Missoiuri > Department of Revenue/Director of Revenue > MO 19546 2010

CITATION: 12 CSR 10-26.020

AGENCY: Department of Revenue/Director of Revenue

VERSION: Adopted Emergency Rule

VERSION DATE: 08/18/2010

Title 12-DEPARTMENT OF REVENUE

Division 10-Director of Revenue

Chapter 26-Dealer Licensure

EMERGENCY AMENDMENT

12 CSR 10-26.020 License Requirements for Auctions, Dealers, Franchisors, and Manufacturers. The director proposes to amend the title and purpose and add a new section (9).

PURPOSE: This amendment specifies the requirements for the issuance of a motor vehicle manufacturer's license to a franchisor who must comply with the Motor Vehicle Franchise Practices Act (2010) in order to maintain franchised motor vehicle dealerships in the state of Missouri.

EMERGENCY STATEMENT: This emergency amendment prescribes the requirements for issuance of a motor vehicle manufacturer's license to a franchisor, as defined in sections 407.810 to 407.835, RSMo, under section 301.553, RSMo. This amendment is necessary for the Department of Revenue (department) to implement House Bill 2198, passed by the Second Regular Session of the Ninety-fifth General Assembly, 2010. This legislation becomes effective August 28, 2010. With such a limited amount of time to implement the franchisor licensing requirements necessary to fulfill the department's responsibilities and to mitigate a negative economic climate to Missouri auto dealers, the department finds a compelling governmental interest for this emergency action. Failure to enact the requirements of this amendment in a timely manner will preclude motor vehicle franchise dealers from continuing operation past December 31, 2010, because, effective August 28, 2010, as a condition of their motor vehicle franchise license, the franchisor must obtain the necessary franchisor license prescribed in this rulemaking. The department has discussed the general details of this amendment with the Missouri Automobile Dealers Association (MADA). There are approximately four hundred (400) motor vehicle franchise dealers licensed in Missouri. These dealers generate millions of dollars in state tax revenue and employ several thousand Missourians. The economic viability of these small businesses would be jeopardized should their dealer licenses not be issued. Because the legislation requiring the franchisor licenses did not contain specific details regarding the requirements for issuance of such licenses, the department is utilizing its rulemaking authority granted under section 301.553, RSMo, to prescribe the aforementioned licensing requirements. A proposed amendment that covers the same material is pub-lished in this issue of the Missouri Register. The scope of this emer-gency amendment is limited to the circumstances creating the emergency and complies with the protections extended in the Missouri and United States Constitutions. The Department of Revenue believes this emergency amendment is fair to all interested persons and parties under the circumstances. This emergency amendment was filed August 18, 2010, becomes effective August 28, 2010, and expires February 24, 2011.

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 pursuant to 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.

(9) A "franchisor," as defined in the Motor Vehicle Franchise Practices (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. 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 para-graph (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, and sections 301 .550 and 301 .560, RSMo Supp. 20072009, and sections 407.810 to 407.838, HB 2198, Second Regular Session, Ninetyfifth General Assembly, 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, expires Feb. 24, 2011. A proposed amendment covering this same material is published in this issue of the Missouri Register.