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Proposal for independent motor-vehicle commission draws industry resistance and DOR backing
Summary
House Bill 3051 would create an independent motor-vehicle commission to adjudicate dealer licensing and complaint discipline; proponents and the Department of Revenue argued specialization and peer enforcement would improve outcomes while manufacturers and trade groups warned the commission would shift franchise and manufacturer issues away from the legislature.
Representative Chad Perkins introduced House Bill 3051 to establish an independent motor-vehicle commission that would administer licensing and adjudication for motor-vehicle dealers and related businesses.
Perkins told the committee the Department of Revenue would continue to investigate complaints but that an expert commission would adjudicate discipline, potentially resolving disputes faster and with industry expertise. ‘‘The commission is made up of people that actually know the subject matter,’’ Perkins said, arguing specialized commissioners and a dedicated executive director would provide subject-matter knowledge and speed.
Greg Mitchell, who led a previous motor-vehicle commission in Missouri, and representatives of the Missouri Auto Dealers Association testified in favor, noting many other states use a similar commission model and describing the value of a specialized staff.
Manufacturers and trade groups opposed the bill. Jewell Paddock of the Alliance for Auto Innovators said manufacturers are underrepresented on the proposed board and warned the commission could be used to decide franchise-agreement disputes that the legislature has customarily addressed. ‘‘This is an end run around the legislature to put those franchise agreements squarely in front of the motor vehicle commission instead of with the legislature,’’ Paddock said.
Director of Revenue Trish Vincent testified that DOR investigators would remain with the department, licensing staff would transfer to the commission and that dealer licensing fees would fund commission operations. She said the model would allow peers to hold dealers accountable while freeing investigators to focus on fraud and enforcement work.
Representatives raised concerns about market protectionism, whether the commission might restrict access for new manufacturers, and the proposed immunity language for commission staff and members. Manufacturers including Ford and General Motors urged removing language that would give the commission authority over manufacturers or ensuring manufacturers have representation. Tesla testified for informational purposes and sought an explicit carve-out for direct-sales manufacturers in future amendments.
The hearing closed with no vote; committee members signaled additional questions about membership composition, staffing, and potential amendments to address manufacturer concerns.
