House Committee Substitute

LOCAL LOG TRUCKS - This act modifies the definitions of the terms "local log truck" and "local log truck tractor" by expanding the area in which such vehicles can operate. Under current law, such vehicles are to operated at a forested site and in area extending not more than a 50 mile radius from such site. The act increases the radius to 100 miles (Section 301.010). This provision is contained in SB 349 (2007).

SALVAGE VEHICLES - This act modifies the definition of "salvage vehicle." Under the act, the definition is modified to include later model year vehicles (damaged during a year that is no more than 6 years after the manufacturer's model year designation) that are damaged to the extent the total cost of repairs to rebuild it exceeds 80% (up from 75%) of the fair market value of the vehicle prior to the time the vehicle was damaged. The definition is further modified by including vehicles that have been declared salvaged by an insurance company as a result of settlement of a claim. Current law requires the settlement be for a claim for loss due to damage or theft. In addition, when determining whether a vehicle is salvage or not, the total cost of repairs shall not include the cost of repairing hail damage (Section 301.010).

The act repeals a provision of law that requires purchasers apply for a salvage title on vehicles seven years old or less and optional for vehicles older than seven years of age. In lieu of that requirement, the act further provides that on vehicles purchases during a year that is no more than 6 years after the manufacturer’s model year designation, it shall be mandatory that the purchaser apply for a salvage title. On vehicles purchased during a year that is more than 6 years after the model year designation, the application for a salvage title shall be optional (Section 301.227.1).

The act also provides that an insurer may obtain an original title without a prior salvage designation on a stolen vehicle that has not been declared a salvage vehicle. The current law only allows the issuance of an original title without a salvage designation (Section 301.227.8). These provisions are contained in SB 82 (2007).

TEMPORARY PERMITS - This act modifies various provisions relating to temporary permits. The act removes references to the terms "plate" and "paper plate" from the temporary permit provision to unify the name as temporary permit (Section 301.140). A similar provision may be found in SB 335 (2007).

TITLE DESIGNATIONS - Under this act, when an application is made for a title in Missouri for a motor vehicle previously registered in another state and such vehicle was designated as a prior salvage vehicle, this designation shall be carried forward on the Missouri title (Section 301.190.12). The act provides that the absence of a prior designation on a an out-of-state title that the vehicle is a reconstructed motor vehicle, motor change vehicle, specially constructed motor vehicle or prior salvage vehicle shall not relieve the transferor of the duty to exercise due diligence with respect to the title prior to its transfer. If the transferor exercises due diligence with respect to the out-of-state title, then the transferor shall not be liable despite the fact that the title was not properly designated (Section 301.190.12). The act also repeals a doubly-enacted Section 301.190. A similar provision may be found in SB 335 (2007).

TRANSFER NOTICE - The act exempts persons transferring ownership of a motor vehicle or trailer to an insurance company due to theft or casualty loss from providing the transfer notice required by Section 301.196.

SALVAGE SALES - This act provides that motor vehicle sales at salvage pools or salvage disposal sales be open to all potential buyers. The current law limits the sales to licensed salvage dealers (Section 301.218). This provision is contained in HB 567 and SS/SCS/SB 239 et al (2007).

UNCLAIMED VEHICLES REPORTS AND CLAIMS FOR STORAGE - Under this act, 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. Under the current law, dealers are required to report such unclaimed vehicles to the department of revenue within five days of the expiration of the 15 day period. The act also repeals the current provision of law which provides that dealers who fail to report unclaimed vehicles to the department of revenue forfeit all claims and liens for storing the vehicle (Section 301.280.3).

MOTOR VEHICLE DEALER DEFINITION - The act modifies the term "motor vehicle dealer." Under the act, any motor vehicle dealer licensed before August 28, 2007, shall be required to meet the minimum calendar year sale of 6 or motor vehicles provided the dealer can prove the business achieved, cumulatively 6 or more sales per year for the preceding 24 months in business. If the dealer has not been in business for 24 months, then the cumulative sales must equal 1 sale every 2 months for the months the dealer has been in business. Any dealer who fails to meet the minimum requirements will not be qualified to renew his or her license for one year. Applicants who reapply after the period of disqualification must meet the 6 sales requirement. The act also supplies a definition for "trailer dealer" that is similar to the definition of "motor vehicle dealer" with respect to minimum sales (Section 301.550).

BONA FIDE ESTABLISHED PLACE OF BUSINESS - Under this act, bona fide business inspections of dealerships are required annually for the first 3 years, then every other year thereafter (Section 301.560.1(1)). The licensure exemption that exempts boat dealers from having a lot is repealed. The act provides that the photograph that accompanies a dealer initial application shall not be any smaller than 5" by 7" (Section 301.560.1(2)).

DEALER SURETY BOND - The act requires dealers to file a corporate surety bond in the amount of $30,000 (currently $25,000)(Section 301.560.1(3)).

PROOF OF INSURANCE - The act requires dealer applications to show proof of a dealer garage policy and a current copy of property and casualty policy (Section 301.560.1(3)).

DISTINCTIVE DEALER LICENSE NUMBERS - The act modifies the provision which sets forth the dealer license number designations, including the creation of recreational motor vehicle dealer license plate designations (RV-0_through RV -9999) for new and used recreational motor vehicle dealers (Section 301.560.4). The dealer designations shall take effect no later than December 1, 2008.

ISSUANCE OF DEALER PLATES - Under the act, the department shall issue to new motor vehicle manufacturers and other dealers 1 distinctive dealer plate and 2 additional number plates. The fee for the 2 additional number plates is $21 (Section 301.560.6). Under the act, new motor vehicle manufacturers shall not be issued or possess more than 347 additional number plates or certificates of number annually. New and used motor vehicle dealers, powersport dealers, wholesale motor vehicle dealers, boat dealers, and trailer dealers are limited to 1 additional plate or certificate of number per ten-unit qualified transactions annually. New and used recreational motor vehicle dealers are limited to two additional plates or certificate of number per ten-unit qualified transactions annually for their first fifty transactions and one additional plate or certificate of number per ten-unit qualified transactions thereafter. An applicant seeking the issuance of an initial license shall indicate on his or her initial application the applicant's proposed annual number of sales in order for the director to issue the appropriate number of additional plates or certificates of number. Wholesale and public auctions shall be issued a certificate of dealer registration in lieu of a dealer number plate (Section 301.560.6).

USED MOTOR VEHICLE DEALER EDUCATIONAL SEMINAR - The act exempts public auto auctions and applicants currently holding a new or used dealer's license for a separate dealership from showing proof of completing an educational seminar when applying for a used motor vehicle dealer's license. The act also specifically provides that current new motor vehicle franchise dealers and motor vehicle leasing agencies are not subject to the educational seminar requirements (Section 301.560.9).

MOTOR VEHICLE SHOWS - Under the act, new restrictions are placed upon participating in motor vehicle dealer shows. Under the act, dealers may participate in no more than 2 motor vehicle shows annually away from the dealer’s usual, licensed place of business provided the event is conducted for not more than 5 consecutive days and the event does not require any dealer participant to pay an unreasonably prohibitive participation fee. If any show or sale includes a class of dealer or franchised new vehicle line-make, that is also represented by a same class dealer or dealer representing the same line-make outside of the boundary lines of the city or town and is within 10 miles of where the show or sale is to take place, the dealer outside of the boundary lines of the city or town shall be invited to participate in the show or sale. The act limits off-site sales to 5 days in duration (down from 10 days) and increases the permit fee for off-site sales to $550 (up from $200)(Section 301.566). The act also repeals a doubly-enacted version of section 301.566.

ADVERTISING GUIDELINES - Under this act, the terms "invoice price" and "$....below/over invoice" shall not be used in advertisements. The current law currently allows these terms. The act also removes the restriction of advertising the matching or bettering a competitor's price (Section 301.567).

SALE OF 6 OR MOTOR VEHICLES IN A YEAR WITHOUT A LICENSE - This act makes it unlawful for a person to sell 6 (down from 7) or more motor vehicles in a calendar year unless the person is licensed or meets other exceptions listed in the statute. The sale of 6 or more vehicles within a calendar year shall be deemed to be acting as a motor vehicle dealer without a license (Section 301.570).

RELEASE OF MOTOR VEHICLE LIENS - This act requires a lienholder to release a motor vehicle lien within 5 business days after the lien has been satisfied. The current law gives the lienholder 10 business days to release the lien. The act also requires the lienholder to notify the Department of Revenue within 5 business days if the certificate of ownership is in the department's possession. The act also increases the fines for noncompliance with the time deadlines. The act imposes a graduated liquidated damages scale with a maximum amount of $2,500 in damages that can be imposed for each lien not timely released. The current law provides for a maximum fine or penalty of $500 for each lien not timely released (Section 301.640). This provision is similar to one contained in SB 358 and SB 335 (2007). The provision may also be found in the perfected version of SB 239 et al (2007).

DEPARTMENT OF CONSERVATION EMERGENCY VEHICLES - This act adds vehicles driven by law enforcement agents of the Department of Conservation to the list of vehicles considered "emergency vehicles" (Section 304.022). This provision is contained in SB 352 (2007).

DRIVEAWAY SADDLEMOUNT COMBINATIONS - This act increases the maximum length for driveaway saddlemount combinations from 75 feet to 97 feet when operated on the interstates (Section 304.170.8). This portion of the act is identical to SB 51 (2007) and SB 909 (2006).

MOTOR VEHICLE FRANCHISE PRACTICES ACT - This act modifies the definition of the term "motor vehicle" contained in the Motor Vehicle Franchise Practices Act to include any engine, transmission, or rear axle, regardless of whether attached to a vehicle chassis, that is manufactured for the installation in any motor-driven vehicle with a gross vehicle weight rating of more than 16,000 pounds (Section 407.815). This provision is contained in SB 350 (2007).

IN TRANSIT TAGS - The act repeals the provision of law which required dealers to use "In Transit" tags when moving motor vehicles from one dealer to another or from the manufacturer (Section 301.170).

TEMPORARY PERMITS FOR RESIDENTS - The act repeals the provision of law that required the issuance of temporary permits to nonresidents (Section 301.177).

STEPHEN WITTE