HB 699 -- Motor Vehicles

Sponsor:  Tilley

This bill changes the laws regarding the registration, licensure,
and sale of motor vehicles.

TEMPORARY PERMITS

The bill removes references to the terms "plate" and "paper
plate" from the temporary permit provision.  The fee that a
dealer may charge for a temporary permit is increased from $7.50
to $10.50.

The provision which requires the issuance of temporary permits to
nonresidents is repealed.

IN TRANSIT PLACARDS

The provision which requires dealers to use an "In Transit"
placard when moving a motor vehicle from one dealer to another or
from the manufacturer is repealed.

OUT-OF-STATE CERTIFICATES OF OWNERSHIP

The absence of a prior designation on an out-of-state title that
the vehicle is a reconstructed motor vehicle, motor change
vehicle, specially constructed motor vehicle, or prior salvage
vehicle will not relieve the transferor from exercising due
diligence regarding the title prior to its transfer.  If the
transferor does this, he or she will not be liable even if the
title was not properly designated.

SALES BY DEALERS

Dealers are required to have a certificate of ownership, proof
that the dealer has applied for a certificate of ownership, or
proof that a prior lien has been satisfied by the dealer for
every motor vehicle in the dealer's possession.

SALVAGE POOL OR SALVAGE DISPOSAL SALES

The fee imposed on out-of-state prospective purchasers at salvage
disposal sales is increased from $25 to $100.

UNCLAIMED VEHICLE REPORTS AND STORAGE CLAIMS

Dealers and persons operating garages in which a motor vehicle
remains unclaimed for a period of 15 days may report the
unclaimed vehicle to the Department of Revenue.  Currently,
dealers must report the unclaimed vehicles to the department.
The provision which specifies that dealers who fail to report
unclaimed vehicles will forfeit all claims and liens for storing
the vehicle is repealed.

MOTOR VEHICLE DEALERS

The bill revises the definition of "motor vehicle dealer" by
increasing from six or more to 12 or more motor vehicles sold in
a calendar year to be eligible for licensure as a motor vehicle
dealer.  If a dealer fails to sell 12 vehicles, he or she is
prohibited from renewing his or her license for one year.
Similar requirements are established for trailer dealers.

The bill makes it unlawful for a person to sell five or more,
instead of the current seven or more motor vehicles, in a
calendar year unless the person is licensed or meets other
specified exceptions.  The sale of five or more vehicles within a
calendar year is considered as acting as a motor vehicle dealer
without a license.

BONA FIDE ESTABLISHED PLACES OF BUSINESS

Motor vehicle dealer applications are required to include an
annual certification that the applicant has a bona fide
established place of business for the first three years and only
every other year thereafter.  A bona fide established place of
business for any motor vehicle dealer, boat dealer, wholesale
motor vehicle dealer, trailer dealer, or wholesale or public
auction, in addition to other current legal requirements, must be
a permanent enclosed commercial, nonresidential building, which
must display an exterior sign that is 12 inches in height.
Currently, the sign is required to be six inches.

The photograph that accompanies a dealer application must not be
any smaller than five by seven inches.

DEALER SURETY BONDS

The amount of the corporate surety bond which dealers are
required to file is increased from $25,000 to $100,000.

USED MOTOR VEHICLE DEALER EDUCATIONAL SEMINARS

Public auto auctions and applicants currently holding a new or
used license for a separate dealership will be exempt from
showing proof of completing an educational seminar when applying
for a used motor vehicle dealer's license.  Current new motor
vehicle franchise dealers and motor vehicle leasing agencies will
not be subject to the educational seminar requirements.

The number of additional plates a new motor vehicle manufacturer
may hold will be limited to no more than 299.  New and used
dealers are limited to one additional plate or certificate of
number per 10-unit transactions annually.

These provisions become effective January 1, 2008.

MOTOR VEHICLE SHOWS

Motor vehicle dealers may participate in no more than two motor
vehicle shows and conduct sales away from the dealer's licensed
place of business if the event is conducted for not more than
five consecutive days.  If any show or sale includes a class of
dealers or franchised new vehicle line-make that is also
represented by a same class dealer or a dealer representing the
same line-make outside the city or town limits and is within 10
miles of where the show or sale is to take place, the dealer
outside the city or town limits must be invited to participate in
the show or sale.  The bill shortens the duration of off-site
sales to five days instead of 10 days and increases the permit
fee for off-site sales from $200 to $550.

ADVERTISING STANDARDS

The terms "invoice price" and "$....below/over invoice" cannot be
used in advertisements as is currently allowed, and the
prohibition on advertisements that offer to match or better a
competitor's price is removed.

FINANCE CHARGES

Motor vehicle dealers are prohibited from assessing a finance
charge on a motor vehicle that results in the difference of more
than 3% between the buy rate and the contract rate.

USED MOTOR VEHICLE CANCELLATION OPTION

Motor vehicle dealers cannot sell a used vehicle at retail to an
individual for personal use without offering the buyer the
opportunity to cancel the contract and return the vehicle without
cause.  This provision does not apply to a used vehicle having a
purchase price of $40,000 or more or to any lease of a used motor
vehicle.  The buyer will have a two-day contract cancellation
option if the buyer pays a restocking fee not to exceed $500.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am