Introduced

SB 355 - Under this act, a motor vehicle dealer may fill in the blanks on standardized forms in connection with the sale or lease of a new or used motor vehicle if the dealer does not charge for the services of filling in the blanks or otherwise charge for preparing documents. The act allows a motor vehicle dealer to charge an administrative fee for the storage of documents or any other administrative or clerical services and a portion of the administrative fee may result in profit to the dealer.

Under the act, no motor vehicle dealers that sells or leases motor vehicles and imposes an administrative fee of less than $200 in the connection with the sale or lease of such vehicle shall be deemed to be engaging in the unauthorized practice of law. The $200 limit shall be adjusted annually for inflation.

If an administrative fee is charged, the administrative fee shall be charged to all retail customers, unless prohibited by the motor vehicle dealer's franchisor, and disclosed on the retail buyer's order form as a separate itemized charge. The act requires certain paperwork provided to the purchaser to include the amount of the administrative fee and a statutory notice informing the purchaser that the administrative fee is not required by law and that no portion of the fee is for the drafting, preparation or completion of documents.

If a motor vehicle dealer provides the statutory notice required by the act and otherwise follows the confines of the act, then any damages imposed by court or jury based upon the charging of administrative fees are null and void.

The act provides that if a court determines that the charging of an administrative fee constitutes the unauthorized practice of law, then no person who paid that administrative fee may recover the fee or treble damages and the dealer who charged that fee shall not be guilty of a misdemeanor, as provided by Missouri's unauthorized practice of law statute.

The provisions of this act are similar to those contained in HB 630 (2009).

STEPHEN WITTE


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