PURPOSE: The department must determine that applicants/licensees such as boat dealers, boat 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. (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, motor vehicle manufacturers, wholesale motor vehicle dealers, public motor vehicle auctions and wholesale motor vehicle auctions—

   1. (A) The business location must be a permanently enclosed building or structure either owned or leased. 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 or exchanging of motor vehicles, trailers or boats.

      1. 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 or exchanging of motor vehicles or trailers;

1. (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

1. (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. The business location must contain a working telephone (other than a mobile or cellular phone) in the licensee’s name with an advertised public number that must be maintained during the entire period of licensure;

   1. (C) The licensee must maintain at the business location the books, records, files and other items required and necessary to conduct the business. Such items shall be accessible for inspection during regular business hours. If a licensee is also licensed as an auction, the auction records must be kept separately from the dealer records;

   2. (D) Unless otherwise specified, the business location of a licensee other than a wholesale dealer or boat dealer must also contain an area or lot which shall not be a public street upon which one (1) or more vehicles may be displayed.

      1. 1. The display area or lot must be of suf-

ficient size to physically accommodate vehicles of the type which the licensee is licensed to sell.

1. 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.

1. 3. The display area or lot must provide

unencumbered visibility from the nearest public street of the vehicles being sold by the licensee.

1. 4. Auctions that are also licensed as

dealers must maintain a display area or lot separate from the dealership lot for auction vehicles.

1. 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;

1. (E) The licensee must display an exterior sign, if applicable.

   1. 1. A licensee except a wholesale motor

vehicle dealer 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. The sign must—

1. A. Identify the name of the licensee

and class of the business conducted;

1. B. Have letters at least six inches (6")

in height;

1. C. Be clearly visible to the public;

and

1. D. Comply with local sign ordi-

nances, if any. 12 CSR 10-26

1. 2. 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.

1. 3. A public motor vehicle auction

licensee shall display, in a conspicuous manner, two (2) additional signs, each of which shall bear the following warning in letters at least six inches (6") high: “Attention Buyers: Vehicles sold at this auction may not have had a safety inspection.” The dimensions of each sign shall be at least two feet by two feet (2' × 2'); and

1. (F) A new motor vehicle franchise dealer’s business location shall include adequate facilities, tools and personnel necessary to properly service and repair motor vehicles and trailers under the franchiser’s warranty.

1. (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. 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, 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.

2. (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:

   1. (A) A new application certified by authorized law enforcement that the new location meets the requirements of a bona fide established place of business. “Change of Address” must be indicated at the top of the application.

      1. 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.

1. 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

1. (B) A photograph of the business location that meets the specifications required of new applicants.

1. (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:

   1. (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;
   2. (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
   3. (C) A corporate surety bond, bond rider, or revision to the irrevocable letter of credit that reflects the licensee’s new business name.
2. (5) When a licensee changes its business name and/or location, it must also file the change with the Office of the Secretary of State.
3. (6) Each business location where a licensee auctions, manufactures, sells or displays motor vehicles, trailers or boats must be licensed separately with the department. However, when a licensee has more than one
4. (1) location in the same city or with the same city mailing address, the licensee may operate under the same name and license number by filing a proper application for each business location with the department and maintaining a bona fide place of business at each location. No additional fees are required for the additional locations in these two (2) cases.
5. (7) 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: sections 301.553 and 301.560, RSMo Supp. 1998.* Original rule filed Nov. 1, 1999, effective May 30, 2000.

*Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; and 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997.