License Requirements for Auctions, Dealers, Franchisors, and Manufacturers

PURPOSE: The department must determine whether applicants who apply for a license as a boat dealer, boat manufacturer, trailer dealer, trailer manufacturer, motor vehicle dealer, motor vehicle manufacturer, public motor vehicle auction, or wholesale motor vehicle auction under sections 301.550 to 301.562, RSMo, have met the requirements outlined in the law. This rule clarifies these requirements. This rule also establishes the requirements for issuance of a manufacturer’s license under section 301.553, RSMo, and to implement franchisor license requirements under sections 407.810 to 407.835, RSMo, otherwise known as the Motor Vehicle Franchise Practices (MVFP) Act. (1) A separate license is required for each of the following categories of licenses: (A) Motor vehicle dealers; (B) Boat dealers; however, a motor vehicle or trailer dealer may purchase and sell up to five (5) vessels during each licensure period without licensing as a boat dealer; (C) Wholesale motor vehicle dealers; (D) Trailer dealers; (E) Motor vehicle, trailer, and boat manufacturers; (F) Wholesale motor vehicle auctions; and (G) Public motor vehicle auctions. (2) An applicant must complete in full the designated application for a license. (A) If the applicant is a partnership or corporation and is doing business under another name (d/b/a), the applicant must list its partnership or corporate name and its d/b/a name. For example, John Smith Brothers Incorporated d/b/a Smith Brother’s Used Cars. If the applicant is an individual, the business name must also be listed on the application. (B) The business location name and address must be recorded on the application. A post office box number is not acceptable as a business location address. (C) A separate “Mail to” address may only be listed on the application if the local postal authorities confirm, in a letter signed by an authorized representative of the post office, that it cannot or will not deliver mail to the business address due to security reasons such as theft or vandalism. The lack of a proper mail receptacle is not justification for the use of a “Mail to” address. (D) Applicants obtaining a manufacturer’s license must submit a letter that lists the makes of all motor vehicles/ trailers/boats they will manufacture. If licensing as a “final stage” manufacturer/converter, the makes of all vehicle bodies, i.e., dump, hoist, coach, etc., they will manufacture and a brief description of the business must accompany the application. (E) Each applicant, officer, or owner for a license must list on the application his or her driver’s license number, birthdate, home address, and/or Social Security number. (F) The application must be certified by an authorized law enforcement agency/officer unless exempted by law. Applicants who are licensed within two (2) months of the license expiration period shall not be required to have his or her renewal application certified by a law enforcement agency/officer provided the renewal is filed before the present license expires. (3) The corporate surety bond or an irrevocable letter of credit required in section 301.560.1, RSMo, shall be filed with the application and shall be maintained for the entire licensure period. The bond or letter of credit must either be irrevocable for the entire licensure period or by its terms require that the bonding company or entity issuing the bond or letter of credit to notify the department at least thirty (30) days prior to the cancellation or revocation date. (4) The photograph of the bona fide established place of business may be either a black and white or color photograph. If more than one (1) photograph is necessary to show the building, lot, and sign, a statement, signed by the applicant, must accompany the photograph explaining that all photographs were taken at the same address. (A) A temporary sign may be used (as set forth in 12 CSR 1026.010). If this is the case, a copy of the sign order and a picture of the temporary sign must be submitted with the application. (5) For purposes of the franchise agreement requirement in section 301.559, RSMo, a letter of appointment or similar document signed by an authorized representative of the manufacturer will satisfy this requirement. The document must include the name and address of the franchise, the effective date of the franchise agreement, the expiration date of the franchise agreement, if applicable, and the make(s) of vehicle(s) the franchisee is authorized to sell. The letter must provide for notification to the department at least thirty (30) days prior to cancellation of the franchise. A manufacturer’s letter of intent shall not suffice as proof of franchise. (6) A new applicant must complete and submit the appropriate form(s) requesting a criminal record check directly to the Missouri State Highway Patrol’s General Headquarters along with the appropriate fee. The patrol shall provide the director with the results of the applicant’s criminal record check to assist the director in determining the applicant’s qualifications as provided in sections 301.559 and 301.562, RSMo. (7) If any of the owners, partners, or principal officers (if a corporation) are residents of a state other than Missouri or another country, they must obtain a current criminal record check from their state highway patrol or corresponding law enforcement agency and submit that record check with new and renewal applications. (8) The applicant must submit appropriate fees as prescribed in 12 CSR 10-26.040. (9) A “franchisor,” as defined in the MVFP Act, may meet the licensing requirements of the MVFP Act by obtaining a manufacturer’s license under this rule. (A) Notwithstanding any other provision of this rule, an applicant for a manufacturer’s license, in order to comply with the franchisor licensing requirements of the MVFP Act, shall provide— 1. The street address for the franchisor location; 2. The telephone number for the franchisor location in paragraph (9)(A)1.; 3. A list of the names of the principal officers of the corporation; 4. A list of all other names it is doing business as, if applicable; 5. A list of all vehicle makes which the corporation authorizes franchise dealers to sell; 6. The state or province and the country of the franchisor’s location in paragraph (9)(A)1.; 7. The name and address of a mediation service provider or a list of mediators as prescribed in section 407.822, RSMo; 8. The motor vehicle or trailer manufacturer’s license fee as authorized by 12 CSR 10-26.040; and 9. A certified statement attesting that— A. The franchisor’s place of business identified in paragraph (9)(A)1. is occupied and is used, in part, to facilitate the franchising of motor vehicle dealers who operate within the state of Missouri; B. The franchisor maintains regular business hours during which the department is able to contact the franchisor; and C. The franchisor will notify the department not less than ten (10) days prior to moving its place of business or changing its telephone number. (B) All franchisor manufacturer licenses shall expire July 31 of each year. The license fee referenced in paragraph (9)(A)8. shall not be prorated. (C) The franchisor shall be issued a license in the manufacturer’s range of distinctive license numbers: DM-0 through DM-999. (D) Dealer license plates shall not be issued to franchisors. AUTHORITY: sections 301.553 and 301.559, RSMo 2000, sections 301.550 and 301.560, RSMo Supp. 2010, and sections 407.810 to 407.838, RSMo 2000 and Supp. 2010.* Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Aug. 23, 2002, effective Feb. 28, 2003. Amended: Filed Dec. 28, 2007, effective June 30, 2008. Emergency amendment filed Aug. 18, 2010, effective Aug. 28, 2010, expired Feb. 24, 2011. Amended: Filed Aug. 18, 2010, effective Feb. 28, 2011. *Original authority: 301.550, RSMo 1998, amended 1993, 1997, 2002, 2007; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; 301.559, RSMo 1988, amended 1993, 1997; 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997, 2002, 2006, 2007, 2010; 407.810–407.838, see Missouri Revised Statutes 2000 and Missouri Revised Statutes Cumulative Supplement 2010.