SB 781 Modifies various provisions relating to the regulation of motor vehicles
Sponsor: McKenna
LR Number: 4466S.05P Fiscal Note: 4466-05P.REV
Committee: Transportation
Last Action: 4/20/2010 - HCS Voted Do Pass H Transportation Committee Journal Page:
Title: SS SCS SB 781 Calendar Position:
Effective Date: August 28, 2010

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Current Bill Summary

SS/SCS/SB 781 - This act modifies various provisions relating to the regulation of motor vehicles.

The act makes technical modifications to the terms "scrap processor" and "vanpool" as used in Chapter 301 (Section 301.010 and 301.218).

Under this act, a fleet owner of at least 50 fleet vehicles may apply for fleet license plates bearing a company name or logo. Under current law, any fleet owner could apply these types of plates regardless of how many fleet vehicles he or she owned (Section 301.032).

This act places additional restrictions on the use of driveaway license plates. Under this act, driveaway license plates shall only be used by owners, corporate officers, or employees of the business to which the plates were issued. Under the act, an applicant for a driveaway plate must provide certain information such as the business name, address, and driver license number. The applicant must provide proof of financial responsibility. In addition, the applicant must provide a picture of his or her place of business. The applicant must maintain a landline telephone at his or her place of business during the registration period. The act makes the use of a revoked driveaway license plate a misdemeanor (Section 301.069).

This act removes the salvage title exclusion from the requirement of a seller to notify the Department of Revenue within 30 days of a sale. Thus, a seller of a motor vehicle with a salvage title must notify the department (Section 301.196).

This act prohibits entities financing motor vehicle dealers from holding titles to the motor vehicles financed as security. Any entity that finances or establishes a line of credit that enables a motor vehicle dealer to purchase vehicles, and who holds or prohibits a motor vehicle dealer from holding, any title as part of that financing shall be guilty of a class A misdemeanor. A second or subsequent offense shall be a class D felony (Section 301.200).

Under this act, motor vehicle dealers and public garage operators must maintain a record of a vehicle's VIN number, odometer settings and other information for a period of 5 years (current law is 3 years). Under this act, any person who makes a false statement in a monthly sales report to the Department of Revenue is guilty of a class A misdemeanor (Section 301.280).

This act requires every application for a motor vehicle franchise dealer shall include an annual certification that the applicant has a bona fide established place of business. The current law only requires this certification for the first 3 years and only for every other year thereafter (Section 301.560).

The act also makes technical changes to various sections contained in Chapter 301 (Section 301.562 and Section 301.567).

Under this act, a second or subsequent violation of operating as a motor vehicle dealer without a license is a class D felony (Section 301.570).

This act allows the Department of Revenue to revoke a dealer license when the director determines that the dealer's place of business is uninhabited or abandoned (Section 301.571).

This act allows the Department of Revenue to issue a special event motor vehicle auction license to an applicant for the purpose of auctioning motor vehicles if 90% or more of the vehicles are at least 10 years old or older. Auctions can be held for no more than three consecutive days, but no more than two times in a calendar year by the same licensee.

A report must be sent to the director within 10 days of the conclusion of the special event motor vehicle auction on a department-approved form specifying the make, model, year, and vehicle identification number of every vehicle included in the auction. Anyone violating this provision will be guilty of a Class A misdemeanor and will be charged a $500 administrative fee payable to the department for each vehicle auctioned in violation of this provision.

A special event motor vehicle auction will be considered a public motor vehicle auction for purposes of licensing and inspection of certain documents and odometer readings; however, the licensee will not be required to have a bona fide established place of business.

Applications to hold a special event motor vehicle auction must be received by the department at least 90 days prior to the event. Applicants must be registered to conduct business in this state, pay a licensing fee of $1,000, and be bonded or have an irrevocable letter of credit in the amount of $100,000. Applicants will be responsible for ensuring that a sales tax license or special event sales tax license is obtained if required. The special event motor vehicle auction license provision is contained in SB 716 (2010) and HB 979 (2009)(section 301.580).

Under this act, an applicant may receive two license plates for any property-carrying commercial vehicle, rather than the standard issuance of one plate, by paying an additional $15 fee. This provision is contained in SB 794 (2010)(Section 301.130).

Under current law, drivers who are 21 years of age or younger are prohibited from text messaging while operating a motor vehicle. Under this act, the text messaging ban is applied universally so that all drivers, regardless of age, are prohibited from text messaging while operating a motor vehicle. The act allows any city or county to adopt ordinances or regulations which are equivalent to, but not more restrictive than, the state text message ban. Under the act, persons who use handheld mobile telephones in conjunction with voice-operated or hands-free devices to send text messages are exempt from the text message ban (Section 304.820).

This act increases the penalty for left lane truck violations in St. Charles County from an infraction to a class C misdemeanor. If the left lane violation causes the immediate threat of an accident, the penalty is increased from a Class C misdemeanor to a class B misdemeanor (Section 304.705)(SA 1).

Under this act, if the Director of Revenue reasonably believes a person has obtained a title, license plate, or license plate tab in a fraudulent manner, the person must surrender such items. A failure to do so constitutes a Class A misdemeanor (Section 301.423). Under this act, it is unlawful for any person to display, or to have in his or her possession, any nondriver identification card knowing that the card is fictitious or to have been canceled, suspended, revoked, disqualified or altered. Similarly, the act makes it unlawful for a person to lend or knowingly permit the use of nondriver identification card that is fictitious. The current law only applies to the fraudulent display, possession or use of a license (Section 302.220). This act ties the statute of limitations for a prosecution for making a false statement on a driver's license application to the discovery of the statement's falsity, rather than the time when the statement was made. A prosecution for a person who makes a false statement on a driver's license application may commence one year after the director first discovers the falsity of the statement or affidavit, however no prosecution shall commence more than 6 years after the statement or affidavit was made (Section 302.230). These provisions of the act can be found in SB 837 (2009)(SA 2).

This act modifies the "Macks Creek" law. Under current law, if any city receives more than 35% of its annual gross general operating revenue from fines and court costs for traffic violations occurring on state highways, all revenues in excess of the 35% threshold are distributed to the county schools. This act provides that traffic violations shall include moving and nonmoving violations and any moving violations that are pled or amended to nonmoving violations (Section 302.341)(SA 3).

This act prohibits the Department of Revenue or any other state agency from collecting the federal gas tax, or assist in its collection in any manner, unless the federal government pays the collecting agency a collection fee equal to 2% of the particular tax collected on the federal government's behalf (Section 142.820)(SA 4).

Under this act, a nonresident shall not operate a motor vehicle in Missouri unless the nonresident maintains financial responsibility which conforms to the requirements of the laws of the nonresident's state of residence. A nonresident who fails to maintain financial responsibility is guilty of a Class C misdemeanor (Sections 303.025 and 303.080). These provisions can be found in SCS/SB 902 (2009)(SA 5).

Under this act, the state will only issue one license plate beginning August 28, 2010, unless the registered owner is eligible to receive a second plate. Some motorists will be able to obtain an optional 2nd plate upon the payment of $15 fee Motorists who currently receive two plates will be issued one plate and the plate shall be attached to the rear (instead of front and rear) of the motor vehicle. Applicants who request 2 license plates shall attach the plates to the front and rear of the vehicle. Applicants for personalized and special license plates will be automatically be issued 2 license plates. The act also requires that no tab shall be issued for the optional license plate and no tab shall be required to be displayed on such plate (Section 301.130)(SA 6).