301.560. Application requirements, additional--bonds, fees, signs required--license number, certificate of numbers--duplicate dealer plates, issues, fees--test driving motor vehicles and vessels, use - Missouri Statutes

Application requirements, additional--bonds, fees, signsrequired--license number, certificate of numbers--duplicatedealer plates, issues, fees--test driving motor vehicles andvessels, use of plates--proof of educational seminar required,exceptions, contents of seminar.

301.560. 1. In addition to the application forms prescribed by thedepartment, each applicant shall submit the following to the department:

(1) Every application other than a renewal application for a motorvehicle franchise dealer shall include a certification that the applicant hasa bona fide established place of business. Such application shall include anannual certification that the applicant has a bona fide established place ofbusiness for the first three years and only for every other year thereafter.The certification shall be performed by a uniformed member of the Missouristate highway patrol or authorized or designated employee stationed in thetroop area in which the applicant's place of business is located; except thatin counties of the first classification, certification may be performed by anofficer of a metropolitan police department when the applicant's establishedplace of business of distributing or selling motor vehicles or trailers is inthe metropolitan area where the certifying metropolitan police officer isemployed. When the application is being made for licensure as a boatmanufacturer or boat dealer, certification shall be performed by a uniformedmember of the Missouri state water patrol stationed in the district area inwhich the applicant's place of business is located or by a uniformed member ofthe Missouri state highway patrol stationed in the troop area in which theapplicant's place of business is located or, if the applicant's place ofbusiness is located within the jurisdiction of a metropolitan policedepartment in a first class county, by an officer of such metropolitan policedepartment. A bona fide established place of business for any new motorvehicle franchise dealer, used motor vehicle dealer, boat dealer, powersportdealer, wholesale motor vehicle dealer, trailer dealer, or wholesale or publicauction shall be a permanent enclosed building or structure, either owned infee or leased and actually occupied as a place of business by the applicantfor the selling, bartering, trading, servicing, or exchanging of motorvehicles, boats, personal watercraft, or trailers and wherein the public maycontact the owner or operator at any reasonable time, and wherein shall bekept and maintained the books, records, files and other matters required andnecessary to conduct the business. The applicant's place of business shallcontain a working telephone which shall be maintained during the entireregistration year. In order to qualify as a bona fide established place ofbusiness for all applicants licensed pursuant to this section there shall bean exterior sign displayed carrying the name of the business set forth inletters at least six inches in height and clearly visible to the public andthere shall be an area or lot which shall not be a public street on whichmultiple vehicles, boats, personal watercraft, or trailers may be displayed.The sign shall contain the name of the dealership by which it is known to thepublic through advertising or otherwise, which need not be identical to thename appearing on the dealership's license so long as such name is registeredas a fictitious name with the secretary of state, has been approved by itsline-make manufacturer in writing in the case of a new motor vehicle franchisedealer and a copy of such fictitious name registration has been provided tothe department. Dealers who sell only emergency vehicles as defined insection 301.550 are exempt from maintaining a bona fide place of business,including the related law enforcement certification requirements, and frommeeting the minimum yearly sales;

(2) The initial application for licensure shall include a photograph,not to exceed eight inches by ten inches but no less than five inches by seveninches, showing the business building, lot, and sign. A new motor vehiclefranchise dealer applicant who has purchased a currently licensed new motorvehicle franchised dealership shall be allowed to submit a photograph of theexisting dealership building, lot and sign but shall be required to submit anew photograph upon the installation of the new dealership sign as required bysections 301.550 to 301.573. Applicants shall not be required to submit aphotograph annually unless the business has moved from its previously licensedlocation, or unless the name of the business or address has changed, or unlessthe class of business has changed;

(3) Every applicant as a new motor vehicle franchise dealer, a usedmotor vehicle dealer, a powersport dealer, a wholesale motor vehicle dealer,trailer dealer, or boat dealer shall furnish with the application a corporatesurety bond or an irrevocable letter of credit as defined in section400.5-103, RSMo, issued by any state or federal financial institution in thepenal sum of twenty-five thousand dollars on a form approved by thedepartment. The bond or irrevocable letter of credit shall be conditionedupon the dealer complying with the provisions of the statutes applicable tonew motor vehicle franchise dealers, used motor vehicle dealers, powersportdealers, wholesale motor vehicle dealers, trailer dealers, and boat dealers,and the bond shall be an indemnity for any loss sustained by reason of theacts of the person bonded when such acts constitute grounds for the suspensionor revocation of the dealer's license. The bond shall be executed in the nameof the state of Missouri for the benefit of all aggrieved parties or theirrevocable letter of credit shall name the state of Missouri as thebeneficiary; except, that the aggregate liability of the surety or financialinstitution to the aggrieved parties shall, in no event, exceed the amount ofthe bond or irrevocable letter of credit. The proceeds of the bond orirrevocable letter of credit shall be paid upon receipt by the department of afinal judgment from a Missouri court of competent jurisdiction against theprincipal and in favor of an aggrieved party. Additionally, every applicantas a new motor vehicle franchise dealer, a used motor vehicle dealer, apowersport dealer, a wholesale motor vehicle dealer, trailer dealer, or boatdealer shall furnish with the application a copy of a current dealer garagepolicy bearing the policy number and name of the insurer and the insured;

(4) Payment of all necessary license fees as established by thedepartment. In establishing the amount of the annual license fees, thedepartment shall, as near as possible, produce sufficient total income tooffset operational expenses of the department relating to the administrationof sections 301.550 to 301.573. All fees payable pursuant to the provisionsof sections 301.550 to 301.573, other than those fees collected for theissuance of dealer plates or certificates of number collected pursuant tosubsection 6 of this section, shall be collected by the department for depositin the state treasury to the credit of the "Motor Vehicle Commission Fund",which is hereby created. The motor vehicle commission fund shall beadministered by the Missouri department of revenue. The provisions of section33.080, RSMo, to the contrary notwithstanding, money in such fund shall not betransferred and placed to the credit of the general revenue fund until theamount in the motor vehicle commission fund at the end of the biennium exceedstwo times the amount of the appropriation from such fund for the precedingfiscal year or, if the department requires permit renewal less frequently thanyearly, then three times the appropriation from such fund for the precedingfiscal year. The amount, if any, in the fund which shall lapse is that amountin the fund which exceeds the multiple of the appropriation from such fund forthe preceding fiscal year.

2. In the event a new vehicle manufacturer, boat manufacturer, motorvehicle dealer, wholesale motor vehicle dealer, boat dealer, powersportdealer, wholesale motor vehicle auction, trailer dealer, or a public motorvehicle auction submits an application for a license for a new business andthe applicant has complied with all the provisions of this section, thedepartment shall make a decision to grant or deny the license to the applicantwithin eight working hours after receipt of the dealer's application,notwithstanding any rule of the department.

3. Upon the initial issuance of a license by the department, thedepartment shall assign a distinctive dealer license number or certificate ofnumber to the applicant and the department shall issue one number plate orcertificate bearing the distinctive dealer license number or certificate ofnumber and two additional number plates or certificates of number within eightworking hours after presentment of the application. Upon renewal, thedepartment shall issue the distinctive dealer license number or certificate ofnumber as quickly as possible. The issuance of such distinctive dealerlicense number or certificate of number shall be in lieu of registering eachmotor vehicle, trailer, vessel or vessel trailer dealt with by a boat dealer,boat manufacturer, manufacturer, public motor vehicle auction, wholesale motorvehicle dealer, wholesale motor vehicle auction or new or used motor vehicledealer.

*4. Notwithstanding any other provision of the law to the contrary, thedepartment shall assign the following distinctive dealer license numbers to:

New motor vehicle franchise dealers D-0 through D-999

New powersport dealers and motorcycle franchise

dealers D-1000 through D-1999

Used motor vehicle, used powersport, and used motorcycle

dealers D-2000 through D-9999

Wholesale motor vehicle dealers W-0 through W-1999

Wholesale motor vehicle auctions WA-0 through WA-999

New and used trailer dealers T-0 through T-9999

Motor vehicle, trailer, and boat

manufacturers DM-0 through DM-999

Public motor vehicle auctions A-0 through A-1999

Boat dealers M-0 through M-9999

New and used recreational motor vehicle

dealers RV-0 through RV-999

For purposes of this subsection, qualified transactions shall include thepurchase of salvage titled vehicles by a licensed salvage dealer. A usedmotor vehicle dealer who also holds a salvage dealer's license shall beallowed one additional plate or certificate number per fifty-unit qualifiedtransactions annually. In order for salvage dealers to obtain number platesor certificates under this section, dealers shall submit to the department ofrevenue on August first of each year a statement certifying, under penalty ofperjury, the dealer's number of purchases during the reporting period of Julyfirst of the immediately preceding year to June thirtieth of the present year.

The provisions of this subsection shall become effective on the date thedirector of the department of revenue begins to reissue new license platesunder section 301.130, or on December 1, 2008, whichever occurs first. If thedirector of revenue begins reissuing new license plates under the authoritygranted under section 301.130 prior to December 1, 2008, the director of thedepartment of revenue shall notify the revisor of statutes of such fact.

5. Upon the sale of a currently licensed new motor vehicle franchisedealership the department shall, upon request, authorize the new approveddealer applicant to retain the selling dealer's license number and shall causethe new dealer's records to indicate such transfer.

6. In the case of new motor vehicle manufacturers, motor vehicledealers, powersport dealers, recreational motor vehicle dealers, and trailerdealers, the department shall issue one number plate bearing the distinctivedealer license number and may issue two additional number plates to theapplicant upon payment by the manufacturer or dealer of a fifty dollar fee forthe number plate bearing the distinctive dealer license number and ten dollarsand fifty cents for each additional number plate. Such license plates shallbe made with fully reflective material with a common color scheme and design,shall be clearly visible at night, and shall be aesthetically attractive, asprescribed by section 301.130. Boat dealers and boat manufacturers shall beentitled to one certificate of number bearing such number upon the payment ofa fifty dollar fee. Additional number plates and as many additionalcertificates of number may be obtained upon payment of a fee of ten dollarsand fifty cents for each additional plate or certificate. New motor vehiclemanufacturers shall not be issued or possess more than three hundredforty-seven additional number plates or certificates of number annually. Newand used motor vehicle dealers, powersport dealers, wholesale motor vehicledealers, boat dealers, and trailer dealers are limited to one additional plateor certificate of number per ten-unit qualified transactions annually. Newand used recreational motor vehicle dealers are limited to two additionalplates or certificate of number per ten-unit qualified transactions annuallyfor their first fifty transactions and one additional plate or certificate ofnumber per ten-unit qualified transactions thereafter. An applicant seekingthe issuance of an initial license shall indicate on his or her initialapplication the applicant's proposed annual number of sales in order for thedirector to issue the appropriate number of additional plates or certificatesof number. A motor vehicle dealer, trailer dealer, boat dealer, powersportdealer, recreational motor vehicle dealer, motor vehicle manufacturer, boatmanufacturer, or wholesale motor vehicle dealer obtaining a distinctive dealerlicense plate or certificate of number or additional license plate oradditional certificate of number, throughout the calendar year, shall berequired to pay a fee for such license plates or certificates of numbercomputed on the basis of one-twelfth of the full fee prescribed for theoriginal and duplicate number plates or certificates of number for suchdealers' licenses, multiplied by the number of months remaining in thelicensing period for which the dealer or manufacturers shall be required to belicensed. In the event of a renewing dealer, the fee due at the time ofrenewal shall not be prorated. Wholesale and public auctions shall be issueda certificate of dealer registration in lieu of a dealer number plate. Inorder for dealers to obtain number plates or certificates under this section,dealers shall submit to the department of revenue on August first of each yeara statement certifying, under penalty of perjury, the dealer's number of salesduring the reporting period of July first of the immediately preceding year toJune thirtieth of the present year.

7. The plates issued pursuant to subsection 3 or 6 of this section maybe displayed on any motor vehicle owned by a new motor vehicle manufacturer.The plates issued pursuant to subsection 3 or 6 of this section may bedisplayed on any motor vehicle or trailer owned and held for resale by a motorvehicle dealer for use by a customer who is test driving the motor vehicle,for use and display purposes during, but not limited to, parades, privateevents, charitable events, or for use by an employee or officer, but shall notbe displayed on any motor vehicle or trailer hired or loaned to others or uponany regularly used service or wrecker vehicle. Motor vehicle dealers maydisplay their dealer plates on a tractor, truck or trailer to demonstrate avehicle under a loaded condition. Trailer dealers may display their dealerlicense plates in like manner, except such plates may only be displayed ontrailers owned and held for resale by the trailer dealer.

8. The certificates of number issued pursuant to subsection 3 or 6 ofthis section may be displayed on any vessel or vessel trailer owned and heldfor resale by a boat manufacturer or a boat dealer, and used by a customer whois test driving the vessel or vessel trailer, or is used by an employee orofficer on a vessel or vessel trailer only, but shall not be displayed on anymotor vehicle owned by a boat manufacturer, boat dealer, or trailer dealer, orvessel or vessel trailer hired or loaned to others or upon any regularly usedservice vessel or vessel trailer. Boat dealers and boat manufacturers maydisplay their certificate of number on a vessel or vessel trailer whentransporting a vessel or vessels to an exhibit or show.

9. (1) Every application for the issuance of a used motor vehicledealer's license shall be accompanied by proof that the applicant, within thelast twelve months, has completed an educational seminar course approved bythe department as prescribed by subdivision (2) of this subsection. Wholesaleand public auto auctions and applicants currently holding a new or usedlicense for a separate dealership shall be exempt from the requirements ofthis subsection. The provisions of this subsection shall not apply to currentnew motor vehicle franchise dealers or motor vehicle leasing agencies orapplicants for a new motor vehicle franchise or a motor vehicle leasingagency. The provisions of this subsection shall not apply to used motorvehicle dealers who were licensed prior to August 28, 2006.

(2) The educational seminar shall include, but is not limited to, thedealer requirements of sections 301.550 to 301.573, the rules promulgated toimplement, enforce, and administer sections 301.550 to 301.570, and any otherrules and regulations promulgated by the department.

(L. 1988 H.B. 1512 § 6, A.L. 1989 H.B. 211, A.L. 1993 S.B. 35, A.L. 1995 S.B. 70, A.L. 1997 H.B. 207, A.L. 2002 H.B. 1838 merged with H.B. 2008 merged with H.B. 2009 merged with S.B. 895. A.L. 2006 S.B. 747, A.L. 2007 S.B. 82 merged with S.B. 91)

Effective 8-28-07 (S.B. 91)

1-01-08 (S.B. 82)

*Subsection 4 contains a contingent effective date.