SB 1181
Modifies several provisions of law relating to motor vehicle dealers and the registration process
LR Number:
Last Action:
4/4/2006 - SCS Voted Do Pass S Transportation Committee (5412S.03C)
Journal Page:
Calendar Position:
Effective Date:
August 28, 2006

Current Bill Summary

SCS/SB 1181 - This act modifies several provisions of law relating to motor vehicle dealers and the licensing and registration process.

The act allows a dealer to provide proof that an application has been made for a duplicate certificate of ownership for each vehicle in the dealer's possession (Section 301.200).

LICENSE PLATE TABS- Under current law, correctional enterprises will no longer make and maintain tabs for the Department of Revenue beginning January 1, 2010. Under this act, correctional enterprises will no longer make or maintain license tabs effective August 28, 2006 (Section 301.290).

MOTOR VEHICLE DEALERS - The act modifies the definition of motor vehicle dealer by repealing the evidentiary standard that six or more vehicles must be sold in an calendar year in order to be engaged in the motor vehicle business (Section 301.550).

The act provides that a bona fide established place of business for a motor vehicle dealer must include a commercial, non-residential permanent enclosed building. The act also requires that the established place of business be an area or lot on which five or more vehicles may be displayed.

The act raises the amount of the corporate surety bond that motor vehicle and boat dealers must file with the Department of Revenue. The act raises the amount from $25,000 to $125,000.

The act raises the fee for distinctive dealer license number plates from $50 to $100. The act also raises the fee for boat dealer certificates from $50 to $100. After the issuance of the initial plate or certificate, manufacturers may not obtain more than 50 additional plates or certificates of number. After the issuance of the initial plate or certificate, motor vehicle dealers or boat dealers may only obtain 1 additional number plate or certificate for every 10 vehicle or boats sold annually on the previous years sales.

The act specifically provides that dealer plates may be used by persons in a parade (Section 301.560).

LICENSE SUSPENSION/REFUSAL TO RENEW LICENSE - The act provides that the Department of Revenue may investigate dealer misconduct. The department may hold investigatory hearings and shall have the power to issue subpoena to compel the production of records and papers. The department may refuse to issue licenses or revoke the license of a dealer if the dealer engages in certain misconduct. The act provides that the department, in addition to other penalties, may assess a monetary penalty not to exceed $1,000 (section 301.562).

SALE OF ANY VEHICLES UNLAWFUL -Under the act, it is unlawful for any person who is not a motor vehicle dealer to sell or display with an intent to sell any motor vehicles and trailers in a calendar year, except when such motor vehicles are registered or were previously registered in the name of the seller. Under the current law, a person can sell up to six motor vehicles a year without be being licensed (Section 301.570).