audit report. The district shall maintain adequate accounting records for that

purpose.

(2) The district shall engage an independent auditor to conduct the audit. The state auditor does not recommend, select, or approve the district’s auditor or the auditor’s fee, except as provided in 15 CSR 40-4.010(3).

The district is responsible for fulfilling all contractual obligations with the auditor, including payment of all earned fees.

(3) The district shall file a copy of the completed audit report with the state auditor within six (6) months after the close of the audit period. If any audit report fails to comply with promulgated rules, the state auditor shall notify the district and specify the defects. If the specified defects are not corrected within ninety (90) days from the date of the state auditor’s notice to the district, or if a copy of the required audit report has not been received by the state auditor within the specified time, the state auditor shall make, or cause to be made, the required audit at the expense of the district.

History

AUTHORITY: section 321.690, RSMo 2016. Sept. 11, 1978. Amended: Filed Dec. 2, 30, 2010. Amended: Filed May 15, 2017, Original authority: 321.690, RSMo 1977, amended 1981, 1986, 1991, 1993, 1998.

15 CSR 40-4.020 Standards for Auditing and Financial Reporting {#sec-15-csr-40-4.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-4.020}

PURPOSE: The state auditor has authority to establish standards and reporting requirements for audits performed on fire protection districts in St. Louis and Greene Counties.

This rule sets forth standards for the auditing and financial reporting of the district.

(1) The independent auditor shall meet all requirements of Chapter 326, RSMo, and the code of professional ethics and rules of conduct promulgated by the Missouri State Board of Accountancy.

(2) The audit shall conform to generally accepted auditing standards (GAAS) promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants.

(3) The audit may conform to the standards (hereafter referred to as “generally accepted government auditing standards”) established by the Comptroller General of the United States and applicable to financial audits of government entities, programs, activities, and functions.

(4) The contents of the financial statement audit report may be presented in conformity with generally accepted accounting principles. If the financial statement audit report is not presented in conformity with generally accepted accounting principles, then the independent auditor shall make appropriate audit report modifications and disclosures.

(5) Nothing in the rules promulgated for audits of fire protection districts shall be construed as restricting, limiting, or relieving the independent auditor of his or her professional judgment or responsibility.

History

AUTHORITY: section 321.690, RSMo 2016. Sept. 11, 1978. Amended: Filed Dec. 2, 30, 2010. Amended: Filed May 15, 2017, Original authority: 321.690, RSMo 1977, amended 1981, 1986, 1991, 1993, 1998.

15 CSR 40-4.030 Contents of Audit Reports {#sec-15-csr-40-4.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-4.030}

(Rescinded November 30, 2017)

Sept. 11, 1978. Amended: Filed Dec. 2, 30, 2010. Rescinded: Filed May 15, 2017,

History

AUTHORITY: section 321.690, RSMo 2000.

15 CSR 40-4.040 Scope of Audit {#sec-15-csr-40-4.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-4.040}

(Rescinded November 30, 2017)

Sept. 11, 1978. Amended: Filed Dec. 2, 30, 2010. Rescinded: Filed May 15, 2017, JOHNR. ASHCROFT(10/31/17)

History

AUTHORITY: section 321.690, RSMo 2000.

Chapter 5 Fiscal Notes

15 CSR 40-5.010 Submission of Proposed Statements of Fiscal Impact {#sec-15-csr-40-5.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 40-5.010}

(Rescinded August 30, 2012)

Filed March 1, 2012, effective Aug. 30, 2012.

ROBINCARNAHAN(7/31/12)

History

AUTHORITY: sections 29.100 and 116.175, RSMo Supp. 1997. Original rule filed March 30, 1998, effective Oct. 30, 1998. Rescinded:

Division 50 Treasurer

Chapter 1 Organization

15 CSR 50-1.010 Function and Organization {#sec-15-csr-50-1.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-1.010}

PURPOSE: This rule describes the general organization and functions of the Missouri state treasurer’s office to comply with the requirements of section 536.023, RSMo (1986).

(1) The primary function of the state treasurer’s office is to perform the duties as defined in Article IV, Section 15, Missouri Constitution, Chapter 30, RSMo, sections 447.500 to 447.595, RSMo, and under any other applicable state statutes. In general, these duties include to be custodian of all state funds; to invest state moneys not needed for current operating expenses; to disburse state moneys not needed for current operating expenses; to disburse state moneys as provided by law; to be the custodian of unclaimed property; and to administer any other program under the

(2) The office of state treasurer operates in five (5) major functional areas—receipts and accounting; investments; disbursements, tabulating, and records; unclaimed property; and program administration.

(A) The receipts and accounting function involves posting receipts from the Department of Revenue and disbursement from the Office of Administration to the cash ledger; maintaining ledger controls on fund balances and appropriations to assure no check is issued that exceeds appropriated balances; and maintaining control of receipts of state moneys collected by state agencies and their agents and deposited in local banks throughout the state.

(B) The investment area invests state moneys not needed for current operating expenses in time deposits, bearing interest, in Missouri banking institutions selected by the state treasurer and approved by the governor and state auditor or in short-term United States government securities and repurchase agreements, and it also administers the linked deposit program.

(C) The disbursements, tabulating, and records area tabulates state checks, verifies daily expenditures as certified by the Office of Administration, generates a check register, affixes the facsimile signature of the state treasurer to checks, tracks the outstanding status of checks, reconciles bank accounts, controls and processes outlawed and replacement checks, and maintains cancelled checks and other records.

(D) The unclaimed property function consists of receiving and recording reports of unclaimed property, depositing unclaimed funds to the abandoned fund account, and processing owner claims for abandoned funds or property.

(E) The program administration division administers all other programs under the

(3) The offices of the state treasurer are located in the State Capitol Building and the Truman State Office Building, 301 W High St., Jefferson City, MO 65101. Any information requested by the public can be obtained by writing to the Missouri State Treasurer, PO Box 210, Jefferson City, MO 65102. Telephone (573) 751-2411.

History

authority of the treasurer.
authority of the treasurer.
AUTHORITY: section 536.023, RSMo 2016. Original rule filed June 30, 1986, effective Oct. 15, 1986. Amended: Filed Dec. 14, 2021, effective June 30, 2022. Original authority: 536.023, RSMo 1975, amended 1976, 1997, 2004.

Chapter 2 Linked Deposit Program

15 CSR 50-2.050 Interest Rate on Linked Deposit Loans {#sec-15-csr-50-2.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-2.050}

PURPOSE: This rule establishes the procedure to be used to set the interest rate under the Linked Deposit Program and the maximum interest rate on loans in this program.

(1) For all linked deposit loan applications, the lending institution shall certify the interest rate on the loan to be made to the applicant based on the lending institution’s assessment of the applicant’s credit risks and profile and other relevant factors as determined by the lending institution. Upon acceptance of the linked deposit application by the Office of the State Treasurer and acceptance of the linked deposit to be placed with the lending institution, the interest rate on the loan shall be no greater than seventy percent (70%) of the above rate certified by the lending institution. The loan rate must be approved by the Office of the State Treasurer, and, upon placement of the linked deposit, the loan rate shall remain fixed for the period agreed to by the lending institution and the Office of the State Treasurer, not to exceed a period of five (5) years and subject to adjustment under the terms and conditions described in section (4).

(2) The treasurer’s office will advise lending institutions of the applicable category loan rate upon request and at the time a deposit offer is made under the program.

(3) The treasurer’s office will advise lending institutions of the deposit rate and loan rate at the time a deposit offer is made under the program.

(4) Upon placement of a linked deposit, the interest rate for the loan shall remain fixed for the term; except, if it so provides in the loan agreement, the lending institution may increase the interest rate on the loan, up to the category rate established by the treasurer, if the treasurer determines that the borrower has not complied with the law relating to the Linked Deposit Program and, as a result, the treasurer has received the full market interest rate on the deposit from the lending institution.

Emergency amendment filed June 26, 1986, effective July 6, 1986, expired Nov. 3, 1986.

Emergency amendment filed Sept. 17, 1993, effective Sept. 27, 1993, expired Jan. 25, 1994. Emergency amendment filed Jan. 19, 1994, effective Jan. 29, 1994, expired May 28, 1994. Emergency amendment filed Jan. 23, 1995, effective Feb. 2, 1995, expired June 1, 1995. Amended: Filed Jan. 23, 1995, effective June 30, 1995. Amended: Filed Nov. 2, 2001, effective May 30, 2002. Emergency amendment filed Oct. 28, 2009, effective Nov. 7, 2009, expired May 5, 2010. Amended: Filed Oct. 28, 2009, effective April 30, 2010. *Original authority: 30.260, RSMo 1939, amended 1945, 1957, 1973, 1983, 1986, 1988, 1997, 2002, 2005, 2009 and 30.760, RSMo 1986, amended 1987, 1988, 1989, 1991, 1992, 1993, 2004, 2005, 2007, 2008, 2009.

ROBINCARNAHAN(3/31/10)

History

AUTHORITY: sections 30.260 and 30.760, RSMo Supp. 2009. Emergency rule filed March 7, 1986, effective March 27, 1986, expired July 14, 1986. Original rule filed June 26, 1986, effective Oct. 15, 1986.

Chapter 3 Unclaimed Property

15 CSR 50-3.005 Definitions Uniform Disposition of Unclaimed Property Act. {#sec-15-csr-50-3.005 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.005}

This rule establishes definitions to implement the Act.

(1) As used in 15 CSR 50-3, unless the context requires otherwise— (A) Act means the Uniform Disposition of Unclaimed Property Act, sections 447.500–447.595, RSMo;

(B) Banking organization means any bank, trust company or safe deposit company engaged in business in this state;

(C) Business association means any corporation, joint stock company, business trust, partnership, limited partnership, any association for business purposes or any mutual fund or other similar entity, whether operating in the form of a corporation or a trust, including, but not limited to, any investment company registered under the Federal Investment Company Act of 1940, or any entity which is exempt from federal taxation pursuant to section 501(c)(3) of the Internal Revenue Code;

(D) Division means the entity within the state treasurer’s office which has the responsibility of administrating the unclaimed property statues of the state;

(E) Financial organization means any savings bank, savings and loan association, credit union or loan and investment company engaged in business in this state;

(F) Holder means any person in possession of property subject to sections 447.500–447.595, RSMo belonging to another, or who is trustee in case of a trust or is indebted to another on an obligation subject to sections 447.500–447.595, RSMo;

(G) Insurance corporation means any association or corporation transacting within this state the business of property or casualty insurance, property or life insurance on the lives of persons or insurance appertaining to them, including, but not by way of limitation, endowments and annuities;

(H) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, except a trust defined in

section 456.500, RSMo, the unclaimed property of which has not escheated pursuant to the provisions of section 456.650, RSMo, a creditor, claimant or payee in case of other choices in action or any person having a legal or equitable interest in property subject to sections 447.500– 447.595, RSMo or his/her legal representative;

(I) Person means any individual, business association, government or political subdivision, public corporation, public

(J) Treasurer means the Missouri state treasurer; and (K) Utility means any person who owns or operates within this state, for public use, any plant, equipment, property, franchise or license for the transmission of communications or the production, storage, transmission, sale, delivery or furnishing of electricity, water, steam or gas.

Original rule filed June 3, 1985, effective Sept. 27, 1985. Amended:

Filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. *Original authority: 447.503, RSMo 1984, amended 1986, 1993, 1994, 1998; and 447.579, RSMo 1984, amended 1993, 1994.

History

authority, estate, trust, except a trust defined in section 456.500, RSMo, two (2) or more persons having a joint or common interest or any other legal or commercial entity;
AUTHORITY: sections 447.503, RSMo Supp. 1998 and 447.579, RSMo 1994. This rule was previously filed as 4 CSR 25-1.005.

15 CSR 50-3.010 Unclaimed Property—General Considerations Uniform Disposition of Unclaimed Property Act. {#sec-15-csr-50-3.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.010}

This rule explains how to contact the administering agency.

(1) Administration. The Uniform Disposition of Unclaimed Property Act (Act) places the responsibilities and duties of administration on the state treasurer who has explicit authority to delegate the duties to division directors or employees as deemed appropriate. The state treasurer has a division which is known as the Unclaimed Property Division (division), to which s/he has assigned the routine administrative duties of the Act (section 447.572, RSMo).

(2) Communications. The division will conduct business and the public record is available for inspection during normal business hours Monday through Friday, of all state government work days, in Room 156 of the Harry S Truman State Office Building, 301 West High Street, Jefferson City, Missouri 65101.

In-person visits to the division are permitted, but appointments are not required. The public record is available for sale in printout form. The public record shall not be subject to public inspection or available for copying, reproduction, or scrutiny by commercial or professional locators of property presumed abandoned who charge any service or finders’ fees until ninety (90) days after the names of the people to whom property is owed have been published or officially disclosed. Any written inquiries regarding the Act or the availability of the public record should be directed to: Unclaimed Property Division, PO Box 1004, Jefferson City, MO 65102. The division telephone number is (573) 751-0840. For Relay Missouri/Deaf TTY, please use (800) 735-2966. Absolutely no collect calls will be accepted.

(3) Information Made Public. Notwithstanding the limitations included in section (2), the public record available for review shall include the name and last known address of each person appearing in a holder’s report, and the name and last known address of each insured person or annuitant, and with respect to each policy or contract listed in the report of a life insurance corporation, its number and the name of the corporation, and the amount due. No other information provided to the treasurer, including Social Security numbers or other identifying information, shall be made available, except that if the amount turned over to the state is less than fifty dollars ($50), the amount reported may be made available as public information.

(4) Unclaimed Property Abandoned Fund Account Balances.

Whenever the fund balance exceeds one-twelfth (1/12) of the previous fiscal year’s total disbursement from the fund, the treasurer may transfer to the general revenue of the state the balance of the fund that exceeds one-twelfth (1/12) of the previous fiscal year’s total disbursement from the fund.

The treasurer shall make such a transfer at least once every fiscal year. Whenever the balance drops below one twentyfourth (1/24) of the previous fiscal year’s total disbursement from the fund, the treasurer shall transfer from the general funds of the state an amount which is sufficient to restore the balance to one-twelfth (1/12) of the previous fiscal year’s total disbursement from the fund.

History

AUTHORITY: sections 447.543, 447.572, and 447.579, RSMo 2016. This rule was previously filed as 4 CSR 25-1.010. Original rule filed June 3, 1985, effective Sept. 27, 1985. Amended: Filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. Amended: Filed May 30, 2019, effective Nov. 30, 2019. Original authority: 447.543, RSMo 1984, amended 1986, 1989, 1993, 1994, 1998; 447.572, RSMo 1984, amended 1989, 1993, 1994, 1998; and 447.579, RSMo 1984, amended 1993, 1994.

15 CSR 50-3.030 Property Deemed Unclaimed Unclaimed Property Act. {#sec-15-csr-50-3.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.030}

This rule provides a general description of the types of property which may be considered unclaimed within the meaning of the Act.

(1) An exhaustive list of property which may be deemed unclaimed and therefore subject to the custodial care of Missouri by the Uniform Disposition of Unclaimed Property Act (Act) would be prohibitively long. The following list details entities and provides a general description of the various properties which may be subject to the Act and the circumstances under which this may occur:

Entity Banking organization, business association or financial organization Business associations Item Deposits plus interest that would have been due had the owner not abandoned the account, or dividends, minus charges collected by an entity provided the entity gave actual or constructive notice of the charges and the charges are not routinely refunded. Incorrect computations or other bona fide errors do not qualify as evidence that usage charges have been routinely refunded.

Funds toward shares in a financial organization or deposit plus interest that would have been due had the owner not abandoned the account, or dividends, minus charges collected by an entity provided the entity gave actual or constructive notice of the charges and the charges are not routinely refunded. Bona fide errors do not qualify as usage charges.

Certificates of deposit. The items described are not subject to charges absent a clear contract made at the time of issuance.

Money orders, cashier’s checks, traveler’s checks, payroll checks, expense checks, vendor checks, or similar items Interest or dividend checks Contents of safe deposit box or similar repository Stock or other certificate of ownership, underlying shares, dividends, profits Intangible interest (including dividends in business associations as shown by its records)

Dissolution of business Terms of Abandonment Owner, within seven (7) years (five (5) years after 1/1/2000), has not a) increased or decreased deposit or presented the passbook for credit; or b) corresponded in writing or accepted mail concerning the deposit (mailings can include, but are not limited to, IRS of deposit); or c) otherwise indicated an interest in the deposit.

Owner, within seven (7) years (five (5) years after 1/1/2000), has not a) increased or decreased deposit or presented the passbook for credit; b) corresponded in writing or accepted mail concerning the deposit (mailings can include, but are not limited to, IRS of deposit); or c) otherwise indicated an interest in the deposit.

Outstanding a minimum of seven (7) years (five (5) years after 1/1/2000) with no correspondence or documented acceptance of mail from the owner.

Mailings can include, but are not limited to, IRS of deposit. A certificate of deposit is not considered reportable until after its maturity date has been reached.

Outstanding a minimum of seven (7) years (five (5) years after 1/1/2000) (except traveler’s checks which must be outstanding a minimum of fifteen (15) years and money orders which must be outstanding a minimum of seven (7) years (before and after 1/1/2000)) with no correspondence to issuer Outstanding a minimum of seven (7) years (five (5) years after 1/1/2000) with no correspondence to issuer Removed for nonpayment of rent, surplus from the sale of contents pursuant to sections 362.485– 362.488, RSMo, or both, and unclaimed for seven (7) years (five (5) years after 1/1/2000). Property to be considered abandoned shall consist of contents removed from safe deposit boxes for at least seven (7) years (five (5) years after 1/1/2000), at which time the contents or surplus amounts accruing from a sale shall be reported. 1/1/2000) and a) held or owing by a business organization under Missouri law; or b) due a person with last known address in Missouri and held or owing by a business organized under laws of another jurisdiction but doing business in Missouri. Dividend reinvestment plans are determined to be abandoned when there has been returned mail and no customergenerated activity for seven (7) years (five (5) years after January 1, 2000).

Unclaimed and no correspondence for seven (7) years (five (5) years after 1/1/2000) or no known address with holder doing business in Missouri Unclaimed within two (2) years from date of final distribution Entity Retail businesses Insurance companies Utilities Utilities/RECs, REAs and RTAs Fiduciaries Courts, Public Corporations, Political Subdivisions, Public Authorities Courts, Public Corporations, Political Subdivisions, Public Authorities All other persons or entities Item Gift certificates, credit memos and credit balances that are redeemable in merchandise only Unclaimed funds, including settlements, premium refunds, policy proceeds and overpayments Deposits plus interest less lawful deductions.

Refunds or overpayments plus interest less lawful deductions Deposits plus interest less lawful deductions, refunds plus interest less lawful deductions and shares of interest or credits in the cooperative All intangible personal property (including any income or increment thereon)

All intangible property except cash bonds, cash probation bonds or civil cash bonds Cash bonds, cash probation bonds, or civil cash bonds All intangible personal property Terms of Abandonment Unclaimed by owner after seven (7) years (five (5) years after 1/1/2000). Reportable at a rate equal to sixty percent (60%) of the face value. However, the owner will be reimbursed by the state treasurer at the full face value when claimed. For reporting purposes a holder should report the full face value in the “Amount Due Owner” column of the Holder Report and reflect the forty percent (40%) of the face value withheld under the Deducted Expenses summary portion of the Holder Report.

Due to individual with last known address in Missouri or no known address with holder doing business in Missouri and unpaid for more than seven (7) years (five (5) years after 1/1/2000) (may be presumed due per mortality tables) unless a) assigned, readjusted or paid premiums; or b) corresponded in writing with the company Unclaimed seven (7) years (five (5) years after 1/1/2000) after termination of service Unclaimed seven (7) years (five (5) years after 1/1/2000) after date payable As of August 13, 1984, seven (7) years (five (5) years after 1/1/2000) subsequent to that date these items are due November 1, 1992 for the initial report 1/1/2000)—see section 447.530, RSMo for special rules 1/1/2000).

Reportable within one (1) year of the date of the final court action or termination of probation 1/1/2000) or more (2) If a holder desires to report abandoned property earlier than that prescribed in the above “terms of abandonment,” nothing shall preclude the division from accepting such abandoned property if it deems the acceptance as appropriate and timely.

Original rule filed June 3, 1985, effective Sept. 27, 1985. Amended:

Filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. *Original authority: 447.505, RSMo 1984, amended 1989, 1994, 1998; 447.506, RSMo 1989, amended 1994, 1998; 447.510–447.530, see RSMo 1994 and Supp. 1998; 447.532, RSMo 1984, amended 1989, 1990, 1994, 1998; 447.533, RSMo 1990, amended 1992, 1998; 447.535, RSMo 1984, amended 1986, 1994, 1998; 447.579, RSMo 1984, 1993, 1994; and 447.595 RSMo, 1989, amended 1993, 1994.

History

AUTHORITY: sections 447.505, 447.506, 447.510–447.530, 447.532, 447.533 and 447.535, RSMo Supp. 1998 and 447.579 and 447.595, RSMo 1994. This rule was previously filed as 4 CSR 25-1.030.

15 CSR 50-3.050 Certain Property Not Deliverable to the State Uniform Disposition of Unclaimed Property Act. {#sec-15-csr-50-3.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.050}

This rule defines property which is not deliverable to the state.

(1) When Subject to Act. A review of the Uniform Disposition of Unclaimed Property Act (Act) and 15 CSR 50-3.030 discloses that property without an apparent owner for varying periods (generally seven (7) years), but five (5) years after 1/1/2000) is subject to delivery to the state. The abandonment period begins effective August 13, 1984, with the initial report due on November 1 of the year in which the statutory period of abandonment for the property runs, as calculated prospectively from that date. Exceptions to this rule include:

(A) Property in Possession of Probate Courts. The Act does not apply to final orders, judgments or decrees of distribution, or to abandoned property by probate courts nor to funds which are in the custody of courts per Chapter 470, RSMo;

(B) Farm Credit Act. The Act does not apply to institutions chartered under the Farm Credit Act of 1971 which are commonly referred to as Production Credit Associations (PCAs); and (C) Holder Subject to Another State’s Jurisdiction. Property subject to sections 447.505, 447.510, 447.520, 447.527, 447.530 and 447.535, RSMo whose owner’s last known address is in another state and whose holder is subject to that other state’s jurisdiction is not deemed deliverable to Missouri if it is reportable or remitted to the other state and the other state has a reciprocal provision with Missouri (section 447.537, RSMo).

Amended: Filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. *Original authority: 447.517, RSMo 1984, amended 1994, 1998; 447.535, RSMO 1984, amended 1986, 1994, 1998; 447.537, RSMo 1984, amended 1994; 447.539, RSMo 1984, amended 1989, 1993, 1994, 1998; 447.540, RSMo 1990, amended 1998; 447.541, RSMo 1984, amended 1986, 1989, 1993, 1994, 1998; 447.547, RSMo 1984, amended 1989, 1990, 1993, 1994; 447.579, RSMo 1984, amended 1993, 1994.

History

AUTHORITY: sections 447.517, 447.535, 447.539, 447.540 and 447.541.1 and 2, RSMo Supp. 1998 and 447.537 and 447.547.3 and 4, and 447.579, RSMo 1994. This rule was previously filed as 4 CSR 25-1.050. Original rule filed June 3, 1985, effective Sept. 27, 1985.

15 CSR 50-3.070 Reporting and Delivery of Property Presumed Abandoned Unclaimed Property Act. {#sec-15-csr-50-3.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.070}

This rule explains the reporting, examining and delivery requirements of that Act.

(1) Who Must Report. Holders are obliged to report to the division per section 447.539, RSMo. From time-to-time the division shall contract with other state agencies to insert information regarding holder obligations to report unclaimed property in broad-based business related mailings.

(2) When Reports Are Due. Reports of unclaimed property are to be filed before November 1 of each year and shall contain all information as of the previous June 30 with the exception of life insurance companies which shall file before May 1 of each year concerning all information from the previous December 31. Upon written request, the treasurer may grant an extension not to exceed thirty (30) days.

(3) Searching for Owners. Holders are to exercise reasonable and necessary diligence as is consistent with good business practice in attempting to locate owners of abandoned property of fifty dollars ($50) or more. These location efforts should be timed to occur prior to the reporting deadline (May 1, life insurance companies or November 1, all other entities). Owner location efforts may include, but are not limited to:

(A) Reviewing the holder records to determine whether the owner has other active account(s) within the entity. If the owner has an active account other than the property subject to the abandonment period, that property shall not be considered abandoned and the holder shall update its records accordingly;

(B) Mailing a letter, first-class with postage prepaid and with return address requested, to the last known address of the owner. If the letter is not returned by the post office, the holder shall assume the owner accepted mail from the banking or financial organization (see 15 CSR 50-3.005(1)(B) or (F)). All other holders shall assume the property is abandoned and shall remit accordingly; and (C) Contacting the owner by telephone is acceptable notification; however, the holder shall document that contact was made.

(4) Form of Reports to the Division. Report forms will be supplied by the division and shall be verified by the person filing who shall be—a partner, if the holder is a partnership, or an officer, if the holder is a corporation. The report shall clearly and concisely declare— (A) The name and address of the holder and, if a successor to another holder or if a name change has occurred, all previous names and addresses;

(B) The name, last known address and amount due each owner of fifty dollars ($50) or more plus the description and identifying number, if any, of the property;

(C) The date the property became payable, demandable, issued or returnable, if any, and the date of the last transaction;

(D) At the time the property is determined to be abandoned and reportable, any applicable interest rate shall be supplied by the holder;

(E) Amounts under fifty dollars ($50) may be reported in aggregate as lump sums and without name or address (for example, seventeen (17) aggregate owners due a total of two hundred eleven dollars and fifty-five cents ($211.55));

(F) Any holder submitting a report concerning the property of fifty (50) or more owners shall do so electronically. Information concerning acceptable electronic reporting format may be obtained by contacting the Missouri State Treasurer’s Office by mail: 301 W. High Street, Room 157, Jefferson City, MO, 65101; by telephone: 573-751-0123; by facsimile: 573-526-6027; by email: ucp@treasurer.mo.gov; or by visiting its public website at www.treasurer.mo.gov. Holders submitting reports concerning the property of fewer than fifty (50) owners may choose to do so electronically rather than by paper report. Any holder failing to report as required under this provision may be subject to the penalties set forth in section 447.577, RSMo;

(G) Cashier’s checks or other similar instruments on which the holder is directly liable may pose some problems as it may be unclear whether the remitter or the payee is the owner. The holders of these instruments should provide information on both, if available (section 447.539, RSMo);

(H) Courts maintaining accounts for the purpose of administering child support payments shall report and remit any accounts seven (7) years (five (5) years after 1/1/2000) from the date the property became payable;

(I) Underlying shares are presumed abandoned when the owner fails to exercise rights of ownership, including, but not limited to, failure to cash a dividend check or communicate with the holder which issued the stock; and (J) If the holder has no property to remit, no report need be filed.

(5) Remitting and Delivering; Costs Retained by Holders.

(A) Money shall be remitted by check made payable to the treasurer and delivered with all other property to the division when the report is filed.

(B) Corporations obliged to deliver property represented by stock certificates may— 1. Transfer title of the underlying shares to the state on the records of the issuing corporation and so advise the section; or 2. Forward the appropriate replacement stock certificates inscribed “Missouri State Treasurer.”

(C) The cost of postage for filing the holder report may be retained by the holder, and deducted from the amount of property remitted. Clerical costs of preparing the holder report may be retained by the holder at a rate of ten dollars ($10) per hour, not to exceed either the actual time expended or one (l) hour per fifty (50) owners reported, whichever is less.

Aggregates including multiple owners are to be considered as one (1) owner for purposes of reimbursing clerical costs. The treasurer may approve written requests for reimbursement for additional expenses if such requests are submitted and approved prior to the applicable reporting date.

(D) Costs incurred for the drilling and shipping of a safe deposit box and its contents shall be considered a deductible cost of compliance against the value of the contents of that particular box. Otherwise, holders shall exercise their rights as warehousemen, according to the safe deposit box law or the holder’s safe deposit box contract.

(E) Examination of Holders and Enforcing Delivery. The treasurer may conduct an examination if s/he has reason to believe a holder has failed to report property pursuant to the Act. The examination may be conducted by examination staff from— 1. The appropriate regulatory entity, including but not limited to: Divisions of Finance, Credit Union; Department of Insurance; and Public Service Commission; or 2. The division pursuant to certification by the chief officer of the appropriate regulatory entity as applicable.

(6) Late Identification of Owner.

(A) Should an owner be located too late to be removed from the report to be filed, the holder should pay the money or return the property to the owner and file a verified explanation of the proof of claim or of the error in the presumption of abandonment with the director (section 447.543.1., RSMo).

(B) Holders who have remitted money to the state should notify the state if an owner appears to claim the property. The state will reimburse the holder, if the state has not already made payment on the account, upon proof of payment and proof that the payee was entitled to the money. Holders may refer owners to the state for payment. Payments made to claimants after remitting money to the state should be made with caution, as the burden of proof will shift from the claimant to the holder.

(C) Holders who have delivered property other than money may direct subsequent claimants to the division for the return of the property or the money which resulted from a sale (section 447.558, RSMo).

Amended: Filed Sept. 15, 1986, effective Dec. 12, 1986. Amended:

Filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. Amended: Filed May 30, 2019, effective Nov. 30, 2019. *Original authority: 447.505, RSMo 1984, amended 1989, 1994, 1998; 447.520, RSMo 1984, amended 1998; 447.539, RSMo 1984, amended 1989, 1993, 1994, 1998; 447.543, RSMo 1984, amended 1986, 1989, 1993, 1994, 1998; 447.545, RSMo 1984, amended 1993, 1994, 1998; 447.547, RSMo 1984, amended 1989, 1990, 1993, 1994, 2014; 447.558, RSMo 1984, amended 1986, 1993, 1994, 1998; 447.562, RSMo 1984, amended 1989, 1993, 1994, 2018; 447.579, RSMo 1984, amended 1993, 1994; and 447.587, RSMo 1989, amended 1994.

History

AUTHORITY: sections 447.505, 447.520, 447.539, 447.543, 447.545, 447.547, 447.558, 447.579, and 447.587, RSMo 2016, and section 447.562, RSMo Supp. 2019. This rule was previously filed as 4 CSR 25-1.070. Original rule filed June 3, 1985, effective Sept. 27, 1985.

15 CSR 50-3.075 Auditing Based on Reason to Believe Uniform Disposition of Unclaimed Property Act. {#sec-15-csr-50-3.075 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.075}

This rule outlines procedures for requesting an examination of a holder’s records based on the treasurer’s “reason to believe” that the holder has not complied with the provisions of the Unclaimed Property Act.

(1) Pursuant to section 447.572 of the Missouri Uniform Disposition of Unclaimed Property Act (the Act), the treasurer shall have reason to believe that holder has failed to report property in accordance with the Act and may examine the records of the holder, anytime one (1) of the following conditions exist:

(A) A holder has not submitted a report to the Unclaimed Property Division for two (2) successive calendar years and the kind of business is such that typically unclaimed property would be reportable on an annual basis;

(B) The treasurer receives information that may indicate any of the following:

The holder adjusts its asset accounts and financial statements by writing off property such as check or credit balances that could be deemed unclaimed property under the Act; or 2. The holder does not follow generally accepted accounting principles or the Act with regard to unidentified remittances or the establishment of unclaimed property liability accounts; or 3. The holder does not follow generally accepted accounting principles or the Act with regard to the disposition of unidentified credits; or 4. The holder does not retain records for eight (8) years prior to the reporting property, which could be deemed, abandoned under the Act;

(C) The holder’s records preclude the treasurer from determining the disposition of property which could be deemed abandoned under the Act;

(D) The treasurer’s office is notified in writing, or verbally with written confirmation, that a holder appears to not be in compliance with the Act;

(E) The total unclaimed property remitted by a holder is below the average remittance for other holders in the same industry and has assets of similar size to the holder;

(F) A holder does not report all types of unclaimed assets they may be holding;

(G) A holder is discovered as a subsidiary or affiliate of another holder which has been or is being examined;

(H) A holder is discovered as a principal or holding company of another holder which has been or is being examined;

(I) An unclaimed property audit of the holder is initiated by another jurisdiction; or (J) Any other reasons which give the treasurer “reason to believe” that a holder has not complied with the provisions of sections 447.500–447.595, RSMo.

(2) Estimation Techniques.

(A) If a holder has failed to retain adequate records sufficient to conduct and conclude an audit, the unclaimed Property Division may use estimation techniques that conform to either generally accepted auditing standards or generally accepted accounting principles to determine the amount of unclaimed property.

(B) Except in cases where a holder is the subject of a multiple state audit, the estimation techniques applied by the treasurer will be limited to the most current reportable abandonment period.

(C) Within fifteen (15) days of the receipt of the final audit report, a holder may request a hearing to contest the use or validity of estimation techniques. The examination shall become final upon the failure of the holder to request a hearing as provided in this section. If a hearing is held, the treasurer shall issue an order approving or disapproving the use of or validity of the estimation techniques. The order shall be a final order under the Administrative Review Law. However, a holder may contest the estimation techniques used by the treasurer in an appeal de novo to a circuit court of competent jurisdiction.

History

AUTHORITY: sections 447.505, 447.520, 447.539, 447.543, 447.545 and 447.558, RSMo Supp. 1998 and 447.547, 447.562, 447.579 and 447.587, RSMo 1994. Original rule filed April 15, 1999, effective Sept. 30, 1999. Original authority 447.505, RSMo 1984, amended 1989, 1994, 1998; 447.520, RSMo 1984, amended 1998; 447.539, RSMo 1984, amended 1989, 1993, 1994, 1998; 447.543, RSMo 1984, amended 1986, 1989, 1993, 1994, 1998; 447.545, RSMo 1984, amended 1993, 1994, 1998; 447.547, RSMo 1984, amended 1989, 1990, 1993, 1994; 447.558, RSMo 1984, amended 1986, 1993, 1994, 1998; 447.562, RSMo 1984, amended 1989, 1993, 1994; 447.579, RSMo 1984, amended 1993, 1994; and 447.587, RSMo 1989, amended 1994.

15 CSR 50-3.080 Cessation of Holder’s Liability {#sec-15-csr-50-3.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.080}

PURPOSE: Sections 447.500—447.595, RSMo comprise the Missouri Unclaimed Property Act. This rule outlines the holders’ liabilities regarding property subject to the Act.

(1) Claims by Owners. A holder who has remitted abandoned money or property to the state is relieved of all liability for any claim which exists or which may arise. Should a holder be sued, notice by registered mail including a copy of the summons and any other pertinent information shall be sent to the state treasurer at least ten (10) days before the return date for filing an answer to the pleading. A holder who so notifies the state treasurer will be reimbursed for any judgment rendered, not to exceed the amount of the property reported, or the liquidated value of the property on the date of delivery, which is the subject of the claim (section 447.545.1 and 4, RSMo).

(2) Claims by Other States. If legal proceedings are instituted against the prior holder by any other state claiming to be entitled to abandoned money or property previously remitted to the state, the prior holders shall give written notice to the Missouri state treasurer and the Missouri attorney general within ten (10) days of receipt of service of any such action.

The attorney general may intervene or take any action s/he deems appropriate to protect the interests of this state. Once the notice is so given, the treasurer will reimburse the holder for any judgment which might subsequently be rendered, not to exceed the amount of the property reported which is subject to the claim (section 447.545.2 and 3, RSMo).

History

AUTHORITY: sections 447.500 and 447.579, RSMo 1994 and 447.503, 447.505 and 447.545, RSMo Supp. 1998. This rule was previously filed as 4 CSR 25-1.080. Original rule filed June 3, 1985, effective Sept. 27, 1985. Amended: Filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. Original authority: 447.500, RSMo 1984, amended 1986, 1993, 1994; 447.503, RSMo 1984, amended 1986, 1993, 1994, 1998; 447.505, RSMo 1984, amended 1989, 1994, 1998; 447.545, RSMo 1984, amended 1993, 1994, 1998; and 447.579, RSMo 1984, amended 1993, 1994.

15 CSR 50-3.090 Searching for Owners and Filing of Claims Unclaimed Property Act. {#sec-15-csr-50-3.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.090}

This rule outlines the procedures on searches for owners of unclaimed property and filing of claims for this property.

(1) Objective of Search. A primary objective of the Uniform Disposition of Unclaimed Property Act (Act) is the return of property to rightful owners. To this end, the Act requires a diligent search and retaining lists of property owners.

(2) Published Notices. Within two hundred forty (240) days of the report deadline (May 1, for life insurance companies, November 1, for all other entities), the state treasurer will publish the names of owners of abandoned property in counties where the last known address is Missouri. The notice will be entitled “Notice of Names of Persons Appearing to be Owners of Abandoned Property” and it will be published one (1) day for two (2) successive weeks in the same newspaper. The notice must be published in newspapers of general circulation as defined in section 493.050, RSMo. The notice will contain an alphabetical list of persons believed to be owners of the abandoned property valued at fifty dollars ($50) or more, safe deposit boxes, stocks, bonds and debentures, and the last known address of the owners. The notice will include a statement that, absent a claim, property with apparent market value, other than cash, may be sold within one (1) year.

(3) Mailed Notices. Within one hundred twenty (120) days of the reporting deadline (May 1, for life insurance companies, November 1, for all other entities), the division will mail a notice to each owner of property valued at fifty dollars ($50) or more, safe deposit boxes, stocks, bonds and debentures, who has an apparently valid address. The notice will contain a statement indicating that the addressee appears to be entitled to property and that if a proof of claim is not presented promptly, property with apparent market value, other than cash, may be disposed of within one (1) year.

(4) Records of Property. The treasurer will compile and retain the name and last known address of all owners of abandoned funds or property. The record will reflect other information as may be helpful in identifying an owner.

(5) Disposition of Property. Proceeds resulting from the liquidation of abandoned property with apparent market value shall be deposited in the abandoned fund account. Any costs associated with any liquidation shall not reduce the amount payable to the owner of the abandoned property.

(6) Interest Accrual on Accounts. If the owner would have been entitled interest had the property not been presumed to be abandoned, the treasurer shall accrue interest to the property for up to seven (7) years. The rate of interest shall compound annually and shall equal the year-to-date annualized average rate of return on all funds invested by the treasurer for each year of accrual and the previous year’s annualized average rate of return for the current fiscal year.

(7) Claims.

(A) Claims may be filed on forms which will be provided free of charge by the division. Claims may be filed by personal delivery or by mailing the claim form to: Unclaimed Property

Section, Harry S Truman State Office Building, Room 156, P.O.

Box 1004, Jefferson City, MO 65102. Personal delivery is not encouraged due to the costs incurred by the claimant and the time consuming nature of the review process; personal delivery will not expedite approval or payment of a claim by more than the time otherwise used in delivery by mail. A claim will never be barred by lapse of time but interest, if any, will not accrue more than seven (7) years after delivery to the division (section 447.565, RSMo).

(B) The claim form, or subsequent documentation, could include, but not be limited to, the following:

Name, address and telephone number of claimant;
The name and last known address of the apparent owner as listed on the state treasurer’s records;
Proof of ownership will be required if the claimant is the apparent owner;
The names, addresses and telephone numbers of all other persons who are potential heirs of the apparent owner, along with the sworn statement of claimant that s/he has no knowledge of any other potential heirs; and 5. A description of the extent to which the apparent owner’s estate was administered by the probate court.

In the event that the apparent owner is deceased, a copy of the death certificate;
In the event that the apparent owner is deceased and left a will which was admitted to probate, a copy of the will probate;
In the event that the apparent owner is deceased and letters testamentary were issued, a copy of the testamentary letter certified by the probate court;
In the event that the apparent owner is deceased and a refusal of letters was ordered, a copy of the refusal of letters certified by the probate court;
In the event that the apparent owner is deceased and a final order of distribution was entered by the probate court, a copy of the final order of distribution certified by the probate court;
A copy of claimant’s birth certificate and, if claimant derives his/her claim through any person who is a descendant of the apparent owner, one (1) copy of the birth certificate and death certificate of that person;
Lost certificate affidavit or lost certificate bond may be requested concerning stock, bonds or debentures;
An affidavit or bond may be requested concerning an abandoned cashier’s check, if the claimant is unable to provide the original check;
The treasurer may require any documentation, such as death or birth certificates, tax identification numbers, drivers licenses, probate records and release agreements to be certified copies; and 10. Other documentation as the treasurer may require.

(D) If there are heirs or other persons having a right to the unclaimed property which right is at least equivalent to the right of the claimant, the claimant shall provide a release from that person(s) or authorize the treasurer to treat the claim as filed on behalf of claimant and all other like persons.

(E) Every claimant shall be required to prove by clear and convincing evidence that s/he is entitled to the funds claimed as a matter of law.

(F) If a claim is allowed, the treasurer shall issue an order approving the claim. If the claim includes stock, bonds or debentures, the treasurer will assist the claimant or owner in the transfer of the abandoned property in a way mutually agreed upon between the claimant and the treasurer.

(G) If the claim is disallowed, the treasurer will inform the claimant of the denial and set forth the reasons for the disallowance. The claimant shall have thirty (30) days with which to file a request for a hearing from the receipt of the denial.

(H) The hearing requested shall be held within ninety (90) days of receipt of the request by the treasurer. The hearing will be held at the office of the treasurer or in the Missouri county, if any, where the unclaimed property was held prior to delivery to the treasurer. The hearing shall be conducted by the treasurer or a representative designated by the treasurer.

Whether the hearing shall be recorded shall be determined by the person conducting the hearing provided, however, that the claimant shall be entitled to have the hearing suitably recorded by filing a request for recording in writing and agreeing to pay the expenses.
After consideration of testimony, evidence and records in the case, the person who conducted the hearing shall issue an order accompanied by Findings of Fact allowing or disallowing the claim. A copy of the Findings of Fact and order shall be served upon all parties or their attorneys of record by certified mail (sections 447.565 and 447.569, RSMo).

(I) Agreements to Recover Property for Compensation. All agreements to recover property on behalf of another for compensation shall be in writing, signed by the claimant or property owner and notarized. No such agreement is valid unless the agreement discloses the nature and the value of the property in writing and is signed and acknowledged by the property owner. All transactions pursuant to valid enforceable contracts must be carried out in good faith and all funds due owners must be promptly delivered. Breaches by applicants on behalf of others will result in the section returning subsequent claims submitted by these applicants on behalf of others.

Owners or claimants are not barred from asserting that these agreements are excessive or unjust. All agreements to pay compensation to recover or assist in the recovery of property reported or delivered to the treasurer under sections 447.500– 447.595, RSMo are subject to the following limitations:

Any such agreement to recover or assist in the recovery of property for compensation which is made twelve (12) months after the date of payment or delivery to the treasurer is unenforceable;
Any such agreement to recover or assist in the recovery of property for compensation which is made more than twelve (12) months, but less than twenty-four (24) months after the date of payment or delivery to the treasurer shall be invalid if the compensation for recovery is greater than ten percent (10%) of the property at issue;
Any such agreement to recover or assist in the recovery of property for compensation which is made more than twenty-four (24) months, but less than thirty-six (36) months after the date of payment or delivery to the treasurer is invalid if the compensation for recovery is greater than fifteen percent (15%) of the property at issue; and 4. Any such agreement to recover or assist in the recovery of property for compensation which is made more than thirtysix (36) months after the date of payment or delivery to the treasurer is invalid if the compensation for recovery is greater than twenty percent (20%) of the property at issue.

(J) Registration Requirement. Any person seeking to recover or assist in recovering abandoned or unclaimed property for compensation pursuant to sections 447.500–447.595, must register with the treasurer prior to submitting a claim form for such property (section 447.581, RSMo). A claim submitted by any person acting in a representative capacity and seeking to recover unclaimed or abandoned property for compensation will be deemed invalid unless such person is registered with the treasurer. Any person seeking to register under section 447.581, RSMo must meet the following requirements:

Provide the name, current address, tax identification number or Social Security number filed or the person or entity wishing to register;
Disclose all names under which the person or business operates as an entity seeking to recover or assist in the recovery of property for compensation pursuant to sections 447.500– 447.595, RSMo;
Provide a copy of the standard fee agreement used in contracting with owners of abandoned or unclaimed property, which fee agreement is subject to the approval of the treasurer;
Certify compliance and good standing with the tax, business registration and other regulatory requirements of the state of Missouri;
Annually recertify compliance with all registration requirements; and 6. Provide any such additional information the treasurer may request from persons wishing to register as the treasurer believes reasonably necessary to protect the interests of the original owners of the property, and the citizens of Missouri.

(K) Any inquiries by an heir finder of the division shall be in writing.

Amended: Filed April 15, 1999, effective Sept. 30, 1999. *Original authority: 447.541, RSMo 1984, amended 1986, 1989, 1993, 1994, 1998; 447.560, RSMo 1984, amended 1993, 1994, 1998; 447.565, RSMo 1984, amended 1989, 1993, 1994, 1998: 447.569, RSMo 1984, amended 1993; 447.579, RSMo 1984, 1993, 1994; and 447.581, RSMo 1986, amended 1994.

History

AUTHORITY: sections 447.541, 447.560 and 447.565, RSMo Supp. 1998 and 447.569, 447.579 and 447.581, RSMo 1994. This rule was previously filed as 4 CSR 25-1.090. Original rule filed June 3, 1985, effective Sept. 27, 1985. Amended: Filed Sept. 15, 1986, effective Dec. 12, 1986. Amended: Filed Oct. 3, 1991, effective May 14, 1992.

15 CSR 50-3.095 Charitable Donation of Allowed Claims {#sec-15-csr-50-3.095 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.095}

PURPOSE: Sections 447.500–447.595, RSMo comprise the Missouri Uniform Disposition of Unclaimed Property Act. This

rule outlines the procedure by which the treasurer may allow an approved claimant of unclaimed property to irrevocably donate all or a portion of his or her unclaimed property to certain trust funds and charitable organizations.

(1) The treasurer may provide that all or part of an allowed claim may be irrevocably donated by the claimant to any one (1) or more of the following trust funds existing in the state treasury which may receive donations of tax refunds and which allow the receipt of grants, gifts, and bequests:

(A) The Children’s Trust Fund;

(B) The Veteran’s Trust Fund;

(D) The Worker’s Memorial Fund;

(E) The Childhood Lead Testing Fund;

(F) The Missouri Military Family Relief Fund;

(G) The After-School Retreat Reading and Assessment Grant Program Fund;

(H) The Organ Donor Program Fund; and/or (I) The Foster Care and Adoptive Parents Recruitment and Retention Fund.

(2) In addition to the trust funds listed under section (1), the treasurer may provide that all or part of an allowed claim may be irrevocably donated by the claimant to any one (1) or more of the following charitable organizations which may receive donations of income tax refunds:

(A) The American Cancer Society Heartland Division, Inc.;

(B) The American Diabetes Association Gateway Area;

(D) The American Lung Association of Missouri;

(E) The American Red Cross;

(F) The Amyotrophic Lateral Sclerosis Association (ALS Lou Gehrig’s disease);

(G) The Arthritis Foundation;

(H) The March of Dimes;

(I) The Muscular Dystrophy Association; and/or (J) The National Multiple Sclerosis Society.

(3) In addition to the trust funds listed under section (1) and the charitable organizations listed under section (2), the treasurer may provide that all or part of an allowed claim may be irrevocably donated by the claimant to any one (1) or more of the educational assistance organizations as defined in section 135.712, RSMo.

(4) In the event a charitable organization not listed in

section (2) becomes eligible to receive donations of income tax refunds, the treasurer may allow that all or part of an approved claim may be irrevocably donated to such charitable organization.

(5) The treasurer shall keep an accounting of the funds donated to the various trust funds listed in section (1) and the treasurer shall transfer, at least quarterly, all such donated funds from the abandoned fund account to the respective trust funds.

(6) The treasurer shall keep an accounting of the funds donated to charitable organizations under sections (2), (3), or (4) and the treasurer shall transfer, at least quarterly, all such donated funds from the abandoned fund account to the respective charitable organizations.

(7) Information describing a claimant’s ability to donate all or a portion of any approved claim as set forth in this rule shall be provided by the division to claimants during the claims process.

(8) No donations of tangible personal property held by the treasurer pursuant to sections 447.500 to 447.595, RSMo, may be made pursuant to this rule.

(9) The treasurer, after donating all or part of an approved claim as set forth in this rule, is discharged and released as set forth in section 447.565.3, RSMo.

rule filed June 7, 2013, effective Nov. 30, 2013. Amended: Filed June 22, 2023, effective Jan. 30, 2024. *Original authority: 447.565, RSMo 1984, amended 1989, 1993, 1994, 1998, and 447.579, RSMo 1984, amended 1993, 1994.

History

AUTHORITY: sections 447.565 and 447.579, RSMo 2016. Original

15 CSR 50-3.100 Sale Of Abandoned Property {#sec-15-csr-50-3.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-3.100}

PURPOSE: Sections 447.500–477.595, RSMo comprise the Missouri Unclaimed Property Act. This rule outlines the guidelines of the Office of the Missouri State Treasurer regarding the sale of abandoned property.

(1) Within two (2) years of delivery, section 447.558, RSMo authorizes the division to sell all property delivered to the director at a public sale. The division shall hold property a minimum of six (6) months from the date of delivery before it may be sold. Except for marketable securities, no property shall be sold by the division, unless it has been advertised in accordance with section 447.541, RSMo.

(2) No employee of the Office of the State Treasurer or immediate members of an employee’s family, directly or indirectly, shall knowingly become the purchaser of any property sold at a sale under the provisions of sections 447.500- 447.595, RSMo, nor shall the employee bid at any such sale, or be personally interested in the sale, or directly benefit from the sale in any manner whatsoever.

History

AUTHORITY: sections 447.541 and 447.558, RSMo 2016. This rule was previously filed as 4 CSR 25-1.100. Original rule filed Oct. 3, 1991, effective May 14, 1992. Amended: Filed April 15, 1999, effective Sept. 30, 1999. Amended: Filed May 30, 2019, effective Nov. 30, 2019. Original authority: 447.541, RSMo 1984, amended 1986, 1989, 1993, 1994, 1998 and 447.558, RSMo 1984, amended 1986, 1993, 1994, 1998.

Chapter 4 Missouri Higher Education Savings Program

15 CSR 50-4.010 General Organization {#sec-15-csr-50-4.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-4.010}

PURPOSE: This regulation provides the public with a description of the Missouri Higher Education Savings Program Board’s operations and the methods and procedures where the public may obtain information. This rule is adopted to fulfill the statutory requirement of section 536.023(3), RSMo.

(1) House Bill No. 959, 2nd Regular Session, 92nd General Assembly (2004), as amended by Senate Bill No. 882, 2nd Regular Session, 99th General Assembly (2018), as amended by House Bill No. 297, 1st Regular Session, 101st General Assembly (effective August 28, 2021), codified at sections 166.400 through 166.456, RSMo, creates the Missouri Education Program (the program), to be administered by the Missouri Education Program Board (the board). The board consists of the state treasurer (who serves as chairman), the commissioner of the state Department of Higher Education, the commissioner of education, the commissioner of the state Office of Administration, the director of the state Department of Economic Development, two (2) persons having demonstrable experience and knowledge in the areas of finance or the investment and management of public funds, one (1) of whom will be selected by the president pro tem of the state Senate and the other selected by the speaker of the state House of Representatives, and one (1) person having demonstrable experience and knowledge in the area of banking or deposit rate determination and placement of certificates of deposit or other deposit investments, to be appointed by the governor with the advice and consent of the senate. The board’s primary purpose is to administer the program and the board possesses all powers necessary to carry out and effectuate the purposes, objectives, and provisions of the statute.

(2) The program is designed to promote access to education by providing individuals with a convenient method to fund the increasingly expensive cost of education. By allowing participants to make current contributions for designated beneficiaries and by investing these contributions with the goal of achieving a rate of return that reflects increases in educational costs, the program is intended to provide designated beneficiaries with funds needed for the costs of their education. Within limits set by state and federal law, contributions to a savings account pursuant to the program are deductible from the contributor’s state income tax, and income earned or received from the program by a contributor or beneficiary are not subject to state income tax.

(3) Pursuant to the statute, the board has selected and approved a program manager to administer the program. The program manager manages the day-to-day operation of the program.

(4) The public may obtain information or make submissions or requests to the State Treasurer’s Office, P.O. Box 210, Jefferson City, MO 65102, (573) 751-2411. 2021, and section 536.023, RSMo 2016.* Original rule filed Aug. 30, 1999, effective Feb. 29, 2000. Amended: Filed June 13, 2019, effective Nov. 30, 2019. Amended:

Filed Oct. 4, 2021, effective March 30, 2022. 2002, 2004, 2012, 2018, 2021, and 536.023, RSMo 1975, amended 1976, 1997, 2004.

15 CSR 50-4.020 Missouri Education Program {#sec-15-csr-50-4.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-4.020}

PURPOSE: This rule establishes procedures for the operation of the Missouri Higher Education Savings Program (the savings program), specifies responsibilities of the Missouri Higher Education Savings Program Board (the board) in administering and monitoring the savings program, describes the rights and responsibilities of the board and its staff, participants, beneficiaries, and any third party designated by the board to carry out services under the savings program, and is intended to ensure that the savings program conforms with the federal and state statutes and regulations governing qualified state tuition programs.

rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction.

This note applies only to the reference material. The entire text of the rule is printed here.

(1) Incorporation by Reference. The provisions of section 529 of the Internal Revenue Code and the Treasury regulations (or proposed regulations) promulgated thereunder are incorporated herein by reference with the same effect as if fully set forth herein. Section 529 of the Internal Revenue Code as amended by H.R. 5771, Division B, section 105, is located within Title 26 of the United States Code, Section 529, as published by the United States Government Printing Office, 732 North Capitol Street, NW, Washington, D.C. 20401- 0001, effective December 31, 2014. This rule does not incorporate any later amendments or additions. The proposed regulations promulgated by the Department of the Treasury are located in 26 CFR Part 1, 63 FR 45019, as published by the United States Government Printing Office, 732 North Capitol Street, NW, Washington, DC 20401-0001, effective August 24, 1998. This rule does not incorporate any later amendments or additions.

(2) Definitions.

(A) Existing Missouri Definitions. The folin section 166.410, RSMo: benefits, board, eligible educational institution, Internal Revenue Code, participation agreement, qualified higher education expenses, qualified education expenses, program.

(B) Existing Federal Definitions. The folin section 529 of the Internal Revenue Code or the Treasury regulations (or proposed regulations) promulgated thereunder: contribution, distributee, distribution, earnings, investment in the account, member of the family, qualified state tuition program.

(C) Additional Definitions. The following definitions shall also apply to the following terms as they are used in this rule:

“501(c)(3) organization” means an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of the Internal Revenue Code;
“Account” means the account in the program established by a participant and maintained for a beneficiary;
“Account balance” means the fair market value of an account on a particular date;
“Account owner” means—a) a participant or b) the transferee of an account pursuant to subsection (5)(H) below;
“Beneficiary” means a designated beneficiary as defined in section 529 of the Internal Revenue Code and the Treasury regulations (or proposed regulations) promulgated thereunder;
“Cash” shall include, but not be limited to, checks drawn on a banking institution located in the continental United States in U.S. dollars (other than cashiers checks, travelers checks, or third-party checks exceeding ten thousand dollars ($10,000)), money orders, payroll deduction, and electronic funds transfers. Cash does not include property;
“Disability” means, with respect to a beneficiary, any disability of such beneficiary that has been certified pursuant to paragraph (6)(B)2. below;
“Member of the family” means an individual who is related to the beneficiary as listed in subparagraphs (2)(C)8.A. through (2)(C)8.I. of this definition, together with such changes to such list as may be included, from time-to-time, in the definition of “member of the family” pursuant to section 529 of the Internal Revenue Code or the Treasury regulations (or proposed regulations) thereunder:

A. A son or daughter, or a descendant of either;

B. A stepson or stepdaughter;

C. A brother, sister, stepbrother, or stepsister;

D. The father or mother, or an ancestor of either;

E. A stepfather or stepmother;

F. A son or daughter of a brother or sister;

G. A brother or sister of the father or mother;

H. A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law; or I. The spouse of the designated beneficiary or the spouse of any individual described in subparagraphs (2)(C)8.A. through (2)(C)8.H. of this definition.

For purposes of determining who is a member of the family hereunder, a legally adopted child of an individual shall be treated as the child of such individual by blood, and the terms brother and sister include a brother or sister by the halfblood;

“Non-qualified withdrawal” means a distribution from an account other than a qualified withdrawal, a withdrawal due to death, disability or scholarship of beneficiary, a rollover distribution, or a distribution from an account that is made after amounts are held in such account for the minimum length of time, if at all, permitted by section 529 of the Internal Revenue Code without the imposition of a penalty; 10.“Participant” means a person who has entered into a participation agreement pursuant to the statute and this rule for the payment of qualified education expenses on behalf of a beneficiary;
“Person” means any individual, estate, association, trust, partnership, limited liability company, corporation, the state of Missouri or any department thereof, or any political subdivision of the state of Missouri; 12.“Qualified withdrawal” means a distribution from an account established under the program used exclusively to pay qualified education expenses of the beneficiary;
“Rollover distribution” means a distribution or transfer from an account for a beneficiary that is transferred or deposited within sixty (60) days of the distribution into an account for another beneficiary who is a member of the family of the current beneficiary, in each case to the extent permitted as a rollover distribution, as defined in section 529(c)(3)(C)(i) of the Internal Revenue Code and the Treasury regulations (or proposed regulations) promulgated thereunder. A distribution is not a rollover distribution unless there is a change of beneficiary. The account for such other beneficiary may be an account established under the program or an account established under a qualified state tuition program in another state;
“Scholarship” means any scholarship and any allowance or payment described in section 135(d)(1)(B) or (C) of the Internal Revenue Code;
“Scholarship account” means an account in the program established by a participant that is a scholarship sponsor and maintained for the benefit of one (1) or more current and/or future beneficiaries;
“Scholarship sponsor” means the state of Missouri, an instrumentality of the state of Missouri, a political subdivision of the state of Missouri, or an organization described in section 501(c)(3) of the Internal Revenue Code, in each case who establishes one (1) or more accounts as part of a scholarship program; 17.“Statute” means sections 166.400 to 166.456, RSMo, as amended from time-totime; and 18. “Withdrawal due to death, disability, or scholarship of beneficiary” means a distribution from an account established under the program—a) made because of death or disability of the beneficiary, or b) made because of the receipt of a scholarship by the beneficiary to the extent that such distribution does not exceed the amount of such scholarship.

(3) Purposes. The purposes of the program are—a) to encourage savings to enable students to continue their education by attending eligible educational institutions, and b) to enable participants and beneficiaries to avail themselves of tax benefits provided for qualified state tuition programs under the Internal Revenue Code.

(4) Program Administration and Management. The program shall be administered and managed in compliance with the provisions of the Internal Revenue Code (including section 529, other applicable sections and implementing regulations and guidelines), the statute and this rule. Procedures and forms for use in the administration and management of the program shall be subject to the approval of the board. If the board designates a third party to assist or act for the board with respect to the administration and management of the program, the references herein to the board shall govern such a designee of the board.

(5) Program Participation and Participation Agreements.

(A) Beneficiary Eligibility. A beneficiary may be any individual designated as such in a participation agreement.

(B) Participant Eligibility. A participant may be any person—a) who submits to the board a completed participation agreement, and an address for each participant and beneficiary in the United States, and b) who otherwise meets the qualifications set forth in federal law, Missouri law, and regulations governing the program. A participant that establishes a scholarship account shall provide the valid Social Security numbers or taxpayer identification numbers and addresses in the United States of each beneficiary of the applicable scholarship account prior to or in connection with a request for a distribution.

(C) Participation Agreements. To participate in the program, a prospective participant must submit a completed participation agreement with either an initial contribution or a selection of electronic funds transfer or payroll deduction as the method of initial contribution. The participation agreement will provide that the participant (and any successor account owner) will retain ownership of payments made under the program through the opening of an account in the name of the participant and for the benefit of the beneficiary designated by such participant (or the successor account owner). Only one (1) account owner and one (1) beneficiary is permitted per account, except that scholarship accounts may be established for the benefit of one (1) or more present or future beneficiaries. One (1) or more participants may establish accounts for a single beneficiary. Each participant agreement shall impose a penalty on the early distribution of funds in accordance with

section 166.430, RSMo. Each participation agreement shall provide that the participation agreement may be canceled upon the terms and conditions set forth therein, subject to subsection (5)(I) below.

(2/28/22) JOHN R. ASHCROFT

(D) Contributions. All contributions to accounts shall be in cash. The maximum amount which may be contributed annually by a participant with respect to a beneficiary shall be established by the board, from timeto-time, but in no event shall be more than the total contribution limit described in the succeeding sentence. The total contributions that may be held in an account shall be the amount established by the board from timeto-time, but in no event shall be more than the maximum amount permitted for the program to qualify as a “qualified state tuition program” pursuant to section 529 of the Internal Revenue Code.

(E) Excess Contributions and Balances.

Contributions for any beneficiary shall be rejected (or, if accepted in error or resulting from a change of beneficiary, returned to the account owner with any earnings thereon and less any penalties applicable thereto) if the amount of the contributions in the account together with the contributions in other accounts established under the program for the benefit of the same beneficiary would cause the aggregate amount held for such beneficiary to exceed the maximum amount established by the board from time-to-time, but in no event more than the amount permitted under section 529 of the Internal Revenue Code. Any payment of such excess balances to the account owner shall be a non-qualified withdrawal subject to the penalties set forth in subsection (6)(D) below or such lesser amount as may be permitted by section 529 of the Internal Revenue Code.

(F) Changes to Beneficiary. An account owner may change the beneficiary designated for an account to any member of the family of the current beneficiary at any time, without penalty, by submitting a completed change of beneficiary form to the board in such form as the board may specify from time-to-time. Any change of beneficiary by an account owner other than as permitted in the foregoing sentence shall be a non-qualified withdrawal subject to the penalties set forth in subsection (6)(D) below.

(G) Rollover Distributions. An account owner may transfer, in a rollover distribution, all or part of the account balance to an account for another beneficiary who is a member of the family of the current beneficiary by submitting a completed request for transfer of account funds in such form as the board may specify from time-to-time.

(H) Changes of Account Ownership. An account owner may transfer ownership of an account to another person eligible to be a participant under the provisions of the statute and this rule, and upon receipt of a request for change of account owner that satisfies the criteria set forth in this subsection, the transferee shall be considered the account owner for all purposes related to the program, regardless of the source of subsequent contributions.

General rule. Any such change of account ownership shall be effective provided that the transfer—a) is irrevocable, b) transfers all ownership, reversionary rights, and powers of appointments (i.e., power to change beneficiaries and to direct distributions from the account), and c) is submitted to the board on a change of account owner form in such form as the board may specify from time-to-time and completed by the account owner (or, in the event of the death of the account owner, by the personal representative of his or her estate).
Designation of contingent account owners. Any account owner that is an individual person may designate a contingent account owner for its account, to become the owner of the account automatically upon the death of such account owner. Upon the death of an account owner who has made such a designation of contingent account owner, the assets of the account shall not be deemed assets of such person’s estate for any reason.

Prior to the initial action taken by the contingent account owner following the death of the deceased account owner, the contingent account owner shall provide a certified copy of a death certificate sufficiently identifying said deceased account owner by name and Social Security number or taxpayer identification number, or such other proof of death as is recognized under applicable law.

(I) Cancellation. A participant may cancel a participation agreement at any time by submitting to the board’s designee a notice to terminate the participation agreement in such form as the board may specify from time-totime. Except as provided in section 166.430 of the statute, any non-qualified withdrawal distributed as a result of such cancellation shall be subject to the penalty as provided in subsection (6)(D) below.

(J) Copy of Agreement to Account Owner.

Upon request by an account owner, the board shall provide the account owner with a copy of the participation agreement executed by the account owner, or inform the account owner that the board does not have a copy thereof, mailed within ten (10) business days of receipt of the account owner’s request.

(K) Separate Accounting. The board shall provide separate accounting (as provided in

section 529 of the Internal Revenue Code) for each beneficiary for each account.

(6) Payment of Benefits; Withdrawals.

(A) Qualified Withdrawals. An account owner may request a qualified withdrawal from its account by submitting a completed request for qualified withdrawal to the board in such form as the board may specify from time-to-time.

(B) Withdrawals Due to Death, Disability or Scholarship of Beneficiary. An account owner may request a withdrawal due to death, disability or scholarship of beneficiary from its account by submitting a completed request for withdrawal due to death, disability or scholarship of beneficiary to the board in such form as the board may specify from time-to-time. Prior to a withdrawal due to death, disability or scholarship of beneficiary from an account due to the death or disability of the beneficiary of that account, or because the beneficiary has received a scholarship to be applied toward attendance at an eligible educational institution, the account owner shall certify the reason for the distribution and provide written confirmation from a third-party that the beneficiary has in fact died, become disabled with a disability, or received a scholarship for attendance at an eligible educational institution. A request to make a distribution due to the death or disability of, or a scholarship award to, the beneficiary shall not be considered complete until such third-party written confirmation is received by the board. For purposes of this subsection, third-party written confirmation shall consist of the following documentation:

For death of the beneficiary, a certified copy of a death certificate sufficiently identifying said beneficiary by name and Social Security number or taxpayer identification number, or such other proof of death as is recognized under applicable law;
For disability of the beneficiary, a certification by a physician who is a doctor of medicine or osteopathy that indicates that he or she is legally authorized to practice in a state of the United States and that the beneficiary is unable to attend any eligible educational institution because of an injury or illness that is expected to continue indefinitely or result in death. Such certification shall be on a form provided or approved by the board; and 3. For a scholarship award to the beneficiary, a letter from the grantor of the scholarship or from the eligible educational institution receiving or administering the scholarship, that identifies the beneficiary by name and Social Security number or taxpayer identification number as recipient of the scholarship and states the amount of the scholarship, the period of time or number of credits or units to which it applies, the date of the scholarship, and, if applicable, the eligible educational institution to which the scholarship is to be applied.

(C) Other Withdrawals. An account owner may request a distribution from an account that is made after amounts are held in such account for the minimum length of time permitted if at all by section 529 of the Internal Revenue Code without the imposition of a penalty. Such account owner may request such distribution by submitting a completed request for a distribution to the board in such form as the board may specify from time-totime.

(D) Non-Qualified Withdrawals; Penalties.

An account owner may request a non-qualified withdrawal by submitting a completed non-qualified withdrawal request form to the board in such form as the board may specify from time-to-time. Any such non-qualified withdrawal shall be subject to the penalty described in this subsection (6)(D). A penalty shall be withheld, and paid to the board from an account with respect to each nonqualified withdrawal, in an amount equal to ten percent (10%) of the earnings portion of such withdrawal. Such penalty amount is a more than de minimis penalty for the purposes of section 529 of the Internal Revenue Code. If required, such penalty amount shall be increased to the minimum amount identified by the Internal Revenue Service as a “safe harbor” in order for it to be more than de minimis for the purposes of section 529 of the Internal Revenue Code. Penalties shall be imposed, collected, and applied in a manner consistent with section 529 of the Internal Revenue Code.

(E) Distribution Limitations. No distributions may be made within thirty (30) days of receipt by the board of a completed change of account owner form or request to change the mailing address of the account owner, unless the current account owner’s signature is signature guaranteed on the request.

(F) Security. An account owner or beneficiary may not use any account or other interest in the program or any portion thereof as security for a loan.

(7) Investments.

(A) General (Investment Standards and Objectives). The board shall invest the funds received from participants, together with any income thereon, in such investments as the board shall reasonably determine will achieve a long-term total return through a combination of capital appreciation and current income. In exercising or delegating its investment powers and authority, the board shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision. In accordance with the standards established herein and in the statute, the board may invest, through the board or any investment manager, funds received pursuant to the program.

Any such investment shall be made solely in the interest of the account owners and beneficiaries and for the exclusive purposes of providing benefits to beneficiaries and defraying reasonable expenses of administering the program. An account owner or beneficiary may, directly or indirectly, direct the investments of any contributions to the program (or any earnings thereon) no more than two (2) times in any calendar year.

(B) Delegation of Investment Discretion.

The board may delegate to its duly appointed investment counselor authority to act in place of board in the investment or reinvestment of all or part of the funds, and may also delegate to such counselor the authority to act in place of the board in the holding, purchasing, selling, assigning, transferring, or disposing of any or all of the securities and investments in which such funds shall have been invested, as well as the proceeds of such investments and such moneys. Such investment counselor shall be registered as an investment advisor with the United States Securities and Exchange Commission.

(8) Costs of Administration. All costs of administration of the program shall be borne by the account owners, from amounts paid as penalties on account of non-qualified withdrawals or early qualified withdrawals and from amounts on deposit in the accounts, as described in more detail in the participation agreements.

(9) Severability. If any provision of this rule, or the application of it to any person or circumstance, is determined to be invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions of this

regulation which can be given effect without the invalid provision or application, and to that end, the provisions of this regulation are severable. 2021.* Emergency rule filed Aug. 30, 1999, effective Sept. 14, 1999, expired March 12, 2000. Original rule filed Aug. 30, 1999, effective Feb. 29, 2000. Emergency amendment filed Jan. 22, 2015, effective Feb. 1, 2015, expired July 30, 2015. Amended: Filed Jan. 22, 2015, effective July 30, 2015.

Amended: Filed June 13, 2019, effective Nov. 30, 2019. Amended: Filed Oct. 4, 2021, effective March 30, 2022. 2002, 2004, 2012, 2018, 2021.

15 CSR 50-4.030 Missouri MOST 529 Matching Grant Program {#sec-15-csr-50-4.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-4.030}

PURPOSE: This rule sets forth the criteria to be used by the Missouri Higher Education Savings Program Board regarding the awarding of matching grants to eligible participants in the Missouri Higher Education Savings Program under the MOST 529 Matching Grant Program and the administration of the MOST 529 Matching Grant Program.

(1) Definitions.

(A) Existing Missouri Definitions. The folin section 166.410, RSMo: Beneficiary, Board, Eligible Educational Institution, Participation Agreement, and Program. The folin the Missouri Code of State Regulations, 15 CSR 50-4.020(2): Account Owner, Member of the Family, Non-qualified Withdrawal, Qualified Withdrawal, and Participant.

(B) Additional Definitions. The following definitions shall also apply to the following terms as they are used in this rule:

“MOST Matching Grant” means funds granted to an eligible account owner pursuant to the MOST 529 Matching Grant Program;
“MOST Matching Grant Account” means an account maintained for a beneficiary in which MOST matching grant funds are deposited; 3.“MOST Matching Grant Application” means the application required to be submitted by an account owner to be considered for a MOST matching grant;
“Plan Account” means the account in the program established by a participant and maintained for a beneficiary; and 5. “Plan Description” means the MOST—Missouri’s 529 Education Plan Program Description.

(2) Program Description. The MOST 529 Matching Grant Program is a limited grant program administered by the board as set forth below. The MOST 529 Matching Grant Program is funded with money provided by the program manager of the program. The program may not be funded every year. When funded, funds are limited and, in any given year, may be capped by the board in an amount determined by the board to ensure availability of funds for the duration of the grant program. The funds will be granted to eligible applicants on a first-come, firstserved basis.

(3) MOST Matching Grant Awards.

(A) Applicants who are approved by the (2/28/22) JOHN R. ASHCROFT board will receive a match rate of one dollar ($1) for every one dollar ($1) contributed in a calendar year, up to a yearly match limit of five hundred dollars ($500).

(B) The lifetime maximum match amount for a beneficiary is two thousand five hundred dollars ($2,500).

(C) Applicants submitting an application during the enrollment period are eligible to receive matching funds for contributions to a plan account made in the same calendar year.

For example, applicants who are awarded the MOST matching grant for the 2012 enrollment period will receive matching funds for contributions made to a plan account from January 1 to December 31, 2012.

(D) Applicants who are awarded a MOST matching grant will typically receive the funds between January 1 and January 31 in the year following the approval of the MOST matching grant application and the funds will be invested according to the account owner’s current allocation instructions on file for the account owner’s plan account.

(4) Eligibility Requirements. To be eligible to receive a MOST matching grant, the appli cant must meet the following eligibility guidelines:

(A) The beneficiary must be a Missouri resident;

(B) The beneficiary may not be older than thirteen (13) years of age at the time the first MOST matching grant application is approved;

(C) The household adjusted gross income of the parent(s) or legal guardian(s) of the beneficiary in the year prior to applying for a MOST matching grant may not exceed seventy-four thousand nine hundred ninety-nine dollars ($74,999);

(D) The applicant must be a Missouri resident who is an account owner who is a parent, legal guardian, or foster parent of the beneficiary; and (E) Only one (1) MOST matching grant account may be opened for any beneficiary.

(5) Application Requirements.

(A) The applicant must have opened a plan account for the intended beneficiary.

(B) The applicant must enclose with the MOST matching grant application a Missouri state income tax return establishing that the beneficiary’s household adjusted gross income falls within the eligibility requirements. If the parent(s) or legal guardian(s) of the beneficiary were not required to file a Missouri state income tax return, they must provide other evidence of residency and household income acceptable to the board.

(C) The beneficiary’s Social Security number on the applicant’s plan account must match the beneficiary’s Social Security number on the matching grant application.

(D) Matching grant applications will be accepted on a first-come, first-served basis.

(E) Applicants must submit a matching grant application during the enrollment period as set by the board.

(F) Applicants must reapply for the MOST matching grant each year that it is offered in order to be eligible to receive funds for that year.

(6) MOST Matching Grant Accounts.

(A) The MOST matching grant account will be linked to the applicant’s plan account and shall be governed by the terms and conditions of the plan description and the related participation agreements and supplements thereto, as amended from time-to-time.

(B) The plan shall retain control of the assets in the MOST matching grant account until the account owner submits a request in good order for a qualified withdrawal to an eligible educational institution.

(C) To withdraw funds from a MOST matching grant account, the withdrawal must be a qualified withdrawal to an eligible educational institution.

(D) Under certain circumstances, the MOST matching grant and any earnings made may be fully or partially forfeited and a MOST matching grant account could be closed. These circumstances include:

A change in beneficiary when the new beneficiary has previously received a MOST matching grant or is not an eligible member of the family of the former beneficiary;
The event of the death of a beneficiary or the disability of the beneficiary which precludes him or her from attending an eligible educational institution, unless the account owner changes the beneficiary to an eligible member of the family of the former beneficiary; and 3. A non-qualified withdrawal or rollover to another state’s 529 plan is made from the plan account and the remaining plan account balance falls below the balance of the MOST matching grant account, unless, within eighteen (18) months, the account owner contributes funds to the plan account to prevent forfeiture of that portion of the MOST matching grant account that does not have corresponding funds in the plan account.

(E) For beneficiaries who have a MOST matching grant account, any qualified withdrawals to an eligible educational institution generally will be taken proportionally from the plan account and the related MOST matching grant account at the time the qualified withdrawal is requested to be sent to the eligible educational institution. If the qualified withdrawal amount requested would cause the MOST matching grant account to have a market value under ten dollars ($10), the pro-rated amount of the qualified withdrawal will be adjusted so that the MOST matching grant account is fully liquidated, and the amount taken from the plan account will be reduced accordingly. If the qualified withdrawal amount requested will result in a withdrawal from the MOST matching grant account which is less than ten dollars ($10), the distribution will be adjusted so that the entire amount of withdrawal will be taken from the plan account.

(F) MOST matching grant accounts will not be subject to the ten dollar ($10) annual account fee. MOST matching grant accounts are, however, subject to fees and charges that otherwise apply to a plan account as described in the program description. 2021.* Emergency rule filed April 5, 2012, effective April 15, 2012, expired Jan. 23, 2013. Original rule filed April 5, 2012, effective Oct. 30, 2012. Emergency amendment filed Jan. 23, 2013, effective Feb. 2, 2013, expired July 31, 2013. Amended: Filed Jan. 23, 2013, effective July 30, 2013. Amended:

Filed June 13, 2019, effective Nov. 30, 2019.

Amended: Filed Oct. 4, 2021, effective March 30, 2022. 2002, 2004, 2012, 2018, 2021.

Chapter 5 Missouri Empowerment Scholarship Accounts Program

15 CSR 50-5.010 General Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 {#sec-15-csr-50-5.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.010}

15 CSR 50-5.010 General Organization {#sec-15-csr-50-5.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.010}

PURPOSE: This rule provides a description of the Missouri Empowerment Scholarship Accounts Program and the methods and procedures by which the public may obtain information.

This rule is adopted to fulfill the statutory requirement of section 536.023(3), RSMo.

(1) The Missouri Empowerment Scholarship Accounts Program was established August 28, 2021, and qualified students first received grants during the initial program year, which began on July 1, 2022. The enabling statute delegates administrative responsibilities associated with the Missouri Empowerment Scholarship Accounts Program to the state treasurer and permits the treasurer to delegate any duties assigned to the Missouri Empowerment Scholarship Accounts Board.

(2) Requests for information can be submitted to the Missouri Empowerment Scholarship Accounts Program in care of the Office of the State Treasurer at the Harry S Truman State Office Building, Room 780, PO Box 210, Jefferson City, MO 65102.

Additional information on the program can be found at www. treasurer.mo.gov.

History

AUTHORITY: section 135.719, RSMo Supp. 2025, and section 536.023, RSMo 2016. Emergency rule filed April 11, 2022, effective April 25, 2022, expired July 30, 2022. Original rule filed Jan. 26, 2022, effective July 30, 2022. Rescinded and readopted: Filed June 16, 2025, effective Jan. 30, 2026. Original authority: 135.719, RSMo 2021, and 536.023, RSMo 1975, amended 1976, 1997, 2004.

15 CSR 50-5.020 Missouri Empowerment Scholarship {#sec-15-csr-50-5.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.020}

PURPOSE: This rules sets forth general information necessary to carry out the purpose of the enabling statute for the Missouri Empowerment Scholarship Accounts Program. This rule describes the program, establishes the program year, and defines stakeholders and scholarship account.

(1) The Missouri Empowerment Scholarship Accounts Program facilitates grants that provide additional educational opportunities to Missouri families by partnering with charitable organizations that award scholarship accounts and reimburse allowed expenses to elementary and secondary qualifying students that are residents of Missouri. The Missouri Empowerment Scholarship Accounts Program is funded by contributions to educational assistance organizations under the Tax Credit Program and reimbursements to educational assistance organizations under the Missouri Empowerment Scholarship Accounts Grant Program.

(2) Purpose. The purpose of the Missouri Empowerment Scholarship Accounts Program is to assist Missouri families in accessing the educational model or therapeutic education services that meet an individual qualified student’s needs.

The Missouri Empowerment Scholarship Accounts Program provides options for Missouri families and allows them to seek an array of alternative educational services ranging from private schools to therapeutic education services.

(3) Program Year. The Missouri Empowerment Scholarship Accounts Program year is a twelve- (12-) month period beginning July 1 and ending on June 30. The program year is identical to the State of Missouri’s fiscal year.

(4) Rules and Procedures. The treasurer may promulgate rules as necessary or desirable to carry out the provisions of the Missouri Empowerment Scholarship Accounts Program Tax Credit Program statute. The treasurer may adopt policies and operating procedures concerning its internal management of the Missouri Empowerment Accounts Program Tax Credit (5) Program Administration and Management. The Missouri Empowerment Scholarship Accounts Program is administered and managed in compliance with the statutes, rules, and the Missouri Empowerment Scholarship Accounts Program Procedures. Procedures and forms for use in the administration and management of the Missouri Empowerment Scholarship Accounts Program are subject to approval of the treasurer or the treasurer’s designee.

(6) Stakeholders and Scholarship Account.

(A) Parents and qualified students.

Parents. A parent, guardian, custodian, or other person with authority to act on behalf of a qualified student may establish a Missouri Empowerment Scholarship Account for a student by entering into a written agreement with an 2. Qualified students. Any elementary or secondary school student who is a resident of Missouri and satisfies all statutory conditions may receive a grant deposited in a scholarship account. The grant funds may be spent for allowable expenses and may not be used for disallowed expenses. The account is renewable on an annual basis upon the request of a parent, guardian, custodian, or other person with authority to act on behalf of a qualified student.

(B) Missouri Empowerment Scholarship Account. A scholarship account provided by an educational assistance organization that can receive distributions of funds raised through the tax credit program or reimburse allowed expenses through the grant program.

(C) Qualified schools. Family paced education (FPE) schools, charter schools, public schools, and public or private virtual schools that do not discriminate on the basis of race, color, or national origin that can enroll qualified students and partners with an educational assistance organization. A qualified school must educate qualified students in at least the subjects of English language arts, mathematics, social studies, and science.

(D) Educational assistance organizations. Educational assistance organizations are charitable organizations that partner with the Missouri Empowerment Scholarship Accounts Program to award scholarship accounts to qualifying students.

The number and location of educational assistance organizations is limited by statute. In order to partner with the Missouri Empowerment Scholarship Accounts Program, educational assistance organizations must meet statutory requirements and be certified by the treasurer.

(7) Severability. If any provision of this rule, or the application without the invalid provision or application and, to that end,

History

AUTHORITY: section 135.719, RSMo Supp. 2025. Emergency rule Filed Nov. 14, 2024, effective May 30, 2025. Rescinded and readopted: Filed June 16, 2025, effective Jan. 30, 2026.

15 CSR 50-5.030 Tax Credit Program {#sec-15-csr-50-5.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.030}

PURPOSE: This rule sets forth general information necessary to carry out the purpose of the enabling statute for the Missouri Empowerment Scholarship Accounts Tax Credit Program and provides for the annual adjustment and allocation of tax credits.

(1) The Missouri Empowerment Scholarship Accounts Program Tax Credit Program encourages taxpayers to make qualifying contributions to educational assistance organizations (EAOs).

The EAOs use the qualifying contributions to award scholarship accounts to qualifying students as required by statute.

(2) The treasurer and/or department of revenue may promulgate rules as necessary or desirable to carry out the provisions of the Missouri Scholarship Accounts Program Tax Credit Program statute. The treasurer may adopt policies and operating procedures concerning its internal management of the Missouri Scholarship Accounts Program Tax Credit Program.

(3) Annual Adjustment and Allocation of Tax Credits.

(A) Annual adjustment. The treasurer shall adjust the cumulative amount of tax credits that may be allocated to all taxpayers contributing to educational assistance organizations as provided by statute.

(B) Allocation of tax credits. At or near the beginning of the program year, the treasurer shall provide an initial allocation of tax credits to participating EAOs. During the program year, the treasurer may rebalance or reallocate any available tax credits.

(4) Taxpayers may apply for a tax credit by visiting the treasurer’s official website and completing the online Application for Tax Credit Reservation for contributions to a participating educational assistance organization. Taxpayers may request to rescind all or part of a tax credit reservation. Procedures and forms for use in the administration and management of the program are subject to the approval of the treasurer or the treasurer’s designee.

(5) Severability. If any provision of this rule, or the application without the invalid provision or application and, to that end,

History

AUTHORITY: section 135.719, RSMo Supp. 2025. Emergency rule Filed Nov. 14, 2024, effective May 30, 2025. Rescinded and readopted: Filed June 16, 2025, effective Jan. 30, 2026.

15 CSR 50-5.035 Grant Program {#sec-15-csr-50-5.035 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.035}

PURPOSE: This rule sets forth general information necessary to carry out the purpose of the Missouri Empowerment Scholarship Accounts Grant Program and provides for the annual budget

(1) The Missouri Empowerment Scholarship Accounts Grant Program assists certified Educational Assistance Organizations (EAOs) in awarding scholarship accounts to qualifying students.

(2) The treasurer may promulgate rules as necessary or desirable to carry out the provisions of the Missouri Empowerment Scholarship Accounts Grant Program. The treasurer may adopt policies and operating procedures concerning its internal management of the Missouri Scholarship Accounts Grant (3) Annual Budget. At or near the beginning of the program year, the treasurer shall provide the certified EAOs the anticipated budget authority for the program year. The anticipated budget

(4) During the program year and based upon fund availability, certified EAOs may request reimbursement of allowed expenses for qualified students.

History

authority.
authority may be increased or decreased during the program year.
AUTHORITY: sections 135.719 and 166.710, RSMo Supp. 2025. Original rule filed June 16, 2025, effective Jan. 30, 2026. Original authority: 135.719, RSMo 2021, and 166.710, RSMo 2021.

15 CSR 50-5.040 Audits and Reporting Requirements {#sec-15-csr-50-5.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.040}

PURPOSE: This rule establishes procedures for the audit and reporting requirements of the Missouri Empowerment Scholarship Accounts Program (the program) and specifies responsibilities of the treasurer, his or her staff, educational assistance organizations, parents, beneficiaries, and any third party designated by the treasurer to carry out services under the program, and is intended to ensure the program conforms with state statutes and promulgated rules. The treasurer has authority to establish standards and reporting requirements for audits performed on certified educational assistance organizations. This rule sets forth requirements to be met directly by the certified educational assistance organizations and the standards for the auditing and financial reporting.

(1) Definitions.

(A) Existing Missouri Definitions. The following terms, as used in this rule, are defined in section 135.712, RSMo: educational assistance organization, parent, program, scholarship account, taxpayer. The following terms, as used in this rule, are defined in section 166.700, RSMo: curriculum, district, private school, qualified school, qualified student. The following term, as used in this rule, is defined in section 135.715, RSMo: qualifying contribution.

(B) Additional Definitions. The following definitions shall also apply to the following terms as they are used in this rule:

“Division” means the treasurer’s office division of program administration; and 2. “School year” means the period that commences on the first day of July and ends on the thirtieth day of the following June.

(2) Audits.

(A) Annual Audited Financial Statements.

Annual Audited Financial Statements. The annual financial statements audit required by section 135.714, RSMo, shall be prepared by a certified public accountant and submitted to the treasurer within six (6) months after the close of the educational assistance organization’s fiscal year and shall include the following information:

A. The name and address of the educational assistance B. Annual financial accounting to show— (I) One hundred percent (100%) of its revenues from interest or investments is spent on scholarship accounts;

(II) At least ninety percent (90%) of its revenues from qualifying contributions is spent on scholarship accounts; and (III) Marketing and administrative expenses do not exceed the thresholds established in section 135.714.1(5)(c), RSMo; and C. An auditor’s report on program compliance, based on a random sampling of accounts, with regard to use of student account funds for eligible program expenses.

Requirements for Educational Assistance Organizations.

A. The educational assistance organization is responsible for preparing and providing financial information to be included in the annual financial statements audit. The educational assistance organization shall maintain adequate accounting records for that purpose.

B. The educational assistance organization shall engage an independent auditor to conduct the audit. The treasurer does not recommend, select, or approve the educational assistance organization’s auditor or the auditor’s fee, except as provided in 15 CSR 50-5.040(2)(A)2.C. The educational assistance organization is responsible for fulfilling all contractual obligations with the auditor, including payment of all earned fees.

C. The educational assistance organization shall file a copy of the completed audit report with the treasurer within six (6) months after the close of the educational assistance organization’s fiscal year. If any audit report fails to comply with promulgated rules, the treasurer shall notify the educational assistance organization and specify the defects. If the specified defects remain uncorrected after ninety (90) days from the date of the treasurer’s notice to the organization, or if a copy of the required audit report has not been received by the treasurer within the specified time, the treasurer shall make, or cause to be made, the required audit at the expense of the 3. Standards for Auditing and Financial Reporting.

A. The independent auditor shall meet all requirements of Chapter 326, RSMo, and the code of professional ethics and rules of conduct promulgated by the Missouri State Board of Accountancy.

B. The audit shall conform to generally accepted auditing standards (GAAS) promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants.

C. All audits shall conform to the standards (hereafter referred to as “generally accepted government auditing standards”) established by the Comptroller General of the United States and applicable to financial audits of government entities, programs, activities, and functions.

D. The contents of the financial statement audit report shall be presented in conformity with generally accepted accounting principles. If the financial statement audit report is not presented in conformity with generally accepted accounting principles, then the independent auditor shall make appropriate audit report modifications and disclosures.

The auditor shall certify the report is free of material misstatements.

E. Nothing in the rules promulgated for audits of certified educational assistance organizations shall be construed as restricting, limiting, or relieving the independent auditor of his or her professional judgment or responsibility.

(B) Use of Account Funds.

Account funds may only be used for the qualified student for whom the account was awarded.
Use of account funds shall be limited to qualified expenses as defined in 166.705.1(4), RSMo.
The treasurer or a third party with whom the treasurer contracts shall establish and maintain a database of approved vendors and expenses. Similar expenses by similarly situated account holders shall be treated in the same manner. This

section does not create authorization for an account holder to expend funds in a manner not permitted by statute.

Use of account funds must be substantiated by documentation, in a format acceptable to the treasurer.
The treasurer reserves the right to make final determination with regard to eligible use of account funds.

Procedures for conducting exams on use of accounts funds. The treasurer may conduct or contract for review of expenses pursuant to this section to ensure program funds are used only for qualified expenses, and shall request periodic reports on the use of account funds from the educational assistance organization or a designated third party.
Procedures for conducting random reviews of accounts.

The treasurer may randomly, through an in-person site visit or an electronic request, sample the accounts held by an educational assistance organization. The sampling of accounts may include but is not limited to a review of student records and expenses, tracking mechanisms for reporting student outcomes, and contribution tracking.

Procedures for conducting quarterly reviews of accounts. The treasurer shall provide to the educational assistance organization quarterly report forms for the purpose of reporting program performance and financial data. The educational assistance organization is responsible for preparing and submitting the quarterly program reports to the treasurer within thirty (30) days after each quarter’s end. The treasurer shall review quarterly program reports within thirty (30) days of receipt and conduct any follow-up or remediation actions as necessary.
Procedures for conducting annual reviews of accounts.

The treasurer shall review the Annual Statutory Audit submitted by the educational assistance organization for compliance with program requirements and performance.

(D) 2023-2024 Audit Required by Statute. Beginning with the 2023-2024 school year, the treasurer shall conduct or contract for annual audits of Missouri Empowerment Scholarship Accounts to verify compliance with statutory requirements of the program. This audit shall conform to the standards for auditing of governmental organizations, programs, activities, and functions established by the comptroller of the United States.

(3) Reporting Requirements.

(A) Annual Reports. The following annual reports, unless otherwise specified, shall be due on August 1, for the period of July 1 through June 30 immediately preceding:

Results from annual state achievement tests or nationally norm-referenced tests for grades requiring testing under the statewide assessment system set forth in section 160.518, RSMo;
Student information that would allow the treasurer to aggregate data by grade level, gender, family income level, and race;
Results from the annual parental satisfaction survey, including information about the number of years the parent’s child has participated in the program;
Rates of high school graduation; and 5. To the extent the data is provided or otherwise available to the educational assistance organization, rates of college attendance and college graduation for participating students.

(B) Monthly. Remittance Report. An educational assistance organization shall submit a remittance report to the treasurer no later than the 15th of each month following a month in which the educational assistance organization received a contribution from a taxpayer. The remittance report shall include 1) a listing of all donors for which the educational assistance organization has submitted the donor’s documentation to claim the credit; and 2) four percent (4%) of the total qualifying contributions received by the educational assistance organization for that calendar month to be deposited in the Missouri Empowerment Scholarship Accounts fund. Money shall be remitted by Automated Clearing House (ACH) transfer or check made payable to the treasurer and delivered to the division when the report is filed.

(C) Quarterly. Quarterly Report. An educational assistance organization shall submit a quarterly report, which shall include the number of scholarships awarded, the dollar amount of scholarships awarded, the dollar amount of funds raised for tax credits, and any other information deemed necessary by the treasurer.

(D) Statutory Report. On July 1, 2027, the treasurer shall issue a report on the state of the program. The report shall include information regarding the finances of the educational assistance organizations and educational outcomes of qualified students. This report shall be posted on the treasurer’s official website.

(E) Other Reporting. The following information shall be submitted by August 1, regardless of an educational assistance organization’s fiscal year, for the preceding calendar year, unless granted an extension by the treasurer:

The name and address of the educational assistance 2. The name and address of each qualified student for whom a parent opened a scholarship account with the 3. The total number and total dollar amount of contributions received during the previous calendar year;
The total number and total dollar amount of scholarship accounts opened during the previous calendar year;
The total dollar amount spent on marketing and administrative expenses during the previous calendar year;
The total dollar amount remitted to the division for administrative costs during the previous calendar year; and 7. The total dollar amount of revenue from interest or investments during the previous calendar year.

(4) Online Anonymous Fraud Reporting Service. Beginning July 1, 2022, the treasurer shall create an online anonymous fraud reporting service to accept any reports of fraud pertaining to the program. Such anonymous fraud reporting service shall be located on the treasurer’s official website and shall transmit anonymous reports to the treasurer via web interface.

(5) Dedicated Anonymous Telephone Hotline. Beginning July 1, 2022, the treasurer shall have a dedicated anonymous telephone hotline for reporting any fraud related to the program. Such hotline shall be toll-free and shall not permit the tracing of the caller.

(6) Test Results and Graduation Rates. Beginning July 1, 2025, the treasurer shall annually post on the treasurer’s official website the following information:

(A) Student test results and associated learning gains. These findings shall be aggregated by the students’ grade level, gender, family income level, number of years of participation in the scholarship program, and race; and (B) Graduation rates.

(7) Severability. If any provision of this rule, or the application without the invalid provision or application, and to that end,

History

AUTHORITY: section 135.719, RSMo Supp. 2021. Emergency rule Original rule filed Jan. 26, 2022, effective July 30, 2022.

15 CSR 50-5.050 Educational Assistance Organizations {#sec-15-csr-50-5.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 50-5.050}

PURPOSE: This rule establishes procedures and requirements for educational assistance organizations participating in the Missouri Empowerment Scholarship Accounts Program (the program) and is intended to ensure that the program conforms to state statutes and regulations.

(1) Certification. Any non-profit organization registered in this state that is exempt from federal taxation under the Internal Revenue Code may apply with the treasurer to be a certified (A) Annual Application Deadline. The application deadline for a certification for a school year, as that term is defined in

section 160.041.1, RSMo, shall be published annually by the treasurer.

(2) Requirements.

(A) Qualifications of Educational Assistance Organizations.

The following are the qualifications and requirements necessary for an educational assistance organization to be eligible for certification by the treasurer to participate in the program:

An educational assistance organization shall demonstrate it is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended;
No educational assistance organization that has been through a Chapter 7 or Chapter 11 bankruptcy in the seven (7) years immediately preceding application for certification shall be qualified to be certified as an educational assistance 3. Financial viability shall be demonstrated by an educational assistance organization’s most recent year audited financial statements, Form 990, or other financial records as determined by the treasurer;
An educational assistance organization shall not have a president, officers, or director who owns or operates a qualified school that is participating in the program;
An educational assistance organization shall not provide a scholarship account to a child of: a member of its board, including the president, officers, director or, an employee of the educational assistance organization; and 6. An educational assistance organization shall comply with the provisions of section 285.530, RSMo.

(3) Program Participation.

(A) Qualified Student Eligibility. A Missouri resident who is a qualified student designated as a beneficiary in a participation agreement may be a recipient of an Empowerment Scholarship Account grant. A parent that obtains a scholarship account shall provide the valid Social Security number or individual taxpayer identification number and address in the United States of the beneficiary of the applicable scholarship account. Social Security numbers will be utilized for student identification and Department of Elementary and Secondary Education funding purposes. A qualified student shall only be the beneficiary of one (1) scholarship account administered by the program.

Within thirty (30) days of the United States Department of Agriculture publishing in the Federal Register the income eligibility guidelines to be used in determining eligibility for free and reduced price meals under the National School Lunch Program and the School Breakfast Program, the treasurer shall publish the program’s income eligibility guidelines on the treasurer’s official website.
Household income shall be determined using the eligibility criteria for free and reduced price meals under the National School Lunch Program and the School Breakfast (B) Parent Eligibility. A parent may be any individual who 1) is a Missouri resident, 2) submits to an educational assistance organization a completed participation agreement, and 3) otherwise meets the qualifications set forth in Missouri law and promulgated rules governing the program. A parent that applies for a scholarship account shall provide the valid Social Security number or individual taxpayer identification number and address in the United States of the qualified student.

(C) Participation Agreements. To participate in the program, a prospective parent shall submit a completed qualified student application and participation agreement to an educational assistance organization that has approved the qualified school the student will attend by the deadline established by the treasurer. Educational assistance organizations shall accept rolling admissions into the program. Within thirty (30) days of receipt of a completed qualified student application and participation agreement, the educational assistance organization shall notify the parent in writing that the application is approved, granted conditional approval pending funding, or denied, in accordance with the criteria set forth in

section 166.700(8), RSMo, unless granted an extension by the treasurer. The participation agreement shall provide that the parent (and any successor account owner) will retain oversight over payments made under the program and for the benefit of the beneficiary designated by such parent (or the successor account owner). Only one (1) parent and one (1) beneficiary is permitted per scholarship account. Each participation agreement shall provide that the participation agreement may be cancelled upon the terms and conditions set forth therein.

Agreement. The treasurer shall prescribe the form and content of the program participation agreement.
Withdrawal. A parent may cancel a participation agreement and withdraw a qualified student from the program at any time by submitting to the educational assistance organization a written notice to terminate the participation agreement in such form as the treasurer may specify. A parent and a beneficiary of a cancelled participation agreement shall continue to be subject to the terms and conditions of the program during any term of schooling in which tuition was paid for using scholarship grant funds. The qualified student’s scholarship account shall be closed and any remaining funds shall be returned to the educational assistance organization for redistribution to other qualified students.
Copy of Agreement to Parent. Upon request by a parent, the educational assistance organization shall provide the parent with a copy of the participation agreement executed by the parent, mailed within ten (10) business days of receipt of the parent’s request.
FERPA and Age 18. Any eligible student that attains the age of eighteen (18) while still enrolled in qualified school that is subject to the provisions of the Family Educational Rights and Privacy Act (FERPA) shall provide any school records to an educational assistance organization or the treasurer when requested. Failure of the eligible student to provide school records as requested by an educational assistance organization or the treasurer shall result in the immediate suspension of the eligible student’s scholarship account and may result in the eligible student being required to reimburse the educational assistance organization for any program funds expended for the benefit of the eligible student during the term in which the scholarship was suspended. Any such funds that are reimbursed to an educational assistance organization shall be redistributed to other qualified students.

(D) Limitation on Additional Scholarships for Newly Qualified Students. In the event the amount appropriated by the general assembly in any fiscal year for pupil transportation pursuant to section 163.161, RSMo, is less than $111,562,312, no additional scholarships for newly qualified students shall be awarded.

Students who received a scholarship in a previous year shall be eligible to apply for renewal. If the general assembly does not appropriate the required amount, the treasurer shall notify participating educational assistance organizations no later than June 1 that no newly qualified students shall receive a scholarship award for the upcoming fiscal year.

(E) Background Checks.

An educational assistance organization shall conduct a review of criminal history records maintained by the Missouri State Highway Patrol in the Missouri criminal records repository of all operators, directors, executives, board members, and employees and exclude from employment or governance any individual who might reasonably pose a risk to the appropriate use of contributed funds or who is listed on the sex offender registry. Any such criminal background check shall be provided to the treasurer upon request.
An educational assistance organization shall conduct a review of criminal history records maintained by the Federal Bureau of Investigation of any employee who has signatory

(F) Investment Policy. When investing any contributions received from the program, an educational assistance organization shall adhere to the written Missouri Empowerment Scholarship Account investment policy prepared and maintained by the treasurer.

(G) Financial Accountability and Viability.

Surety Bond. An educational assistance organization shall file with the treasurer, within thirty (30) days of notification of certification and allocation, unless granted an extension by the treasurer, a surety bond with the Missouri State Treasurer named as obligee in an amount equal to the aggregate amount of contributions expected to be received during the school year, or pledge collateral in an amount determined by the treasurer to demonstrate the financial viability of the organization.
Annual Audited Financial Statements. An educational assistance organization shall submit to the treasurer annual audited financial statements, which have been audited by a certified public accountant within six (6) months of the end of the educational assistance organization’s fiscal year, unless granted an extension by the treasurer. The auditing certified public accountant shall certify the report is free of material misstatements or misrepresentations.

(H) Testing of Students. Educational assistance organizations shall ensure qualified students take the state achievement tests or nationally norm-referenced tests that measure learning gains in math and English language arts, and provide for value-added assessment, in grades that require testing under the statewide assessment system set forth in section 160.518, RSMo. Costs of this testing requirement may be covered by the scholarships distributed by the educational assistance organization. Beginning with the first year of testing and on an annual basis thereafter, the educational assistance organization shall provide the parents of each student who was tested and the treasurer a copy of the test results.

(I) Reports and Audits. Educational assistance organizations certified by the treasurer to participate in the program shall submit all reports and audits required by state statutes and promulgated rules.

(J) Parental Satisfaction Survey. No later than March 1, an educational assistance organization shall distribute the annual parental satisfaction survey to all parents with whom the organization has a current participation agreement. The treasurer shall prepare and maintain the form of the annual parental satisfaction survey which shall include questions written to obtain the following information:

A parent’s level of satisfaction with the child’s academic achievement, including academic achievement at the school the child attends through the scholarship program versus academic achievement at the school previously attended; and 2. A parent’s level of satisfaction with school safety at the school the child attends through the scholarship program versus safety at the school previously attended.

(K) Excess Funds. Any funds remaining after an educational assistance organization distributes scholarships and takes statutory administrative and marketing fees shall be used for scholarship accounts.

(L) Readiness. Prior to being allocated any tax credits, an educational assistance organization must demonstrate to the treasurer’s satisfaction, by providing the readiness information requested in the application to be certified, that it is able to begin granting scholarships for the upcoming school year.

(4) Scholarships. All grants to scholarship accounts shall be in the form of a deposit by an educational assistance organization into the scholarship account. The maximum amount which may be contributed annually by an educational assistance organization with respect to a beneficiary shall be established by the treasurer, but in no event shall it exceed a total annual grant amount equal to the state adequacy target as defined in section 163.011, RSMo, and calculated annually by the Department of Elementary and Secondary Education.

(5) Changes of Designated Parent. A parent may transfer ownership of an account to another parent eligible to oversee the account under the provisions of the statute and this rule, and upon receipt of a request for change of account ownership that satisfies the criteria set forth in this section, the transferee shall be considered the parent for all purposes related to the program.

(A) General Rule. Any such change of account ownership shall be effective provided the transfer completed by the parent 1) is irrevocable, 2) transfers all oversight, 3) the transferee satisfies the definition of “parent” as that term is defined in section 135.712.2(2), RSMo, and 4) is submitted to the educational assistance organization on a change of account ownership form in such form as the treasurer may specify from time to time.

(B) Designation of Successor Account Authority. Any parent may designate a successor account owner for his or her account, to become the sole authority of the account automatically upon the death or disability of such parent. Prior to the initial action taken by the successor account owner following the death or disability of the parent, the successor account owner shall provide the educational assistance organization a certified copy of a death certificate sufficiently identifying said deceased parent by name and Social Security number or taxpayer identification number, or such other proof of death as is recognized under applicable law, or shall provide sufficient proof of disability. The successor account owner shall provide any other documentation requested to establish he or she satisfies the definition of “parent” as that term is defined in

section 135.712.2(2), RSMo.

(6) Payment of Expenses.

(A) Qualified Expenses. A parent may request a qualified withdrawal from his or her account by submitting a completed request for a qualified withdrawal to the educational assistance organization in such form as the treasurer may specify from time to time.

(B) Limitation on Expenses.

The annual expenses for any one category set forth in

section 166.705.1(4), RSMo, may be limited by the treasurer from time to time. If the treasurer limits the annual expenses for any one category, those limitations shall be communicated to the educational assistance organizations no later than July 1 for the following school year.

Mileage Limitation. Mileage reimbursement shall not exceed the state mileage reimbursement rate authorized by

section 33.095, RSMo.

Computer Devices. Expenses for computer hardware and other technological devices shall be limited to a single computer device per student every three (3) years, unless otherwise pre-approved by the educational assistance organization as a necessary educational resource, including assistive devices and accessible educational hardware and materials. Smartphones are specifically excluded from this category of expenses.
Specialized After-School Education Program. A specialized after-school education program is any after-school program that provides services during non-school hours to support student learning, including tutoring, homework help, and other academic enrichment, such as hands-on math, reading/language arts, and science programs. Specialized after-school education programs do not include child care provided by a child-care facility, as that term is defined in

section 210.201(3), RSMo, or any child care provided by a person or facility that is providing care to six (6) or less children.

Summer Education Programs. A summer education program is any educational program that occurs outside the regular school term during the months of June, July, and August that provides services to support student learning, including tutoring, homework help, credit recovery, and other academic enrichment, such as hands-on math, reading/language arts, and science programs. Summer education programs do not include child care provided by a child-care facility, as that term is defined in section 210.201(3), RSMo, or any child care provided by a person or facility that is providing care to six (6) or less children.

(7) Distribution Limitations. No distributions shall be made within thirty (30) days of receipt by the board of a completed change of parent form or request to change the mailing address of the parent, unless the current parent’s signature has an acknowledgement by a notary on the request.

(8) Costs of Administration. All costs of administration of the program shall be borne by the educational assistance organizations and the treasurer’s office.

(9) Funds for the Administration of the Program.

(A) Educational Assistance Organization Administration Costs.

An educational assistance organization may withhold from contributions an amount to cover the costs of administering the program, up to the maximum amounts authorized for marketing and administrative expenses in section 135.714.1(5)

(c), RSMo. All remaining funds shall be made available to qualified students for scholarship accounts.

(B) Treasurer Administration Costs. An educational assistance organization shall submit a remittance report to the treasurer no later than the 15th of each month following any month in which the educational assistance organization received a contribution from one (1) or more taxpayers. The remittance report shall include 1) a copy of the treasurer approved receipt the educational assistance organization provided to each taxpayer from which it received a contribution to indicate the value of the contribution received from that taxpayer, and 2) four percent (4%) of the total qualifying contributions received by the educational assistance organization for that calendar month, to be deposited in the Missouri Empowerment Scholarship Accounts fund. Money shall be remitted by Automated Clearing House (ACH) transfer or check made payable to the Missouri State Treasurer and delivered to the treasurer’s office when the report is filed.

(10) Scholarship Accounts.

(A) Scholarship Account Distributions. Scholarship account grants may be distributed either four (4) times per year or in a single lump sum at the beginning of the school year as requested by the parent of a qualified student. The annual total of all such distributions to scholarship accounts shall not exceed a total annual grant amount equal to the state adequacy target as calculated by the Department of Elementary and Secondary Education. Distributions shall be in the form of a deposit to the scholarship account of a qualified student.

(B) End of Year Balance. Any funds remaining in a qualified student’s scholarship account at the end of a school year shall remain in the account to be used for qualified expenses and shall not be returned to the educational assistance organization.

(C) Separate Accounting. An educational assistance organization shall provide separate accounting for each individual scholarship account.

(11) Renewal of Scholarship Accounts. Scholarships eligible for renewal shall be renewed on or before July 1.

(12) Completion of Secondary Education. Funds remaining in a scholarship account after an eligible student has completed their secondary education shall only be used for expenses set forth in section 166.705.1(4)(g), RSMo, and shall be spent no later than June 30 immediately following such completion.

Any funds remaining in a scholarship account after the June 30 immediately following a qualified student’s completion of their secondary education shall be returned to the educational assistance organization to be redistributed to other qualified students for scholarship accounts.

(13) State Adequacy Target. The annual total grant amount shall not exceed the grant limits as provided under sections 135.714.1(6)(a)a.–d., RSMo.

(14) Distribution Order. Priority must be given to eligible students as provided under sections 135.714.1(4)(a)-(i), RSMo.

(15) Non-Compliance or Fraud.

(A) Revocation. The treasurer may revoke the certification of any educational assistance organization that is found to be in non-compliance with applicable state laws and regulations. If the treasurer receives information, directly or indirectly, which gives the treasurer reason to believe an educational assistance organization has intentionally and substantially failed to comply with the provisions of sections 135.712 to 135.719, RSMo, and 166.700 to 166.720, RSMo, promulgated rules, or any other provision of law, the treasurer may suspend the certification of such educational assistance organization. In such a case, the treasurer shall notify the educational assistance organization in writing of the grounds for the proposed suspension of certification and provide the organization an opportunity to respond to the allegations in writing or, upon request, through a hearing conducted in accordance with the provisions of

Chapter 536, RSMo. Suspension of an educational organization’s certification by the treasurer shall not be a prerequisite nor a substitute for any other civil or criminal causes of action to which such organization may otherwise be subject, but is in addition to such possible remedies. Any information obtained or compiled by the treasurer in determining whether to suspend a certification may be disclosed to appropriate law enforcement agencies, in any investigation, action, or proceeding, civil or criminal, brought by a governmental agency to enforce the laws of this state or upon court order in any action or proceeding where such information is material to an issue in the action or proceeding. After a twelve (12) month waiting period, any educational assistance organization whose certification has been suspended may thereafter seek to be re-certified in accordance with the applicable laws governing certification.

(B) Notification. Any educational assistance organization suspended, revoked, or otherwise barred from the program by the treasurer shall immediately notify affected parents of qualified students of the decision.

(16) Unspent Balance. Any educational assistance organization that does not apply for recertification following a year in which they were previously certified, or whose certification is suspended, revoked, or otherwise not renewed by the treasurer, shall immediately notify the state treasurer’s office of the amount of the unspent balance. The state treasurer’s office shall direct the educational assistance organization to either distribute the unspent funds to other specified educational assistance organizations in good standing, or to return any unspent balance to the treasurer for redistribution to educational assistance organizations in good standing.

(17) Number of Certified Educational Assistance Organizations.

The treasurer shall limit the number of certified educational assistance organizations to no more than ten (10) in any single school year, with no more than seven (7) having their principal place of business in any one (1) of the following entities: Greene County, Jackson County, St. Charles County, St. Louis County, or St. Louis City. An educational assistance organization will be evaluated based on experience, geographic coverage pertaining to eligible students it can serve, readiness to award scholarship grants, and the organization’s anticipated administrative expenses. All decisions regarding certification are final.

(18) Severability. If any provision of this rule, or the application without the invalid provision or application, and to that end,

History

authority on any educational assistance organization bank account or who has access to the accounting system of the educational assistance organization, and exclude from employment or governance any individual who might reasonably pose a risk to the appropriate use of contributed funds. Any such criminal background check shall be provided to the treasurer upon request.
AUTHORITY: section 135.719, RSMo Supp. 2024. Emergency rule Filed Nov. 14, 2024, effective May 30, 2025.

Division 60 Attorney General

Chapter 3 Charitable Organizations and Solicitations Rules

15 CSR 60-3.010 Definitions {#sec-15-csr-60-3.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.010}

PURPOSE: The attorney general enforces the provisions of sections 407.450–407.478, RSMo. The attorney general may make rules as are necessary to carry out the provisions of sections 407.450–407.478, RSMo and may define terms, whether or not used in those sections, insofar as the definitions are not inconsistent with those sections. This rule defines certain terms used in the administration of sections 407.450–407.478, RSMo and in the rules made thereunder.

(1) Unless inconsistent with meaning provided in Chapter 407, RSMo as used in sections 407.450–407.478, RSMo and in these rules, the following terms and phrases shall mean:

(A) Bona fideemployee of charitable organization, a person who receives regular compensation, holds a permanent employee position with the charitable organization and has not been contracted with or primarily employed for a temporary period for the purpose of soliciting funds;

(B) Does business in this state, includes any mail, phone, personal or any other type of solicitation in Missouri. The phrase, does business in this state, is not limited to the traditional case law definition of the phrase previously defined as operating a principal place or location in the state in which they are doing business;

(C) Governmental agency, includes any agency, department, division, court, commission or any other type of governmental entity in any branch of the city, county, state or federal government;

(D) Individual professional fund-raiser, includes any natural person who, individually, by contract or by oral agreement, agrees to solicit funds on the behalf of any charitable organization or for any charitable purpose.

This does not include a bona fideemployee of a charitable organization or a solicitor;

(E) Professional fund-raiser organization, includes any person, as defined by section 407.010, RSMo, other than natural persons, who agree by written contract or by oral agreement, to solicit funds on behalf of any charitable organization or for any charitable

purpose and who employs or contracts with others for the purpose of soliciting those funds;

(F) Register, a listing of all registration documents submitted to the attorney general’s office as required under sections 407.450–407.478, RSMo including, but not limited to, the name of the registrant, the date registration became effective and current status;

(G) Regular compensation, a salary or wage paid to a person holding a permanent employee position of a charitable organization and not contracted fees paid to a temporary employee; and (H) Solicitation, includes the sale, offer for sale or advertisement of any merchandise for consideration that benefits or is purported to benefit a charitable organization or charitable

purpose.

(I) Solicitor, any person employed or contracted by a professional fund-raiser organization, in a temporary or permanent position, to solicit funds for any charitable organization or for any charitable purpose;

History

AUTHORITY: section 407.145, RSMo 1986. Original rule filed Jan. 9, 1987, effective June 25, 1987. 1993.

15 CSR 60-3.020 Forms {#sec-15-csr-60-3.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.020}

PURPOSE: This rule prescribes the forms adopted and approved for filing with the office of the attorney general.

(1) The attorney general shall provide, upon request, to charitable organizations and professional fundraisers the forms the Attorney General deems necessary to satisfy the requirements of initial registration and annual reporting by charitable organizations and professional fundraisers. Persons with a legal obligation to file the forms listed in 15 CSR 60-3.020(2) shall be responsible for filing the most updated verson of the corresponding form.

(2) The Attorney General has designated the forms as follows:

(A) Form 1-A Initial Registration Statement—Charitable Organization;

(B) Form 1-B Registration Statement— Professional Fund-Raiser Organization;

(D) Form 1-D Employment Statement— Solicitor;

(E) Form 2-A Charitable Organization Annual Report;

(F) Form 2-B Professional Fund-Raiser Organization Renewal Application; and (G) Form 2-C Individual Professional Fund-Raiser Renewal Application. 407.466, RSMo 2000.* Original rule filed Jan. 9, 1987, effective June 25, 1987.

Amended: Filed Feb. 28, 2001, effective Sept. 30, 2001. 1993; 407.462, RSMo 1986; 407.466, RSMo 1986.

15 CSR 60-3.030 Initial Registration Statement—Charitable Organization approved as the initial registration statement for charitable organizations. {#sec-15-csr-60-3.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.030}

Each charitable organization required by sections 407.450 through 407.478, RSMo, to file an initial registration shall file an initial registration statement on the form designated in 15 CSR 60-3.020(2). The most current version of the initial registration form for use by charitable organizations may be obtained by mailing a written request to the Missouri Attorney General, Charitable Organization Registry, PO Box 899, Jefferson City, MO 65102 or in person at the Missouri Attorney Jefferson City, Missouri, or, if technically feasible, by downloading a copy of the form from the Attorney General’s Internet website.

15 CSR 60-3.040 Registration Statement— Professional Fund-Raiser Organization and Employment Statement—Solicitor approved for filing as the registration statement for professional fund-raiser organizations. {#sec-15-csr-60-3.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.040}

Each professional fund-raiser organization and solicitor required by sections 407.450 through 407.478, RSMo, to file a registration statement or employment statement shall file a registration statement or employment statement on the form designated in 15 CSR 60- 3.020(2). The most current version of the registration statement form or employment statement form for use by professional fundraiser organizations or solicitors may be obtained by mailing a written request to the Missouri Attorney General, Charitable Organization Registry, PO Box 899, Jefferson City, MO 65102 or in person at the Missouri Attorney General’s Office, Supreme Court Building, Jefferson City, Missouri, or, if technically feasible, by downloading a copy of either form from the Attorney General’s Internet website.

15 CSR 60-3.050 Registration Statement— Individual Professional Fund-Raiser approved for filing as the registration statement for individual professional fund-raisers. {#sec-15-csr-60-3.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.050}

Each individual professional fund-raiser 407.478, RSMo, to file a registration statement shall file a registration statement on the form designated in 15 CSR 60-3.020(2). The most current version of the registration statement form for use by individual professional fund-raisers may be obtained by mailing a written request to the Missouri Attorney General, Charitable Organization Registry, PO Box 899, Jefferson City, MO 65102 or in person at the Missouri Attorney General’s Office, Supreme Court Building, Jefferson City, Missouri, or, if technically feasible, by downloading a copy of the form from the Attorney General’s Internet website.

15 CSR 60-3.060 Registration Statement Procedures {#sec-15-csr-60-3.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.060}

PURPOSE: This rule prescribes and clarifies the registration procedure for filing with the (1) Response to each registration statement question should be typewritten or neatly printed in ink.

(2) Each question blank of the registration statement must be completed. If a question is not applicable, such should be stated and a reason should be specified. Incomplete registration statements may result in ineffective registration.

(3) Additional pages may be attached to the registration statement if necessary to answer any question. The question number being answered must be referenced at the top of each attached page.

(4) Each registration statement must be signed and notarized before it may be filed with the attorney general’s office. Failure to have the registration form signed and notarized will result in an ineffective registration.

(5) Each registration statement filing must be accompanied by a filing fee, with the exception of Form 1-D, Employment Statement— Solicitor. This filing fee must be paid by money order, cashier’s check, personal check or corporate check payable to the Merchandising Practices Revolving Fund. The fees assessed to charitable organizations, professional fund-raiser organizations and individual professional fund-raisers will be as follows:

(A) Each entity defined as a charitable organization which is not exempted under sections 407.453–407.478, RSMo shall pay a filing fee of fifteen dollars ($15) for the initial registration;

(B) Each entity defined as a professional fund-raiser, whether it is an organization or an individual, shall pay a filing fee of fifty dollars ($50) for the initial registration statement; and (C) It shall be the responsibility of each professional fund-raiser organization to provide solicitor employment statements to each solicitor upon employment. The professional fund-raiser organization shall return this completed statement to the attorney general’s office within fifteen (15) days after the solicitor is hired.

(6) Each registration statement and its accompanying attachments and filing fee shall be mailed to the Missouri Attorney General’s Office, Trade Offense Division, P.O. Box 899, Jefferson City, MO 65102 or may be brought to the Missouri Attorney Jefferson City, Missouri.

(7) Each registration statement shall be effective upon notification by the attorney general’s office that the registration statement, its attachments and the requisite filing fee have been received in proper form.

(8) Within seventy-five (75) days of the close of its fiscal year, each charitable organization registrant shall file with the attorney general’s office an annual report in the form and manner prescribed under 15 CSR 60-3.100.

(9) Beginning one (1) year from the date of filing its initial registration statement, as prescribed under 15 CSR 60-3.130, each professional fund-raiser organization and individual professional fund-raiser shall file with the attorney general’s office a renewal application each year.

(10) Any questions regarding completion of a registration statement, filing fees, these rules or registration procedure should be directed by telephone to (314) 751-2616 or in writing to P.O. Box 899, Jefferson City, MO 65102. 407.466, RSMo 1986.* Original rule filed Jan. 9, 1987, effective June 25, 1987. *Original authority: 407.145, RSMo, amended 1993; 407.462, RSMo 1986; 407.466, RSMo 1986.

15 CSR 60-3.070 Amendments to Initial Registration Statements Filed by Charitable Organizations and Professional Fund- Raisers, Whether Organization or Individuals {#sec-15-csr-60-3.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.070}

PURPOSE: This rule prescribes the method by which charitable organizations and professional fund-raisers, whether organizations or individuals, shall amend the initial registration statement filed with and accepted by the (1) In the event that any information required and supplied in the initial registration statement filed by a charitable organization or professional fund-raiser, whether an organization or individual, as required by section 407.462 or 407.466, RSMo, changes to the extent it causes the registration statement to be incomplete or incorrect, the charitable organization or professional fund-raiser shall file an amendment to its initial registration statement with the attorney general’s office.

(2) All amendments to an initial registration statement shall be made in letter form and shall include:

(A) Name or organization name registered under;

(B) Registration file number;

4CODE OF STATE REGULATIONS

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(C) A list of any amendments to the initial registration statement; and (D) The signature of the person who prepared the amendment statement, which signature shall be notarized.

(3) Each amendment to an initial registration statement filed pursuant to this rule shall be accompanied by the appropriate filing fee as follows:

(A) Each entity defined as a charitable organization which is not exempted under sections 407.453–407.478, RSMo shall pay a fee of fifteen dollars ($15) for each amendment it files; and (B) Each entity defined as a professional fund-raiser, whether it is an organization or an individual, shall pay a fee of twenty-five dollars ($25) for each amendment it files. 407.466, RSMo 1986.* Original rule filed Jan. 9, 1987, effective June 25, 1987. 1993; 407.462, RSMo 1986; 407.466, RSMo 1986.

15 CSR 60-3.080 Exemption from Registration as a Charitable Organization or Professional Fund-Raiser {#sec-15-csr-60-3.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.080}

PURPOSE: This rule is designed to give exempted charitable organizations and professional fund-raisers written positive affirmation that they do not have to register with the Missouri attorney general’s office pursuant to sections 407.453–407.478, RSMo.

Additionally, this rule will allow complete information to be maintained by the attorney general’s office as required by section 407.459, RSMo.

(1) Every person, as defined in section 407.010, RSMo, who believes s/he may be exempted from registration as a charitable organization or professional fund-raiser under sections 407.453–407.478, RSMo may submit to the attorney general’s office a written request for exemption. In the request s/he shall state the reason or basis on which they claim exemption and shall submit any supporting documents. The attorney general’s office will then provide to each eligible requesting party a letter or certificate of exemption.

(2) A written request for exemption may be mailed to the Missouri Attorney General’s Office, Trade Offense Division, P.O. Box 899, Jefferson City, MO 65102 or be delivered by hand to the Missouri Attorney Jefferson City, Missouri.

(3) A record of all letters of request for exemptions and letters granting and denying exemption shall be maintained as part of the register of all documents filed, as required by

section 407.459, RSMo. These records will be open to public inspection in the same manner provided for other documents which are open for public inspection.

(4) Every person, as defined in section 407.010, RSMo, granted a letter or certificate of exemption under this rule shall notify the attorney general’s office of any changes in circumstances which affect, directly or indirectly, information furnished by the person in his/her written request for exemption. The notification shall be no later than the fifteenth day after the day on which the change in circumstances occurred. All the changes in circumstances shall cause the letter or certificate of exemption in effect at the time the changes occur to become null and void as of the fifteenth day after the day on which the changes occurred. No person whose letter or certificate of exemption has become void as provided in this section shall solicit, nor have solicited on his/her behalf by professional fund-raisers, any funds until the person has been granted a new letter or certificate of exemption or has registered in accordance with sections 407.453–407.478, RSMo and the rules promulgated under those sections.

History

AUTHORITY: section 407.145, RSMo 1986. Original rule filed Jan. 9, 1987, effective June 25, 1987. 1993.

15 CSR 60-3.090 Charitable Organization Annual Report Form approved for filing as the annual report for use by charitable organizations. {#sec-15-csr-60-3.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.090}

Each charitable organization required by sections 407.450 through 407.478, RSMo, to file an annual report shall file an annual report on the form designated in 15 CSR 60- 3.020(2). The most current version of the annual report form for use by individual professional fund-raisers may be obtained by mailing a written request to the Missouri Attorney General, Charitable Organization Registry, PO Box 899, Jefferson City, MO 65102 or in person at the Missouri Attorney Jefferson City, Missouri, or, if technically feasible, by downloading a copy of the form from the Attorney General’s Internet website.

15 CSR 60-3.100 Annual Reports For Charitable Organizations {#sec-15-csr-60-3.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.100}

PURPOSE: This rule prescribes the forms and methods by which charitable organizations shall file annual reports following their initial registration.

(1) Within seventy-five (75) days of the close of each fiscal year, each charitable organization shall file an annual report with the attorney general’s office using the form prescribed by 15 CSR 60-3.090. The first such annual report shall be due seventy-five (75) days after the close of the first fiscal year ending after the date on which the charitable organization files its initial registration.

(2) Each annual report shall be accompanied by a fifteen dollar ($15) filing fee, which fee must be paid by money order, cashier’s check, personal check or corporate check.

All fees shall be made payable to the Merchandising Practices Revolving Fund.

(3) Additional pages may be attached to the annual report if necessary to answer any questions. The question number being answered must be referenced at the top of the attached pages.

(4) Each annual report shall be signed and notarized before it may be filed with the attorney general’s office. Failure to have annual report forms signed and notarized will result in an ineffective annual reporting.

(5) Failure to submit an annual report within seventy-five (75) days of the close of an organization’s fiscal year shall cause the registration for that charitable organization to become delinquent. A charitable organization with a delinquent registration shall be considered in violation of section 407.462, RSMo.

(6) Each charitable organization which files its annual report more than seventy-five (75) days after the close of its fiscal year shall pay a late fee of ten dollars ($10) in addition to the annual report filing fee of fifteen dollars ($15).

(7) The registration of each charitable organization which does not file its annual report within six (6) months of the close of its fiscal year shall expire and the charitable organization must file a new initial registration statement. The new initial registration shall be accompanied by a reinstatement filing fee of thirty-five dollars ($35) in addition to the fifteen dollar ($15) filing fee required for initial registration statements. If funds are solicited during the period in which a charitable organization is delinquent or in which its registration has expired, the charitable organization shall be in violation of section 407.462, RSMo.

15 CSR 60-3.110 Professional Fund-Raiser Organizations Renewal Application approved as the renewal application for professional fund-raiser organizations. {#sec-15-csr-60-3.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.110}

Each professional fund-raiser organization 407.478, RSMo, to file a renewal application shall file a renewal application on the form designated in 15 CSR 60-3.020(2). The most current version of the renewal application form for use by professional fund-raiser organizations may be obtained by mailing a written request to the Missouri Attorney General, Charitable Organization Registry, PO Box 899, Jefferson City, MO 65102 or in person at the Missouri Attorney General’s Office, Supreme Court Building, Jefferson City, Missouri, or, if technically feasible, by downloading a copy of the form from the Attorney General’s Internet website.

15 CSR 60-3.120 Individual Professional Fund-Raisers Renewal Application approved as the renewal application for individual professional fund-raisers. {#sec-15-csr-60-3.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.120}

Each individual professional fund-raiser 407.478, RSMo, to file a renewal application shall file a renewal application on the form designated in 15 CSR 60-3.020(2). The most current version of the renewal application form for use by individual professional fundraisers may be obtained by mailing a written request to the Missouri Attorney General, Charitable Organization Registry, PO Box 899, Jefferson City, MO 65102 or in person at the Missouri Attorney General’s Office, Supreme Court Building, Jefferson City, Missouri, or, if technically feasible, by downloading a copy of the form from the Attorney General’s Internet website.

15 CSR 60-3.130 Renewal Application Procedure for Professional Fund-Raisers {#sec-15-csr-60-3.130 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.130}

PURPOSE: This rule prescribes the procedures professional fund-raiser organizations and individual fund-raiser organizations shall use in filing a renewal application with the (1) Registration statements filed by professional fund-raisers shall expire one (1) year from the date of filing. Each professional fund-raiser organization and individual professional fund-raiser shall file, ten (10) days before the expiration date, a renewal application with the attorney general’s office. The renewal application forms to be used are those prescribed in 15 CSR 60-3.110 and 15 CSR 60-3.120.

(2) Each question blank of the renewal application must be completed, either typewritten or neatly printed in black ink. If a question is not applicable, this should be stated and a reason should be stated and a reason should be specified. Incomplete renewal applications may result in the expiration of registration.

(3) Additional pages may be attached to the renewal application if necessary to answer any question. The question number being answered must be referenced at the top of each attached page.

(4) Each renewal application must be signed and notarized before it may be filed with the attorney general’s office. Failure to have renewal application signed and notarized will result in an ineffective application and may result in expiration of registration.

(5) Each renewal application shall be accompanied by a money order, cashier’s check, personal check or corporate check, made payable to the Merchandising Practices Revolving Fund, in the amount of fifty dollars ($50).

(6) The registration of each professional fund-raiser organization and individual fundraiser who does not file a complete renewal application by the renewal date shall be considered delinquent.

(7) Each renewal application filed thirty (30) days after the renewal date shall be assessed a late filing fee of ten dollars ($10).

(8) Any professional fund-raiser organization or individual professional fund-raiser who fails to file a renewal application with the attorney general’s office within forty-five (45) days after the renewal date shall forfeit its registration. Any solicitation of funds for a charitable purpose after forfeiture of registration shall be deemed a violation of section 407.466, RSMo.

(9) To renew a registration after its forfeiture, a professional fund-raiser organization or individual professional fund-raiser shall submit to the attorney general’s office a complete registration statement. The registration statement shall be accompanied by a reinstatement filing fee of twenty-five dollars ($25) in addition to the usual filing fee of fifty dollars ($50). At the top of the first page of the registration statement, disclose the previous registration number and indicate the registration statement is for reinstatement.

(10) All inquiries regarding renewal applications should be directed, by mail, to the Office of the Attorney General, Trade Offense Division, P.O. Box 899, Jefferson City, MO 65102, (314) 751-2616.

6CODE OF STATE REGULATIONS

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15 CSR 60-3.140 Public Inspection of Register, Filing, Records, Investigative Material and the Like {#sec-15-csr-60-3.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-3.140}

PURPOSE: This rule defines that information which shall be open for public inspection.

(1) The register of registrations for charitable organizations and professional fund-raisers filed with the attorney general’s office shall be open for public inspection during normal office hours. Additionally, any person may request and be provided a copy of the register upon payment of the reasonable cost for duplication.

(2) Information reported to the attorney general’s office by registrants in the course of completing their registration statements, at the discretion of the attorney general, may be deemed confidential. Information which may be disclosed by the attorney general’s office includes, but is not limited to:

(A) The name and the address and telephone number of the principal place of business of any charitable organization, professional fund-raiser organization or individual professional fund-raiser;

(B) The percentage of funds directly expended for the cost of fund-raising in any given year for which records are kept;

(C) The total dollar amount of funds solicited, collected, or both, by any charitable organization or by professional fund-raisers on behalf of charitable organizations; and (D) Any relevant criminal convictions on record for any officers, directors or anyone owning more than ten percent (10%) of a charitable organization; any officer, director or anyone who owns more than ten percent (10%) of a professional fund-raiser organization; or any individual professional fund-raiser under Missouri law, the laws of any sister state or comparable federal law. Relevant criminal records shall include, but are not necessarily limited to, stealing, fraud, misrepresentation and all other crimes based on deception or moral turpitude.

(3) Any part of any registration statement, amendment, annual report or renewal application including, but not limited to, criminal records, deemed confidential by the attorney general shall not be open for public inspection unless a court order, subpoena or other legal proceeding served upon the attorney general orders him/her to divulge this information for the court’s inspection.

(4) Any person who wishes to inspect the register or any information open for public inspection should contact the Office of the Attorney General at (314) 751-2616 or write to P.O. Box 899, Jefferson City, MO 65102.

History

AUTHORITY: sections 407.145 and 407.459, 1993; 407.459, RSMo 1986.

15 CSR 60-4.010 Definitions {#sec-15-csr-60-4.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.010}

PURPOSE: The attorney general enforces the provisions of sections 407.600ñ407.630, RSMo. The attorney general may make rules as are necessary to carry out the provisions of sections 407.600ñ407.630, RSMo and may define terms, whether or not used in those sections, insofar as the definitions are not inconsistent with those sections. This rule defines certain terms used in the administration of sections 407.600ñ407.630, RSMo and in these rules made thereunder.

(1) Unless inconsistent with the meanings provided in chapter 407, RSMo, as used in sections 407.600ñ407.630, RSMo and in these rules, the following terms shall mean:

(A) Giveaway or gift award, a promotional program, device or other method of promoting the sale of time-share plans in which all recipients of the promotional program, device or other method of promotion are guaranteed the receipt of the gift(s) offered in the promotional program, device or other method of promotion;

(B) Manufacturerís suggested retail price, the retail value attached to a product by the manufacturer thereof or the retail price charged or advertised for sale by a national or local retail outlet for an identical or substantially similar item. If a manufacturerís suggested retail price cannot be established because the item is not advertised or sold commercially then a verifiable estimate of the itemís value must be provided;

(C) Promotional device, includes, but is not limited to, promotional brochures; pamphlets; advertisements or advertising material; transcripts of radio or television advertisements; sweepstakes; giveaways or gift awards; premiums; discounts; drawings; display booths; postcards; envelopes; and all other such advertising materials and statements disseminated in connection with the solicitation of sales of time-share periods;

(D) Seller, includes the owner or developer of a time-share plan or facility; and the ownerís or developerís agents, employees and representatives including, but not limited to, independent marketing or sales contractors and their employees and representatives who make material representations to prospective purchasers;

(E) Sweepstakes, a method of promoting the sale of time-share plans which involves the offering, giving or awarding of prizes which have odds associated with the actual delivery of the prize or gift and in which, as implied by the odds, not every participant is guaranteed to win a prize;

(F) Ticket, a card or pass entitling the bearer to admission to a music, theatre, dinner, museum, variety or any other type of entertainment or educational show or presentation; and (G) Vacation certificate, or vacation prize, a certificate or agreement which entitles a person to receive free or discounted lodging or a trip or vacation outside the state of Missouri and which may include one (1) or more of the following:

The right to use accommodations or facilities at any hotel, motel, campground, time-share or other similar establishments; and 2. Transportation, meals or other material benefits.

15 CSR 60-4.020 Prize, Gift or Other Inducement, Devices, Disclosures {#sec-15-csr-60-4.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.020}

PURPOSE: This rule further elaborates upon the minimum requirements set forth in sub-

section 1 of section 407.610, RSMo for inclusion in each promotional program.

(1) Each promotional program shall disclose any and all conditions and requirements in connection with the offer of a vacation certificate or vacation prize including, but not limited to, the following:

(A) The odds of being awarded the vacation prize;

(B) The number of persons for whom air fare or other method of transportation will be provided free of charge as part of the vacation prize package;

(D) All details concerning lodging accommodations including, but not limited to, how many persons will receive free lodging and the length of time for which free lodging will be provided;

(E) Whether or not meals will be included in the vacation prize package;

(F) Any requirements that the recipient of the vacation prize or certificate purchase airline tickets, railway tickets, bus tickets or tickets for any other mode of commercial transportation from any particular provider and the cost of the ticket(s);

(G) All details concerning the time period in which the vacation prize is available;

(H) Whether or not a deposit shall be made by the recipient of the vacation prize in order to redeem the vacation certificate or to collect the vacation prize and such conditions of the deposit; and (I) All conditions and terms under which a deposit may and may not be refunded to the recipient of the vacation prize. For example, if the marketing, travel or tour company must make deposits with hotels or airlines in connection with providing this vacation prize and cancellation is made at the fault of the recipient subsequent to the expiration of the cancellation period, the providing company who loses their deposit may retain the recipientís refundable deposit.

(2) Each promotional program shall disclose all conditions and restrictions in connection with the offer of any type of tickets or free or discounted admissions as a gift or prize in exchange for touring the time-share property and facilities in conjunction with a sales presentation. Alternatively, the promotional program may include a general disclosure statement regarding the ticket, gift or prize, an example of which follows: ìAll tickets are subject to any restrictions or conditions as determined by participating merchants, that is, time, availability, etc.î (3) Each promotional program shall contain an accurate and complete description of each prize, award or gift offered to the consumer.

The promotional program shall not misrepresent to the consumer the type, quality, true nature, size, usage, kind or any other condition of the prize by way of description, name, manufacturerís suggested retail, narrative copy or graphic depiction so as to mislead or deceive the consumer.

15 CSR 60-4.030 Promotional Devices Considered to Be Misleading {#sec-15-csr-60-4.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.030}

PURPOSE: This rule prescribes and clarifies specific types of marketing techniques used in promotion programs or devices which are considered to be misleading to consumers and shall be incorporated into subsection 1 of

section 407.610, RSMo as a standard upon

Chapter 4óTime-Sharing Rules15 CSR 60-4 which the approval or disapproval of the promotional program shall be made by the attorney general as required by subsection 1 of

section 407.610, RSMo.

(1) A promotional device shall not employ any terms such as national representative, central representative or midwest representative which lead the recipient to believe s/he has been selected as the only recipient from a particular geographical area or other similar designated class, unless, in fact, this is the case.

(2) A promotional device shall not employ any terms, such as finalist, award winner or similar terms which may lead the consumer to believe that s/he has been selected, randomly or by any other method, from a larger group of persons to compete or participate in final competition or to receive an award or prize unless this is, in fact, the case.

(3) A promotional program shall not represent to a consumer that s/he is being notified for the second or final time in the promotional program of the right to participate and collect his/her prize, gift, award or discount in exchange for participating in a sales presentation and touring a time-share property or facility, if, in fact, it is not the second or final attempt to notify the consumer of the offer.

(4) A promotional device shall not employ the use of any device resembling a negotiable instrument, such as a check, money order or cashierís check, in a way as to mislead the recipient to believe s/he is in receipt of a negotiable instrument.

(5) A promotional device shall not refer to a prize, gift, award or any type of inducement as being previously claimed unless, in fact, all of those prizes, gifts, awards or other type of inducements have been awarded during the same promotional program. No prize, gift, award or other inducement device shall be offered unless, in fact, at least one (1) of such prizes, gifts, awards or other types of inducements is available to be awarded at the beginning of the promotional device.

(6) A promotional device shall not misrepresent the source of a promotional device by leading the recipient to believe that the promotional device is mailed or connected with a governmental or official agency, credit bureau, bank or attorney, unless, in fact, the entity represented as being the source is the source of mailing.

(7) A promotional device shall not represent that there is a limited time in which to accept the terms of the offer in a promotional device or that a gift is only available on the day a recipient visits the time-share property or facility, if, in fact, such is not the case. A promotional device shall not be represented that it is urgent, nor shall it convey a sense of urgency by use of description, narrative copy or phrasing on the envelope, unless, in fact, there is a limited time period in which a recipient must accept the terms of the offer in the promotional device. Such limited time period must be clearly stated in the promotional device.

(8) A promotional device shall not misrepresent the manufacturerís suggested retail price. The attorney general may request documentation from the developer, seller or marketing representative of a time-share property in order to verify the accuracy of the manufacturerís suggested retail price.

(9) A promotional device shall not misrepresent any rule, term, requirement or preconditions necessary to be fulfilled by the recipient in order to claim the prize, gift, award or inducement offered.

15 CSR 60-4.040 Specific Disclosure Requirements for Promotional Devices {#sec-15-csr-60-4.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.040}

PURPOSE: This rule is designed to set forth particular standards to ensure that disclosure of material information required under section 407.610, RSMo is not disclosed in such a way as to mislead or conceal it from the consumer.

(1) All disclosures required under subsection 1 of section 407.610, RSMo, and rules 15 CSR 60-4.020ñ15 CSR 60-4.080, shall be printed in type no smaller in size than ten (10) point.

(2) When disclosing the odds of winning a prize, award or gift, as required under subdivision (4) of subsection 1 of section 407.610, RSMo, the odds shall be disclosed as a statement of ratio of number of prizes available to be won to number of persons being solicited to participate in the promotional program.

Examples areó1 in 100,000; 99,997 in 100,000.

15 CSR 60-4.050 List of Award Winners, Required Filing {#sec-15-csr-60-4.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.050}

PURPOSE: This rule is designed to provide access to the record of information maintained as required under subsection 2 of section 407.610, RSMo to the attorney general for verification that prizes have been awarded in compliance with the laws of the state of Missouri.

(1) A list of prize winners containing the names and addresses of winners for each promotional program shall be provided, upon request, to the attorney general within fifteen (15) days after the final day of the program.

The attorney general may verify receipt of these prizes by contacting the prize recipients.

15 CSR 60-4.060 Costs Associated with Promotional Programs {#sec-15-csr-60-4.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.060}

PURPOSE: This rule is designed to clarify costs which may or may not be borne by the recipient of a gift, prize, award or other type of inducement device of a time-share property or facility.

(1) When a promotional device uses the words sweepstakes, drawing, giveaway, award, prize, gift or any other similar word which implies the recipient has won something, there shall be no other requirement of the recipient other than listening to a sales presentation and taking a tour of the timeshare property being offered for sale. Pursuant to subsection 2 of section 407.610, RSMo, the seller offering the time-share property shall make delivery of the inducement gift, if not at the time of visitation, within ten (10) days following such visitation, or shall deliver instead of such gift, or its acceptable substitute, cash in an amount equal to the retail value of the gift. Cost of such delivery shall be paid by the seller.

(2) A promotional device shall not offer as a substitute for a prize, award, gift or other 4CODE OF STATE REGULATIONS (11/30/02) MATTBLUNT 15 CSR 60-4óELECTED OFFICIALS inducement device, a certificate of redemption for an item unless it is fully disclosed that the recipient has not won an item but will be allowed to pay for that prize, award, gift or other inducement at a discounted price. The discount price to be paid by the recipient shall be printed in close proximity to the largest printed name of the product items offered.

15 CSR 60-4.070 Promotional Device, Copy for Recipientís Record and Information {#sec-15-csr-60-4.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.070}

PURPOSE: This rule is designed to protect consumerís information and allow preservation of prima facie evidence.

(1) Upon acceptance of the terms given in a promotional device, when the recipient presents his/her written promotional device at the time-share property or facility office or at the sales presentation, the recipient shall be given a copy of the original promotional device for his/her records.

Original rule Nov. 14, 1986, effective May 11, 1987.

15 CSR 60-4.080 Five-Day Cancellation Notice Requirements {#sec-15-csr-60-4.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-4.080}

PURPOSE: This rule is designed to ensure that each consumer is properly and sufficiently notified of the right to rescind a purchase contract in connection with the sale of a time-share period. In addition, this rule prescribes a specific period in which the purchaser can expect to receive a refund after the cancellation notice is made.

(1) The seller, his/her sales agent or independent marketing contractor shall not misrepresent a purchaserís rights of cancellation before, during or after consummation of the sales contract for the sale of a time-share period.

(2) The seller shall provide written notice of cancellation as required by section 407.620, RSMo. This written notice must be provided on a separate sheet of paper which must be signed and dated by the purchaser and the seller or the sellerís agent or it must be included in the sales contract. The sellerís address to which notice of cancellation must be made shall be clearly stated on the contract as well as the Notice of Right to Cancel.

(3) Full refund shall be made to the purchaser, including any deposit and any payment made toward the principal balance and interest, within sixty (60) days following receipt of the notice of cancellation by seller.

Chapter 4óTime-Sharing Rules15 CSR 60-4

Chapter 5 Rules for the Issuance of Orders

15 CSR 60-5.010 Definitions {#sec-15-csr-60-5.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-5.010}

PURPOSE: The attorney general enforces the provisions of section 407.095, RSMo. The attorney general may define terms, whether or not used in this section, insofar as the definitions are not inconsistent with that section.

This rule defines certain terms used in the administration of section 407.095, RSMo and in the rules made thereunder. These rules also establish procedures for the issuance of orders to be used under section 407.095, RSMo.

(1) Unless inconsistent with meaning provided in Chapter 407, RSMo as used in section 407.095, RSMo, and in these rules, the following terms and phrases shall mean:

(A) Business days shall mean every day other than Saturday and Sunday and federal or state legal holidays; and (B) Order shall mean an order to cease and desist wherein each person subject to the order is restrained and prohibited from engaging in the unlawful conduct during the effective time of the order.

History

AUTHORITY: section 407.095, RSMo 1986. Original rule filed March 2, 1988, effective July 1, 1988. Original authority: 407.095, RSMo 1986.

15 CSR 60-5.020 Issuance of Orders {#sec-15-csr-60-5.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-5.020}

PURPOSE: This rule prescribes the procedures for the issuance of orders to be issued under section 407.095, RSMo.

(1) Pursuant to the provisions of section 407.095, RSMo, the attorney general may issue orders against any person, as defined by

section 407.010, RSMo, whenever it appears to the attorney general that the person has engaged in, is engaging in or is about to engage in any method, act, use, practice or solicitation declared to be unlawful by Chapter 407, RSMo. Any order issued by the attorney general shall be issued in accordance with the provisions of section 407.095, RSMo and these rules.

(2) Prior to the issuance of the order, the attorney generalís office shall provide notice of its intentions to issue the order to each person against whom the order will be issued at least two (2) business days prior to the issuance of the order.

(A) The notice shall state the statutory section which the person is alleged to have violated, is violating or is about to violate, and the notice shall state the method, act, use, practice or solicitation in violation of Chapter 407, RSMo, that is subject to the proposed order. The notice shall further state the date after which the order may be issued, and inform the person against whom the order will be issued that s/he has a right to file an answer to the notice and request a hearing with the chief counsel of trade offense or his/her designee within two (2) business days after service of the notice.

(B) The notice may be served in accordance with the provisions of section 407.040.4., RSMo or by telephone.

(C) When notice is given by telephone, the notice may be provided directly to the persons that are to be subject to the order or to any person at their principal places of business or residences.

(3) Any answer and request for a hearing filed by any persons pursuant to a notice served by the attorney generalís office of its intention to issue an order may be served upon the chief counsel, trade offense division, by personally delivering a copy to his/her office or by telephone in which one of his/her assistants in the trade offenses division is provided the answer and request for a hearing.

(4) Subsequent to the notice to issue an order to Cease and Desist to the persons to be subject to the order, the following may be done:

(A) If no answer is provided to the attorney generalís office subsequent to the service of the notice, and after due consideration of the available evidence, issue an order and cause it to be served; and (B) If an answer and request for a hearing is provided to the chief counsel, trade offense division, subsequent to the service of the notice, the chief counsel, trade offense division shall schedule a hearing date as soon as practicable to provide the person subject to the notice an opportunity to be heard, subject to the following procedures:

The chief counsel, trade offense, may preside as the hearing officer and issue orders, or s/he may designate an assistant to preside as the hearing officer. At his/her discretion, the attorney general may preside as the hearing officer;
The hearings may be conducted at any of the offices of the attorney general throughout the state of Missouri or at any other location in the state upon agreement of the parties; and 3. A record may be made of the hearing by a tape recording device or a court reporter transcript.

(5) Each order issued shall be in writing and signed and dated by the attorney general, or in his/her absence, by a designee.

(6) Each order issued shall state the names and addresses of all persons subject to the order and shall state with reasonable certainty the nature of the violations found. The order shall further state the statutes that have been violated and set forth the date upon which the order was issued and provide a statement that the order expires ten (10) days after service of the order on the persons subject to the order.

(7) Each order issued shall be effective when served upon the persons subject to the order.

Service of the order shall be effectuated in accordance with the provisions of section 407.040, RSMo.

(8) Each order shall expire by its own force ten (10) days after service upon the persons subject to the order.

(9) The attorney general may issue subsequent orders for continuing violations of

Chapter 407.

MATTBLUNT(11/30/02)

Chapter 5óRules For the Issuance of Orders15 CSR 60-5

History

AUTHORITY: section 407.095, RSMo 1986. Original rule filed March 2, 1988, effective July 1, 1988. Original authority: 407.095, RSMo 1986.

Chapter 6 Operation of Health Spas

15 CSR 60-6.010 Definitions {#sec-15-csr-60-6.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.010}

PURPOSE: The attorney general enforces the provisions of sections 407.325–407.430, RSMo. The attorney general may define terms, whether or not used in those sections, insofar as the definitions are not inconsistent with those sections. This rule defines certain terms used in the administration of sections 407.325—407.340, RSMo and in the corresponding rules.

(1) Unless inconsistent with the meaning provided in Chapter 407, RSMo, as used in sections 407.325–407.340 and in these rules, the following terms and phrases shall mean:

(A) Person—any natural person or his/her legal representative, partnership, domestic or foreign corporation, company, trust, business entity or association, and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee or cestui quetrust thereof.

Jan. 13, 1989. *Original authority 1986

History

AUTHORITY: section 407.145, RSMo 1986. Sept. 9, 1988, expired Dec. 24, 1988.

15 CSR 60-6.020 Forms {#sec-15-csr-60-6.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.020}

PURPOSE: This rule prescribes the forms adopted and approved for filing with the Office of the Attorney General.

(1) The following forms have been adopted and approved for filing with the attorney general’s office, trade offenses division:

(A) Form 1-A: Health Spa Initial Registration Statement; and (B) Form 1-B: Health Spa Annual Renewal Registration.

15 CSR 60-6.030 Initial Registration Statement {#sec-15-csr-60-6.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.030}

PURPOSE: This form is adopted and approved as the initial registration statement for health spas.

(See Form 1-A)

15 CSR 60-6.040 Initial Registration Statement Procedures the initial registration procedure for filing with the attorney general’s office. {#sec-15-csr-60-6.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.040}

(1) Response to each registration statement question should be typewritten or neatly printed in ink.

(3) Additional pages may be attached to the registration statement if necessary to answer any question. The question number being answered must be referenced at the top of each attached page.

(5) Each registration statement filing must be accompanied by a filing fee. A filing fee of one hundred dollars ($100) per registration and each annual renewal after that must be paid by money order, cashier’s check, personal check or corporation check, payable to the Health Spa Regulatory Fund.

(6) Each registration statement and its accompanying attachments and filing fee shall be mailed to the Missouri Attorney General’s Office, Trade Offenses Division, P.

O. Box 899, Jefferson City, MO 65102 or may be brought to the Missouri Attorney General’s Office, Supreme Court Building, Jefferson City, Missouri.

(8) Any questions regarding completion of a registration statement, filing fees, these rules or registration procedure should be written to P. O. Box 899, Jefferson City, MO 65102, (314) 751-2616.

15 CSR 60-6.050 Health Spa Renewal Registration {#sec-15-csr-60-6.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.050}

PURPOSE: This form is adopted and approved as the annual renewal registration for health spas.

(See Form 1-B)

15 CSR 60-6.060 Health Spa Renewal Registration Procedure {#sec-15-csr-60-6.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.060}

PURPOSE: This rule prescribes the procedures health spas shall use in filing an annual renewal registration with the attorney general’s office.

(1) Registration statements filed by health spas shall expire one (1) year from the date of filing. Each health spa, ten (10) days before the expiration date, shall file a renewal application with the attorney general’s office. The renewal application form to be used is prescribed in 15 CSR 60-6.050.

(2) Response to each registration statement question should be typewritten or neatly printed in ink.

(3) Each question blank of the registration statement must be completed. If a question is not applicable, this should be stated and a reason should be specified. Incomplete registration statements may result in ineffective registration.

(4) Additional pages may be attached to the registration statement if necessary to answer any question. The question number being answered must be referenced at the top of each attached page.

(5) Each registration statement must be signed and notarized before it may be filed with the attorney general’s office. Failure to have the registration form signed and notarized will result in an ineffective registration.

(6) Each registration statement filing must be accompanied by a filing fee of one hundred dollars ($100) per registration and each annual renewal thereafter, the fee must be paid by money order, cashier’s check, personal check or corporate check, payable to the Health Spa Regulatory Fund.

(7) The registration of each health spa that does not file a complete renewal application by the renewal date shall be considered delinquent.

(8) Each renewal application filed thirty (30) days after the renewal date shall be assessed a late filing fee of twenty-five dollars ($25) in addition to the regular filing fee.

(9) Any health spa that fails to file a renewal with the attorney general’s office within forty-five (45) days after the renewal date shall forfeit its registration.

(10) To renew after forfeiture, a health spa shall submit to the attorney general’s office a complete initial registration statement. The statement shall be accompanied by a reinstatement fee of fifty dollars ($50) in addition to the usual filing fee. At the top of the statement, the health spa must disclose the previous registration number and indicate the registration statement is for reinstatement.

(11) All inquiries regarding renewal applications shall be directed, by mail, to the Office of the Attorney General, Trade Offenses Division, P.O. Box 899, Jefferson City, MO 65102, (314) 751-2616.

15 CSR 60-6.070 Prepayment Basis Notification the procedure for filing, with the attorney general’s office, financial institution agreements to deposit all funds received from health spas selling contracts or health spa services on a prepayment basis. {#sec-15-csr-60-6.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.070}

(1) In the event that a health spa is required by the provision of section 407.329, RSMo, to maintain an account established in a financial institution authorized to transact business in the state of Missouri, until the health spa has commenced operation, the health spa must provide written notification to the attorney general’s office of the proposed location of the health spa prior to the selling of any health spa contracts or health spa services on a prepayment basis.

(2) The financial institution shall provide to the attorney general’s office written verification that the health spa has opened an account for the purpose of depositing all funds received from the sale of health spa contracts or health spa services on a prepayment basis and the financial institution shall agree to not release the funds until written authorization for withdrawal is received from the attorney general’s office. The verification shall contain the following information:

(A) The name of the health spa;

(B) The proposed location of the health spa;

(D) The name of the financial institution; and (E) The date the account was established.

(3) Written verification from the financial institution must be signed and dated by a corporate officer authorized to sign the verification on behalf of the financial institution. The verification shall be notarized before it is filed with the attorney general’s office. and 407.329, RSMo Supp. 1988.* Emergency

15 CSR 60-6.080 Amendments to Health Spa Initial and Annual Renewal Registration Statements {#sec-15-csr-60-6.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.080}

PURPOSE: This rule prescribes the method by which health spas shall amend the initial and annual renewal registration statements filed with, and accepted by, the attorney general’s office.

(1) In the event that any information required and supplied in the initial or annual renewal registration statements filed by a health spa as required by section 407.327, RSMo, changes in the extent it causes the statement to be incomplete or incorrect, the health spa shall file an amendment to the registration statement with the attorney general’s office. The amendment shall be filed with the attorney general’s office within fifteen (15) days of becoming applicable.

(2) All amendments to an initial registration statement shall be made in letter form and shall include:

(A) Name or organization name last registered;

(B) Registration file number;

(C) A list of any amendments to the initial registration statement and any applicable documents required by sections 407.325— 407.340, RSMo and these rules; and (D) The signature of the person who prepared the amendment statement, which signature shall be notarized.

Jan. 13, 1989. *Original authority 1986.

History

AUTHORITY: section 407.145, RSMo 1986. Sept. 9, 1988, expired Dec. 24, 1988.

15 CSR 60-6.090 Corporate Surety Bond or Letter of Credit Filing Procedures the filing procedure for corporate surety bonds and letters of credit with the attorney general’s office. {#sec-15-csr-60-6.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-6.090}

(1) In the event that a health spa is required by the provisions of sections 407.325— 407.340, RSMo to obtain and maintain a bond with corporate security from a company authorized by the Division of Insurance of Missouri to do surety business within Missouri or to provide a letter of credit from a bank insured by the Federal Deposit Insurance Corporation, the health spa must provide a certified copy of the surety bond or 4CODE OF STATE REGULATIONS letter of credit with each health spa initial registration statement and health spa annual renewal statement as required by sections 407.325–407.340, RSMo.

(2) In the event that a health spa duly registered pursuant to the provisions of section 407.327, RSMo, sells health spa contracts or health spa services on a prepayment basis and posts a bond or letter of credit in the amount of twenty-five thousand dollars ($25,000) in lieu of establishing an account required by

section 407.329, RSMo, the bond shall be obtained and maintained with corporate surety from a company authorized by the Department of Insurance of the state of Missouri and the letter of credit must be provided from a bank insured by the Federal Deposit Insurance Corporation. The health spa must provide a certified copy of the surety bond or letter of credit to the office of the attorney general prior to the sale of any health spa contracts or health spa services on a prepayment basis. The bond or letter of credit, required by section 407.329, RSMo, shall be in favor of the state of Missouri and shall be subject to all of the provisions and procedures of section 407.340, RSMo.

Jan. 13, 1989.

6CODE OF STATE REGULATIONS

8CODE OF STATE REGULATIONS

10CODE OF STATE REGULATIONS

12CODE OF STATE REGULATIONS

History

AUTHORITY: sections 407.145, RSMo 1986, 407.329 and 407.339, RSMo Supp. 1988. Sept. 9, 1988, expired Dec. 24, 1988.

Chapter 7 Rules for Advertising

15 CSR 60-7.010 Definitions (1986). The attorney general may make rules necessary to the administration and enforcement of the provisions of Chapter 407 and may define terms whether or not used in the Act, insofar as the definitions are not inconsistent with the Act. {#sec-15-csr-60-7.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.010}

This rule defines certain terms used in the enforcement of the Act and in rules, forms and orders made thereunder.

(1) Unless inconsistent with definitions provided in Chapter 407, RSMo and in these rules, the following terms and phrases shall mean:

(A) Advertisement (including the terms advertise and advertising) shall mean any oral, written, graphic or pictorial statement made by a seller in any manner in the course of the solicitation of business. Advertisement includes, without limitation, any statement or representation made in a newspaper, magazine or other publication, or on radio or television, including cable, or contained in any notice, handbill, sign, billboard, banner, poster, display, circular, pamphlet or letter, or printed on or contained in any tag or label which is attached to or accompanies any product offered for sale;

(B) Bait offer shall mean an alluring but insincere offer to sell a product which the seller does not intend toói) sell at all; ii) sell at the price which it offered the product; or iii) provide the product in a quantity to meet the reasonably expected public demand, unless the quantity is specifically stated as limited in the advertisement;

(C) Bait and switch scheme shall mean a plan to make alluring but insincere offers which the seller does not intend to sell when the purpose is to switch consumers from buying the advertised product to buying another product;

(D) Clear and conspicuous (including the terms clearly and conspicuously) shall mean that the statement, representation or term being disclosed is a size, color contrast or audibility and is so placed and presented as to beói) readily noticeable and ii) reasonably understandable;

(E) Comparative price shall mean the price of a product to which a seller is comparing its current price in any advertisement;

(F) Date as applied to date on which a price comparison is stated in the advertisement in newspapers, catalogs or other printed publications shall mean either the date of publication or distribution or the date on which the completed advertising copy is submitted to the printer for final printing and publication, provided the submission date does not exceed twelve (12) weeks from the date of actual publication or distribution;

(G) Material shall mean that the representation or fact is likely to significantly influence the consumerís purchasing decision;

(H) Original price shall mean a former price which the seller first offered in connection with the product;

(I) Person shall mean an association, corporation, individual, institution, natural person, organization, partnership, trust or any other legal entity;

(J) Price comparison shall mean the direct comparison in any advertisement (expressed wholly or in part in dollars, cents, fractions or percentages) of a sellerís current price for a product with any other price, whether or not the other price is actually stated in the advertisement;

(K) Product shall mean any personal property or services or other merchandise sold primarily for personal, family or household use and not for resale or for use or consumption in a trade or business. Product does not include any intangible merchandise sold by any bank, savings institution, trust company, mortgage company, insurance company or other financial institution;

(L) Regular price shall mean a sellerís usual and customary price;

(M) Sale shall mean a reduction from the sellerís former or future price of the product offered for a limited period of time, except for clearance or closeout situations in which the seller permanently reduces its price in order to remove the product from its inventory;

(N) Seller shall mean any person who offers, advertises or sells any product for sale, rental or lease in this state. Seller includes any officer, agent, employee, salesperson or representative of a seller; and (O) Trade area shall mean the immediate geographic area within a one hundred (100) mile radius of any outlet of the seller and where the sellerís advertisement is disseminated.

15 CSR 60-7.020 False and Misleading Statements (1) A seller shall not make a representation or statement of fact in an advertisement that is false or has the capacity to mislead prospective purchasers. 570.160, RSMo 1986.* Original rule filed *Original authority: 402.020 RSMo 1967, amended 1973, 1985, 1986; 407.145, RSMo 1986; and 570.160, RSMo {#sec-15-csr-60-7.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.020}

15 CSR 60-7.030 Omission of a Material Fact (1) A seller shall not omit any material fact in an advertisement. {#sec-15-csr-60-7.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.030}

15 CSR 60-7.040 Reasonable Basis for Performance Claims (1) A seller shall not make a claim with respect to a productís performance in an advertisement unless the seller has in its possession information sufficient to form a reasonable belief that the claim, in fact, is true. {#sec-15-csr-60-7.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.040}

A seller may rely on reasonable performance claims supplied by the manufacturer or supplier of the product.

Chapter 7óRules for Advertising15 CSR 60-7 RSMo 1986. Original rule filed June 25,

15 CSR 60-7.050 Use of Sale Terminology (1) A seller shall not use terminology implying a reduction from a price in effect immediately prior to the advertisement (examples: sale, sale prices, now only $____) unlessó (A) The reduction is, in fact, from a bona fide regular price in effect immediately prior to the advertisement; and (B) The reduction is meaningful. There shall be a rebuttable presumption that the reduction is not meaningful if the reduction in price is less than five percent (5%), unless the seller clearly discloses the actual price reduction. {#sec-15-csr-60-7.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.050}

(2) The term sale may be used notwithstanding the fact that not all products appearing in the advertisement are offered at reduced prices, if the advertisement clearly identifies which products are not reduced in price.

15 CSR 60-7.060 Price Comparisons and Savings Claims (1) Price Comparison in General. {#sec-15-csr-60-7.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.060}

(A) Examples: $29.99óSave $10; 20% off all menís shirts.

(B) A seller shall not make any price comparison in which the product being advertised materially differs in composition, grade or quality, style or design, model, name or brand, kind or variety, or service and performance characteristics from the comparative product, unless the seller clearly discloses the material difference in the advertisement with the price comparison.

(2) Price Comparison to Sellerís Former (A) Examples: Regularly $99, Now $69; $99, Now $69óSave $30; Originally $99, Now $69; Last Yearís Price $99, Now $69.

(B) A seller shall not make a price comparison to a former price, unless the comparative price is actual, bona fide and not illusory or fictitious, and isó 1. A price at which reasonably substantial sales of the product were made to the in the immediate, recent period preceding the advertisement. There shall be a rebuttable presumption that the seller has not complied with the terms set forth in paragraph (2)(B)1. unless the seller can show that the percentage of unit sales of the product at the comparative price, or at prices higher than the comparative price, is ten percent (10%) or more of the total unit sales of the product during a period of time, not less than thirty (30) days nor more than twelve (12) months, which includes the advertisement;

A price at which the product was openly and actively offered for sale to the during a reasonably substantial period of the time in the immediate, recent period preceding the advertisement. There shall be a rebuttable presumption that the seller has not complied with the terms set forth in paragraph (2)(B)2. unless the seller can show that the product was offered for sale at the comparative price, or at prices higher than the comparative price, forty percent (40%) or more of the time during a period of time, not less than thirty (30) days nor more than twelve (12) months, which includes the advertisement;
A price at which reasonably substantial sales of the product were made to the in any period preceding the advertisement, and the advertisement clearly discloses, with the price comparison, the date, time or seasonal period of that offer. There shall be a rebuttable presumption that the seller has not complied with the terms set forth in paragraph (2)(B)3. unless the seller can show that the percentage of unit sales of the product at the comparative price, or at prices higher than the comparative price, is ten percent (10%) or more of the total unit sales of the product during the disclosed date, time or seasonal period; or 4. A price at which the product was openly and actively offered for sale to the in any period preceding the advertisement, and the advertisement clearly discloses with the price comparison, the date, time or seasonal period of that offer. There shall be a rebuttable presumption that the seller has not complied with the terms set forth in paragraph (2)(B)4. unless the seller can show that the product was offered for sale at the comparative price, or at prices higher than the comparative price, forty percent (40%) or more of the time during a period of time, not less than thirty (30) days nor more than twelve (12) months, which includes or is included within the disclosed date, time or seasonal period.

(C) A seller shall not make any price comparison to a former price that is not based on the price in effect immediately preceding the reduction unless the seller clearly discloses that intermediate price reductions have been made.

(3) Price Comparison to Sellerís Future (A) Examples: After Sale $99, Now $69;

Save $30, Now $69, Will be $99.

(B) A seller shall not make any price comparison referencing a higher price at which any product will be offered or sold in the future unlessó 1. The advertisement clearly discloses that the price comparison is based upon a future price increase;

The effective date of the future higher price, if more than ninety (90) days after the price comparison is first stated in an advertisement, is clearly disclosed in the advertisement; and 3. The future higher price increase takes effect on the date disclosed in the advertisement or, if not disclosed in the advertisement, within ninety (90) days after the price comparison is stated in the advertisement and the price increase remains in effect for at least fifteen (15) days, except where compliance becomes impossible because of circumstances beyond the sellerís control.

(4) Price Comparison to a Competitorís (A) Examples: Compare at $99, Now $69;

Comparable value $99, Our price $69.

4CODE OF STATE REGULATIONS

(11/30/02) MATTBLUNT 15 CSR 60-7óELECTED OFFICIALS (B) A seller shall not make any price comparison based on a competitorís price unlessó 1. The competitorís price is either a price at which the competitor sold or offered products for sale at any time within the ninety (90)-day period immediately preceding the date on which the price comparison is stated in the advertisement;

The competitorís price is a price that is representative of prices at which the products are sold or offered for sale in the trade area in which the price comparison is made and is not an isolated price; and 3. Disclosure is made with the price comparison that the price used as a basis for the comparison was not the sellerís own price.

(C) Notwithstanding paragraph (4)(B)2., a seller may reference a competitorís price outside the trade area in which the price comparison is made, provided the seller clearly discloses that the prices are offered by competitors in other geographic areas, clearly discloses the other geographic area in which the price comparison is made, and clearly discloses that prices may vary in the trade area in which the price comparison is made.

(5) Range of Savings or Price Comparison Claims.

(A) Examples: Save from 10% to 50% off.

(B) A seller shall not state or imply that any products are being offered at a range of reduced prices or at a range of percentage or fractional discounts, unlessó 1. The highest price or lowest discount is clearly and conspicuously disclosed in the advertisement and, if the lowest price or highest of the range of discounts is disclosed;

An appreciable number of items are offered at the lowest price or highest savings or discount advertised; and 3. The type size of the lowest price or highest of the range of discounts is not so exaggerated as to obscure the fact that there is a range of savings.

(6) Price Comparison to List Price or Similar Comparisons.

(A) A seller shall not make any price comparison to a manufacturerís list price, a manufacturerís suggested retail price or other similar comparisons unlessó 1. The list price or suggested retail price is the price at which the product is offered by a substantial number of sellers in the sellerís trade area;

The list price or suggested retail price is a sellerís bona fide former price and in compliance with the provisions of 15 CSR 60-7.060(2); or 3. The seller uses its best efforts and is unable to ascertain that the list price or suggested retail price is the price at which the product is offered by a substantial number of sellers in the sellerís trade area. In this circumstance, a seller may reference a list price or suggested retail price in relation to its current price as long as no savings are claimed and the seller clearly discloses that the list price or suggested retail price may not necessarily be the price at which the product is sold in the trade area.

(B) A list or suggested retail price permanently imprinted on or affixed to a product or its container by the manufacturer, and not under the control of or instigated by the seller, need not be covered or obliterated when the sellerís current offering price is attached to, printed on or placed on a label, tag or sign accompanying the product, providing that no sale is claimed and no other price comparison is made from it.

(7) Use of TermsóFree, Two for Price of One, Buy One, Get One Free.

(A) A seller shall not state or imply that products are being offered for free or words of similar import (Buy one pair of shoes, second pair free) unlessó 1. The seller clearly and conspicuously discloses all material conditions which are imposed on the sale; and 2. The price indicated by the seller as its price for the products that must be purchased as a condition to receiving the free or bonus item is the sellerís own former or future price for those products as determined in accordance with 15 CSR 60-7.060(2) or (3).

(8) Savings Claims Without Disclosing the

Basis of the Comparative Price.

(A) Examples: 20% off; Clearance $59, Save $30.

(B) A seller shall not advertise a product as reduced in price without specifically disclosing the basis of the comparison unless the price comparison is a comparison to a sellerís former price in compliance with 15 CSR 60- 7.060(2).

15 CSR 60-7.070 Records of Fact for Price Comparison or Savings Claims (1) A seller shall not use any price comparison or savings claims in its advertisement of products in this state unless it maintains adequate records which disclose the factual basis for the price comparison or savings claims and from which the validity of any claim can be established. These records shall be maintained for at least twelve (12) months from the date of the advertisement. {#sec-15-csr-60-7.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.070}

15 CSR 60-7.080 Bait Offers and Availability of Advertised Merchandise (1) A seller shall notó (A) Make bait offers; or (B) Advertise any product unless the seller has that product in stock or available for sale in sufficient quantities to meet reasonably anticipated customer demand during the effective period of the advertisement, unlessó 1. The seller clearly discloses in its advertisement that quantities are limited or the restrictions apply to the advertised offer; {#sec-15-csr-60-7.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.080}

The seller ordered the advertised product in a timely manner and in sufficient quantities to meet reasonably expected demand, but conditions beyond a sellerís control prevented it from having the product in stock during the selling period and the seller was unable to cancel or amend the advertisement; or 3. In connection with an advertisement, sale or offering for sale by retail food stores of food or grocery products, the seller offersó A. A raincheck entitling prospective purchasers to purchase the advertised product at the advertised price and the seller actually has the product available within a reasonable time; or B. At the advertised price or at a comparable price reduction a similar product that

Chapter 7óRules for Advertising15 CSR 60-7 is at least comparable in value to the advertised product. 570.170, RSMo 1986.* Original rule filed 1985, 1986; 407.145, RSMo 1986; and 570.170, RSMo

15 CSR 60-7.090 Bait and Switch Scheme (1) A seller shall notó (A) Employ any bait and switch scheme; {#sec-15-csr-60-7.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.090}

(B) Publish any advertisement unless it is a bona fide offer to sell the advertised product; or (C) Use any advertising that creates a false impression about the product being offered in order to lay the foundation for a later switch to another product.

(2) The following factors, without limitation because of enumeration, may be considered in determining the existence of a bait and switch scheme:

(A) Refusing to show or demonstrate the advertised product;

(B) Disparaging the advertised product, its warranty, availability, services and parts, credit terms, etc.;

(D) Demonstrating or showing a defective sample of the advertised product;

(E) Having a sales compensation plan designed to penalize salespersons who sell the advertised product; or (F) Having a display plan designed to draw attention away from the advertised product to another product. 570.170, RSMo 1986.* Original rule filed 1985, 1986; 407.145, RSMo 1986; and 570.170, RSMo

15 CSR 60-7.100 Retail Price Labeling (1) A price label permanently imprinted on or affixed to a product or its container by the manufacturer or supplier, and not under the control of or instigated by the seller, or which is required to be attached to that product under federal law, need not be covered or obliterated when the sellerís current offering price is attached to, printed on or placed on a label, tag or sign accompanying the product, provided that no other price comparison based on that label is made by the seller. {#sec-15-csr-60-7.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.100}

15 CSR 60-7.110 Lowest Price Guarantee (1) A seller shall not make any reference to a policy of matching or bettering competitorsí prices in any television or print advertisement unless the seller clearly and prominently discloses in the advertisement all material conditions and limitations that apply and that full details are posted at the sellerís place of business. {#sec-15-csr-60-7.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-7.110}

(2) A seller shall not make any reference to a policy of matching or bettering competitorsí prices in any radio advertisement if material limitations exist unless the advertisement includes the statement: Some substantial conditions and limitations apply. See full detail in store, or words to that effect.

(3) Any policy of matching or bettering competitorsí prices shall not place an unrealistic or unreasonable burden on the consumer.

6CODE OF STATE REGULATIONS

(11/30/02) MATTBLUNT 15 CSR 60-7óELECTED OFFICIALS

Chapter 8 Unfair Practices

15 CSR 60-8.010 Definitions specify the meaning of terms whether or not used in the Act. {#sec-15-csr-60-8.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.010}

This rule specifies the settled meanings of certain terms used in the enforcement of the Act and provides notice to the public of their application.

(1) Unless inconsistent with the definitions provided in Chapter 407, RSMo, the following terms and phrases shall mean:

(A) Actual cost shall mean money expended or credit incurred and no allowance shall be made for the replacement cost of merchandise that the seller is reasonably assured of recouping the replacement cost as part of the price of subsequent sales of the merchandise;

(B) Consumer shall include any person (as defined in section 407.010.5., RSMo) who purchases, may purchase or is solicited for purchase of merchandise;

(C) Disaster area shall mean an area declared to be a disaster area by either state or federal authorities. A disaster area, for purposes of 15 CSR 60-8.030, will expire upon the termination date stated in the order or declaration issued by state or federal authorities, or if no termination date is stated, shall expire thirty (30) days from the date of issuance of the order or declaration. Such order or declaration may be renewed by state or federal authorities. Each renewal will expire upon the termination date stated in the renewal, or if no termination date is stated, shall expire thirty (30) days from the date of issuance of the renewal;

(D) Excessive price shall mean a seller’s price that is not justified by the seller’s actual cost of acquiring, producing, selling, transporting, and delivering the actual product sold plus the seller’s usual and customary profit margin prior to the onset of the natural disaster. An excessive price, for purposes of determining a violation of 15 CSR 60-8.030, shall not include any price agreed to by a buyer and seller prior to the declaration of an applicable disaster;

(E) Good faith shall mean honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade;

(F) Natural disaster shall mean property damage caused by heavy rainfall, storm, tornado, flooding, or earthquake; and (G) Necessity shall include all materials and services related to, but not limited to, food, water, medical treatment, sanitation, construction, repair, and transportation.

History

AUTHORITY: section 407.020, RSMo Supp. 2010 and section 407.145, RSMo 2000. Original rule filed March 18, 1994, effective Sept. 30, 1994. Amended: Filed Dec. 2, 2010, effective July 30, 2011. 1985, 1986, 1992, 1994, 1995, 2000, 2008 and 407.145, RSMo 1986, amended 1993.

15 CSR 60-8.011 Definitions Emergency rule filed July 29, 1993, effective Aug. 8, 1993, expired Dec. 5, 1993. {#sec-15-csr-60-8.011 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.011}

15 CSR 60-8.020 Unfair Practice in General specify the meaning of terms whether or not used in the Act. {#sec-15-csr-60-8.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.020}

This rule specifies the settled meanings of certain terms used in the enforcement of the Act and provides notice to the public of their application.

(1) An unfair practice is any practice which— (A) Either— 1. Offends any public policy as it has been established by the Constitution, statutes or common law of this state, or by the Federal Trade Commission, or its interpretive decisions; or 2. Is unethical, oppressive or unscrupulous; and (B) Presents a risk of, or causes, substantial injury to consumers.

(2) Proof of deception, fraud, or misrepresentation is not required to prove unfair practices as used in section 407.020.1., RSMo.

(See Federal Trade Commission v. Sperry and Hutchinson Co., 405 U.S. 233, 92 S.Ct. 898, 31 L.Ed.2d 170 (1972); Marshall v.

Miller, 302 N.C. 539, 276 S.E.2d 397 (N.C. 1981); see also, Restatement, Second, Contracts, sections 364 and 365).

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.021 Price Gouging Emergency rule filed July 29, 1993, effective Aug. 8, 1993, expired Dec. 5, 1993. {#sec-15-csr-60-8.021 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.021}

15 CSR 60-8.030 Price Gouging (1) It is an unfair practice for any person in merchandise to— (A) Take advantage of a person's physical or mental impairment or hardship caused by extreme temporary conditions, and charge a price substantially above the previous market price of the merchandise in seller's trade area; {#sec-15-csr-60-8.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.030}

(B) Charge within a disaster area an excessive price for any necessity; or (C) Charge any person an excessive price for any necessity which the seller has reason to know is likely to be provided to consumers within a disaster area.

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.040 Duty of Good Faith (1) It is an unfair practice for any person in merchandise to violate the duty of good faith in solicitation, negotiation and performance, or in any manner fail to act in good faith (see {#sec-15-csr-60-8.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.040}

section 400.2-103(1)(b), Restatement, Second, Contracts section 205).

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.050 Duress and Undue Influence (1) It is an unfair practice for any person in merchandise to use or employ any duress, or undue influence (see section 400.2-103(1)(b), Restatement, Second, Contracts sections 205, 364). {#sec-15-csr-60-8.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.050}

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.060 Unsolicited Merchandise and Negative Option Plans (1) It is an unfair practice for any seller in merchandise to bill, charge or attempt to collect payment from consumers, for any merchandise which the consumer has not ordered or solicited. {#sec-15-csr-60-8.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.060}

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.070 Unilateral Breach of Contract (1) It is an unfair practice for any person in connection with the sale of merchandise to unilaterally breach unambiguous provisions of consumer contracts (see Orkin Exterminating Company, Inc. v. Federal Trade Commission, 849 F.2d 1354 (11th Cir. 1988)). {#sec-15-csr-60-8.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.070}

and 407.145, RSMo (Cum. Supp. 1993).* Original rule filed March 18, 1994, effective Sept. 30, 1994.

History

AUTHORITY: sections 407.020 (Cum. Supp.

15 CSR 60-8.080 Unconscionable Practices (1) It is an unfair practice for any person in connection with the sale of merchandise to engage in any unconscionable act or practice, or to use any unconscionable contract or contract term. {#sec-15-csr-60-8.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.080}

(2) It is unconscionable to take advantage of an unequal bargaining position and obtain a contract or term which results in a gross disparity of values exchanged (see section 400.2-302, RSMo; Restatement, Second, Contracts section 208).

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.090 Illegal Conduct 4CODE OF STATE REGULATIONS (6/30/11) ROBINCARNAHAN JASONKANDER(5/31/16) {#sec-15-csr-60-8.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.090}

(1) It is an unfair practice for any person in merchandise to engage in any method, use or practice which— (A) Violates state or federal law intended to protect the public; and (B) Presents a risk of, or causes substantial injury to consumers.

Supp. 1992) and 407.145, RSMo (Cum.

Supp. 1993).* Original rule filed March 18,

15 CSR 60-8.100 Threatening to File or Filing Suit on Certain Consumer Debt (1) It is an unfair practice for any person to threaten to file a civil action, or to file a civil action, for a debt that is primarily for personal, family, or household purposes, if such debt has been— (A) In default for a period of time such that the statute of limitation to file a civil action for collection of the debt has expired; {#sec-15-csr-60-8.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.100}

(B) Discharged by a bankruptcy court;

(C) Declared void or unenforceable by a court of competent jurisdiction; or (D) Deemed fully satisfied pursuant to an agreement with the consumer and the creditor or its assigns.

History

AUTHORITY: section 407.020, RSMo Supp. 2014, and section 407.145, RSMo 2000. Original rule filed Nov. 30, 2015, effective June 30, 2016. 1985, 1986, 1992, 1994, 1995, 2000, 2008, 2014 and 407.145, RSMo 1986, amended 1993.

15 CSR 60-8.110 Reaffirmation of Consumer Debt Without Valuable Consideration (1) It is unfair practice to seek or obtain without valuable consideration a reaffirmation of an obligation arising out of any debt that is primarily for personal, family, or household purposes, and— (A) For which the statute of limitation to file a civil action for collection of the debt has expired; {#sec-15-csr-60-8.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-8.110}

(B) That has been discharged in bankruptcy;

(C) That has been declared void or unenforceable by a court of competent jurisdiction; or (D) That has been deemed fully satisfied pursuant to an agreement with the consumer and the creditor or its assigns.

History

AUTHORITY: sections 407.020, RSMo Supp. 2014, and section 407.145, RSMo 2000. Original rule filed Nov. 30, 2015, effective June 30, 2016. 1985, 1986, 1992, 1994, 1995, 2000, 2008, 2014 and 407.145, RSMo 1986, amended 1993.

Chapter 9 Fraudulent and Omissive Acts and Practices

15 CSR 60-9.010 Definitions specify the meaning of terms whether or not used in the Act. {#sec-15-csr-60-9.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.010}

This rule specifies the settled meanings of certain terms used in the enforcement of the Act and provides notice to the public of their application.

(1) Unless inconsistent with the definitions provided in Chapter 407, RSMo, the following terms and phrases shall mean:

(A) Assertion may be words, conduct or pictorial depiction, and may convey past or present fact, law, value, opinion, intention or other state of mind;

(B) Consumer shall include any person (as defined in section 407.010.5., RSMo) who purchases, may purchase or is solicited for purchase of merchandise; and (C) Material fact is any fact which a reasonable consumer would likely consider to be important in making a purchasing decision, or which would be likely to induce a person to manifest his/her assent, or which the seller knows would be likely to induce a particular consumer to manifest his/her assent, or which would be likely to induce a reasonable consumer to act, respond or change his/her behavior in any substantial manner.

15 CSR 60-9.020 Deception in General specify the meaning of terms whether or not used in the Act. {#sec-15-csr-60-9.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.020}

This rule specifies the settled meanings of certain terms used in the enforcement of the Act and provides notice to the public of their application.

(1) Deception is any method, act, use, practice, advertisement or solicitation that has the tendency or capacity to mislead, deceive or cheat, or that tends to create a false impression.

(2) Reliance, actual deception, knowledge of deception, intent to mislead or deceive, or any other culpable mental state such as recklessness or negligence, are not elements of deception as used in section 407.020.1., RSMo (see State ex rel. Danforth v. Independence Dodge, Inc., 494 SW2d 362 (Mo.

App., W.D. 1973); State ex rel. Ashcroft v.

Marketing Unlimited, 613 SW2d 440 (Mo.

App., E.D. 1981); State ex rel. Webster v.

Areaco Investment Co., 756 SW2d 633 (Mo.

App., E.D. 1988)). Deception may occur in securing the first contact with a consumer and is not cured even though the true facts or nature of the advertisement or offer for sale are subsequently disclosed. Exposition Press, Inc. v. F.T.C., 295 F.2d 869 (2d Cir. 1961).

15 CSR 60-9.030 Deceptive Format application. Practices specified are not intended to be an all inclusive list of practices which are deceptive, but this rule enumerates specific practices which are deceptive and are violative of section 407.020, RSMo. {#sec-15-csr-60-9.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.030}

(1) It is deception for any person in an advertisement or sales presentation to use any format which because of its overall appearance has the tendency or capacity to mislead consumers.

15 CSR 60-9.040 Fraud in General (1) Fraud includes any acts, omissions or artifices which involve falsehood, deception, trickery, breach of legal or equitable duty, trust, or confidence, and are injurious to another or by which an undue or unconscientious advantage over another is obtained. {#sec-15-csr-60-9.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.040}

(2) Fraud, as used in section 407.020.1., RSMo is not limited to common law fraud or deceit and is not limited to finite rules, but extends to the infinite variations of human invention (see Howard v. Scott, 225 Mo 685, 125 SW 1158 (1910); Skidmore v. Back, 512 SW2d 223 (Mo.App. S.D. 1974); United States v. Bishop, 825 F.2d 1278 (8th Cir. 1987); State v. Shaw, 847 S.W.2d 768 (Mo. banc 1993)).

15 CSR 60-9.050 False Pretense in General {#sec-15-csr-60-9.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.050}

Chapter 9óFraudulent and Omissive Acts and Practices15 CSR 60-9 (1) False pretense is any use of trick or deception, forgery, or false and fraudulent representation, statement, pretense, instrument or device with the intent to defraud (see State v. Fields, 366 SW2d 462 (Mo. 1963)).

(2) Reliance and injury are not elements of false pretense as used in section 407.020.1.,

15 CSR 60-9.060 False Promise in General (1) False promise is any statement or representation which is false or misleading as to the makerís intention or ability to perform a promise, or likelihood the promise will be performed. {#sec-15-csr-60-9.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.060}

(2) Reliance and injury are not elements of false promise as used in section 407.020.1.,

15 CSR 60-9.070 Misrepresentation in General (1) A misrepresentation is an assertion that is not in accord with the facts (see Restatement, Second, Contracts, section 159; Packard v. K C One, Inc., 727 SW2d 435 (Mo.App., W.D. 1987)). {#sec-15-csr-60-9.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.070}

(2) Reliance, knowledge that the assertion is false or misleading, intent to defraud, intent that the consumer rely upon the assertion, or any other capable mental state such as recklessness or negligence, are not elements of misrepresentation as used in section 407.020.1, RSMo. (see State ex rel. Danforth v. Independence Dodge, Inc., 494 SW2d 362 (Mo.App., W.D. 1973); State ex rel. Ashcroft v. Marketing Unlimited, 613 SW2d 440 (Mo.App., E.D. 1981); State ex rel. Webster v. Areaco Investment Co., 736 SW2d 638 (Mo.App., E.D. 1988)). inal rule filed March 18, 1993, effective Sept.

15 CSR 60-9.080 Material Untruths inclusive list of misrepresentation but this {#sec-15-csr-60-9.080 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.080}

rule enumerates specific acts and practices which are misrepresentations and are violative of section 407.020, RSMo.

(1) It is a misrepresentation for any person in merchandise to make an untrue statement of material fact.

15 CSR 60-9.090 Half-Truths inclusive list of misrepresentation, but this {#sec-15-csr-60-9.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.090}

rule enumerates specific practices which are misrepresentations and are violative of section 407.020, RSMo.

(1) It is a misrepresentation for any person in merchandise to omit to state a material fact necessary in order to make statements made, in light of the circumstances under which they are made, not misleading. inal rule filed March 18, 1993, effective Sept.

15 CSR 60-9.100 Fraudulent Misrepresentations 4CODE OF STATE REGULATIONS (11/30/02) MATTBLUNT 15 CSR 60-9óELECTED OFFICIALS inclusive list of misrepresentation, but this {#sec-15-csr-60-9.100 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.100}

rule enumerates the specific acts and practices which are misrepresentations and are violative of section 407.020, RSMo.

(1) It is a misrepresentation for any person in merchandise to make any fraudulent assertion.

(2) An assertion is fraudulent if the person intends his/her assertions to induce a consumer to purchase merchandise, and the personó (A) Knows or believes that the assertion is not in accord with the facts; or (B) Knows that he does not have a reasonable basis for his/her assertion (see Restatement, Second, Contracts, section 162).

15 CSR 60-9.110 Concealment, Suppression or Omission of Any Material Fact in General (1) Concealment of a material fact is any method, act, use or practice which operates to hide or keep material facts from consumers. {#sec-15-csr-60-9.110 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-9.110}

(2) Suppression of a material fact is any method, act, use or practice which is likely to curtail or reduce the ability of consumers to take notice of material facts which are stated.

(3) Omission of a material fact is any failure by a person to disclose material facts known to him/her, or upon reasonable inquiry would be known to him/her.

(4) Reliance and intent that others rely upon such concealment, suppression or omission are not elements of concealment, suppression or omission as used in section 407.020.1.,

Chapter 9óFraudulent and Omissive Acts and Practices15 CSR 60-9

Chapter 10 Reporting of Motor Vehicle Stops by Law Enforcement Agencies

15 CSR 60-10.010 Definitions {#sec-15-csr-60-10.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-10.010}

PURPOSE: This rule advises the public of the definitions adopted for certain terms which are used in section 590.650, RSMo, and the rules promulgated thereunder.

(1) The term “law enforcement agency,” as used in section 590.650, RSMo, shall mean the state highway patrol, any state, county, or municipal department or office that employs peace officers who stop drivers of motor vehicles for violations of any motor vehicle statute or ordinance.

(2) The term “peace officer,” as used in section 590.650, RSMo, shall mean any member of the state highway patrol, any state, county, or municipal law enforcement officer possessing the duty and power of arrest for violation of any criminal laws of the state or for violation of ordinances of counties or municipalities of the state who serve full-time, with pay.

(3) The term “search,” as used in section 590.650, RSMo, shall mean any action of a peace officer, arising out of a motor vehicle traffic stop, that infringes upon an individual’s reasonable expectation of privacy.

(4) The term “Terry stop” shall mean a stop of an individual where specific and articulable facts, together with all rational inferences, suggest that the driver is involved in criminal activity. A Terry stop is an investigatory stop that is not an arrest and can be justified by less than the probable cause necessary for an arrest.

(5) The terms “Terry frisk” or “Terry search” shall mean a limited pat-down or frisk of the driver or his or her automobile for weapons which occurs when there are specific and articulable facts which, taken together with rational inferences from those facts, would lead a peace officer reasonably to believe the driver is armed and presently dangerous to the officer or others.

History

AUTHORITY: section 590.650, RSMo 2000. Aug. 31, 2000, expired Feb. 23, 2001. Origi- 30, 2001. Original authority: 590.650, RSMo 2000.

15 CSR 60-10.020 Report to Attorney General by Law Enforcement Agencies {#sec-15-csr-60-10.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-10.020}

PURPOSE: Section 590.650, RSMo, requires law enforcement agencies to compile and report certain information to the Attorney General. This rule provides instructions regarding the information to be reported pursuant to section 590.650, RSMo.

(1) On or before March 1 of each year, law enforcement agencies shall compile the information collected pursuant to section 590.650.2, RSMo and enumerated in this

rule into a report to the Attorney General.

The information contained in the report shall cover January 1 to December 31 of the preceding calendar year.

(2) Each law enforcement agency shall compile the following information in the manner described in section (3) of this rule for submission to the Attorney General. The information shall pertain to the total number of times peace officers employed by the law enforcement agency stopped drivers of motor vehicles for violations of any motor vehicle statutes or ordinances, and shall include:

(A) The type of assignment the peace officer was on at the time of the stop.

For the total number of stops made during the reporting period, indicate the type of assignment using one (1) of the following categories: General Patrol; Dedicated Traffic Enforcement; or Special Assignment;

(B) The age, gender, and race or minority group of each individual stopped.

For the total number of stops made during the reporting period, indicate the races or minority groups of the drivers using one (1) of the following categories: White;

Black/African-American; Hispanic/Latino;

American Indian/Alaska Native; Asian; or Other. For the purposes of reporting this information, the races or minority groups of the drivers shall be based upon the peace officers’ visual observations after a stop has been made.

For the total number of stops made number of male drivers stopped and female drivers stopped.
For the total number of stops made during the reporting period, indicate the age groups of the drivers stopped;

For the total number of stops made number of stops resulting from moving violations, equipment violations, license/registration violations, or investigative desire. A stop may include more than one (1) reason or alleged violation.
For investigative stops, indicate the nature of the stop: call for service; officer initiative; detective or crime bulletin; or other;

(D) The total number of searches conducted as a result of the stops.

For the total number of stops made number of searches made, including the number of property searches, the number of drivers searches, and the number of searches of both drivers and their property;

(E) The total number of searches conducted, including the number of consent searches, the probable cause for the searches and the durations of all searches.

For the total number of searches whether the probable cause or authority for the searches included the following: consent; odor of illegal drugs or alcohol; plain view contraband; drug dog alert; inventory search; incident to arrest; reasonable suspicion (weapon); or other. For any search, one (1) or more of these categories may apply.
For the total number of searches the lengths of the searches. The duration of search means the time needed to conduct any and all searches;

(F) The number of searches during which contraband was discovered, and the types of any contraband discovered during the searches.

For the total number of searches the number of times contraband was discovered and, when contraband was discovered, indicate the types of contraband discovered using the following categories: illegal drugs or paraphernalia; alcohol; currency; stolen property; weapons; or other;

(G) The total number of warnings, citations, custodial arrests, stops with no action taken; and other results for stops in the reporting period.

For the total number of stops made number of stops resulting in the following: warnings; and citations;

(H) The total number of warnings and citations issued.

For the total number of citations and warnings given during the reporting period, indicate the type of citations or warnings given using the following categories: moving; equipment; license/registration; or other. A stop may include more than one (1) type of citation or warning;

(I) The total number of arrests made and the crimes alleged.

For the total number of arrests resulting from either the stops or any searches conducted as a result of the stops during the reporting period, indicate the types of crimes alleged using the following categories: outstanding warrant; drug violations; resisting arrest; offense against person; property offense; driving while intoxicated/blood alcohol content; or other. An arrest may include more than one (1) alleged crime;

(J) The locations of the stops.

For the total number of stops made number of stops made at the following locations: interstate highway; U.S. highway; state highway; county road; city street; or other.

For purposes of reporting this information, “location” means the location where the officer observed the alleged violation and signaled the driver to stop, not the location where the driver physically stopped the vehicle;

(K) Total number of vehicle stops made by that agency.

This number represents the total number of vehicles stopped by officers in the particular law enforcement agency for alleged motor vehicle violations, whether moving violations, equipment violations, or license/registration violations. This total does not include motor vehicle stops made for reasons other than alleged motor vehicle violations;

(L) The five- (5-) digit zip code of the driver’s current residence. If the zip code of the driver’s current residence cannot be reliably recorded, the field may be left blank. Officers should provide the zip code of the driver’s current residence unless they have a specific reason to doubt the accuracy of a zip code provided by the driver; and (M) Whether or not the driver resides in the jurisdiction of the law enforcement agency conducting the stop. If the jurisdictional residency status of the driver cannot be determined, the law enforcement agency may leave the field blank on the form. The number of instances in which the jurisdictional residency status of the driver could not be determined must be reported to the Attorney General.

For the total number of stops made during the reporting period, indicate whether the driver stopped is a resident of the law enforcement agency’s jurisdiction.

(3) The information described in section (2) of this rule shall be compiled and broken down according to the races or minority groups of the drivers stopped.

(4) The law enforcement agency head, director, or administrator shall sign each agency report and shall indicate the agency name, agency Originating Agency Identifier (ORI) number, and the date the report was submitted to the Attorney General’s Office.

(5) To satisfy its obligations under this rule, in lieu of a report summarizing total numbers as described in section (3), a law enforcement agency may submit disaggregated data for all motor vehicle stops containing the information described in section (2) of this rule according to guidelines furnished by the Attorney General’s Office.

Amended: Filed July 1, 2019, effective Dec. 30, 2019. *Original authority: 590.650, RSMo 2000, amended 2001, 2004.

History

AUTHORITY: section 590.650, RSMo 2016. Aug. 31, 2000, expired Feb. 23, 2001. Origi- 30, 2001. Rescinded and readopted: Filed July 31, 2001, effective Jan. 30, 2002.

15 CSR 60-10.030 Reporting Forms {#sec-15-csr-60-10.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-10.030}

PURPOSE: This rule provides forms used for the compilation and reporting of information on motor vehicle stops by law enforcement agencies.

(1) No report from a law enforcement agency shall be deemed to be in compliance with

section 590.650, RSMo, unless the report or disaggregated data submission described in

15 CSR 60-10.020 section (5) contains a compilation of the information enumerated in 15 CSR 60-10.020. {#sec-15-csr-60-10.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-10.020}

(2) No report from a law enforcement agency shall be deemed to be in compliance with

section 590.650, RSMo, unless the report is signed by the law enforcement agency head, director, or administrator.

(3) The report to the Attorney General shall be made on a form or forms furnished by or approved by the Attorney General. The form, included herein, may be used by law enforcement agencies to collect and compile the required information to submit to the Attorney General. The reporting forms may, at the discretion of the Attorney General, be made available on the Internet.

(4) The Attorney General may create informal guidelines for compliance with the reporting form. The guidelines may, at the discretion of the Attorney General, be made available on the Internet.

(11/30/19) JOHN R. ASHCROFT

Amended: Filed June 1, 2017, effective Jan. 1, 2018. Amended: Filed July 1, 2019, effective Dec. 30, 2019. *Original authority: 590.650, RSMo 2000, amended 2001, 2004.

History

AUTHORITY: section 590.650, RSMo 2016. Aug. 31, 2000, expired Feb. 23, 2001. Origi- 30, 2001. Rescinded and readopted: Filed July 31, 2001, effective Jan. 30, 2002.

Chapter 11 Rules for Assistive Devices

15 CSR 60-11.010 Appointment of Arbitration Firm attorney general in appointing a professional arbitrator or arbitration firm. {#sec-15-csr-60-11.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.010}

(1) Any controversy or claim arising out of or relating to consumer rights or remedies under sections 407.950 to 407.970, RSMo shall, at the option of the consumer, be settled by arbitration.

(2) The attorney general shall appoint a professional arbitrator or arbitration firm to administer the program for a term not to exceed two (2) years ending on the thirty-first day of December of the final year of appointment. At the option of the attorney general, the term shall be renewable.

(3) The following criteria shall be considered in the selection of a professional arbitrator or arbitration firm: capability, objectivity, nonaffiliation with an assistive device manufacturer, dealer or lessor, reliability, experience, financial stability, extent of geographic coverage, and fee structure.

(4) Each professional arbitrator or arbitration firm applying for appointment shall submit a fee schedule to the attorney general. Upon appointment by the attorney general, the arbitration firm shall adhere to its submitted fee schedule until the expiration of its appointed term. *Original authority: 407.965, RSMo 1995 and 409.970,

15 CSR 60-11.020 Notice to Consumers specifies the notice which must be given by sellers of the assistive device to consumers. {#sec-15-csr-60-11.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.020}

(1) Each manufacturer who sells or leases an assistive device to a Missouri consumer, either directly or through an assistive device dealer, shall furnish the consumer contemporaneously with the express warranty required by section 407.953, RSMo, a clear and conspicuous notice of the consumerís right to elect arbitration. This notice shall be in (10) ten point boldface type and shall include the following words or words of similar import and meaning: ìPursuant to Missouri law, you have the right to have certain disputes regarding the purchase of an Assistive device resolved through binding arbitration. To obtain a request for arbitration form, contact the manufacturer.î (2) The notice shall also include the name, address and telephone number of the person whom the consumer may contact to obtain a ìRequest for Arbitrationî form.

15 CSR 60-11.030 Filing for Arbitration parties in arbitration. {#sec-15-csr-60-11.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.030}

(1) Each manufacturer who sells or leases an assistive device to a Missouri consumer, either directly or through an assistive device dealer, shall make available to the consumer, upon request a ìRequest for Arbitrationî form.

(2) The ìRequest for Arbitrationî form shall be in a format substantially similar to that set out in 15 CSR 60-11.160.

(3) To apply for arbitration under the program, a consumer shall obtain a ìRequest for Arbitrationî form from the manufacturer, complete the form and submit it to the arbitration firm along with the prescribed filing fee.

(4) For claims made pursuant to sections 407.950 to 407.970, RSMo, the consumer shall indicate on the form his/her choice of remedy (i.e., refund, repair or replacement with a comparable assistive device), in the event the arbitrator rules in favor of the consumer. If the consumer prevails, such choice shall be followed by the arbitrator unless the consumer advises the arbitrator, in writing, of a change in his/her choice of remedy prior to the arbitratorís rendering of a decision.

(5) On the day the arbitration firm receives the ìRequest for Arbitrationî form together with the filing fee, the arbitration firm shall date stamp the form. Such date shall be considered the ìfiling date.î (6) Within five (5) business days of the filing date, the arbitration firm shall send the manufacturerís designee a copy of the consumerís completed form along with a notice that it may respond in writing.

(7) Within fifteen (15) days of the filing date, the manufacturer shall respond in triplicate to the arbitration firm, who shall promptly forward one (1) copy to the consumer. Failure by the manufacturer to respond shall be deemed to be an admission of all claims made by the consumer.

(8) The consumer may respond in writing to the manufacturerís submission within twentyfive (25) days of the filing date. Such response shall be sent in triplicate to the arbitration firm, who shall promptly forward a copy to the manufacturer.

15 CSR 60-11.040 Cost of Arbitration specifies procedures concerning the cost of arbitration. {#sec-15-csr-60-11.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.040}

(1) Each consumer who files a ìRequest for Arbitrationî form shall pay a processing fee to the arbitration firm of fifty dollars ($50).

(2) All other costs of arbitration shall be paid to the arbitration firm by the manufacturer.

15 CSR 60-11.050 Assignment of Arbitrator arbitration firm in selecting an arbitrator. {#sec-15-csr-60-11.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.050}

(1) After the filing date, the arbitration firm shall assign an arbitrator to hear and decide the case. Notice of assignment shall be mailed to the arbitrator and the parties along with a copy of these regulations and sections 407.950 to 407.970, RSMo.

(2) The arbitrator assigned shall not have any bias, any financial or personal interest in the outcome of the hearing, or any current connection to the sale or manufacture of assistive devices.

15 CSR 60-11.060 Scheduling of Arbitration Hearings parties and the arbitrator. {#sec-15-csr-60-11.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.060}

(1) The arbitration shall be conducted as an oral hearing unless the consumer has requested, on the ìRequest for Arbitrationî form, a hearing on documents only and both parties agree to a documents-only hearing; provided, however, that the parties may mutually agree in writing to change the mode of hearing.

Upon such change, the parties shall notify the arbitrator who shall comply with the request.

(2) An oral hearing, unless waived by the parties, shall be scheduled to take place no later than forty (40) days from the filing date, unless a later date is agreed to by both parties. The arbitrator shall notify both parties of the date, time and place of the hearing at least ten (10) days prior to its scheduled date.

(3) Hearings shall be scheduled to accommodate, where possible, time-of-day needs of the consumer and the manufacturer, including evening and weekend hours.

(4) Hearings shall also be scheduled to accommodate geographic needs of the consumer. The hearing site shall be no more than one hundred (100) miles from the consumerís residence unless the consumer agrees, in writing, to a hearing at a location farther than one hundred (100) miles from his or her residence.

(5) A party may present its case by telephone, provided that notice, in writing, is given to the arbitrator and to the other party at least two (2) business days prior to the scheduled hearing date. In such cases, the arbitrator and both parties shall be included.

(6) Either party may make a request to adjourn and reschedule the hearing. Except in unusual circumstances, such request shall be made to the arbitrator, orally or in writing, at least two (2) business days prior to the hearing date. Upon a finding of good cause, the arbitrator may reschedule the hearing. In unusual circumstances, the arbitrator may reschedule the hearing at any time prior to its commencement.

15 CSR 60-11.070 Request for Additional Information or Documents specifies procedures to be followed in conducting discovery. {#sec-15-csr-60-11.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.070}

(1) A party, by application in writing to the arbitrator, may request the arbitrator to direct the other party to produce any documents or information. The arbitrator shall, upon receiving such request, or on his or her own initiative, direct the production of documents or information which he or she believes will reasonably assist a party in presenting his or her case or assist the arbitrator in deciding the case. The arbitratorís direction for the production of documents and information shall allow a reasonable time for the gathering and production of such documents and information.

(2) All documents and information forwarded in compliance with the arbitratorís direction shall be legible and received by the arbitrator and other party no later than three (3) business days prior to the date of the hearing.

Each party shall bear its own photocopying costs.

(3) Upon failure of a party to comply with the arbitratorís direction to produce documents and/or information, the arbitrator may draw a negative inference concerning any issue involving such documents or information.

(4) The term ìdocumentsî in this section shall include, but not be limited to, relevant manufacturerís service bulletins, dealer work orders, diagnoses, bills, and all communication relating to the consumerís claim.

(5) At the request of either party or on his or her own initiative, the arbitrator, when he or she believes it appropriate, may subpoena any witnesses to appear or documents to be presented at the hearing.

(6) Where a witness cannot be subpoenaed or is unable to attend the hearing, the arbitrator may, at the written request of either party or on his or her own initiative, permit a deposition to be taken, in a manner and upon terms designated by the arbitrator. Such deposition may be used as evidence and considered by the arbitrator in making his or her decision.

4CODE OF STATE REGULATIONS

(7/31/03) MATTBLUNT 15 CSR 60-11óELECTED OFFICIALS

(1) Any party may be represented by counsel or assisted by any third party.

15 CSR 60-11.090 Hearing Procedure specifies procedures to be followed at the arbitration hearing. {#sec-15-csr-60-11.090 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.090}

(1) The conduct of the hearing shall afford each party a full and reasonable opportunity to present his or her case.

(2) The arbitrator shall administer an oath or affirmation to each individual who testifies.

(3) Formal rules of evidence shall not apply; the parties may introduce any relevant evidence at the discretion of the arbitrator.

(4) The arbitrator may receive relevant evidence of witnesses by affidavit and such affidavits shall be given such weight as the arbitrator deems appropriate.

(5) The arbitrator shall have discretion to examine the consumerís assistive device.

Both parties shall be afforded the opportunity to be present and accompany the arbitrator on any such examination.

(6) The consumer shall first present evidence in support of his or her claim, and the manufacturer shall then present its evidence. Each party may question the witnesses called by the other. The arbitrator may question any party or witness at any time during the hearing.

(7) The arbitrator may request additional evidence after closing the hearing. All such evidence shall be submitted to the arbitration firm for transmission to the arbitrator and the parties.

(1) Any party may request reasonable accommodations at a hearing, including access and auxiliary aids and services, in accordance with the Americans With Disabilities Act (42 U.S.C. 12101 et seq) and the regulations thereunder (28 CFR part 35) as such Act and regulations may, from time-to-time, be amended.

(2) Such request shall be made to the arbitration firm at the time the consumer submits his or her ìRequest for Arbitrationî form.

(1) If the hearing is on documents only, all documents shall be submitted to the arbitrator no later than thirty-five (35) days from the filing date. The arbitrator shall render a decision within ten (10) business days based on all documents submitted.

15 CSR 60-11.120 Defaults arbitrator in conducting the hearing. {#sec-15-csr-60-11.120 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.120}

(1) Upon the failure of a party to appear at an oral hearing, the arbitrator shall nevertheless conduct the hearing and render a decision based on the evidence presented and documents contained in the file.

(2) If neither party appears at a scheduled oral hearing, the arbitrator shall dismiss the case without a decision and so notify the parties. The dismissal shall be without prejudice to future refiling.

(3) In a documents-only hearing, where the manufacturer fails to respond to the claim, the arbitrator shall render a decision based upon the documents contained in the file. *Original authority: 407.965, RSMo 1995 and 407.970

(1) A consumer may withdraw his or her request for arbitration at any time prior to decision. If the arbitration firm is notified by the consumer of his or her request to withdraw the claim within seven (7) business days of the filing date, the arbitration firm shall refund the filing fee.

(2) If the parties agree to a settlement more than seven (7) business days after the filing date but prior to the issuance of a decision, they shall notify the arbitrator in writing of the terms of the settlement. Upon the request of the parties, the arbitrator shall issue a decision reflecting the settlement.

15 CSR 60-11.140 Arbitratorís Decision arbitrator in reaching the decision. {#sec-15-csr-60-11.140 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.140}

(1) The arbitrator shall render a decision within ten (10) business days of the hearing date which shall be in writing and shall include findings of fact and conclusions of law. The decision shall be dated and signed by the arbitrator.

(2) In his or her decision, the arbitrator shall determine whether the consumer is entitled to relief pursuant to sections 407.950 to 407.970, RSMo. If the arbitrator finds that the consumer is so entitled, he or she shall award the specific remedies prescribed by the statute.

(3) The decision shall specify the monetary award, where applicable. A calculation of the amount, in accordance with sections 407.950 to 407.970, RSMo, shall be included in the decision. If the consumer prevails, the decision may also award the prescribed filing fee along with reasonable attorney fees, if applicable, and any equitable relief that the arbitrator deems appropriate.

(4) The decision shall, where applicable, require that any action required to be taken by the manufacturer be completed within thirty (30) days from the date the arbitrator notifies the manufacturer of the decision.

(5) The arbitrator shall, within five (5) days of rendering a decision, mail a copy of the final decision to both parties and the attorney general.

(6) Failure to mail the decision to the parties within the specified time period or failure to hold the hearing within the prescribed time shall not invalidate the decision.

(7) The arbitratorís decision is binding on both parties and is final. The decision shall include a statement to this effect.

(8) An award rendered by the arbitrator may be confirmed, vacated or modified in the manner set out in sections 435.400ñ435.440, RSMo.

(1) The arbitration firm shall keep all records pertaining to each arbitration for a period of at least two (2) years and shall make the records of a particular arbitration available for inspection upon written request by a party to that arbitration, and shall make records of all arbitrations available to the attorney general upon written request.

(2) At the expiration of the arbitration firmís appointment, if that appointment is not renewed, all records pertaining to arbitrations conducted pursuant to sections 407.950 to 407.970, RSMo shall be turned over to the attorney general.

15 CSR 60-11.160 Sample ìRequest For Arbitrationî Form specifies a sample Request for Arbitration form. {#sec-15-csr-60-11.160 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-11.160}

6CODE OF STATE REGULATIONS

(7/31/03) MATTBLUNT 15 CSR 60-11óELECTED OFFICIALS MISSOURI WHEELCHAIR AND ASSISTIVE DEVICE LEMON LAW CONSUMER INFORMATION 1. Name:________________________________________________ Address:______________________________________________ City:State: Zip: Phone: Home ()_____ Work: ()_________ ASSISTIVE DEVICE INFORMATION (Attach Copy of Bill of Sale or Lease)

Type of Device: ________________________________________ (For example, Wheelchair or Hearing Aid)
Manufacturer: _________________________________________ 3. Year: ________ Model: __________________________________ 4. [ ] I purchased my assistive device [ ] I leased my assistive device 5. Did you purchase or lease your assistive device in Missouri? [ ] Yes [ ] No 6. Date of delivery? _______________________________________ 7. Do you still own or lease your assistive device? [ ] Yes [ ] No DEALER INFORMATION 8. Name: ________________________________________________ Address: ______________________________________________ City: ______________________ State: ______ Zip: __________ LEASING COMPANY (if leased)
Name: ________________________________________________ Address: _______________________________________________ City: ______________________ State: _______ Zip: __________ ASSISTIVE DEVICE PROBLEM(S)
Briefly describe the e xistingproblem(s) for which you now seek relief: ________________________________________________________ ________________________________________________________ 11. (a) What date did you first report the problem(s) to the dealer or the manufacturer? _____________________________________ (b) Did you make the assistive device available for repair before one year after the first delivery? . . . . . . . . . Yes [ ] No [ ]
Were there one or more unsuccessful repair attempts within one year from the date of original delivery? . . . . Yes [ ] No [ ]
Does the problem continue to exist? . . . . . . .Yes [ ] No [ ]
Give the date and work order number for each of the repair attempts by the dealer or manufacturer and attach copies of them. If you do not have copies of the work orders, once accepted into the program, you may request copies from the manufacturer, with the arbitratorís approval.

Problem (Specify) _____________________________________ Date Work Order Number (1) ___________________________________________ (2) ___________________________________________ (3) ___________________________________________ (4) ___________________________________________ 15. List the dates your assistive device was out of service:

TYPE OF HEARING

[ ] Oral (a) in person . . . . . . . . . .[ ]

(b) by telephone. . . . . . . . [ ] [ ] Documents only (if manufacturer agrees)

RELIEF REQUESTED

If successful, I wish to receive a: [ ] full refund [ ] comparable new replacement device Attach copies of all relevant documents (including your purchase or lease agreement, all service or work orders relating to the problem for which you seek this arbitration, and any correspondence between you and the manufacturer or its dealer relating to such problem). DO NOT SEND ORIGINAL DOCUMENTS.

Please enclose the filing fee of $50.00. Upon receipt of the filing fee, your claim will begin to be processed.

NOTICE: The decision of the arbitrator under this program is binding on both parties. You may wish to consult an attorney before participating in this program.

Sign below and return the completed form, together with your documents and the filing fee, to ________________________________.

SIGNATURE: _____________________________ Date: _________

Chapter 13 Missouri No-Call

15 CSR 60-13.010 Definitions {#sec-15-csr-60-13.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.010}

PURPOSE: This rule clarifies that the definitions pertaining to the establishment of a Missouri no-call database created by residential subscribers providing notice to the Attorney General of their objection to receiving telephone solicitations are the same as those appearing in section 407.1095, RSMo 2000, and provides definitions for certain other terms used in that statute.

(1) The terms used in Chapter 13, Division 60, Title 15 of the Code of State Regulations bear the same meaning in the rules pertaining to the establishment of a no-call database as they do in section 407.1095, RSMo 2000, as amended from time-to-time. In addition, the term “telephone number” as used in Chapter 13, Division 60, Title 15 of the Code of State Regulations, is interchangeable with the term “telephone line” as used in section 407.1098, RSMo 2000, as amended from time-to-time.

(2) The following definitions further clarify terms used in section 407.1095, RSMo 2000 and Chapter 13, Division 60, Title 15 of the Code of State Regulations:

(A) “ADAD,” also known as “automatic dialing and announcing device,” means any device or system of devices which is used, whether alone or in conjunction with other equipment, for the purposes of automatically selecting or dialing telephone numbers and disseminating recorded messages to the numbers so selected or dialed;

(B) “Bona fide member,” for the purposes of section 407.1095(3)(c), RSMo means without regard to what a person is called in the articles or bylaws, any person or persons who on more than one occasion, pursuant to a provision of the Chapter 501(c)(3) entity’s articles or bylaws, have a right to vote for the election of a director or directors; but a person is not a “bona fide member” by virtue of any of the following:

Any rights such person has as a delegate;
Any rights such person has to designate a director or directors; or 3. Any rights such person has as a director;

(D) “Current business relationship” means a relationship characterized by reciprocal communication between the person or entity interested in calling the residential subscriber;

(E) “Person” exclusively for the purposes of section 407.1095(2), RSMo means a natural person who has reached the legal age set forth in section 431.055, RSMo, as amended, and authorized by the residential subscriber to grant telephone solicitors express invitation or permission to call the residential subscriber’s telephone number; and if the residential subscriber has not reached the legal age, set forth in section 431.055, RSMo, as amended, person shall mean his or her parent or legal guardian;

(F) “Prior express invitation or permission” means a specific oral or written grant of authority made by the residential subscriber at a verifiable date and time authorizing a person or entity interested in making telephone solicitations to call the residential subscriber’s telephone number for the purposes of making a telephone solicitation;

(G) “Referral” means a communication at a verifiable date and time to the person or entity interested in calling the residential subscriber’s telephone number by a third party if the residential subscriber has previously contacted the third party indicating that the residential subscriber would welcome the call to his or her telephone number; and (H) “Working from his or her primary residence” means conducting income-generating activities from the location where the person interested in calling the residential subscriber’s telephone number resides, but does not include calls that are normally made from a location other than that person’s residence made by that person from his or her residence.

15 CSR 60-13.020 Methods by Which Residential Subscribers May Give Notice of Objection to Receiving Telephone Solicitations {#sec-15-csr-60-13.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.020}

PURPOSE: This rule describes the methods and mechanics of how residential subscribers may give the Attorney General notice of their so that the Attorney General can establish Missouri’s no-call database.

(1) A residential subscriber living or residing in Missouri, may give notice of his or her objection to receiving telephone solicitations, and thus, have his or her telephone number listed in Missouri’s no-call database by doing any of the following:

(A) Completing a written form designed by the Attorney General’s Office for the purpose of recording a residential subscriber’s notice of objection to receiving telephone solicitations and submitting that completed form to the Attorney General’s Office; or (B) Calling a toll-free number established by the Attorney General’s Office for the purpose of recording a residential subscriber’s notice of objection to receiving telephone solicitations and properly responding to the voice prompts; or (C) Accessing the appropriate Internet site established by the Attorney General’s Office for the purpose of recording a residential subscriber’s notice of objection to receiving telephone solicitations and inputting the proper data requested by the website prompts.

(2) The no-call database shall consist of the aggregate collection of the telephone numbers of properly submitted notices of objection to receiving telephone solicitations. The Attorney General may maintain the no-call database in either a written or an electronic format.

(3) The telephone numbers of properly submitted notices of objection to receiving telephone solicitations shall become part of the no-call database in the quarter following the deadline for receipt of notice according to the following schedule:

Receipt DeadlineCalendar Quarter November 1January–March February 1April–June May 1July–September August 1October–December

15 CSR 60-13.030 Duration that a Residential Subscriber’s Notice of Objection to Receiving Telephone Solicitations is Effective {#sec-15-csr-60-13.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.030}

PURPOSE: This rule sets forth the duration that a residential subscriber’s notice of objection to receiving telephone solicitations is effective.

A notice of objection to receiving telephone solicitations shall remain in effect for two years from the date that telephone number first appears in the no-call database. The notice of objection shall be automatically renewed unless the residential subscriber to whom that telephone number is assigned provides written notice to the Attorney General’s Office that he or she does not want the Attorney General to automatically renew the notice of objection. To facilitate a conscious choice by consumers, the Attorney General may send a notice letter explaining to the residential subscriber that his or her notice of objection to receiving telephone solicitation is due to expire and that it will be automatically renewed unless the residential subscriber returns the notice letter form indicating his or her preference otherwise.

15 CSR 60-13.040 Effect of a Change of Telephone Number on a Residential Subscriber’s Notice of Objection to Receiving Telephone Solicitations {#sec-15-csr-60-13.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.040}

PURPOSE: This rule describes the effect of a change of telephone number on a notice of filed by a residential subscriber.

If a residential subscriber whose telephone number is part of the no-call database changes telephone numbers, he or she will have to submit a new notice of objection to receiving telephone solicitations pursuant to 15 CSR 60-13.020, subject to the deadlines therein, and provide the new telephone number to the Attorney General’s Office.

15 CSR 60-13.050 Method by Which a Residential Subscriber or a Certificated Local Exchange Carrier May Revoke Notice of Objection to Receiving Telephone Solicitations {#sec-15-csr-60-13.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.050}

PURPOSE: This rule sets forth the method by which residential subscribers may revoke their notice of objection to receiving telephone solicitations.

A residential subscriber may revoke notice of by completing a written form designed by the Attorney General’s Office for the purpose of revoking a residential subscriber’s notice of and submitting that completed form to the Attorney General’s Office. A residential subscriber may also revoke his or her notice of by accessing the appropriate Internet site established by the Attorney General and inputting the proper data requested by the website prompts. Upon receipt of such revocation notice, the Attorney General’s Office will remove the relevant telephone number from the no-call database according to the same schedule used for adding telephone numbers to the no-call database. In addition, the Attorney General’s Office may remove a telephone number from the no-call database if the Missouri certificated local exchange carrier responsible for the assignment of the relevant telephone number indicates in writing or, if available, by Internet, to the Attorney General’s Office that the residential subscriber who submitted the objection to receiving telephone solicitations is no longer assigned that telephone number.

15 CSR 60-13.060 Methods by Which a Person or Entity Desiring to Make Telephone Solicitations Will Obtain Access to the Database of Residential Subscribers’ Notices of Objection to Receiving Telephone Solicitations and the Cost Assessed for Access to the Database {#sec-15-csr-60-13.060 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.060}

PURPOSE: This rule sets forth the methods by which persons or entities desiring to make telephone solicitations will obtain access to the database of residential subscribers’ notices of objection to receiving telephone solicitations, sets forth the cost assessed for access to that database, and permits telemarketers to access the no-call database of residential subscribers’ notices of objection through a secure portal on the Missouri Attorney General’s website. Persons or entities obtaining copies of the no-call database are reminded that the no-call database is updated quarterly.

(1) Access to No-Call Database. A person or entity desiring to make telephone solicitations to residential subscribers residing or living in Missouri may obtain a copy of the no-call database for his, her, or its lawful use, or for the lawful use by his, her, or its employees, or for the lawful use by his, her, or its independent contractors for use in their business, so long as the independent contractor is regularly associated with the person or entity and is engaged in the same or related type of business as the person or entity, by submitting a request to the Attorney General’s Office, which includes the following:

(A) A written confidentiality agreement prepared by the Attorney General’s Office and signed by the person or authorized agent of the entity that 1) restricts use of the no-call database exclusively for the purpose of compliance with sections 407.1095 to 407.1113, RSMo 2000, as amended from time-to-time, and 2) prohibits the transfer of the copy of the no-call database to any person or entity who has not submitted the signed written confidentiality agreement and payment to the Attorney General’s Office for receipt of a copy of the no-call database; and (B) The appropriate fee as follows:

Computer disk copy of the no-call database. For delivery of a computer disk copy with access to each Missouri area code, payment of fifty dollars ($50) per quarter.

Those persons or entities desiring to obtain access to only part of the no-call database may do so by submitting a request designating by area code the portion or portions of the no-call database they desire and providing payment of fifty dollars ($50) per quarter per area code to the Attorney General’s Office; and/or 2. Online access to the no-call database. For twelve (12) months access to the no-call database through a secure portal with the Attorney General’s Office at https://www.nocall.ago.mo.gov/, an annual processing fee of forty dollars ($40), along with payment of fifty dollars ($50) per quarter for access to each Missouri area code.

Those persons or entities desiring to obtain access to only part of the no-call database may do so by a request designating by area code the portion or portions of the no-call database they desire and providing payment of the annual processing fee and fifty dollars ($50) per quarter per area code to the Attorney General’s Office.

(2) Notice of Claimed Exclusion. A person or entity who initiates any voice communication over a telephone line from a live operator, through the use of ADAD equipment or by other means for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services and who claims that such communication falls under one (1) of the exclusions to the definition of “telephone solicitation” appearing in section 4CODE OF STATE REGULATIONS (10/31/12) ROBINCARNAHAN 407.1095(3), RSMo, as amended, may provide notice in the form of a notarized affidavit to the Attorney General’s Office of that person or entity’s intention to utilize the claimed exclusion along with an explanation of the

basis for that person’s claimed exclusion. The Attorney General’s Office may investigate the claim exclusion using the powers available under section 407.1110, RSMo, as amended.

Submitting an affidavit to the attorney general of intention to utilize a claimed exclusion shall not, in and of itself, establish the section 407.1110.4., RSMo, defense to an action brought for violation of section 407.1098, RSMo, or section 407.1107, RSMo.

(3) Availability of Forms. The Attorney General’s Office on request will supply in printed format the forms listed in this rule. Accurate reproduction of the forms may be utilized for filing in lieu of the printed forms. All forms referenced herein are available at https://www.nocall.ago.mo.gov/.

March 30, 2001. Amended: Filed Feb. 28, 2001, effective Aug. 30, 2001. Emergency amendment filed Sept. 14, 2001, effective Oct. 1, 2001, expired March 29, 2002.

Amended: Filed Sept. 14, 2001, effective March 30, 2002. Amended: Filed March 14, 2005, effective Sept. 30, 2005. Amended:

Filed May 16, 2012, effective Nov. 30, 2012.

15 CSR 60-13.070 Other Matters Relating to the Database of Residential Subscribers’ Notices of Objection to Receiving Telephone Solicitations {#sec-15-csr-60-13.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-13.070}

PURPOSE: This rule sets forth other matters relating to the database of residential subscribers’ notice of objection to receiving telephone solicitations.

(1) No person who obtains a copy of the nocall database may use that information for purposes other than compliance with sections 407.1098 and 407.1101, RSMo 2000, as amended from time-to-time.

(2) The Attorney General’s Office may use monies collected pursuant to 15 CSR 60- 13.060 to carry out the functions set forth in sections 407.1095 to 407.1113, RSMo 2000, as amended from time-to-time.

Chapter 14 Legal Expense Fund Coverage

15 CSR 60-14.010 Definitions {#sec-15-csr-60-14.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-14.010}

PURPOSE: This rule defines terms used in

section 105.711, RSMo, as amended by Senate Bill No. 1247, 92nd General Assembly (2004).

(1) ìAgencyîóan agency of any federal, state, or local government.

(2) ìAgency of any federal, state, or local governmentîóa governmental agency located in the state of Missouri, existing under and deriving its powers from the federal or state constitution or federal or state law.

(3) ìCenterîóa nonprofit community social services center.

(4) ìLicensed attorneyîóa member of The Missouri Bar, including a member exempt from the payment of bar dues pursuant to Supreme Court Rule 6.01(d)(1), (2) or (3), but not including an attorney in the reduced enrollment fee category of Supreme Court

Rule 6.01(j)(3).

(5) ìNonprofit community social services centerîóa nonprofit corporation, a benevolent corporation or an unincorporated association that provides legal services without charge to or on behalf of poor or indigent Missouri residents, that has applied for taxexempt status under section 501(c)(3) of the Internal Revenue Codeand has received a determination letter from the Internal Revenue Service recognizing the organizationís tax-exempt status.

History

AUTHORITY: section 105.711.4, RSMo Supp. 2004. Emergency rule filed Sept. 2, 2004, effective Sept. 12, 2004, expired March 10, 2005. Original rule filed Sept. 2, 2004, effective April 30, 2005.

15 CSR 60-14.020 Contract Procedures {#sec-15-csr-60-14.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-14.020}

PURPOSE: This rule prescribes contract procedures for purposes of section 105.711, RSMo, as amended by Senate Bill No. 1247, 92nd General Assembly (2004).

(1) An attorney practices law at or through a nonprofit community social services center or through any agency of any federal, state, or local government if:

(A) The attorney provides to the center or agency in writing his or her name, address, place of employment, if any, daytime telephone number and Missouri Bar number;

(B) The attorney is assigned clients, cases or matters by the center under procedures adopted by the center or agency, not to include clients assigned by court order;

(C) The attorney has no preexisting attorney client relationship with any client under which a fee has been collected or contracted for;

(D) The attorney agrees in writing at the outset of any representation or consultation that no fee will be charged, sought or accepted for representation or consultation regardless of the outcome of the representation or consultation; and (E) The attorney does not discriminate in providing legal services on the basis of race, sex, religion, national origin or ethnic background.

(2) An attorney practices law without compensation at or through a nonprofit community social services center or through any agency of any federal, state, or local government if:

(A) Neither the attorney nor the center receives, or contracts for the receipt of a fee, donation or contribution of money, goods, services or any other thing of value in any way related to the attorneyís legal representation;

(B) The attorney does not receive a salary, hourly wage or any other thing of value from the center or agency;

(C) The attorney does not receive a salary, hourly wage or any other thing of value from any person, firm, corporation, partnership or any other source in any way related to the attorneyís practice of law at or through the center or agency; and (D) No other individual or entity, other than the client and/or his or her heirs, assigns and beneficiaries, receives anything of value in any way related to the attorneyís services at or through the center.

History

AUTHORITY: section 105.711.4, RSMo Supp. 2004. Emergency rule filed Sept. 2, 2004, effective Sept. 12, 2004, expired March 10, 2005. Original rule filed Sept. 2, 2004, effective April 30, 2005.

15 CSR 60-14.030 Documentation of Legal Practice {#sec-15-csr-60-14.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-14.030}

PURPOSE: This rule prescribes procedures for documentation of legal practice for purposes of section 105.711, RSMo, as amended by Senate Bill No. 1247, 92nd General Assembly (2004).

(1) A nonprofit community social services center through which any attorney practices law without compensation shall provide a copy of its federal tax exemption letter or other verification of tax-exempt status under

section 501(c)(3) of the Internal Revenue Codeto the Attorney General.

(2) For each attorney who provides legal services without compensation at or through a nonprofit community social services center or through any agency of any federal, state, or local government, the center or agency shall annually during the month of June provide to the Attorney General:

(A) The attorneyís name, address, and daytime telephone number;

(B) The attorneyís Missouri Bar number or other evidence that the attorney is licensed to practice law in Missouri;

(C) An estimate of the number of hours per year of legal services provided without compensation by the attorney through the center or agency;

(D) A general description of the area of practice engaged in by the attorney.

(3) An attorney practicing law at or through a nonprofit community social services center may maintain records documenting client representation or consultation at the center if, in the attorneyís professional judgement, the center has a physical location with record keeping capabilities adequate to preserve the records and to safeguard attorney client confidences. If the center does not have an adequate physical location, the attorney shall maintain such records at his or her place of business, home or other location appropriate for securing client records.

(4) Documentation of coverage shall be maintained by the Attorney General.

ROBINCARNAHAN(4/30/06)

Chapter 14óLegal Expense Fund Coverage15 CSR 60-14

History

AUTHORITY: section 105.711.4, RSMo Supp. 2004. Emergency rule filed Sept. 2, 2004, effective Sept. 12, 2004, expired March 10, 2005. Original rule filed Sept. 2, 2004, effective April 30, 2005.

15 CSR 60-14.040 Claims by the Boards of Police Commissioners of St. Louis and Kansas City {#sec-15-csr-60-14.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-14.040}

PURPOSE: This rule prescribes procedures for requesting representation for purposes of

section 105.726, RSMo, as amended by Senate Bills 420 and 344, 93rd General Assembly 2005.

(1) All requests for representation pursuant to

section 105.726.4, RSMo, must come from the Board of Police Commissioners of St.

Louis or Kansas City, or their designees. The name and title of any designee must be provided by the Board to the Chief Counsel, Litigation Division, Attorney Generalís Office (AGO).

(2) All requests for representation must be made to:

(A) For lawsuits and non-automobile accident claims: Chief Counsel, Litigation Division, AGO, PO Box 899, Jefferson City, MO 65102; or fax (573) 751-9456 (with original to follow).

(B) For automobile accident claims: Office of Administration, Risk Management, PO Box 809, Jefferson City, MO 65102; or fax (573) 751-7819 (no original to follow).

(3) All requests for representation must be made within the following time frames:

(A) For lawsuits: within five (5) business days after the board receives service of summons or waiver of service forms, or within five (5) business days after notice to the board that an individual for whom the board seeks representation has received service of summons or waiver of service forms;

(B) For non-automobile accident claims: within five (5) business days of notice of the claim, but sooner whenever possible;

(C) For automobile accident claims: within ninety-six (96) hours, or four (4) business days, of the accident, but sooner whenever possible.

(4) All requests for representation must be made in the following manner.

(A) For lawsuits and non-automobile accident claims:

A letter requesting representation which includes the following information:

A. The individual or entity for whom board is requesting representation;

B. The date service was obtained (in cases involving summons), the date the waiver of service form was received (in cases involving waiver of service forms), or the date when notified of the claim (in cases involving non-automobile accident claims); and C. The street address, telephone number and any other relevant contact information for the individual or entity to be represented;

The following items must be attached to the letter requesting representation:

A. The summons and petition or complaint and any other documents delivered with the summons (in cases involving summons);

B. The waiver of service form and petition or complaint and any other documents which accompanied the waiver of service form (in cases involving waiver of service forms);

C. The notice of the claim and any police report regarding the incident, if available (in cases involving non-automobile accident claims). If the police report is not available at the time the letter is sent, it must be sent as soon as it is available.

(B) For automobile accident claims: a completed claim form (available from the AGO) and the police report regarding automobile accident, if available. If the police report is not available at the time the letter is sent, it must be sent as soon as it is available.

(5) All persons or entities represented shall cooperate with the attorneys and risk management specialists conducting investigations and preparing any defense by assisting such attorneys and risk management specialists in all respects, including the making of settlements, the securing and giving of evidence, and the attending and obtaining witnesses to attend hearings and trial. Failure to cooperate, including failure to communicate as set forth above, will be cause for the AGO or the Office of Administration to decline or withdraw from representation. The AGO or the Office of Administration will promptly notify the board of any perceived failure to cooperate, and give the board an opportunity to respond to the notification and/or rectify the situation, before making the determination whether to decline or withdraw from representation.

(6) Payment of all tendered claims will be submitted by the AGO or the Office of Administration, Risk Management to the Board of Police Commissioners of St. Louis or Kansas City, or their designees upon settlement of a claim. Payment must be issued within ten (10) business days of payment request and returned to the AGO or the Office of Administration, Risk Management for disposition of settlement.

(7) Reimbursement up to a maximum of one (1) million dollars per fiscal year for each board of police commissioners established under Chapter 84, RSMo, pursuant to section 105.726.3, RSMo, shall occur at the end of each quarter following submission to the Chief Counsel, Litigation Division, AGO, PO Box 899, Jefferson City, MO 65102, of disbursement vouchers and supporting documentation (judgment or settlement documents) for claims paid during that quarter.

4CODE OF STATE REGULATIONS

(4/30/06) ROBINCARNAHAN 15 CSR 60-14óELECTED OFFICIALSDivision 60óAttorney General

History

AUTHORITY: section 105.726.4, RSMo Supp. 2005. Emergency rule filed Oct. 7, 2005, effective Oct. 17, 2005, expired April 14, 2006. Original rule filed Oct. 7, 2005, effective May 30, 2006. Original authority: 105.726, RSMo 1983, amended 2005.

Chapter 15 Unauthorized Alien Workers

15 CSR 60-15.010 Definitions {#sec-15-csr-60-15.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-15.010}

PURPOSE: This rule defines terms used in

section 285.525, RSMo Supp. 2008.

(1) The terms used in Title 15, Division 60,

Chapter 15 of the Code of State Regulations bear the same meaning in the rules pertaining to unauthorized alien workers as they do in

section 285.525, RSMo Supp. 2008, as amended.

(2) The following definitions further clarify terms used in section 285.525, RSMo Supp. 2008, and Title 15, Division 60, Chapter 15 of the Code of State Regulations:

(A) “Business entity”—in addition to the definition as used in section 285.525(1), RSMo Supp. 2008, business entities include limited liability companies (LLCs);

(B) “Contract or grant”—does not include a permit or license issued by any political subdivision, county, or municipality;

(C) “Contractor”—does not include a person, employer, or business entity providing bonding or insurance products to employees of the state, a political subdivision, county, or municipality;

(D) “Identity information”—includes a copy of the Form I-9 completed by the employer and employee including copies of documents presented by the employee establishing identity and employment eligibility or, alternatively, an E-Verify case verification number and a copy of any documents received from the Social Security Administration or U.S. Department of Homeland Security regarding the employment eligibility of the employee or employees;

(E) “State-administered or subsidized tax credit, tax abatement, or loan”—includes credits provided under section 99.845.4–.12, RSMo 2000; and (F) “Subcontractor”—does not include a business entity that merely supplies goods or materials to a contractor or subcontractor hired by the contractor to perform services to perform a contract with the state, a political subdivision, municipality, or county.

Original rule filed March 2, 2009,

15 CSR 60-15.020 Form of Affidavit {#sec-15-csr-60-15.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-15.020}

PURPOSE: This rule prescribes the form of affidavit to be submitted by business entities or employers who fall under the provisions of

section 285.530, RSMo Supp. 2008.

(1) Any bid or response to a request for proposal (RFP) for the award of any contract for services or grant in excess of five thousand dollars ($5,000) by the state or by any political subdivision of the state to a business entity, or application by any business entity to receive a state-administered or subsidized tax credit, tax abatement, or loan from the state, shall be accompanied by an affidavit containing the following:

(A) A statement that the business entity has enrolled in, and is currently participating in, E-Verify, a federal work authorization program, or any other equivalent electronic verification of work authorization program operated by the United States Department of Homeland Security under the Immigration Reform and Control Act of 1986 (IRCA);

(B) A statement that the business entity does not knowingly employ any person who is an unauthorized alien in conjunction with the contracted services; and (C) A notarized signature of the registered agent, legal representative of the business entity, or a corporate officer, including, but not limited to, the human resources director of the business entity or their equivalent.

(2) A subcontractor must provide a similar affidavit to its contractor or subcontractor at the time the subcontractor is hired.

(3) A contractor or subcontractor is not required to perform an electronic verification check described above on an employee hired before January 1, 2009.

(4) Any business entity having a contract or grant in excess of five thousand dollars ($5,000) from the state, a political subdivision, municipality, or county awarded before the effective date of this law is not required to complete the affidavit described above until the grant or contract is renewed but is not relieved from compliance with the provisions of section 285.530(1), RSMo Supp. 2008.

(5) Any business entity that has received a state-administered or subsidized tax credit, tax abatement, or loan from the state prior to the effective date of this law is not required to complete the affidavit described above but is not relieved from compliance with section 285.530(1), RSMo Supp. 2008.

(6) Any business entity that merely provides goods or products to the state or a political subdivision with no services is not required to file the affidavit described above.

(7) The attorney general may make available a form of affidavit that will satisfy the requirements of section 285.530, RSMo Supp. 2008.

Original rule filed March 2, 2009,

15 CSR 60-15.030 Complaints {#sec-15-csr-60-15.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-15.030}

PURPOSE: This rule prescribes procedures for filing complaints that a business entity or employer has knowingly employed, hired for employment, or continued to employ an unauthorized alien to perform work in Missouri in violation of section 285.530, RSMo Supp. 2008.

(1) State officials, business entities, or any state resident may file a complaint in writing and under oath with the Missouri Attorney General’s Office that a business entity or employer has knowingly employed, hired for employment, or continued to employ an unauthorized alien to perform work in Missouri in violation of section 285.530, RSMo Supp. 2008.

(2) Persons wishing to file a complaint may request a complaint form from the Missouri Attorney General’s Office, PO Box 899, Jefferson City, MO 65102; or may download and print the form from the Missouri Attorney General’s website at www.ago.mo.gov.

(3) The form must be completed in its entirety, and the person submitting a complaint must:

(A) Provide information about the business entity or employer alleged to be violating the statute;

(B) Provide their contact information;

(C) Verify that they are either: a Missouri resident, an official of the state, a political subdivision or municipality, or a registered agent, corporate officer, or legal representative of a business entity;

(D) A detailed description of the violation, including reasonably specific information about the alleged alien worker;

(E) A declaration under the penalty of perjury that the complaint is true and correct to the best of their knowledge and belief; and (F) A notarized signature.

(4) Complaints cannot allege a violation solely or primarily on the basis of national origin, ethnicity, or race.

(5) Completed complaint forms should be returned to the Missouri Attorney General’s Office, PO Box 899, Jefferson City, MO 65102.

Original rule filed March 2, 2009,

15 CSR 60-15.040 Investigation of Complaints; Failure to Respond to Attorney General Request for Identity Information {#sec-15-csr-60-15.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-15.040}

PURPOSE: This rule describes the process related to investigating valid complaints authorized by section 285.535, RSMo Supp. 2008.

(1) Upon the receipt of a valid complaint, the Missouri Attorney General’s Office shall, within fifteen (15) days, request by certified mail that the business entity provide identity information regarding person(s) alleged to be unauthorized alien workers.

(2) The business entity shall provide the “identity information” within fifteen (15) days of the receipt of the request. If the business entity fails to do so, the attorney general shall direct any applicable state agency, political subdivision, and municipal or county governing body to suspend any licenses or permits of the business entity effective fifteen (15) days from the receipt of notice by the applicable state agency, political subdivision, county, or municipality from the attorney general unless the business entity submits to the attorney general evidence of one (1) of the following within that time:

(A) That the business entity has terminated the individual, or is attempting to terminate the individual and is being challenged in court or other administrative proceeding; or (B) That the business entity, after acquiring additional information from the employee, has requested a secondary or additional verification by the federal government of the employee’s authorization.

Original rule filed March 2, 2009,

15 CSR 60-15.050 Notification by Federal Government that Individual is Not Authorized to Work {#sec-15-csr-60-15.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-15.050}

PURPOSE: This rule describes the process to be utilized when the federal government notifies the Missouri Attorney General’s Office that an individual is not authorized to work and the duties required of the employer by

section 285.535, RSMo Supp. 2008.

(1) Upon notification from the federal government to the Missouri Attorney General’s Office that an individual is not authorized to work, and the employer participates in a federal work authorization program, the Missouri Attorney General’s Office shall notify the employer to comply with section 285.535.6, RSMo Supp. 2008.

(A) The employer shall, through its legal representative as noted in subsection (1)(B) below, submit evidence of one (1) of the following within thirty (30) days:

The business entity has terminated the individual, or is attempting to terminate the individual and is being challenged in court or other administrative proceeding; or 2. The business entity, after acquiring additional information from the employee, has requested a secondary or additional verification by the federal government of the employee’s authorization.

(B) The legal representative of the business entity shall submit a sworn affidavit to the Missouri Attorney General, PO Box 899, Jefferson City, MO 65102, stating the violation has ended and provide:

Evidence of the specific measures taken to end the violation, which shall, at a minimum, include a notarized affidavit, from the human resources director or other officer of the business entity whose duties include terminating the employment of employees, etc., describing the events surrounding the termination of employment;
The name, address, and all identifying information available to the business entity concerning the unauthorized alien(s) related to the complaint; and 3. Evidence that the business entity has enrolled in, and is currently participating in, E-Verify, a federal work authorization program, or any other equivalent electronic verification of work authorization program operated by the United States Department of Homeland Security under the Immigration Reform and Control Act of 1986 (IRCA).

(2) Enforcement Actions by Attorney General if Business Entity Employs an Unauthorized Worker.

(A) If the federal government notifies the attorney general that a business entity has employed an unauthorized worker and the business entity has failed to correct the violation as set forth herein, the attorney general shall bring an action in the Circuit Court of Cole County if the attorney general reasonably believes the business entity knowingly employed or continued to employ an unauthorized worker in violation of section 285.530.1, RSMo Supp. 2008. In such action, the attorney general may ask the circuit court to direct any applicable state agency, political subdivision, and municipal or county governing body to suspend any business permits or license of the business entity until the entity complies with subsection 6. of 285.535, RSMo Supp. 2008.

(3) Additional Penalties for Business Entity Having a Contract or Grant with State, Political Subdivision, County, or Municipality.

(A) In addition to the penalties that may be assessed by a court for violation of the provisions of section 285.530.1, RSMo Supp. 2008, upon the first violation by any business entity awarded a contract or grant by the state, a political subdivision, municipality, or county or receiving a state-administered tax credit, tax abatement, or loan or loan guarantee from the state, the business entity shall be deemed in breach of contract and the state, political subdivision, municipality, or county may terminate the contract. Upon such termination, the state, political subdivision, municipality, or county may withhold up to twenty-five percent (25%) of the total amount due to the business entity. The state, political subdivision, municipality, or county shall notify the attorney general of any such termination. Upon receipt of notice of such termination of a contract or grant or a violation of

section 285.530.1, RSMo Supp. 2008, by the recipient of a state-administered tax credit, tax abatement, or loan or loan guarantee from the state, the attorney general shall suspend or debar the business entity from doing business with any state, political subdivision, municipality, or county for a period of three (3) years.

4CODE OF STATE REGULATIONS

(7/31/09) ROBINCARNAHAN

(B) Upon the second or subsequent violation by any business entity awarded a contract or grant by the state, a political subdivision, municipality, or county or receiving a stateadministered tax credit, tax abatement or loan or loan guarantee from the state, the business entity shall be deemed in breach of contract and the state, political subdivision, municipality, or county may terminate the contract. Upon such termination, the state may withhold up to twenty-five percent (25%) of the total amount due to the business entity. Upon receipt by the attorney general of notice of a second or subsequent violation, the attorney general shall permanently suspend or debar the business entity from doing business with the state.

(4) The attorney general shall maintain on his website a list of all business entities suspended or debarred under this section.

Original rule filed March 2, 2009,

Chapter 16 Human Trafficking

15 CSR 60-16.010 Definitions used in the Act. {#sec-15-csr-60-16.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-16.010}

This rule defines certain terms used in the enforcement of the Merchandising Practices Act and in the rules made thereunder.

(1) Unless inconsistent with Chapter 407, RSMo, the following terms and phrases shall mean:

(A) “Abuse or threatened abuse of the legal process” shall mean the use or threatened use of a law or legal process, whether administrative, civil, or criminal, in any manner or for any purpose for which the law was not designed, in order to exert pressure on another person to cause that person to take some action or refrain from taking some action;

(B) “Commercial sexual conduct” shall mean any sexual conduct—as that term is defined in section 566.010(5), RSMo—on account of which anything of value is given to or received by any person;

(C) “Debt-bondage relationship” shall mean any agreement, arrangement, or other relationship between a debtor and another person persons in which— 1. The debtor pledges his or her personal services, or the personal services of a person under his or her control, as security for a debt; and 2. The value of those services as reasonably assessed is not applied toward the liquidation of the debt or the length and nature of those services are not respectively limited and defined;

(D) “Involuntary servitude” shall mean a condition of servitude induced by means of— 1. Any scheme, plan, or pattern intended to cause a person to believe that, if the person did not enter into or continue in such condition, that person or another person would suffer serious harm or physical restraint;

The abuse or threatened abuse of the legal process; and (E) “Merchandise” shall have the meaning set forth in section 407.010(4), RSMo.

Oct. 30, 2017.

15 CSR 60-16.020 Unlawful Debt-Bondage Relationships (1) It is an unfair, deceptive, fraudulent, and otherwise unlawful practice for any person to— (A) Collect or attempt to collect payment of any kind pursuant to a debt-bondage relationship; {#sec-15-csr-60-16.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-16.020}

(B) Receive anything of value, including services, from a debtor—or from any person under the control of such a debtor—pursuant to a debt-bondage relationship if the recipient knows that— 1. The debtor has pledged his or her personal services, or the personal services of a person under his or her control, as security for a debt; and 2. The value of those services as reasonably assessed has not been applied toward the liquidation of the debt or the length and nature of those services has not been respectively limited and defined;

(C) Compel, coerce, or persuade any person to perform personal services pursuant to a debt-bondage relationship; or (D) Attempt to compel, coerce, or persuade any person to perform personal services pursuant to a debt-bondage relationship.

Oct. 30, 2017.

15 CSR 60-16.030 Deceptively Inducing Participation in Commercial Sexual Conduct Involuntary Servitude (1) It is an unfair, deceptive, fraudulent, and otherwise unlawful practice for any person to offer or provide any merchandise, or to induce another person to accept any merchandise, based on the representation that the person accepting the merchandise will be offered or provided employment other than employment involving either commercial sexual conduct or involuntary servitude, if— (A) The person offering, providing, or inducing acceptance of the service—or any person acting in concert with him or her— requests, coerces, compels, or otherwise induces the person accepting the service to participate in any commercial sexual conduct or involuntary servitude; or (B) 1) At the time he or she offered, provided, or induced acceptance of the service, the person offering, providing, or inducing acceptance of the service knew or expected that the person accepting the service would be requested, coerced, compelled, or otherwise induced to participate in any commercial sexual conduct or involuntary servitude, and 2) The person accepting the service actually is requested, coerced, compelled, or otherwise induced to participate in any commercial sexual conduct or involuntary servitude. {#sec-15-csr-60-16.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-16.030}

(2) It is an unfair, deceptive, fraudulent, and induce—either directly or indirectly—another tion (1), or to conspire or knowingly act in that violates section (1).

Oct. 30, 2017.

15 CSR 60-16.040 Conducting Sex Trafficking Under False Pretenses JOHNR. ASHCROFT(9/30/17) {#sec-15-csr-60-16.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-16.040}

(1) It is an unfair, deceptive, fraudulent, and (A) The person advertises, sells, offers, or provides any merchandise that constitutes or involves any commercial sexual conduct; and (B) The person does not expressly disclose that the person advertises, sells, offers, or provides the merchandise described in sub-

section (1)(A)—1) in all advertisements made by or on behalf of that person; 2) to all other persons with whom the person enters into any transaction involving trade or commerce; 3) in written form conspicuously displayed on the exterior of any structure in or from which the person conducts any activities relating in any way to the merchandise described in sub-

section (1)(A); and 4) in all filings, applications, and other representations made to any branch of state government or to any municipality, county, or other political subdivision.

(2) It is an unfair, deceptive, fraudulent, and (A) The merchandise constitutes or involves any commercial sexual conduct;

(B) Any individual involved in the performance or provision of the merchandise was induced, compelled, or otherwise caused to do so by means of force, abduction, coercion, fraud, deception, blackmail, actual or threatened financial harm, or a debt-bondage relationship; and (C) The person does not expressly disclose to every other person to whom the merchandise is advertised, sold, offered, or provided that at least one (1) individual involved in the performance or provision of the merchandise was induced, compelled, or otherwise caused to do so by means of force, abduction, coercion, fraud, deception, blackmail, actual or threatened financial harm, or a debt-bondage relationship.

(3) It is an unfair, deceptive, fraudulent, and induce, either directly or indirectly, another tion (1) or section (2), or to conspire or to knowingly, recklessly, or negligently act in that violates section (1) or section (2).

(4) This rule shall not apply under the circumstances set forth in section 407.020.2(1) and (2), RSMo.

Oct. 30, 2017.

15 CSR 60-16.050 Conducting Labor Trafficking Under False Pretenses (1) It is an unfair, deceptive, fraudulent, and (A) Any individual involved in the performance or provision of the merchandise is in a condition of involuntary servitude; and (B) The person does not expressly disclose that at least one (1) individual involved in the performance or provision of the merchandise is in a condition of involuntary servitude 1) in all advertisements made by or on behalf of that person; 2) to all other persons with whom the person enters into any transaction involving trade or commerce; 3) in written form conspicuously displayed on the exterior of any structure in or from which the person conducts any activities relating in any way to the merchandise described in subsection (1)(A); and 4) in all filings, applications, and other representations made to any branch of state government or to any municipality, county, or other political subdivision. {#sec-15-csr-60-16.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-16.050}

(2) It is an unfair, deceptive, fraudulent, and induce, either directly or indirectly, another tion (1), or to conspire or knowingly act in that violates section (1).

(3) This rule shall apply only where the person who is in a condition of involuntary servitude resides in Missouri, is domiciled in Missouri, or performs any work or service pursuant or relating to his or her condition of involuntary servitude in Missouri.

(4) This rule shall not apply under the circumstances set forth in section 407.020.2(1) and (2), RSMo.

Oct. 30, 2017.

4CODE OF STATE REGULATIONS

(9/30/17) JOHNR. ASHCROFT

Chapter 17 Gender Transitions Interventions

15 CSR 60-17.010 Experimental Interventions to Treat Gender Dysphoria {#sec-15-csr-60-17.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-17.010}

15 CSR 60-17.010 Experimental Interventions to Treat Gender Dysphoria (Terminated May 16, 2023) {#sec-15-csr-60-17.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-17.010}

Emergency rule filed April 13, 2023, effective April 27, 2023, terminated May 16, 2023.

Chapter 18 Age Verification | back to top |

15 CSR 60-18.010 Definitions {#sec-15-csr-60-18.010 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-18.010}

PURPOSE: This rule provides definitions for terms used in this

chapter.

(1) “Commercial entity” includes a corporation, limited liability company, partnership, limited partnership, sole proprietorship, or other legally recognized business entity.

(2) “Distribute” means to issue, sell, give, provide, deliver, transfer, transmute, circulate, or disseminate by any means.

(3) “Minor” means an individual under eighteen (18) years of age.

(4) “Substantial portion” means thirty-three percent (33%) or more of the total amount of data publicly available on a website.

(5) “News-gathering organization” includes— (A) An employee of a newspaper, news publication, or news source, printed or on an online or mobile platform, of current news and public interest, who is acting within the course and scope of that employment and can provide documentation of that employment with the newspaper, news publication, or news source; and (B) An employee of a radio broadcast station, television broadcast station, cable television operator, or wire service who is acting within the course and scope of that employment and can provide documentation of that employment.

(6) “Publish” means to communicate or make information available to another person or entity on a publicly available internet website.

(7) “Pornographic for minors” means any material or performance if the following apply:

(A) The average person, applying contemporary community standards, would find that the material or performance, taken as a whole, has a tendency to cater or appeal to a prurient interest of minors;

(B) The material or performance depicts nudity, sexual conduct, the condition of human genitals when in a state of sexual stimulation or arousal, or sadomasochistic abuse in a way which is patently offensive to the average person applying contemporary adult community standards with respect to what is suitable for minors; and (C) The material or performance, taken as a whole, lacks serious literary, artistic, political, or scientific value for minors.

(8) “Transactional data” means a sequence of information that documents an exchange, agreement, or transfer between an individual, commercial entity, or third party used for the

purpose of satisfying a request or event. The term includes records from mortgage, education, and employment entities.

(9) “Self-contained sexual content segment” refers to any delineated section or category of a website or application, accessible through a link on the website or application, in which a substantial portion of the content contained in that

section or category is sexual material harmful to minors.

(10) “Application” means a software application or electronic service that a user may run or direct on a mobile device.

(11) “Mobile device” means a phone or general purpose tablet that— (A) Provides cellular or wireless connectivity;

(B) Is capable of connecting to the internet;

(12) “Digital identification” means information stored on a digital network that may be accessed by a commercial entity and that serves as proof of the identity of an individual.

Nov. 30, 2025. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986, 1992, 1994, 1995,

15 CSR 60-18.020 Operation of an Internet Website or Application {#sec-15-csr-60-18.020 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-18.020}

PURPOSE: The attorney general administers and enforces the provisions of the Missouri Merchandising Practices Act (MMPA), Chapter 407, RSMo. The attorney general may make rules necessary to the administration and enforcement of the provisions of Chapter 407, RSMo, and, in order to provide notice to the public, may specify the meaning of terms whether or not used in the Act. This rule does not contain an exhaustive list of practices that violate the Act. Instead, this rule identifies certain specific practices that violate section 407.020, RSMo.

To provide notice to the public of the basis for the attorney general’s actions, the foundation and rationale set forth in this

purpose statement also sets forth more fully the purpose and foundation for 15 CSR 60-18.010 through 15 CSR 60-18.070.

The MMPA prohibits unlawful, fraudulent, and unfair practices in connection with any trade or commerce in the state of Missouri.

“[T]he literal words [of the MMPA] cover every practice imaginable and every unfairness to whatever degree.” Ports Petroleum Co. v.

Nixon, 37 S.W.3d 237, 240 (Mo. banc 2001). The State of Missouri, furthermore, has a “strong interest in protecting children.” State v. Wright, 751 S.W.2d 48, 52 (1988). The MMPA may be used to prosecute violations of other statutes, including criminal statutes protecting children from exposure to pornographic materials.

Violations of many other laws, especially violations of laws protecting minors from sexually explicit content by commercial actors, are necessarily unfair, deceptive, fraudulent, and otherwise unlawful practices. The Missouri Supreme Court has concluded that the MMPA covers any violation of “any public policy” so long as the violation of that other law “presents a risk” of “substantial injury to consumers.” Huch v. Charter Commun., Inc., 290 S.W.3d 721, 725 (Mo. banc 2009) (quoting 15 CSR 60-8.020(1)).

The attorney general has determined that a rulemaking is necessary to carry out the purposes of the MMPA. Missouri law prohibits “furnishing pornographic material to minors” and “promoting pornography for minors or obscenity.” sections 573.030–.040, RSMo. The U.S. Supreme Court has long upheld laws just like these.

Ginsberg v. New York, 390 U.S. 629, 641 (1968). Age verification has long been required in brick-and-mortar stores distributing pornographic material, see id., and Missouri’s law does not differentiate between brick-and-mortar stores and the internet when it (10/31/25) Denny Hoskins comes to prohibiting companies from providing pornographic material to minors, sections 573.030–.040, RSMo. Yet with the explosion of the internet, companies have found many ways to avoid accountability under Missouri law. It is thus necessary to implement regulations that facilitate enforcement of Missouri’s existing laws.

The internet has enabled companies to skirt compliance with laws protecting minors, which is why access to pornography by minors has exploded in recent years. Between 2006 and 2022, the number of children aged thirteen (13) or younger exposed to online pornography doubled, from just over 25% to 54%. See Chiara Sabina, et al., The Nature and Dynamics of Internet Pornography Exposure for Youth, 11 CyberPsychology & Behavior 691, 692 (2008); Michael B. Robb & Supreet Mann, Common Sense Media, Teens and Pornography at 5 (2022), https:// perma.cc/YG3L-W3LK. The average age a child first views online pornography is 12 years old. American College of Pediatricians, Factsheet: The Impact of Pornography on Children (Aug. 2024), https://acpeds.org/assets/positionpapers/factsheet_-the-impact-ofpornography-on-children.pdf. The number of children exposed to online pornography at age ten (10) or younger increased more than seven-fold during the same time period, from less than 2% in 2008 to 15% by 2022. Id. The vast majority—84.4%—of 14- to 18-year-old males and 57% of 14- to 18-year-old females have been exposed to hardcore pornography online, with some studies reporting even higher figures. Paul J. Wright, Bryant Paul & Debby Herbenick, Preliminary Insights from a U.S. Probability Sample on Adolescents’ Pornography Exposure, Media Psychology, and Sexual Aggression, 26 J. of Health Commc’n 39, 46 (2021). Put simply, when pornography moved online, organizations stopped complying with preexisting laws requiring age verification.

Another factor that makes it easier for companies to skirt compliance with Missouri law is that some of the biggest companies that distribute pornography to minors are located not just outside Missouri, but also outside the United States. For example, one of the largest operators of online pornography, Pornhub, is “the 12th most visited website in the world . . . ahead of Amazon, TikTok, and LinkedIn,” Bradley Saacks, Inside Pornhub’s Finances, Semafor (Jul. 27, 2023), https://perma.cc/ EC8Q-3FEU, and it is owned by a Canadian multinational conglomerate with separate spinoff companies in haven countries.

What is worse, the nature of the material has changed significantly. Material readily accessible to children today is not the “‘girlie’ picture magazines” of previous generations. Ginsberg, 390 U.S. at 634. Instead, much of the material online is hardcore pornography of the type that satisfies the Supreme Court’s definition of obscenity—speech that is not constitutionally protected for adults, let alone children. Id. at 635. Because of the ubiquity of smart phones, tablets, and the internet, Missouri’s children today “can easily be exposed to the most extreme, misogynistic sex acts imaginable.” David Horsey, Our Social Experiment: Kids with Access to Hard-Core Porn, L.A. Times (Sept. 3, 2013), https://www.latimes. com/opinion/topoftheticket/la-xpm-2013-sep-03-la-na-tt-kidsaccess-porn-20130822-story.html (last accessed Mar. 25, 2025).

This content has demonstrated negative effects on the brain, similar to the neurological effects seen with gambling addicts, drug addicts, and alcoholics. See Todd Love et al., Neuroscience of Internet Pornography Addition: A Review and Update, 5(3)

Behavioral Sciences 388 (2015); Simone Kühn & Jürgen Gallinat, Brain Structure and Functional Connectivity Associated with Pornography Consumption: the Brain on Porn, JAMA Psychiatry (July 2014), https://perma.cc/YAE3-WWVB. “[P]ornography consumption is associated with decreased brain volume in the right striatum, decreased left striatum activation, and lower functional connectivity to the prefrontal cortex.” Id. And the effects are most pronounced among minors. “Adolescents are more susceptible to sexually explicit material because of the significant physical, emotional, cognitive, social, spiritual, and sexual changes associated with adolescent development.” Romney, Screens, Teens, and Porn Scenes, supra at 52; Jennifer A. Brown & Jonathan Wisco, The Components of the Adolescent Brain and Its Unique Sensitivity to Sexually Explicit Material, 72 J. Adolescence 10, 11–12 (2019).

An age-verification rule is necessary not only because companies are flouting Missouri law, but also to give parents adequate tools to protect their children from the many harmful effects of minors viewing pornography. Parents “who have this primary responsibility for children’s well-being are entitled to the support of laws designed to aid discharge of that responsibility.” Ginsberg, 390 U.S. at 639.

Missouri law already requires age verification. This regulation enhances the tools to facilitate compliance with Missouri law.

This proposed rule clarifies that the failure of an individual or commercial entity to use certain commercially reasonable age verification technology to protect minors in Missouri from accessing sexually explicit content online constitutes an “unfair practice” under the MMPA. Age verification, including online age verification, has long been required to purchase agerestricted items or to engage in other age-restricted activities.

The MMPA currently contains other age verification measures such as those relating to the sale of tobacco or vape products or the purchase of precious metals. section 407.292; 407.926, RSMo. Furthermore, nothing in this proposed rule limits the ability of adults to view sexually explicit material online.

The proposed rule simply requires that purveyors of online pornography take certain minimum, commercially reasonable steps to ensure that they are not recklessly or knowingly inflicting significant (and well documented) harms on Missouri’s children.

(1) It is an unfair, deceptive, fraudulent, or otherwise unlawful practice for any person or commercial entity to operate a website, application, or self-contained sexual content segment, including a social media platform, knowing (or with reckless disregard about the fact) that the website, application, or self-contained sexual content segment contains a substantial portion of material pornographic for minors and is accessible in the state of Missouri, unless such individual or commercial entity uses reasonable age verification methods as described by 15 CSR 60-18.030 to verify that the individual attempting to access the website, application, or self-contained segment of the website or application is eighteen (18) years of age or older.

This section shall not apply to search engines.

(2) Any person or commercial entity covered by 15 CSR 60- 18.020(1) that performs the age verification, or any third party that performs the age verification required by 15 CSR 60- 18.020(1), may not retain any identifying information of the individual whose age is being verified unless retention of the identifying information is otherwise required by law or a court order.

(3) Any person or commercial entity covered by this chapter that performs the age verification required by 15 CSR 60-18.020(1), or any third party that performs the age verification required by 15 CSR 60-18.020(1), must use commercially reasonable methods to secure all information collected and transmitted under this chapter.

Nov. 30, 2025. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986, 1992, 1994, 1995,

15 CSR 60-18.030 Reasonable Age Verification Methods {#sec-15-csr-60-18.030 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-18.030}

PURPOSE: This rule specifies methods by which commercial entities, as defined under this chapter, may comply with ageverification requirements contained in the chapter.

(1) A commercial entity that operates a website or application subject to 15 CSR 60-18.020(1), and any third party that performs age verification under this chapter, shall require an individual to— (A) Provide digital identification; or (B) Comply with a commercial age verification system that verifies age using— 1. Government-issued identification; or 2. A commercially reasonable method that relies on public or private transactional data to verify the age of the individual.

(2) A commercial entity may adopt a different method of compliance so long as the entity can establish to the agency in charge of promulgating rules under the Missouri Merchandising Practices Act (MMPA), Chapter 407, RSMo, that the alternative method is equally effective. The standard of proof shall be a preponderance of the evidence.

Nov. 30, 2025. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986, 1992, 1994, 1995,

15 CSR 60-18.040 Applicability of This Rule {#sec-15-csr-60-18.040 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-18.040}

PURPOSE: This rule provides exceptions for certain entities with regard to the age-verification requirements contained in this

chapter.

(1) The provisions of 15 CSR 60-18.010 through 15 CSR 60-18.070 do not apply to a bona fide news or public interest broadcast, news recording, report, or event and shall not be construed to affect the rights of a news-gathering organization.

(2) An internet service provider, or its affiliates or subsidiaries, a search engine, or a cloud service provider shall not be held to have violated this rulemaking solely for providing access or connection to or from a website or other information or content on the internet or on a facility, system, or network not under that provider’s control, including transmission, downloading, intermediate storage, access software, or other services to the extent the provider or search engine is not responsible for the creation of the content that constitutes material pornographic to minors.

Nov. 30, 2025. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986, 1992, 1994, 1995,

15 CSR 60-18.050 Counting Violations {#sec-15-csr-60-18.050 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-18.050}

PURPOSE: This rule specifies the procedures for, and limitations on, the counting of instances of a violation of any of the provisions of this chapter.

(1) For purposes of civil penalties under section 407.100, RSMo, each time an individual accesses a website or application not in compliance with 15 CSR 60-18.020 shall constitute a separate violation, but in no event shall an entity accrue more than ten thousand dollars ($10,000) in violations in a single day.

Nov. 30, 2025. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986, 1992, 1994, 1995,

15 CSR 60-18.070 Severability, Construction, and Effective Date {#sec-15-csr-60-18.070 omnilex-key=us-mo-regs-official--title-15--15 CSR 60-18.070}

PURPOSE: This rule specifies the applicability, severability, and construction of the rules contained in this chapter.

(1) This chapter applies to the maximum extent permitted by the United States Constitution, the laws of the United States, the Constitution of Missouri, and the laws of Missouri, but no further.

(2) This chapter does not subject any individual or commercial entity to damages or other legal remedies to the extent the individual or commercial entity is protected from those remedies under federal law.

(3) It is not a violation of this chapter if the actions or conduct are taken at the behest of federal agencies, contractors, or employees that are carrying out official duties under federal law if doing so would violate the doctrines of preemption or intergovernmental immunity.

(4) If any application of any provision, word, or clause to any person, commercial entity, or circumstance is found by a court to be invalid, that application alone shall be severed and the remaining possible applications of every provision, word, and clause to all other persons, commercial entities, and circumstances shall remain in force.

Nov. 30, 2025. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986, 1992, 1994, 1995,