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Missouri Senate Bill SB165

Missouri 2025 Regular Session

Missouri Senate Bill SB165 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 165
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR GREGORY (21).
66 0980S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To repeal section 301.560, RSMo, and to enact in lieu thereof one new section relating to vehicle
99 dealers.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Section 301.560, RSMo, is repealed and one new 1
1313 section enacted in lieu thereof, to be known as section 301.560, 2
1414 to read as follows:3
1515 301.560. 1. In addition to the application forms 1
1616 prescribed by the department, each applicant shall submit 2
1717 the following to the department: 3
1818 (1) Every application other than an application for a 4
1919 new motor vehicle franchise dealer where the applicant is a 5
2020 retailer that sells agricultural supplies and is under 6
2121 common ownership and control with at least five other new 7
2222 motor vehicle franchise dealers doi ng business under the 8
2323 same name, or a renewal application for a new motor vehicle 9
2424 franchise dealer shall include a certification that the 10
2525 applicant has a bona fide established place of business. 11
2626 Such application shall include an annual certification t hat 12
2727 the applicant has a bona fide established place of business 13
2828 for the first three years and only for every other year 14
2929 thereafter. The certification shall be performed by a 15
3030 uniformed member of the Missouri state highway patrol or 16
3131 authorized or designated employee stationed in the troop 17
3232 area in which the applicant's place of business is located; 18 SB 165 2
3333 except that in counties of the first classification, 19
3434 certification may be performed by an officer of a 20
3535 metropolitan police department when the applicant's 21
3636 established place of business of distributing or selling 22
3737 motor vehicles or trailers is in the metropolitan area where 23
3838 the certifying metropolitan police officer is employed. 24
3939 When the application is being made for licensure as a boat 25
4040 manufacturer or boat dealer, certification shall be 26
4141 performed by a uniformed member of the Missouri state 27
4242 highway patrol or authorized or designated employee 28
4343 stationed in the troop area in which the applicant's place 29
4444 of business is located or, if the applicant's place of 30
4545 business is located within the jurisdiction of a 31
4646 metropolitan police department in a first class county, by 32
4747 an officer of such metropolitan police department. A bona 33
4848 fide established place of business for any new motor vehicle 34
4949 franchise dealer, used motor vehicle dealer, boat dealer, 35
5050 powersport dealer, wholesale motor vehicle dealer, trailer 36
5151 dealer, or wholesale or public auction shall be a permanent 37
5252 enclosed building or structure, either owned in fee or 38
5353 leased and actually occupied as a place of business by the 39
5454 applicant for the selling, bartering, trading, servicing, or 40
5555 exchanging of motor vehicles, boats, personal watercraft, or 41
5656 trailers and wherein the public may contact the owner or 42
5757 operator at any reasonable time, and wherein shall be kept 43
5858 and maintained the books, records, files and other matters 44
5959 required and necessary to conduct the business. The 45
6060 applicant shall maintain a working telephone number during 46
6161 the entire registration year which will allow the public, 47
6262 the department, and law enforcement to contact the applicant 48
6363 during regular business hours. The applicant shall also 49
6464 maintain an email address during the entire registration 50 SB 165 3
6565 year which may be used for official correspondence with the 51
6666 department. In order to qualify as a bona fide established 52
6767 place of business for all applicants licensed pursuant to 53
6868 this section there shall be an exterior sign displayed 54
6969 carrying the name of the business set forth in letters at 55
7070 least six inches in height and clearly visible to the public 56
7171 and there shall be an area or lot which shall not be a 57
7272 public street on which multiple vehicles, boats, personal 58
7373 watercraft, or trailers may be displayed. The sign shall 59
7474 contain the name of the dealership by which it is known to 60
7575 the public through advertising or otherwise, which need not 61
7676 be identical to the name appearing on the dealership's 62
7777 license so long as such name is registered as a fictitious 63
7878 name with the secretary of state, has been approved by its 64
7979 line-make manufacturer in writing in the case of a new motor 65
8080 vehicle franchise dealer and a copy of such fictitious name 66
8181 registration has been provided to the department. Dealers 67
8282 who sell only emergency vehicles as defined in section 68
8383 301.550 are exempt from maintaining a bona fide pl ace of 69
8484 business, including the related law enforcement 70
8585 certification requirements, and from meeting the minimum 71
8686 yearly sales; 72
8787 (2) The initial application for licensure shall 73
8888 include a photograph, not to exceed eight inches by ten 74
8989 inches but no less than five inches by seven inches, showing 75
9090 the business building, lot, and sign. A new motor vehicle 76
9191 franchise dealer applicant who has purchased a currently 77
9292 licensed new motor vehicle franchised dealership shall be 78
9393 allowed to submit a photograph o f the existing dealership 79
9494 building, lot and sign but shall be required to submit a new 80
9595 photograph upon the installation of the new dealership sign 81
9696 as required by sections 301.550 to 301.580. Applicants 82 SB 165 4
9797 shall not be required to submit a photograph annu ally unless 83
9898 the business has moved from its previously licensed 84
9999 location, or unless the name of the business or address has 85
100100 changed, or unless the class of business has changed; 86
101101 (3) Every applicant as a new motor vehicle franchise 87
102102 dealer, a used motor vehicle dealer, a powersport dealer, a 88
103103 wholesale motor vehicle dealer, trailer dealer, or boat 89
104104 dealer shall furnish with the application a corporate surety 90
105105 bond or an irrevocable letter of credit as defined in 91
106106 section 400.5-102, issued by any sta te or federal financial 92
107107 institution in the penal sum of fifty thousand dollars on a 93
108108 form approved by the department. The bond or irrevocable 94
109109 letter of credit shall be conditioned upon the dealer 95
110110 complying with the provisions of the statutes applicable to 96
111111 new motor vehicle franchise dealers, used motor vehicle 97
112112 dealers, powersport dealers, wholesale motor vehicle 98
113113 dealers, trailer dealers, and boat dealers, and the bond 99
114114 shall be an indemnity for any loss sustained by reason of 100
115115 the acts of the person bonded when such acts constitute 101
116116 grounds for the suspension or revocation of the dealer's 102
117117 license. The bond shall be executed in the name of the 103
118118 state of Missouri for the benefit of all aggrieved parties 104
119119 or the irrevocable letter of credit shall name the state of 105
120120 Missouri as the beneficiary; except, that the aggregate 106
121121 liability of the surety or financial institution to the 107
122122 aggrieved parties shall, in no event, exceed the amount of 108
123123 the bond or irrevocable letter of credit. Additionally, 109
124124 every applicant as a new motor vehicle franchise dealer, a 110
125125 used motor vehicle dealer, a powersport dealer, a wholesale 111
126126 motor vehicle dealer, or boat dealer shall furnish with the 112
127127 application a copy of a current dealer garage policy bearing 113
128128 the policy number and name of the insurer and the insured. 114 SB 165 5
129129 The proceeds of the bond or irrevocable letter of credit 115
130130 furnished by an applicant shall be paid upon receipt by the 116
131131 department of a final judgment from a Missouri court of 117
132132 competent jurisdiction against the princi pal and in favor of 118
133133 an aggrieved party. The proceeds of the bond or irrevocable 119
134134 letter of credit furnished by an applicant shall be paid at 120
135135 the order of the department and in the amount determined by 121
136136 the department to any buyer or interested lienholde r up to 122
137137 the greater of the amount required for the release of the 123
138138 purchase money lien or the sales price paid by the buyer 124
139139 where a dealer has failed to fulfill the dealer's 125
140140 obligations under an agreement to assign and deliver title 126
141141 to the buyer within thirty days under a contract entered 127
142142 into pursuant to subsection 5 of section 301.210. The 128
143143 department shall direct release of the bond or irrevocable 129
144144 letter of credit proceeds upon presentation of a written 130
145145 agreement entered into pursuant to subsecti on 5 of section 131
146146 301.210, copies of the associated sales and finance 132
147147 documents, and the affidavit or affidavits of the buyer or 133
148148 lienholder stating that the certificate of title with 134
149149 assignment thereof has not been passed to the buyer within 135
150150 thirty days of the date of the contract entered into under 136
151151 subsection 5 of section 301.210, that the dealer has not 137
152152 fulfilled the agreement under the contract to repurchase the 138
153153 vehicle, that the buyer or the lienholder has notified the 139
154154 dealer of the claim on the bond or letter of credit, and the 140
155155 amount claimed by the purchaser or lienholder. In addition, 141
156156 prior to directing release and payment of the proceeds of a 142
157157 bond or irrevocable letter of credit, the department shall 143
158158 ensure that there is satisfactory evid ence to establish that 144
159159 the vehicle which is subject to the written agreement has 145
160160 been returned by the buyer to the dealer or that the buyer 146 SB 165 6
161161 has represented to the department that the buyer will 147
162162 surrender possession of the vehicle to the dealer upon 148
163163 payment of the proceeds of the bond or letter of credit 149
164164 directed by the department. Excepting ordinary wear and 150
165165 tear or mechanical failures not caused by the buyer, the 151
166166 amount of proceeds to be paid to the buyer under the bond or 152
167167 irrevocable letter of c redit shall be reduced by an amount 153
168168 equivalent to any damage, abuse, or destruction incurred by 154
169169 the vehicle while the vehicle was in the buyer's possession 155
170170 as agreed between the buyer and the dealer. The dealer may 156
171171 apply to a court of competent jurisd iction to contest the 157
172172 claim on the bond or letter of credit, including the amount 158
173173 of the claim and the amount of any adjustment for any 159
174174 damage, abuse, or destruction, by filing a petition with the 160
175175 court within thirty days of the notification by the buy er or 161
176176 lienholder. If the dealer does not fulfill the agreement or 162
177177 file a petition to request judicial relief from the terms of 163
178178 the agreement or contest the amount of the claim, the bond 164
179179 or letter of credit shall be released by the department and 165
180180 directed paid in the amount or amounts presented by the 166
181181 lienholder or buyer; 167
182182 (4) Payment of all necessary license fees as 168
183183 established by the department. In establishing the amount 169
184184 of the annual license fees, the department shall, as near as 170
185185 possible, produce sufficient total income to offset 171
186186 operational expenses of the department relating to the 172
187187 administration of sections 301.550 to 301.580. All fees 173
188188 payable pursuant to the provisions of sections 301.550 to 174
189189 301.580, other than those fees collect ed for the issuance of 175
190190 dealer plates or certificates of number collected pursuant 176
191191 to subsection 6 of this section, shall be collected by the 177
192192 department for deposit in the state treasury to the credit 178 SB 165 7
193193 of the "Motor Vehicle Commission Fund", which is her eby 179
194194 created. The motor vehicle commission fund shall be 180
195195 administered by the Missouri department of revenue. The 181
196196 provisions of section 33.080 to the contrary 182
197197 notwithstanding, money in such fund shall not be transferred 183
198198 and placed to the credit of the general revenue fund until 184
199199 the amount in the motor vehicle commission fund at the end 185
200200 of the biennium exceeds two times the amount of the 186
201201 appropriation from such fund for the preceding fiscal year 187
202202 or, if the department requires permit renewal less 188
203203 frequently than yearly, then three times the appropriation 189
204204 from such fund for the preceding fiscal year. The amount, 190
205205 if any, in the fund which shall lapse is that amount in the 191
206206 fund which exceeds the multiple of the appropriation from 192
207207 such fund for the preceding fiscal year. 193
208208 2. In the event a new vehicle manufacturer, boat 194
209209 manufacturer, motor vehicle dealer, wholesale motor vehicle 195
210210 dealer, boat dealer, powersport dealer, wholesale motor 196
211211 vehicle auction, trailer dealer, or a public motor vehicle 197
212212 auction submits an application for a license for a new 198
213213 business and the applicant has complied with all the 199
214214 provisions of this section, the department shall make a 200
215215 decision to grant or deny the license to the applicant 201
216216 within eight working hours after receipt of the dealer's 202
217217 application, notwithstanding any rule of the department. 203
218218 3. Except as otherwise provided in subsection 6 of 204
219219 this section, upon the initial issuance of a license by the 205
220220 department, the department shall assign a distinctive dealer 206
221221 license number or certificate of number to the applicant and 207
222222 the department shall issue one number plate or certificate 208
223223 bearing the distinctive dealer license number or certificate 209
224224 of number and two additional number plates or certificates 210 SB 165 8
225225 of number within eight working hours after presentment of 211
226226 the application and payment by the applicant of a fee of 212
227227 fifty dollars for the first plate or certificate and ten 213
228228 dollars and fifty cents for each additional plate or 214
229229 certificate. Upon renewal, the department shall issue the 215
230230 distinctive dealer license number or certificate of number 216
231231 as quickly as possible. The issuance of such distinctive 217
232232 dealer license number or certificate of number shall be in 218
233233 lieu of registering each motor vehicle, trailer, vessel or 219
234234 vessel trailer dealt with by a boat dealer, boat 220
235235 manufacturer, manufacturer, public motor vehicle auction, 221
236236 wholesale motor vehicle dealer, wholesale motor vehicle 222
237237 auction or new or used motor vehicle dealer. The license 223
238238 plates described in this section shall be made with fully 224
239239 reflective material with a common color scheme and design, 225
240240 shall be clearly visible at night, and shall be 226
241241 aesthetically attractive, as prescribed by section 301.130. 227
242242 4. Notwithstanding any other provision of the law to 228
243243 the contrary, the department shall assign the following 229
244244 distinctive dealer license numbers to: 230
245245 231 New motor vehicle franchise dealers D-0 through D-999
246246 232 New powersport dealers D-1000 through D-1999
247247 233
248248 234
249249 Used motor vehicle and used
250250 powersport dealers
251251 D-2000 through D-9999
252252 235 Wholesale motor vehicle dealers W-0 through W-1999
253253 236 Wholesale motor vehicle auctions WA-0 through WA-999
254254 237 New and used trailer dealers T-0 through T-9999
255255 238
256256 239
257257 Motor vehicle, trailer, and boat
258258 manufacturers
259259 DM-0 through DM-999 SB 165 9
260260 For purposes of this subsection, qualified transactions 244
261261 shall include the purchase of salvage titled vehicles by a 245
262262 licensed salvage dealer. A used motor vehicle dealer who 246
263263 also holds a salvage dealer's license shall be allowed one 247
264264 additional plate or certificate number per fifty -unit 248
265265 qualified transactions annually. In order for salvage 249
266266 dealers to obtain number plates or certificates under this 250
267267 section, dealers shall submit to the department of revenue 251
268268 on August first of each year a statement certifying, under 252
269269 penalty of perjury, the dealer's number of purchases during 253
270270 the reporting period of July first of the immediately 254
271271 preceding year to June thirtieth of the present year. The 255
272272 provisions of this subsection shall become effec tive on the 256
273273 date the director of the department of revenue begins to 257
274274 reissue new license plates under section 301.130, or on 258
275275 December 1, 2008, whichever occurs first. If the director 259
276276 of revenue begins reissuing new license plates under the 260
277277 authority granted under section 301.130 prior to December 1, 261
278278 2008, the director of the department of revenue shall notify 262
279279 the revisor of statutes of such fact. 263
280280 5. Upon the sale of a currently licensed motor vehicle 264
281281 dealership the department shall, upon requ est, authorize the 265
282282 new approved dealer applicant to retain the selling dealer's 266
283283 license number and shall cause the new dealer's records to 267
284284 indicate such transfer. If the new approved dealer 268
285285 240 Public motor vehicle auctions A-0 through A-1999
286286 241 Boat dealers M-0 through M-9999
287287 242
288288 243
289289 New and used recreational motor
290290 vehicle dealers
291291 RV-0 through RV-999 SB 165 10
292292 applicant elects not to retain the selling dealer's license 269
293293 number, the department shall issue the new dealer applicant 270
294294 a new dealer's license number and an equal number of plates 271
295295 or certificates as the department had issued to the selling 272
296296 dealer. 273
297297 6. In the case of motor vehicle dealers, the 274
298298 department shall issue one number plate bearing the 275
299299 distinctive dealer license number and may issue one 276
300300 additional number plate to the applicant upon payment by the 277
301301 dealer of a fifty dollar fee for the number plate bearing 278
302302 the distinctive dealer license number and ten dollars and 279
303303 fifty cents for the additional number plate. The department 280
304304 may issue a third plate to the motor vehicle dealer upon 281
305305 completion of the dealer's fifteenth qualified transaction 282
306306 and payment of a fee of ten dollars and fifty cents. In the 283
307307 case of new motor vehicle manufacturers, powersport dealers, 284
308308 recreational motor vehicle dealers, and trailer dealers, the 285
309309 department shall issue one number plate bearing the 286
310310 distinctive dealer license number and may issue two 287
311311 additional number plates to the applicant upon payment by 288
312312 the manufacturer or dealer of a fifty dollar fee for the 289
313313 number plate bearing the distinctive dealer license number 290
314314 and ten dollars and fifty cents for each additional number 291
315315 plate. Boat dealers and boat manufacturers shall be 292
316316 entitled to one certificate of number bearing such number 293
317317 upon the payment of a fifty dollar fee. Additional number 294
318318 plates and as many additional certificates of number may be 295
319319 obtained upon payment of a fee of ten dollars and fifty 296
320320 cents for each additional plate or certificate. New motor 297
321321 vehicle manufacturers shall not be issued or possess more 298
322322 than three hundred forty -seven additional number plates or 299
323323 certificates of number annually. New and used motor vehicle 300 SB 165 11
324324 dealers, powersport dea lers, wholesale motor vehicle 301
325325 dealers, boat dealers, and trailer dealers are limited to 302
326326 one additional plate or certificate of number per ten -unit 303
327327 qualified transactions annually. New and used recreational 304
328328 motor vehicle dealers are limited to two addi tional plates 305
329329 or certificate of number per ten -unit qualified transactions 306
330330 annually for their first fifty transactions and one 307
331331 additional plate or certificate of number per ten -unit 308
332332 qualified transactions thereafter. An applicant seeking the 309
333333 issuance of an initial license shall indicate on his or her 310
334334 initial application the applicant's proposed annual number 311
335335 of sales in order for the director to issue the appropriate 312
336336 number of additional plates or certificates of number. A 313
337337 motor vehicle dealer, t railer dealer, boat dealer, 314
338338 powersport dealer, recreational motor vehicle dealer, motor 315
339339 vehicle manufacturer, boat manufacturer, or wholesale motor 316
340340 vehicle dealer obtaining a distinctive dealer license plate 317
341341 or certificate of number or additional licen se plate or 318
342342 additional certificate of number, throughout the calendar 319
343343 year, shall be required to pay a fee for such license plates 320
344344 or certificates of number computed on the basis of one - 321
345345 twelfth of the full fee prescribed for the original and 322
346346 duplicate number plates or certificates of number for such 323
347347 dealers' licenses, multiplied by the number of months 324
348348 remaining in the licensing period for which the dealer or 325
349349 manufacturers shall be required to be licensed. In the 326
350350 event of a renewing dealer, the fe e due at the time of 327
351351 renewal shall not be prorated. Wholesale and public 328
352352 auctions shall be issued a certificate of dealer 329
353353 registration in lieu of a dealer number plate. In order for 330
354354 dealers to obtain number plates or certificates under this 331
355355 section, dealers shall submit to the department of revenue 332 SB 165 12
356356 on August first of each year a statement certifying, under 333
357357 penalty of perjury, the dealer's number of sales during the 334
358358 reporting period of July first of the immediately preceding 335
359359 year to June thirtieth of the present year. 336
360360 7. The plates issued pursuant to subsection 3 or 6 of 337
361361 this section may be displayed on any motor vehicle owned by 338
362362 a new motor vehicle manufacturer. The plates issued 339
363363 pursuant to subsection 3 or 6 of this section may be 340
364364 displayed on any motor vehicle or trailer owned and held for 341
365365 resale by a motor vehicle dealer for use by a customer who 342
366366 is test driving the motor vehicle, for use by any customer 343
367367 while the customer's vehicle is being serviced or repaired 344
368368 by the motor vehicle dealer, for use and display purposes 345
369369 during, but not limited to, parades, private events, 346
370370 charitable events, or for use by an employee or officer, but 347
371371 shall not be displayed on any motor vehicle or trailer hired 348
372372 or loaned to others or upon any regul arly used service or 349
373373 wrecker vehicle. Motor vehicle dealers may display their 350
374374 dealer plates on a tractor, truck or trailer to demonstrate 351
375375 a vehicle under a loaded condition. Trailer dealers may 352
376376 display their dealer license plates in like manner, exce pt 353
377377 such plates may only be displayed on trailers owned and held 354
378378 for resale by the trailer dealer. 355
379379 8. The certificates of number issued pursuant to 356
380380 subsection 3 or 6 of this section may be displayed on any 357
381381 vessel or vessel trailer owned and held f or resale by a boat 358
382382 manufacturer or a boat dealer, and used by a customer who is 359
383383 test driving the vessel or vessel trailer, or is used by an 360
384384 employee or officer on a vessel or vessel trailer only, but 361
385385 shall not be displayed on any motor vehicle owned b y a boat 362
386386 manufacturer, boat dealer, or trailer dealer, or vessel or 363
387387 vessel trailer hired or loaned to others or upon any 364 SB 165 13
388388 regularly used service vessel or vessel trailer. Boat 365
389389 dealers and boat manufacturers may display their certificate 366
390390 of number on a vessel or vessel trailer when transporting a 367
391391 vessel or vessels to an exhibit or show. 368
392392 9. If any law enforcement officer has probable cause 369
393393 to believe that any license plate or certificate of number 370
394394 issued under subsection 3 or 6 of this section i s being 371
395395 misused in violation of subsection 7 or 8 of this section, 372
396396 the license plate or certificate of number may be seized and 373
397397 surrendered to the department. 374
398398 10. (1) Every application for the issuance of a used 375
399399 motor vehicle dealer's license sh all be accompanied by proof 376
400400 that the applicant, within the last twelve months, has 377
401401 completed an educational seminar course approved by the 378
402402 department as prescribed by subdivision (2) of this 379
403403 subsection. Wholesale and public auto auctions and 380
404404 applicants currently holding a new or used license for a 381
405405 separate dealership shall be exempt from the requirements of 382
406406 this subsection. The provisions of this subsection shall 383
407407 not apply to current new motor vehicle franchise dealers or 384
408408 motor vehicle leasing ag encies or applicants for a new motor 385
409409 vehicle franchise or a motor vehicle leasing agency. The 386
410410 provisions of this subsection shall not apply to used motor 387
411411 vehicle dealers who were licensed prior to August 28, 2006. 388
412412 (2) The educational seminar shal l include, but is not 389
413413 limited to, the dealer requirements of sections 301.550 to 390
414414 301.580, the rules promulgated to implement, enforce, and 391
415415 administer sections 301.550 to 301.580, and any other rules 392
416416 and regulations promulgated by the department. 393
417417