Bona Fide Established Place of Business

PURPOSE: The department must determine that applicants/ licensees such as boat dealers, boat manufacturers, trailer dealers, trailer manufacturers, motor vehicle dealers, wholesale motor vehicle dealers, motor vehicle manufacturers, public motor vehicle auctions, and wholesale motor vehicle auctions maintain a bona fide established place of business. This rule establishes criteria that may be used in determining if this requirement has been met. (1) In order to constitute a bona fide established place of business, hereinafter referred to as a “business location,” for boat dealers, boat manufacturers, motor vehicle dealers other than dealers who sell only emergency vehicles, motor vehicle manufacturers, wholesale motor vehicle dealers, public motor vehicle auctions, trailer dealers, trailer manufacturers, powersport dealers, and wholesale motor vehicle auctions— (A) The business location must be actually occupied and primarily used in whole, or in clearly designated and segregated part, as a place of business by the licensee for the manufacturing, selling, auctioning, bartering, trading, servicing, or exchanging of motor vehicles, trailers, boats, or powersports. 1. Example: An applicant for a motor vehicle dealer license maintains a building or structure primarily used in the operation of a business other than the sale or exchange of motor vehicles. As a sideline, the applicant desires to engage in the business of selling motor vehicles. The building or structure used primarily for some other business, other than the selling or exchanging of motor vehicles, does not qualify as a bona fide established place of business for the selling of motor vehicles unless an area is clearly designated and segregated and records are separately maintained for the purpose of selling, bartering, trading, servicing, or exchanging of motor vehicles or trailers; (B) The business location must be open regular business hours during which the public and the department are able to contact the licensee. Regular business hours for purposes of this rule shall be a minimum of twenty (20) hours per week, at least four (4) of the six (6) days of Monday through Saturday each week. Only hours falling between 6 a.m. and 10 p.m. will be considered by the department in the twenty (20) hour minimum. The business hours shall be posted at the business location; (C) If a licensee is also licensed as an auction, the auction records must be kept separately from the dealer records; (D) The business location of licensees must also contain an area or lot which shall not be a public street upon which multiple vehicles may be displayed. 1. The display area or lot must be of sufficient size to physically accommodate vehicles of the type which the licensee is licensed to sell. 2. The display area or lot must be used exclusively for display by the licensee and must be situated to prevent confusion or uncertainty concerning its relationship to the licensee. 3. The display area or lot must provide unencumbered visibility from the nearest public street of the vehicles being sold by the licensee. 4. Auctions that are also licensed as dealers must maintain a display area or lot separate from the dealership lot for auction vehicles. 5. A licensee in more than one (1) class of business may use the same building and display area for all classes so long as each use is separately and clearly marked. Records must be maintained separately and separate signs, as specified in subsection (1)(E), must be displayed; (E) Licensees must display an exterior sign that shall be of a permanent nature, erected on the exterior of the structure or on the display area, constructed or painted and maintained to withstand reasonable weather conditions, and the sign must be readable. 1. A temporary sign may suffice during the period of time required to obtain a permanent sign provided the order for construction, purchase, or painting has in fact been placed. A copy of the sign order must be submitted with the application along with a picture of the temporary sign. (2) The bona fide established place of business of a licensee must be maintained for the entire licensure period. If the bona fide established place of business is not maintained, the licensee must notify the department within ten (10) days and surrender at that time the licensee’s temporary permits, license, and license plates/certificates of number. (A) If the licensee intends to relocate prior to the expiration of the license, the department must be informed of such intent at the time the license is surrendered. If the business is then certified at a new location within the same licensure year, the department will return the temporary permits, license plates/ certificates of number, and issue a new license reflecting the new location for no additional fee. The department or its representative reserves the right to determine the existence of a bona fide established place of business at any time. (3) A licensee who changes its business location during the licensure year must notify the department of that change prior to operating at the new site. The following must be submitted to the department: (A) A new application certified by authorized law enforcement. “Change of Address” must be indicated at the top of the application. 1. If the business changes locations ninety (90) days or less before the expiration of the current license, a renewal application reflecting the new address should be filed instead of a change of address. 2. If the location change is not effective immediately upon filing the renewal application, a letter indicating the effective date of the address change must accompany the renewal application; and (B) A photograph of the business location that meets the specifications required of new applicants. (4) If a licensee changes the business name during the licensure year, the licensee must notify the department of the name change prior to operating under the new name. The following must be submitted to the department: (A) A new application properly completed that indicates “Name Change Only” at the top of the application. The application is not required to be certified by authorized law enforcement; (B) A photograph of the business location that meets the specifications required of new applicants and that clearly shows the business sign displaying the new business name; and (C) A corporate surety bond, bond rider, or revision to the irrevocable letter of credit that reflects the licensee’s new business name, if applicable. (5) Each business location where a licensee auctions, manufactures, sells, or displays motor vehicles, trailers, boats, or powersports must be licensed separately with the department and pay a separate licensure fee. (6) A licensee may store cars at a storage lot location other than at the licensed business location, provided the department is notified of the storage location and no sales activity occurs on the storage lot. AUTHORITY: section 301.553, RSMo 2016.* Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Aug. 23, 2002, effective Feb. 28, 2003. Amended: Filed May 15, 2008, effective Nov. 30, 2008. Amended: Filed April 7, 2017, effective Sept. 30, 2017. *Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997.