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7 LONG TITLE
8 General Description:
9 This bill modifies and enacts provisions relating to the sale of new motor vehicles.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ allows and creates a license for a new car dealer to conduct business online;
14 ▸ creates a license for an online salesperson;
15 ▸ addresses penalties to enforce the provisions of this bill;
16 ▸ exempts an online dealer from the provisions of the New Automobile Franchise
17 Act; and
18 ▸ makes technical and conforming changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 41-1a-802, as last amended by Laws of Utah 2005, Chapter 32
26 41-3-102, as last amended by Laws of Utah 2014, Chapter 237
27 41-3-103, as last amended by Laws of Utah 2010, Chapter 393
28 41-3-105, as last amended by Laws of Utah 2010, Chapter 393
29 41-3-201, as last amended by Laws of Utah 2013, Chapter 463
30 41-3-202, as last amended by Laws of Utah 2009, Chapter 78
31 41-3-203, as renumbered and amended by Laws of Utah 1992, Chapter 234
32 41-3-204, as last amended by Laws of Utah 2008, Chapter 388
33 41-3-209, as last amended by Laws of Utah 2012, Chapter 145
34 41-3-210, as last amended by Laws of Utah 2007, Chapter 322
35 41-3-702, as last amended by Laws of Utah 2012, Chapters 379 and 390
36 ENACTS:
37 13-14-108, Utah Code Annotated 1953
38 41-3-210.5, Utah Code Annotated 1953
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 13-14-108 is enacted to read:
42 13-14-108. Applicability.
43 The provisions of this chapter do not apply to a person licensed as an online dealer
44 under Title 41, Chapter 3, Motor Vehicle Business Regulation Act.
45 Section 2. Section 41-1a-802 is amended to read:
46 41-1a-802. Identification number inspectors -- Duties.
47 (1) The following are qualified identification number inspectors:
48 (a) the commission;
49 (b) designated officers and employees of the division;
50 (c) a person operating a safety inspection station under Title 53, Chapter 8, Part 2,
51 Motor Vehicle Safety Inspection Act;
52 (d) an official inspection station certified inspector;
53 (e) a dealer licensed under Subsection 41-3-202(1), (2), [
54 (f) all peace officers of the state.
55 (2) The qualified identification number inspectors shall, upon the application for the
56 first registration in this state of any vehicle:
57 (a) inspect the identification number of the vehicle;
58 (b) make a record of the identification number inspection upon an application form
59 provided by the division; and
60 (c) verify the facts in the application.
61 Section 3. Section 41-3-102 is amended to read:
62 41-3-102. Definitions.
63 As used in this chapter:
64 (1) "Administrator" means the motor vehicle enforcement administrator.
65 (2) "Agent" means a person other than a holder of any dealer's or salesperson's license
66 issued under this chapter, who for salary, commission, or compensation of any kind, negotiates
67 in any way for the sale, purchase, order, or exchange of three or more motor vehicles for any
68 other person in any 12-month period.
69 (3) "Auction" means a dealer engaged in the business of auctioning motor vehicles,
70 either owned or consigned, to the general public.
71 (4) "Authorized service center" means an entity that:
72 (a) is in the business of repairing the motor vehicles of the same line-make as the
73 motor vehicles offered for sale by a single online dealer;
74 (b) is authorized by the online dealer described in Subsection (4)(a) to complete
75 warranty repair work for motor vehicles of the same line-make as the motor vehicles that the
76 online dealer offers for sale; and
77 (c) conducts business at a site or location that is permanently located in the state.
78 [
79 [
80 painting primarily the body of motor vehicles damaged by collision or natural disaster.
81 [
82 [
83 registration under Title 41, Chapter 1a, Motor Vehicle Act, to reduce the useable materials and
84 metals to a more compact size for recycling.
85 [
86 (i) whose business in whole or in part involves selling new, used, or new and used
87 motor vehicles or off-highway vehicles; and
88 (ii) who sells, displays for sale, or offers for sale or exchange three or more new or
89 used motor vehicles or off-highway vehicles in any 12-month period.
90 (b) "Dealer" includes a representative or consignee of any dealer.
91 (10) "Demonstration vehicle" means a new motor vehicle:
92 (a) that is manufactured by an online dealer; and
93 (b) that the online dealer who manufactured the motor vehicle:
94 (i) maintains at the online dealer's showroom; and
95 (ii) makes available to prospective purchasers to test drive.
96 [
97 motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, for the
98 resale of parts or for salvage.
99 (b) "Dismantler" includes a person who dismantles three or more motor vehicles in any
100 12-month period.
101 (12) "Display vehicle" means a new motor vehicle:
102 (a) that is manufactured by an online dealer;
103 (b) that the online dealer who manufactured the motor vehicle maintains inside the
104 online dealer's showroom; and
105 (c) is used for the sole purpose of display to prospective purchasers.
106 [
107 motor vehicles to distribute motor vehicles within this state and who in whole or in part sells or
108 distributes new motor vehicles to dealers or who maintains distributor representatives.
109 [
110 distributor for the same purposes a factory branch is maintained.
111 [
112 of the person engaged as a representative of a distributor or distributor branch of motor
113 vehicles to make or promote the sale of the distributor or the distributor branch's motor
114 vehicles, or for supervising or contacting dealers or prospective dealers of the distributor or the
115 distributor branch.
116 [
117 Section 41-3-104.
118 [
119 manufactures or assembles motor vehicles for sale to distributors, motor vehicle dealers, or
120 who directs or supervises the factory branch's representatives.
121 [
122 the person engaged as a representative of a manufacturer of motor vehicles or by a factory
123 branch to make or promote the sale of the manufacturer's or factory branch's motor vehicles, or
124 for supervising or contacting the dealers or prospective dealers of the manufacturer or the
125 factory branch.
126 [
127 manufacturer of new motor vehicles or its distributor or factory branch by which the dealer is
128 authorized to sell any specified make or makes of new motor vehicles.
129 (20) "Line-make" has the same meaning as that term is defined in Section 13-14-102.
130 [
131 assembling new motor vehicles, ownership of which is customarily transferred by a
132 manufacturer's statement or certificate of origin, or a person who constructs three or more new
133 motor vehicles in any 12-month period.
134 [
135 [
136 (i) self-propelled;
137 (ii) a trailer, travel trailer, or semitrailer; or
138 (iii) an off-highway vehicle or small trailer.
139 (b) "Motor vehicle" does not include:
140 (i) mobile homes as defined in Section 41-1a-102;
141 (ii) trailers of 750 pounds or less unladen weight;
142 (iii) farm tractors and other machines and tools used in the production, harvesting, and
143 care of farm products; and
144 (iv) park model recreational vehicles as defined in Section 41-1a-102.
145 [
146 registered and has been driven less than 7,500 miles, unless the motor vehicle is an
147 off-highway vehicle, small trailer, trailer, travel trailer, or semitrailer, in which case the
148 mileage limit does not apply.
149 [
150 41-22-2.
151 (26) "Online dealer" means a manufacturer who:
152 (a) manufactures new motor vehicles of the manufacturer's own line-make; and
153 (b) in any 12-month period, sells, displays for sale, or offers for sale three or more new
154 motor vehicles of the manufacturer's line-make.
155 (27) "Online salesperson" means an individual who for a salary, commission, or
156 compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by
157 an online dealer to sell, purchase, or exchange, or to negotiate for the sale of new motor
158 vehicles manufactured by the online dealer who employs the individual.
159 [
160 of personal property deposited with him.
161 [
162 (a) devoted exclusively to the business for which the dealer, manufacturer,
163 remanufacturer, transporter, dismantler, crusher, or body shop is licensed, and businesses
164 incidental to them;
165 (b) sufficiently bounded by fence, chain, posts, or otherwise marked to definitely
166 indicate the boundary and to admit a definite description with space adequate to permit the
167 display of three or more new, or new and used, or used motor vehicles and sufficient parking
168 for the public; and
169 (c) that includes a permanent enclosed building or structure large enough to
170 accommodate the office of the establishment and to provide a safe place to keep the books and
171 other records of the business, at which the principal portion of the business is conducted and
172 the books and records kept and maintained.
173 [
174 subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, to change the body style
175 and appearance of the motor vehicle or who constructs or assembles motor vehicles from used
176 or new and used motor vehicle parts, or who reconstructs, constructs, or assembles three or
177 more motor vehicles in any 12-month period.
178 [
179 compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by
180 any new motor vehicle dealer or used motor vehicle dealer to sell, purchase, or exchange or to
181 negotiate for the sale, purchase, or exchange of motor vehicles.
182 [
183 (33) "Showroom" means a site or location in the state at which an online dealer
184 conducts business as an online dealer in accordance with the provisions of this chapter.
185 [
186 pounds, but less than 2,000 pounds.
187 [
188 lift, post hole digger, and a utility or service body.
189 [
190 dealer engaged in the business of buying new incomplete motor vehicles with a gross vehicle
191 weight of 12,000 or more pounds and installing special equipment on the incomplete motor
192 vehicle.
193 [
194 [
195 vehicles as described in Section 41-3-202.
196 [
197 [
198 a purchaser other than a dealer or has been driven 7,500 or more miles, unless the vehicle is a
199 trailer, or semitrailer, in which case the mileage limit does not apply.
200 [
201 business of auctioning consigned motor vehicles to dealers or dismantlers who are licensed by
202 this or any other jurisdiction.
203 Section 4. Section 41-3-103 is amended to read:
204 41-3-103. Exceptions to "dealer" definition -- Dealer licensed in other state --
205 Online dealer or salesperson.
206 Under this chapter:
207 (1) (a) An insurance company, bank, finance company, company registered as a title
208 lender under Title 7, Chapter 24, Title [
209 as a check casher or deferred deposit lender under Title 7, Chapter 23, Check Cashing and
210 Deferred Deposit Lending Registration Act, public utility company, commission impound yard,
211 federal or state governmental agency, or any political subdivision of any of them or any other
212 person coming into possession of a motor vehicle as an incident to its regular business, that
213 sells the motor vehicle under contractual rights that it may have in the motor vehicle is not
214 considered a dealer.
215 (b) A person who sells or exchanges only those motor vehicles that the person has
216 owned for over 12 months is not considered a dealer.
217 (2) (a) A person engaged in leasing motor vehicles is not considered as coming into
218 possession of the motor vehicles incident to the person's regular business.
219 (b) A pawnbroker engaged in selling, exchanging, or pawning motor vehicles is
220 considered as coming into possession of the motor vehicles incident to the person's regular
221 business and must be licensed as a used motor vehicle dealer.
222 (3) A person currently licensed as a dealer or salesperson by another state or country
223 and not currently under license suspension or revocation by the administrator may only sell
224 motor vehicles in this state to licensed dealers, dismantlers, or manufacturers, and only at their
225 places of business.
226 (4) Except as otherwise expressly provided:
227 (a) an online dealer is subject to the same provisions under this chapter as a new motor
228 vehicle dealer; and
229 (b) an online salesperson is subject to the same provisions under this chapter as a
230 salesperson.
231 (5) Notwithstanding any provision of this section to the contrary, an online dealer may:
232 (a) operate without a principal place of business; and
233 (b) sell new motor vehicles without a franchise.
234 Section 5. Section 41-3-105 is amended to read:
235 41-3-105. Administrator's powers and duties -- Administrator and investigators
236 to be law enforcement officers.
237 (1) The administrator may make rules to carry out the purposes of this chapter and
238 Sections 41-1a-1001 through 41-1a-1007 according to the procedures and requirements of Title
239 63G, Chapter 3, Utah Administrative Rulemaking Act.
240 (2) (a) The administrator may employ clerks, deputies, and assistants necessary to
241 discharge the duties under this chapter and may designate the duties of those clerks, deputies,
242 and assistants.
243 (b) The administrator, assistant administrator, and all investigators shall be law
244 enforcement officers certified by peace officer standards and training as required by Section
245 53-13-103.
246 (3) (a) The administrator may investigate any suspected or alleged violation of:
247 (i) this chapter;
248 (ii) Title 41, Chapter 1a, Motor Vehicle Act;
249 (iii) any law concerning motor vehicle fraud; or
250 (iv) any rule made by the administrator.
251 (b) The administrator may bring an action in the name of the state against any person to
252 enjoin a violation found under Subsection (3)(a).
253 (4) (a) The administrator may prescribe forms to be used for applications for licenses.
254 (b) The administrator may require information from the applicant concerning the
255 applicant's fitness to be licensed.
256 (c) Each application for a license shall contain:
257 (i) if the applicant is an individual, the name and residence address of the applicant and
258 the trade name, if any, under which the applicant intends to conduct business;
259 (ii) if the applicant is a partnership, the name and residence address of each partner,
260 whether limited or general, and the name under which the partnership business will be
261 conducted;
262 (iii) if the applicant is a corporation, the name of the corporation, and the name and
263 residence address of each of its principal officers and directors;
264 (iv) unless the applicant is applying for an online dealer license or an online
265 salesperson license, a complete description of the principal place of business, including:
266 (A) the municipality, with the street and number, if any;
267 (B) if located outside of any municipality, a general description so that the location can
268 be determined; and
269 (C) any other places of business operated and maintained by the applicant in
270 conjunction with the principal place of business;
271 (v) if the application is for a new motor vehicle dealer's license, and not an online
272 dealer's license, the name of each motor vehicle the applicant has been enfranchised to sell or
273 exchange, the name and address of the manufacturer or distributor who has enfranchised the
274 applicant, and the names and addresses of the individuals who will act as salespersons under
275 authority of the license;
276 (vi) at least five years of business history;
277 (vii) the federal tax identification number issued to the dealer; [
278 (viii) the sales and use tax license number issued to the dealer under Title 59, Chapter
279 12, Sales and Use Tax Act[
280 (ix) if the application is for an online dealer's license, a complete description of the
281 online dealer's authorized service center, including:
282 (A) the municipality, with the street and number, if any;
283 (B) if located outside of any municipality, a general description so that the location can
284 be determined; and
285 (C) any other place of business that the applicant or the authorized service center
286 operates and maintains in conjunction with the authorized service center; and
287 (x) if the application is for an online dealer's license and the online dealer operates a
288 showroom, a complete description of the showroom, including:
289 (A) the municipality, with the street number, if any;
290 (B) if located outside of any municipality, a general description so that the location can
291 be determined; and
292 (C) any other place of business that the applicant operates or maintains in conjunction
293 with the showroom.
294 (5) The administrator may adopt a seal with the words "Motor Vehicle Enforcement
295 Administrator, State of Utah," to authenticate the acts of the administrator's office.
296 (6) (a) The administrator may require that [
297 on the licensee's principal place of business [
298 locations operated and maintained by the licensee in conjunction with the licensee's business.
299 (b) The signs or devices shall state the licensee's name, principal place of business or
300 showroom, type and number of licenses, and any other information that the administrator
301 considers necessary to identify the licensee.
302 (c) The administrator may make rules in accordance with Title 63G, Chapter 3, Utah
303 Administrative Rulemaking Act, determining allowable size and shape of signs or devices,
304 their lettering and other details, and their location.
305 (7) (a) The administrator shall provide for quarterly meetings of the advisory board and
306 may call special meetings.
307 (b) Notices of all meetings shall be sent to each member not fewer than five days prior
308 to the meeting.
309 (8) The administrator, the officers and inspectors of the division designated by the
310 commission, and peace officers shall:
311 (a) make arrests upon view and without warrant for any violation committed in their
312 presence of any of the provisions of this chapter, or Title 41, Chapter 1a, Motor Vehicle Act;
313 (b) when on duty, upon reasonable belief that a motor vehicle, trailer, or semitrailer is
314 being operated in violation of any provision of Title 41, Chapter 1a, Motor Vehicle Act, require
315 the driver of the vehicle to stop, exhibit the person's driver license and the registration card
316 issued for the vehicle and submit to an inspection of the vehicle, the license plates, and
317 registration card;
318 (c) serve all warrants relating to the enforcement of the laws regulating the operation of
319 motor vehicles, trailers, and semitrailers;
320 (d) investigate traffic accidents and secure testimony of witnesses or persons involved;
321 and
322 (e) investigate reported thefts of motor vehicles, trailers, and semitrailers.
323 (9) The administrator may contract with a public prosecutor to provide additional
324 prosecution of this chapter.
325 Section 6. Section 41-3-201 is amended to read:
326 41-3-201. Licenses required -- Restitution -- Education.
327 (1) As used in this section, "new applicant" means a person who is applying for a
328 license that the person has not been issued during the previous licensing year.
329 (2) A person may not act as any of the following without having procured a license
330 issued by the administrator:
331 (a) a dealer;
332 (b) salvage vehicle buyer;
333 (c) salesperson;
334 (d) manufacturer;
335 (e) transporter;
336 (f) dismantler;
337 (g) distributor;
338 (h) factory branch and representative;
339 (i) distributor branch and representative;
340 (j) crusher;
341 (k) remanufacturer; [
342 (l) body shop[
343 (m) online dealer; or
344 (n) online salesperson.
345 (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a
346 vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or
347 through a motor vehicle auction unless the person is a licensed salvage vehicle buyer.
348 (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
349 exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001
350 at or through a motor vehicle auction except to a licensed salvage vehicle buyer.
351 (c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or
352 salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction:
353 (i) to an out-of-state or out-of-country purchaser not licensed under this section, but
354 that is authorized to do business in the domestic or foreign jurisdiction in which the person is
355 domiciled or registered to do business;
356 (ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed
357 under this section that:
358 (A) has a valid business license in Utah; and
359 (B) has a Utah sales tax license; and
360 (iii) to a crusher.
361 (d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not
362 licensed under this section has the licenses required in Subsection (3)(c)(ii).
363 (ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange
364 five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor
365 vehicle auction in any 12 month period to an in-state purchaser that does not have a salvage
366 vehicle buyer license issued in accordance with Subsection 41-3-202[
367 (iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales
368 tax license and not to each person with the authority to use a sales tax license.
369 (iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable
370 certificate as defined in Section 41-1a-1001 to a purchaser otherwise allowed to purchase a
371 vehicle under Subsection (3)(c)(ii).
372 (e) For a vehicle with a salvage certificate purchased under Subsection (3)(c)(ii), an
373 operator of a motor vehicle auction shall:
374 (i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate
375 of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does
376 not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler
377 license issued in accordance with Section 41-3-202; or
378 (B) beginning on or after the date that the Motor Vehicle Division has implemented the
379 Motor Vehicle Division's GenTax system, make application electronically, in a form and time
380 period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in
381 the name of the purchaser;
382 (ii) give to the purchaser a disclosure printed on a separate piece of paper that states:
383 "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE
384 BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE
385 Vehicle Identification Number (VIN)
386 Year: Make: Model:
387 SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE
388 WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION
389 UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION
390 BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY
391 REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT
392 SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE
393 CERTIFICATE OF TITLE.
394 _________________________________________________________________
395 Signature of Purchaser Date"; and
396 (iii) if applicable, provide evidence to the Motor Vehicle Division of:
397 (A) payment of sales taxes on taxable sales in accordance with Section 41-1a-510;
398 (B) the identification number inspection required under Section 41-1a-511; and
399 (C) the odometer disclosure statement required under Section 41-1a-902.
400 (f) The Motor Vehicle Division shall include a link to the disclosure statement
401 described in Subsection (3)(e)(ii) on its website.
402 (g) The commission may impose an administrative entrance fee established in
403 accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a
404 person not holding a license described in Subsection (3)(e)(i) that enters the physical premises
405 of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an
406 auction.
407 (h) A vehicle sold at or through a motor vehicle auction to an out-of-state purchaser
408 with a nonrepairable or salvage certificate may not be certificated in Utah until the vehicle has
409 been certificated out-of-state.
410 (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each
411 salvage vehicle.
412 (b) A record described under Subsection (4)(a) shall contain:
413 (i) the purchaser's name and address; and
414 (ii) the year, make, and vehicle identification number for each salvage vehicle sold.
415 (c) An operator of a motor vehicle auction shall:
416 (i) provide the record described in Subsection (4)(a) electronically in a method
417 approved by the division to the division within two business days of the completion of the
418 motor vehicle auction;
419 (ii) retain the record described in this Subsection (4) for five years from the date of
420 sale; and
421 (iii) make a record described in this Subsection (4) available for inspection by the
422 division at the location of the motor vehicle auction during normal business hours.
423 (5) (a) If applicable, an operator of a motor vehicle auction shall comply with the
424 reporting requirements of the National Motor Vehicle Title Information System overseen by
425 the United States Department of Justice if the person sells a vehicle with a salvage certificate to
426 an in-state purchaser under Subsection (3)(c)(ii).
427 (b) The Motor Vehicle Division shall include a link to the National Motor Vehicle
428 Title Information System on its website.
429 (6) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person
430 that is an out-of-country buyer shall:
431 (i) stamp on the face of the title so as not to obscure the name, date, or mileage
432 statement the words "FOR EXPORT ONLY" in all capital, black letters; and
433 (ii) stamp in each unused reassignment space on the back of the title the words "FOR
434 EXPORT ONLY."
435 (b) The words "FOR EXPORT ONLY" shall be:
436 (i) at least two inches wide; and
437 (ii) clearly legible.
438 (7) A supplemental license shall be secured by a dealer, manufacturer, remanufacturer,
439 transporter, dismantler, crusher, or body shop for each additional place of business maintained
440 by the licensee.
441 (8) (a) A person who has been convicted of any law relating to motor vehicle
442 commerce or motor vehicle fraud may not be issued a license or purchase a vehicle with a
443 salvage or nonrepairable certificate unless full restitution regarding those convictions has been
444 made.
445 (b) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
446 vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (8)(a) if
447 the division has informed the operator of the motor vehicle auction, the dealer, or the consignor
448 in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or
449 salvage certificate under Subsection (8)(a).
450 (9) (a) The division may not issue a license to a new applicant for a new or used motor
451 vehicle dealer license, a new or used motorcycle dealer license, an online dealer, or a small
452 trailer dealer license unless the new applicant completes an eight-hour orientation class
453 approved by the division that includes education on motor vehicle laws and rules.
454 (b) The approved costs of the orientation class shall be paid by the new applicant.
455 (c) The class shall be completed by the new applicant and the applicant's partners,
456 corporate officers, bond indemnitors, and managers.
457 (d) (i) The division shall approve:
458 (A) providers of the orientation class; and
459 (B) costs of the orientation class.
460 (ii) A provider of an orientation class shall submit the orientation class curriculum to
461 the division for approval prior to teaching the orientation class.
462 (iii) A provider of an orientation class shall include in the orientation materials:
463 (A) ethics training;
464 (B) motor vehicle title and registration processes;
465 (C) provisions of Title 13, Chapter 5, Unfair Practices Act, relating to motor vehicles;
466 (D) Department of Insurance requirements relating to motor vehicles;
467 (E) Department of Public Safety requirements relating to motor vehicles;
468 (F) federal requirements related to motor vehicles as determined by the division; and
469 (G) any required disclosure compliance forms as determined by the division.
470 (10) A person or purchaser described in Subsection (3)(c)(ii):
471 (a) may not purchase more than five salvage vehicles with a nonrepairable or salvage
472 certificate as defined in Section 41-1a-1001 in any 12-month period;
473 (b) may not, without first complying with Section 41-1a-705, offer for sale, sell, or
474 exchange more than two vehicles with a salvage certificate as defined in Section 41-1a-1001 in
475 any 12-month period to a person not licensed under this section; and
476 (c) may not, without first complying with Section 41-1a-705, offer for sale, sell, or
477 exchange a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a
478 person not licensed under this section.
479 (11) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
480 vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (10)(a) if
481 the division has informed the operator of the motor vehicle auction, the dealer, or the consignor
482 in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or
483 salvage certificate under Subsection (10)(a).
484 Section 7. Section 41-3-202 is amended to read:
485 41-3-202. Licenses -- Classes and scope.
486 (1) A new motor vehicle dealer's license permits the licensee to:
487 (a) offer for sale, sell, or exchange new motor vehicles if the licensee possesses a
488 franchise from the manufacturer of the motor vehicle offered for sale, sold, or exchanged by the
489 licensee;
490 (b) offer for sale, sell, or exchange used motor vehicles;
491 (c) operate as a body shop; and
492 (d) dismantle motor vehicles.
493 (2) A used motor vehicle dealer's license permits the licensee to:
494 (a) offer for sale, sell, or exchange used motor vehicles;
495 (b) operate as a body shop; and
496 (c) dismantle motor vehicles.
497 (3) An online dealer's license permits the licensee to, in accordance with the provisions
498 of this chapter:
499 (a) sell new or used motor vehicles of the line-make that the online dealer
500 manufactures exclusively through the internet;
501 (b) establish and maintain a showroom exclusively for the following purposes:
502 (i) to display new motor vehicles that the online dealer offers for sale;
503 (ii) to demonstrate new motor vehicles that the online dealer offers for sale; and
504 (iii) to discuss the price of the new motor vehicles that the online dealer offers for sale;
505 and
506 (c) establish an authorized service center that performs repair work on motor vehicles
507 of the same line-make as the motor vehicles that the online dealer offers for sale.
508 [
509 permits the licensee to:
510 (a) offer for sale, sell, or exchange new motorcycles, off-highway vehicles, or small
511 trailers if the licensee possesses a franchise from the manufacturer of the motorcycle,
512 off-highway vehicle, or small trailer offered for sale, sold, or exchanged by the licensee;
513 (b) offer for sale, sell, or exchange used motorcycles, off-highway vehicles, or small
514 trailers; and
515 (c) dismantle motorcycles, off-highway vehicles, or small trailers.
516 [
517 permits the licensee to:
518 (a) offer for sale, sell, or exchange used motorcycles, off-highway vehicles, and small
519 trailers; and
520 (b) dismantle motorcycles, off-highway vehicles, or small trailers.
521 [
522 permits the licensee to act as a motor vehicle salesperson and is valid for employment with
523 only one dealer at a time.
524 (b) A licensee that has been issued a salesperson's license and that is employed by a
525 dealer that operates as a wholesale motor vehicle auction may be employed by more than one
526 dealer that operates as a wholesale motor vehicle auction at a time.
527 (7) An online salesperson's license permits the licensee to sell or to negotiate for the
528 sale of new motor vehicles for one online dealer.
529 [
530 motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, at an
531 established place of business and to remanufacture motor vehicles.
532 (b) Under rules made by the administrator, the licensee may issue and install vehicle
533 identification numbers on manufactured motor vehicles.
534 (c) The licensee may franchise and appoint dealers to sell manufactured motor vehicles
535 by notifying the division of the franchise or appointment.
536 [
537 vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, from a
538 manufacturing, assembling, or distributing point or from a dealer, to dealers, distributors, or
539 sales agents of a manufacturer or remanufacturer, to or from detail or repair shops, and to
540 financial institutions or places of storage from points of repossession.
541 [
542 subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of
543 reselling parts or for salvage, or selling dismantled or salvage vehicles to a crusher or other
544 dismantler.
545 [
546 licensee to sell and distribute new motor vehicles, parts, and accessories to their franchised
547 dealers.
548 [
549 representatives permits the licensee to contact the licensee's authorized dealers for the purpose
550 of making or promoting the sale of motor vehicles, parts, and accessories.
551 [
552 reconstruct, assemble, or reassemble motor vehicles subject to registration under Title 41,
553 Chapter 1a, Motor Vehicle Act, from used or new motor vehicles or parts.
554 (ii) Evidence of ownership of parts and motor vehicles used in remanufacture shall be
555 available to the division upon demand.
556 (b) Under rules made by the administrator, the licensee may issue and install vehicle
557 identification numbers on remanufactured motor vehicles.
558 [
559 crushing or shredding motor vehicles subject to registration under Title 41, Chapter 1a, Motor
560 Vehicle Act, for the purpose of reducing the useable materials and metals to a more compact
561 size for recycling.
562 [
563 paint primarily the body of motor vehicles damaged by collision or natural disaster, and to
564 dismantle motor vehicles.
565 [
566 (a) buy incomplete new motor vehicles with a gross vehicle weight of 12,000 or more
567 pounds from a new motor vehicle dealer and sell the new vehicle with the special equipment
568 installed without a franchise from the manufacturer;
569 (b) offer for sale, sell, or exchange used motor vehicles;
570 (c) operate as a body shop; and
571 (d) dismantle motor vehicles.
572 [
573 purchase a vehicle with a salvage certificate as defined in Section 41-1a-1001 at any motor
574 vehicle auction.
575 (b) A salvage vehicle buyer license may only be issued to a motor vehicle dealer,
576 dismantler, or body shop who qualifies under rules made by the division and is licensed in any
577 state as a motor vehicle dealer, dismantler, or body shop.
578 (c) The division may not issue more than two salvage vehicle buyer licenses to any one
579 dealer, dismantler, or body shop.
580 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
581 administrator shall make rules establishing qualifications of an applicant for a salvage vehicle
582 buyer license. The criteria shall include:
583 (i) business history;
584 (ii) salvage vehicle qualifications;
585 (iii) ability to properly handle and dispose of environmental hazardous materials
586 associated with salvage vehicles; and
587 (iv) record in demonstrating compliance with the provisions of this chapter.
588 Section 8. Section 41-3-203 is amended to read:
589 41-3-203. Licenses -- Form -- Seal -- Custody of salesperson's license -- Display of
590 salesperson and dealer licenses -- Licensee's pocket card.
591 (1) (a) The administrator shall prescribe the form of each license and the seal of [
592 the administrator's office shall be imprinted on each license.
593 (b) The license of each salesperson shall be delivered or mailed to the dealer
594 employing the salesperson and it shall be kept in the custody and control of the dealer and,
595 except in the case of an online salesperson, conspicuously displayed in the dealer's place of
596 business.
597 (c) (i) Each licensee shall display conspicuously [
598 the licensee's place of business.
599 (ii) Except as provided in Subsection (1)(d), Subsection (1)(c)(i) does not apply to an
600 online dealer or an online salesperson.
601 (d) Each person who is licensed as an online dealer under this chapter shall
602 conspicuously display the online dealer's license:
603 (i) in the online dealer's authorized service center; and
604 (ii) if the online dealer maintains a showroom, in the online dealer's showroom.
605 (2) (a) The administrator shall prepare and deliver a pocket card, certifying that the
606 person whose name is on the card is licensed under this chapter.
607 (b) Each salesperson's card shall also contain the name and address of the dealer
608 employing him.
609 (c) Each salesperson shall on request display [
610 (d) An individual licensed as an online salesperson under this chapter shall display an
611 electronic copy of the online salesperson's license on the website through which the online
612 salesperson sells new motor vehicles.
613 Section 9. Section 41-3-204 is amended to read:
614 41-3-204. Licenses -- Principal place of business or authorized service center as
615 prerequisite -- Change of location -- Relinquishment on loss of principal place of business
616 or authorized service center.
617 (1) (a) The following licensees must maintain a principal place of business:
618 (i) dealers;
619 (ii) special equipment dealers;
620 (iii) manufacturers;
621 (iv) transporters;
622 (v) remanufacturers;
623 (vi) dismantlers;
624 (vii) crushers;
625 (viii) body shops; and
626 (ix) distributors who:
627 (A) are located within the state; or
628 (B) have a branch office within the state.
629 (b) The administrator may not issue a license under Subsection (1)(a) to an applicant
630 who does not have a principal place of business.
631 (c) (i) A person licensed as an online dealer under this chapter shall maintain an
632 authorized service center.
633 (ii) The administrator may not issue a license to an applicant for an online dealer's
634 license if the applicant does not have an authorized service center.
635 [
636 business, [
637 granted for the unexpired portion of the term of the original license at no additional fee.
638 (e) If a person licensed as an online dealer under this chapter changes the location of
639 the online dealer's authorized service center or the online dealer's showroom, the online dealer
640 shall immediately notify the administrator and the administrator shall grant the online dealer a
641 new license for the unexpired portion of the term of the online dealer's original license at no
642 additional fee.
643 (2) (a) If a licensee loses possession of a principal place of business or in the case of an
644 online dealer, an authorized service center, the license is automatically suspended and [
645 licensee shall immediately notify the administrator and upon demand by the administrator
646 deliver the license, pocket cards, special plates, and temporary permits to the administrator.
647 (b) The administrator shall hold the licenses, cards, plates, and permits until the
648 licensee obtains a principal place of business or authorized service center.
649 Section 10. Section 41-3-209 is amended to read:
650 41-3-209. Administrator's findings -- Suspension and revocation of license.
651 (1) If the administrator finds that an applicant is not qualified to receive a license, a
652 license may not be granted.
653 (2) (a) On December 1, 2010, the administrator shall suspend the license of a
654 salesperson who fails to submit to the division fingerprints as required under Subsection
655 41-3-205.5(1)(b) on or before November 30, 2010.
656 (b) If the administrator finds that there is reasonable cause to deny, suspend, or revoke
657 a license issued under this chapter, the administrator shall deny, suspend, or revoke the license.
658 (c) Reasonable cause for denial, suspension, or revocation of a license includes, in
659 relation to the applicant or license holder or any of its partners, officers, or directors:
660 (i) lack of a principal place of business, if applicable;
661 (ii) lack of a sales tax license required under Title 59, Chapter 12, Sales and Use Tax
662 Act;
663 (iii) lack of a bond in effect as required by this chapter;
664 (iv) current revocation or suspension of a dealer, online dealer, dismantler, auction,
665 [
666 (v) nonpayment of required fees;
667 (vi) making a false statement on any application for a license under this chapter or for
668 special license plates;
669 (vii) a violation of any state or federal law involving motor vehicles;
670 (viii) a violation of any state or federal law involving controlled substances;
671 (ix) charges filed with any county attorney, district attorney, or U.S. attorney in any
672 court of competent jurisdiction for a violation of any state or federal law involving motor
673 vehicles;
674 (x) a violation of any state or federal law involving fraud;
675 (xi) a violation of any state or federal law involving a registerable sex offense under
676 Section 77-41-106; [
677 (xii) having had a license issued under this chapter revoked within five years from the
678 date of application[
679 (xiii) as an online dealer:
680 (A) failure to have an authorized service center; or
681 (B) failure to comply with a provision of Section 41-3-210.5.
682 (d) Any action taken by the administrator under Subsection (2)(c)(ix) shall remain in
683 effect until a final resolution is reached by the court involved or the charges are dropped.
684 (3) If the administrator finds that an applicant is not qualified to receive a license under
685 this section, the administrator shall provide the applicant written notice of the reason for the
686 denial.
687 (4) If the administrator finds that the license holder has been convicted by a court of
688 competent jurisdiction of violating any of the provisions of this chapter or any rules made by
689 the administrator, or finds other reasonable cause, the administrator may, by complying with
690 the emergency procedures of Title 63G, Chapter 4, Administrative Procedures Act:
691 (a) suspend the license on terms and for a period of time the administrator finds
692 reasonable; or
693 (b) revoke the license.
694 (5) (a) After suspending or revoking a license, the administrator may take reasonable
695 action to:
696 (i) notify the public that the licensee is no longer in business; and
697 (ii) prevent the former licensee from violating the law by conducting business without
698 a license.
699 (b) Action under Subsection (5)(a) may include signs, banners, barriers, locks,
700 bulletins, and notices.
701 (c) Any business being conducted incidental to the business for which the former
702 licensee was licensed may continue to operate subject to the preventive action taken under this
703 subsection.
704 Section 11. Section 41-3-210 is amended to read:
705 41-3-210. License holders -- Prohibitions and requirements.
706 (1) The holder of any license issued under this chapter may not:
707 (a) intentionally publish, display, or circulate any advertising that is misleading or
708 inaccurate in any material fact or that misrepresents any of the products sold, manufactured,
709 remanufactured, handled, or furnished by a licensee;
710 (b) intentionally publish, display, or circulate any advertising without identifying the
711 seller as the licensee by including in the advertisement the full name under which the licensee
712 is licensed or the licensee's number assigned by the division;
713 (c) violate this chapter or the rules made by the administrator;
714 (d) violate any law of the state respecting commerce in motor vehicles or any rule
715 respecting commerce in motor vehicles made by any licensing or regulating authority of the
716 state;
717 (e) engage in business as a new motor vehicle dealer, an online dealer, a special
718 equipment dealer, a used motor vehicle dealer, a motor vehicle crusher, or a body shop without
719 having in effect a bond as required in this chapter;
720 (f) unless licensed as an online dealer, act as a dealer, dismantler, crusher,
721 manufacturer, transporter, remanufacturer, or body shop without maintaining a principal place
722 of business;
723 (g) engage in a business respecting the selling or exchanging of new or new and used
724 motor vehicles for which he is not licensed, including selling or exchanging a new motor
725 vehicle for which the licensee does not have a franchise, but this Subsection (1)(g) does not
726 apply to:
727 (i) a special equipment dealer who sells a new special equipment motor vehicle with a
728 gross vehicle weight of 12,000 or more pounds after installing special equipment on the motor
729 vehicle; or
730 (ii) an online dealer;
731 (h) dismantle or transport to a crusher for crushing or other disposition any motor
732 vehicle without first obtaining a dismantling or junk permit under Section 41-1a-1009,
733 41-1a-1010, or 41-1a-1011;
734 (i) as a new motor vehicle dealer, special equipment dealer, or used motor vehicle
735 dealer fail to give notice of sales or transfers as required in Section 41-3-301;
736 (j) advertise or otherwise represent, or knowingly allow to be advertised or represented
737 on his behalf or at his place of business, that no down payment is required in connection with
738 the sale of a motor vehicle when a down payment is required and the buyer is advised or
739 induced to finance a down payment by a loan in addition to any other loan financing the
740 remainder of the purchase price of the motor vehicle;
741 (k) as a crusher, crush or shred a motor vehicle brought to the crusher without
742 obtaining proper evidence of ownership of the motor vehicle; proper evidence of ownership is
743 a certificate of title endorsed according to law or a dismantling or junk permit issued under
744 Section 41-1a-1009, 41-1a-1010, or 41-1a-1011;
745 (l) as a manufacturer or remanufacturer assemble a motor vehicle that does not comply
746 with construction, safety, or vehicle identification number standards fixed by law or rule of any
747 licensing or regulating authority;
748 (m) as anyone other than a salesperson licensed under this chapter, be present on a
749 dealer display space and contact prospective customers to promote the sale of the dealer's
750 vehicles;
751 (n) unless licensed as an online dealer, sell, display for sale, or offer for sale motor
752 vehicles at any location other than the principal place of business or additional places of
753 business licensed under this chapter; this provision is construed to prevent dealers,
754 salespersons, or any other representative of a dealership from selling, displaying, or offering
755 motor vehicles for sale from their homes or other unlicensed locations;
756 (o) (i) as a dealer, dismantler, body shop, or manufacturer, maintain a principal place of
757 business or additional place of business that shares any common area with a business or
758 activity not directly related to motor vehicle commerce; or
759 (ii) maintain any places of business that share any common area with another dealer,
760 dismantler, body shop, or manufacturer;
761 (p) withhold delivery of license plates obtained by the licensee on behalf of a customer
762 for any reason, including nonpayment of any portion of the vehicle purchase price or down
763 payment;
764 (q) issue a temporary permit for any vehicle that has not been sold by the licensee;
765 (r) alter a temporary permit in any manner;
766 (s) operate any principal place of business or additional place of business in a location
767 that does not comply with local ordinances, including zoning ordinances;
768 (t) sell, display for sale, offer for sale, or exchange any new motor vehicle if the
769 licensee does not:
770 (i) (A) have a new motor vehicle dealer's license under Section 41-3-202; and
771 [
772 displayed for sale, offered for sale, or exchanged by the licensee; or
773 (ii) have an online dealer license under Section 41-3-202;
774 (u) (i) as a new motor vehicle dealer or used motor vehicle dealer, encourage or
775 conspire with any person who has not obtained a salesperson's license to solicit for prospective
776 purchasers[
777 (ii) as an online dealer, encourage or conspire with any person who has not obtained an
778 online salesperson license to solicit for prospective purchasers;
779 (v) engage in business as an online dealer without having an authorized service center;
780 or
781 (w) as an online dealer, offer for sale or sell a new motor vehicle that has a gross
782 vehicle weight rating of more than 7,500 pounds.
783 (2) (a) If a new motor vehicle is constructed in more than one stage, such as a motor
784 home, ambulance, or van conversion, the licensee shall advertise, represent, sell, and exchange
785 the vehicle as the make designated by the final stage manufacturer, except in those specific
786 situations where:
787 (i) the licensee possesses a franchise from the initial or first stage manufacturer,
788 presumably the manufacturer of the motor vehicle's chassis[
789 (ii) the licensee manufactured the initial or first stage of the motor vehicle.
790 (b) Sales of multiple stage manufactured motor vehicles shall include the transfer to the
791 purchaser of a valid manufacturer's statement or certificate of origin from each manufacturer
792 under Section 41-3-301.
793 (3) Each licensee, except [
794 maintain and make available for inspection by peace officers and employees of the division:
795 (a) a record of every motor vehicle bought, or exchanged by the licensee or received or
796 accepted by the licensee for sale or exchange;
797 (b) a record of every used part or used accessory bought or otherwise acquired;
798 (c) a record of every motor vehicle bought or otherwise acquired and wrecked or
799 dismantled by the licensee;
800 (d) all buyers' orders, contracts, odometer statements, temporary permit records,
801 financing records, and all other documents related to the purchase, sale, or consignment of
802 motor vehicles; and
803 (e) a record of the name and address of the person to whom any motor vehicle or motor
804 vehicle body, chassis, or motor vehicle engine is sold or otherwise disposed of and a
805 description of the motor vehicle by year, make, and vehicle identification number.
806 (4) Each licensee required by this chapter to keep records shall:
807 (a) be kept by the licensee at least for five years; and
808 (b) furnish copies of those records upon request to any peace officer or employee of the
809 division during reasonable business hours.
810 (5) A manufacturer, distributor, distributor representative, or factory representative
811 may not induce or attempt to induce by means of coercion, intimidation, or discrimination any
812 dealer to:
813 (a) accept delivery of any motor vehicle, parts, or accessories or any other commodity
814 or commodities, including advertising material not ordered by the dealer;
815 (b) order or accept delivery of any motor vehicle with special features, appliances,
816 accessories, or equipment not included in the list price of the motor vehicle as publicly
817 advertised by the manufacturer;
818 (c) order from any person any parts, accessories, equipment, machinery, tools,
819 appliances, or any other commodity;
820 (d) enter into an agreement with the manufacturer, distributor, distributor
821 representative, or factory representative of any of them, or to do any other act unfair to the
822 dealer by threatening to cancel any franchise or contractual agreement between the
823 manufacturer, distributor, distributor branch, or factory branch and the dealer;
824 (e) refuse to deliver to any dealer having a franchise or contractual arrangement for the
825 retail sale of new and unused motor vehicles sold or distributed by the manufacturer,
826 distributor, distributor branch or factory branch, any motor vehicle, publicly advertised for
827 immediate delivery within 60 days after the dealer's order is received; or
828 (f) unfairly, without regard to the equities of the dealer, cancel the franchise of any
829 motor vehicle dealer; the nonrenewal of a franchise or selling agreement without cause is a
830 violation of this subsection and is an unfair cancellation.
831 (6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity
832 through active or passive participation in sales, or by allowing use of [
833 or dealer license number, or by any other means.
834 (7) (a) The holder of any new motor vehicle dealer license issued under this chapter
835 may not sell any new motor vehicle to:
836 (i) another dealer licensed under this chapter who does not hold a valid franchise for
837 the make of new motor vehicles sold, unless the selling dealer licenses and titles the new motor
838 vehicle to the purchasing dealer; or
839 (ii) any motor vehicle leasing or rental company located within this state, or who has
840 any branch office within this state, unless the dealer licenses and titles the new motor vehicle to
841 the purchasing, leasing, or rental company.
842 (b) Subsection (7)(a)(i) does not apply to the sale of a new incomplete motor vehicle
843 with a gross vehicle weight of 12,000 or more pounds to a special equipment dealer licensed
844 under this chapter.
845 (8) A dealer licensed under this chapter may not take on consignment any new motor
846 vehicle from anyone other than a new motor vehicle dealer, factory, or distributor who is
847 licensed and franchised or otherwise authorized under this chapter to distribute or sell that
848 make of motor vehicle in this or any other state.
849 (9) A body shop licensed under this chapter may not assist an unlicensed body shop in
850 unlawful activity through active or passive means or by allowing use of its facilities, name,
851 body shop number, or by any other means.
852 (10) A used motor vehicle dealer licensed under this chapter may not advertise, offer
853 for sale, or sell a new motor vehicle that has been driven less than 7,500 miles by obtaining a
854 title only to the vehicle and representing it as a used motor vehicle.
855 (11) (a) Except as provided in Subsection (11)(c), or in cases of undue hardship or
856 emergency as provided by rule by the division, a dealer or salesperson licensed under this
857 chapter may not, on consecutive days of Saturday and Sunday, sell, offer for sale, lease, or offer
858 for lease a motor vehicle.
859 (b) Each day a motor vehicle is sold, offered for sale, leased, or offered for lease in
860 violation of Subsection (11)(a) and each motor vehicle sold, offered for sale, leased, or offered
861 for lease in violation of Subsection (11)(a) shall constitute a separate offense.
862 (c) The provisions of Subsection (11)(a) shall not apply to an online dealer or a dealer
863 participating in a trade show or exhibition if:
864 (i) there are five or more dealers participating in the trade show or exhibition; and
865 (ii) the trade show or exhibition takes place at a location other than the principal place
866 of business of one of the dealers participating in the trade show or exhibition.
867 (12) For purposes of imposing the sales and use tax under Title 59, Chapter 12, Sales
868 and Use Tax Act, a licensee issuing a temporary permit under Section 41-3-302 shall separately
869 identify the fees required by Title 41, Chapter 1a, Motor Vehicle Act.
870 (13) (a) A dismantler or dealer engaged in the business of dismantling motor vehicles
871 for the sale of parts or salvage shall identify any vehicles or equipment used by the dismantler
872 or dealer for transporting parts or salvage on the highways.
873 (b) The identification required under Subsection (13)(a) shall:
874 (i) include the name, address, and license number of the dismantler or dealer; and
875 (ii) be conspicuously displayed on both sides of the vehicle or equipment in clearly
876 legible letters and numerals not less than two inches in height.
877 (14) A manufacturer is not eligible for an online dealer license under this chapter if the
878 manufacturer:
879 (a) on May 12, 2015, operates under a franchise with any dealer in the state; or
880 (b) is a parent, subsidiary, affiliate, or otherwise under the legal or practical control of
881 or under the legal or practical common control with another manufacturer who, on May 12,
882 2015, operates under a franchise with any dealer in the state.
883 Section 12. Section 41-3-210.5 is enacted to read:
884 41-3-210.5. Online dealer license prohibitions.
885 (1) (a) Subject to Subsection (1)(b), if an online dealer licensed under this chapter
886 maintains a showroom, the online dealer may not display or maintain more than six new motor
887 vehicles at the online dealer's showroom.
888 (b) (i) Each of the six new motor vehicles described in Subsection (1)(a) shall be a
889 demonstration vehicle or a display vehicle.
890 (ii) The six new motor vehicles described in Subsection (1)(a) may be any combination
891 of demonstration vehicles and display vehicles.
892 (2) An online dealer licensed under this chapter may not:
893 (a) maintain a display vehicle outside the online dealer's showroom;
894 (b) maintain a display vehicle outdoors;
895 (c) except as provided in Subsection (1), maintain any inventory of new or used motor
896 vehicles at the online dealer's showroom; or
897 (d) except as provided in Subsection (4), sell or offer for sale, exchange, lease, or rent:
898 (i) a new motor vehicle that the online dealer maintains at the online dealer's
899 showroom;
900 (ii) a new motor vehicle other than one that is of the line-make that the online dealer
901 manufactures; or
902 (iii) a used motor vehicle from the online dealer's showroom.
903 (3) During any 12 month period, an online dealer licensed under this chapter:
904 (a) may sell each demonstration vehicle and each display vehicle described in
905 Subsection (1); and
906 (b) may not sell or offer for sale more than a combined total of six demonstration
907 vehicles and display vehicles.
908 (4) Except as provided in this section, an online dealer licensed under this chapter may
909 only sell new motor vehicles through the internet.
910 Section 13. Section 41-3-702 is amended to read:
911 41-3-702. Civil penalty for violation.
912 (1) The following are civil violations under this chapter and are in addition to criminal
913 violations under this chapter:
914 (a) Level I:
915 (i) failing to display business license;
916 (ii) failing to surrender license of salesperson because of termination, suspension, or
917 revocation;
918 (iii) failing to maintain a separation from nonrelated motor vehicle businesses at
919 licensed locations;
920 (iv) issuing a temporary permit improperly;
921 (v) failing to maintain records;
922 (vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
923 licensing the motor vehicle;
924 (vii) special plate violation; [
925 (viii) failing to maintain a sign at a principal place of business.
926 (b) Level II:
927 (i) failing to report sale;
928 (ii) dismantling without a permit;
929 (iii) manufacturing without meeting construction or vehicle identification number
930 standards;
931 (iv) withholding customer license plates; or
932 (v) selling a motor vehicle on consecutive days of Saturday and Sunday.
933 (c) Level III:
934 (i) operating without a principal place of business;
935 (ii) selling a new motor vehicle without holding the franchise;
936 (iii) crushing a motor vehicle without proper evidence of ownership;
937 (iv) selling from an unlicensed location;
938 (v) altering a temporary permit;
939 (vi) refusal to furnish copies of records;
940 (vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles;
941 (viii) advertising violation;
942 (ix) failing to separately identify the fees required by Title 41, Chapter 1a, Motor
943 Vehicle Act;
944 (x) encouraging or conspiring with unlicensed persons to solicit for prospective
945 purchasers; [
946 (xi) selling, offering for sale, or displaying for sale or exchange a vehicle, vessel, or
947 outboard motor in violation of Section 41-1a-705[
948 (xii) operating without an authorized service center; or
949 (xiii) failing to comply with Section 41-3-210.5.
950 (2) (a) The schedule of civil penalties for violations of Subsection (1) is:
951 (i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
952 and subsequent offenses;
953 (ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
954 third and subsequent offenses; and
955 (iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for
956 the third and subsequent offenses.
957 (b) When determining under this section if an offense is a second or subsequent
958 offense, only prior offenses committed within the 12 months prior to the commission of the
959 current offense may be considered.
960 (3) The following are civil violations in addition to criminal violations under Section
961 41-1a-1008:
962 (a) knowingly selling a salvage vehicle, as defined in Section 41-1a-1001, without
963 disclosing that the salvage vehicle has been repaired or rebuilt;
964 (b) knowingly making a false statement on a vehicle damage disclosure statement, as
965 defined in Section 41-1a-1001; or
966 (c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded
967 title, as defined in Section 41-1a-1001, when it is not.
968 (4) The civil penalty for a violation under Subsection (3) is:
969 (a) not less than $1,000, or treble the actual damages caused by the person, whichever
970 is greater; and
971 (b) reasonable attorney fees and costs of the action.
972 (5) A civil action may be maintained by a purchaser or by the administrator.