FIRST REGULAR SESSION
SENATE BILL NO. 165
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (21).
0980S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 301.560, RSMo, and to enact in lieu thereof one new section relating to vehicle
dealers.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 301.560, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 301.560, 2
to read as follows:3
301.560. 1. In addition to the application forms 1
prescribed by the department, each applicant shall submit 2
the following to the department: 3
(1) Every application other than an application for a 4
new motor vehicle franchise dealer where the applicant is a 5
retailer that sells agricultural supplies and is under 6
common ownership and control with at least five other new 7
motor vehicle franchise dealers doi ng business under the 8
same name, or a renewal application for a new motor vehicle 9
franchise dealer shall include a certification that the 10
applicant has a bona fide established place of business. 11
Such application shall include an annual certification t hat 12
the applicant has a bona fide established place of business 13
for the first three years and only for every other year 14
thereafter. The certification shall be performed by a 15
uniformed member of the Missouri state highway patrol or 16
authorized or designated employee stationed in the troop 17
area in which the applicant's place of business is located; 18 SB 165 2
except that in counties of the first classification, 19
certification may be performed by an officer of a 20
metropolitan police department when the applicant's 21
established place of business of distributing or selling 22
motor vehicles or trailers is in the metropolitan area where 23
the certifying metropolitan police officer is employed. 24
When the application is being made for licensure as a boat 25
manufacturer or boat dealer, certification shall be 26
performed by a uniformed member of the Missouri state 27
highway patrol or authorized or designated employee 28
stationed in the troop area in which the applicant's place 29
of business is located or, if the applicant's place of 30
business is located within the jurisdiction of a 31
metropolitan police department in a first class county, by 32
an officer of such metropolitan police department. A bona 33
fide established place of business for any new motor vehicle 34
franchise dealer, used motor vehicle dealer, boat dealer, 35
powersport dealer, wholesale motor vehicle dealer, trailer 36
dealer, or wholesale or public auction shall be a permanent 37
enclosed building or structure, either owned in fee or 38
leased and actually occupied as a place of business by the 39
applicant for the selling, bartering, trading, servicing, or 40
exchanging of motor vehicles, boats, personal watercraft, or 41
trailers and wherein the public may contact the owner or 42
operator at any reasonable time, and wherein shall be kept 43
and maintained the books, records, files and other matters 44
required and necessary to conduct the business. The 45
applicant shall maintain a working telephone number during 46
the entire registration year which will allow the public, 47
the department, and law enforcement to contact the applicant 48
during regular business hours. The applicant shall also 49
maintain an email address during the entire registration 50 SB 165 3
year which may be used for official correspondence with the 51
department. In order to qualify as a bona fide established 52
place of business for all applicants licensed pursuant to 53
this section there shall be an exterior sign displayed 54
carrying the name of the business set forth in letters at 55
least six inches in height and clearly visible to the public 56
and there shall be an area or lot which shall not be a 57
public street on which multiple vehicles, boats, personal 58
watercraft, or trailers may be displayed. The sign shall 59
contain the name of the dealership by which it is known to 60
the public through advertising or otherwise, which need not 61
be identical to the name appearing on the dealership's 62
license so long as such name is registered as a fictitious 63
name with the secretary of state, has been approved by its 64
line-make manufacturer in writing in the case of a new motor 65
vehicle franchise dealer and a copy of such fictitious name 66
registration has been provided to the department. Dealers 67
who sell only emergency vehicles as defined in section 68
301.550 are exempt from maintaining a bona fide pl ace of 69
business, including the related law enforcement 70
certification requirements, and from meeting the minimum 71
yearly sales; 72
(2) The initial application for licensure shall 73
include a photograph, not to exceed eight inches by ten 74
inches but no less than five inches by seven inches, showing 75
the business building, lot, and sign. A new motor vehicle 76
franchise dealer applicant who has purchased a currently 77
licensed new motor vehicle franchised dealership shall be 78
allowed to submit a photograph o f the existing dealership 79
building, lot and sign but shall be required to submit a new 80
photograph upon the installation of the new dealership sign 81
as required by sections 301.550 to 301.580. Applicants 82 SB 165 4
shall not be required to submit a photograph annu ally unless 83
the business has moved from its previously licensed 84
location, or unless the name of the business or address has 85
changed, or unless the class of business has changed; 86
(3) Every applicant as a new motor vehicle franchise 87
dealer, a used motor vehicle dealer, a powersport dealer, a 88
wholesale motor vehicle dealer, trailer dealer, or boat 89
dealer shall furnish with the application a corporate surety 90
bond or an irrevocable letter of credit as defined in 91
section 400.5-102, issued by any sta te or federal financial 92
institution in the penal sum of fifty thousand dollars on a 93
form approved by the department. The bond or irrevocable 94
letter of credit shall be conditioned upon the dealer 95
complying with the provisions of the statutes applicable to 96
new motor vehicle franchise dealers, used motor vehicle 97
dealers, powersport dealers, wholesale motor vehicle 98
dealers, trailer dealers, and boat dealers, and the bond 99
shall be an indemnity for any loss sustained by reason of 100
the acts of the person bonded when such acts constitute 101
grounds for the suspension or revocation of the dealer's 102
license. The bond shall be executed in the name of the 103
state of Missouri for the benefit of all aggrieved parties 104
or the irrevocable letter of credit shall name the state of 105
Missouri as the beneficiary; except, that the aggregate 106
liability of the surety or financial institution to the 107
aggrieved parties shall, in no event, exceed the amount of 108
the bond or irrevocable letter of credit. Additionally, 109
every applicant as a new motor vehicle franchise dealer, a 110
used motor vehicle dealer, a powersport dealer, a wholesale 111
motor vehicle dealer, or boat dealer shall furnish with the 112
application a copy of a current dealer garage policy bearing 113
the policy number and name of the insurer and the insured. 114 SB 165 5
The proceeds of the bond or irrevocable letter of credit 115
furnished by an applicant shall be paid upon receipt by the 116
department of a final judgment from a Missouri court of 117
competent jurisdiction against the princi pal and in favor of 118
an aggrieved party. The proceeds of the bond or irrevocable 119
letter of credit furnished by an applicant shall be paid at 120
the order of the department and in the amount determined by 121
the department to any buyer or interested lienholde r up to 122
the greater of the amount required for the release of the 123
purchase money lien or the sales price paid by the buyer 124
where a dealer has failed to fulfill the dealer's 125
obligations under an agreement to assign and deliver title 126
to the buyer within thirty days under a contract entered 127
into pursuant to subsection 5 of section 301.210. The 128
department shall direct release of the bond or irrevocable 129
letter of credit proceeds upon presentation of a written 130
agreement entered into pursuant to subsecti on 5 of section 131
301.210, copies of the associated sales and finance 132
documents, and the affidavit or affidavits of the buyer or 133
lienholder stating that the certificate of title with 134
assignment thereof has not been passed to the buyer within 135
thirty days of the date of the contract entered into under 136
subsection 5 of section 301.210, that the dealer has not 137
fulfilled the agreement under the contract to repurchase the 138
vehicle, that the buyer or the lienholder has notified the 139
dealer of the claim on the bond or letter of credit, and the 140
amount claimed by the purchaser or lienholder. In addition, 141
prior to directing release and payment of the proceeds of a 142
bond or irrevocable letter of credit, the department shall 143
ensure that there is satisfactory evid ence to establish that 144
the vehicle which is subject to the written agreement has 145
been returned by the buyer to the dealer or that the buyer 146 SB 165 6
has represented to the department that the buyer will 147
surrender possession of the vehicle to the dealer upon 148
payment of the proceeds of the bond or letter of credit 149
directed by the department. Excepting ordinary wear and 150
tear or mechanical failures not caused by the buyer, the 151
amount of proceeds to be paid to the buyer under the bond or 152
irrevocable letter of c redit shall be reduced by an amount 153
equivalent to any damage, abuse, or destruction incurred by 154
the vehicle while the vehicle was in the buyer's possession 155
as agreed between the buyer and the dealer. The dealer may 156
apply to a court of competent jurisd iction to contest the 157
claim on the bond or letter of credit, including the amount 158
of the claim and the amount of any adjustment for any 159
damage, abuse, or destruction, by filing a petition with the 160
court within thirty days of the notification by the buy er or 161
lienholder. If the dealer does not fulfill the agreement or 162
file a petition to request judicial relief from the terms of 163
the agreement or contest the amount of the claim, the bond 164
or letter of credit shall be released by the department and 165
directed paid in the amount or amounts presented by the 166
lienholder or buyer; 167
(4) Payment of all necessary license fees as 168
established by the department. In establishing the amount 169
of the annual license fees, the department shall, as near as 170
possible, produce sufficient total income to offset 171
operational expenses of the department relating to the 172
administration of sections 301.550 to 301.580. All fees 173
payable pursuant to the provisions of sections 301.550 to 174
301.580, other than those fees collect ed for the issuance of 175
dealer plates or certificates of number collected pursuant 176
to subsection 6 of this section, shall be collected by the 177
department for deposit in the state treasury to the credit 178 SB 165 7
of the "Motor Vehicle Commission Fund", which is her eby 179
created. The motor vehicle commission fund shall be 180
administered by the Missouri department of revenue. The 181
provisions of section 33.080 to the contrary 182
notwithstanding, money in such fund shall not be transferred 183
and placed to the credit of the general revenue fund until 184
the amount in the motor vehicle commission fund at the end 185
of the biennium exceeds two times the amount of the 186
appropriation from such fund for the preceding fiscal year 187
or, if the department requires permit renewal less 188
frequently than yearly, then three times the appropriation 189
from such fund for the preceding fiscal year. The amount, 190
if any, in the fund which shall lapse is that amount in the 191
fund which exceeds the multiple of the appropriation from 192
such fund for the preceding fiscal year. 193
2. In the event a new vehicle manufacturer, boat 194
manufacturer, motor vehicle dealer, wholesale motor vehicle 195
dealer, boat dealer, powersport dealer, wholesale motor 196
vehicle auction, trailer dealer, or a public motor vehicle 197
auction submits an application for a license for a new 198
business and the applicant has complied with all the 199
provisions of this section, the department shall make a 200
decision to grant or deny the license to the applicant 201
within eight working hours after receipt of the dealer's 202
application, notwithstanding any rule of the department. 203
3. Except as otherwise provided in subsection 6 of 204
this section, upon the initial issuance of a license by the 205
department, the department shall assign a distinctive dealer 206
license number or certificate of number to the applicant and 207
the department shall issue one number plate or certificate 208
bearing the distinctive dealer license number or certificate 209
of number and two additional number plates or certificates 210 SB 165 8
of number within eight working hours after presentment of 211
the application and payment by the applicant of a fee of 212
fifty dollars for the first plate or certificate and ten 213
dollars and fifty cents for each additional plate or 214
certificate. Upon renewal, the department shall issue the 215
distinctive dealer license number or certificate of number 216
as quickly as possible. The issuance of such distinctive 217
dealer license number or certificate of number shall be in 218
lieu of registering each motor vehicle, trailer, vessel or 219
vessel trailer dealt with by a boat dealer, boat 220
manufacturer, manufacturer, public motor vehicle auction, 221
wholesale motor vehicle dealer, wholesale motor vehicle 222
auction or new or used motor vehicle dealer. The license 223
plates described in this section shall be made with fully 224
reflective material with a common color scheme and design, 225
shall be clearly visible at night, and shall be 226
aesthetically attractive, as prescribed by section 301.130. 227
4. Notwithstanding any other provision of the law to 228
the contrary, the department shall assign the following 229
distinctive dealer license numbers to: 230
231 New motor vehicle franchise dealers D-0 through D-999
232 New powersport dealers D-1000 through D-1999
233
234
Used motor vehicle and used
powersport dealers
D-2000 through D-9999
235 Wholesale motor vehicle dealers W-0 through W-1999
236 Wholesale motor vehicle auctions WA-0 through WA-999
237 New and used trailer dealers T-0 through T-9999
238
239
Motor vehicle, trailer, and boat
manufacturers
DM-0 through DM-999 SB 165 9
For purposes of this subsection, qualified transactions 244
shall include the purchase of salvage titled vehicles by a 245
licensed salvage dealer. A used motor vehicle dealer who 246
also holds a salvage dealer's license shall be allowed one 247
additional plate or certificate number per fifty -unit 248
qualified transactions annually. In order for salvage 249
dealers to obtain number plates or certificates under this 250
section, dealers shall submit to the department of revenue 251
on August first of each year a statement certifying, under 252
penalty of perjury, the dealer's number of purchases during 253
the reporting period of July first of the immediately 254
preceding year to June thirtieth of the present year. The 255
provisions of this subsection shall become effec tive on the 256
date the director of the department of revenue begins to 257
reissue new license plates under section 301.130, or on 258
December 1, 2008, whichever occurs first. If the director 259
of revenue begins reissuing new license plates under the 260
authority granted under section 301.130 prior to December 1, 261
2008, the director of the department of revenue shall notify 262
the revisor of statutes of such fact. 263
5. Upon the sale of a currently licensed motor vehicle 264
dealership the department shall, upon requ est, authorize the 265
new approved dealer applicant to retain the selling dealer's 266
license number and shall cause the new dealer's records to 267
indicate such transfer. If the new approved dealer 268
240 Public motor vehicle auctions A-0 through A-1999
241 Boat dealers M-0 through M-9999
242
243
New and used recreational motor
vehicle dealers
RV-0 through RV-999 SB 165 10
applicant elects not to retain the selling dealer's license 269
number, the department shall issue the new dealer applicant 270
a new dealer's license number and an equal number of plates 271
or certificates as the department had issued to the selling 272
dealer. 273
6. In the case of motor vehicle dealers, the 274
department shall issue one number plate bearing the 275
distinctive dealer license number and may issue one 276
additional number plate to the applicant upon payment by the 277
dealer of a fifty dollar fee for the number plate bearing 278
the distinctive dealer license number and ten dollars and 279
fifty cents for the additional number plate. The department 280
may issue a third plate to the motor vehicle dealer upon 281
completion of the dealer's fifteenth qualified transaction 282
and payment of a fee of ten dollars and fifty cents. In the 283
case of new motor vehicle manufacturers, powersport dealers, 284
recreational motor vehicle dealers, and trailer dealers, the 285
department shall issue one number plate bearing the 286
distinctive dealer license number and may issue two 287
additional number plates to the applicant upon payment by 288
the manufacturer or dealer of a fifty dollar fee for the 289
number plate bearing the distinctive dealer license number 290
and ten dollars and fifty cents for each additional number 291
plate. Boat dealers and boat manufacturers shall be 292
entitled to one certificate of number bearing such number 293
upon the payment of a fifty dollar fee. Additional number 294
plates and as many additional certificates of number may be 295
obtained upon payment of a fee of ten dollars and fifty 296
cents for each additional plate or certificate. New motor 297
vehicle manufacturers shall not be issued or possess more 298
than three hundred forty -seven additional number plates or 299
certificates of number annually. New and used motor vehicle 300 SB 165 11
dealers, powersport dea lers, wholesale motor vehicle 301
dealers, boat dealers, and trailer dealers are limited to 302
one additional plate or certificate of number per ten -unit 303
qualified transactions annually. New and used recreational 304
motor vehicle dealers are limited to two addi tional plates 305
or certificate of number per ten -unit qualified transactions 306
annually for their first fifty transactions and one 307
additional plate or certificate of number per ten -unit 308
qualified transactions thereafter. An applicant seeking the 309
issuance of an initial license shall indicate on his or her 310
initial application the applicant's proposed annual number 311
of sales in order for the director to issue the appropriate 312
number of additional plates or certificates of number. A 313
motor vehicle dealer, t railer dealer, boat dealer, 314
powersport dealer, recreational motor vehicle dealer, motor 315
vehicle manufacturer, boat manufacturer, or wholesale motor 316
vehicle dealer obtaining a distinctive dealer license plate 317
or certificate of number or additional licen se plate or 318
additional certificate of number, throughout the calendar 319
year, shall be required to pay a fee for such license plates 320
or certificates of number computed on the basis of one - 321
twelfth of the full fee prescribed for the original and 322
duplicate number plates or certificates of number for such 323
dealers' licenses, multiplied by the number of months 324
remaining in the licensing period for which the dealer or 325
manufacturers shall be required to be licensed. In the 326
event of a renewing dealer, the fe e due at the time of 327
renewal shall not be prorated. Wholesale and public 328
auctions shall be issued a certificate of dealer 329
registration in lieu of a dealer number plate. In order for 330
dealers to obtain number plates or certificates under this 331
section, dealers shall submit to the department of revenue 332 SB 165 12
on August first of each year a statement certifying, under 333
penalty of perjury, the dealer's number of sales during the 334
reporting period of July first of the immediately preceding 335
year to June thirtieth of the present year. 336
7. The plates issued pursuant to subsection 3 or 6 of 337
this section may be displayed on any motor vehicle owned by 338
a new motor vehicle manufacturer. The plates issued 339
pursuant to subsection 3 or 6 of this section may be 340
displayed on any motor vehicle or trailer owned and held for 341
resale by a motor vehicle dealer for use by a customer who 342
is test driving the motor vehicle, for use by any customer 343
while the customer's vehicle is being serviced or repaired 344
by the motor vehicle dealer, for use and display purposes 345
during, but not limited to, parades, private events, 346
charitable events, or for use by an employee or officer, but 347
shall not be displayed on any motor vehicle or trailer hired 348
or loaned to others or upon any regul arly used service or 349
wrecker vehicle. Motor vehicle dealers may display their 350
dealer plates on a tractor, truck or trailer to demonstrate 351
a vehicle under a loaded condition. Trailer dealers may 352
display their dealer license plates in like manner, exce pt 353
such plates may only be displayed on trailers owned and held 354
for resale by the trailer dealer. 355
8. The certificates of number issued pursuant to 356
subsection 3 or 6 of this section may be displayed on any 357
vessel or vessel trailer owned and held f or resale by a boat 358
manufacturer or a boat dealer, and used by a customer who is 359
test driving the vessel or vessel trailer, or is used by an 360
employee or officer on a vessel or vessel trailer only, but 361
shall not be displayed on any motor vehicle owned b y a boat 362
manufacturer, boat dealer, or trailer dealer, or vessel or 363
vessel trailer hired or loaned to others or upon any 364 SB 165 13
regularly used service vessel or vessel trailer. Boat 365
dealers and boat manufacturers may display their certificate 366
of number on a vessel or vessel trailer when transporting a 367
vessel or vessels to an exhibit or show. 368
9. If any law enforcement officer has probable cause 369
to believe that any license plate or certificate of number 370
issued under subsection 3 or 6 of this section i s being 371
misused in violation of subsection 7 or 8 of this section, 372
the license plate or certificate of number may be seized and 373
surrendered to the department. 374
10. (1) Every application for the issuance of a used 375
motor vehicle dealer's license sh all be accompanied by proof 376
that the applicant, within the last twelve months, has 377
completed an educational seminar course approved by the 378
department as prescribed by subdivision (2) of this 379
subsection. Wholesale and public auto auctions and 380
applicants currently holding a new or used license for a 381
separate dealership shall be exempt from the requirements of 382
this subsection. The provisions of this subsection shall 383
not apply to current new motor vehicle franchise dealers or 384
motor vehicle leasing ag encies or applicants for a new motor 385
vehicle franchise or a motor vehicle leasing agency. The 386
provisions of this subsection shall not apply to used motor 387
vehicle dealers who were licensed prior to August 28, 2006. 388
(2) The educational seminar shal l include, but is not 389
limited to, the dealer requirements of sections 301.550 to 390
301.580, the rules promulgated to implement, enforce, and 391
administer sections 301.550 to 301.580, and any other rules 392
and regulations promulgated by the department. 393