MO HB1634

Prohibits franchisors from owning or operating new motor vehicle dealerships in Missouri, with limited exceptions for temporary sales (up to 24 months, extendable to 36 months) and bona fide relationships with independent operators making significant investments.

Allows franchisors to own minority interests (not exceeding 45%) in entities operating dealerships of their line-make under strict conditions including distance requirements, franchise agreement limits, and historical ownership thresholds.

Requires franchisors to provide written schedules specifying fair and reasonable compensation for preparation, delivery, and warranty service, with labor rates based on prevailing market wages and parts compensation based on dealer cost markups.

Establishes special compensation rules for trucks with licensed gross weight of 18,000 pounds or more, calculated using the dealer's average percentage markup over dealer cost for parts.

Restricts franchisor audits of warranty and incentive claims to 12 months after payment (or 24 months for suspected fraud) and requires written notice with detailed audit findings before charging back claims to franchisees.