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S.B. 137 Enrolled

                 

SALVAGE VEHICLE BUYERS

                 
2000 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: John L. Valentine

                  AN ACT RELATING TO MOTOR VEHICLES; REQUIRING SALVAGE VEHICLE BUYERS
                  LICENSES; PROVIDING RESTRICTIONS AND QUALIFICATIONS; PROVIDING
                  RULEMAKING; ESTABLISHING FEES; AND PROVIDING AN EFFECTIVE DATE.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      41-3-201, as last amended by Chapter 239, Laws of Utah 1999
                      41-3-202, as last amended by Chapter 165, Laws of Utah 1998
                      41-3-601, as last amended by Chapter 165, Laws of Utah 1998
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 41-3-201 is amended to read:
                       41-3-201. Licenses required -- Restitution -- Education.
                      (1) As used in this section, "new applicant" means a person who is applying for a license
                  that the person has not been issued during the previous licensing year.
                      (2) A person may not act as any of the following without having procured a license issued
                  by the administrator: a dealer, salvage vehicle buyer, salesperson, manufacturer, transporter,
                  dismantler, distributor, factory branch and representative, distributor branch and representative,
                  crusher, remanufacturer, and body shop.
                      (3) (a) A person may not bid on or purchase a vehicle with a salvage certificate as defined
                  in Section 41-1a-1001 at or through any motor vehicle auction unless the person is a licensed
                  salvage vehicle buyer.
                      (b) A person may not offer for sale, sell, or exchange a vehicle with a salvage certificate
                  as defined in Section 41-1a-1001 at or through any motor vehicle auction except to a licensed
                  salvage vehicle buyer.
                      [(3)] (4) A supplemental license shall be secured by a dealer, manufacturer, remanufacturer,
                  transporter, dismantler, crusher, or body shop for each additional place of business maintained by


                  him.
                      [(4)] (5) A person who has been convicted of any law relating to motor vehicle commerce
                  or motor vehicle fraud may not be issued a license unless full restitution regarding those convictions
                  has been made.
                      [(5) (a) Beginning July 1, 1999, the]
                      (6) (a) The division may not issue a license to a new applicant for a new or used motor
                  vehicle dealer license unless the new applicant completes an eight-hour orientation class approved
                  by the division that includes education on motor vehicle laws and rules.
                      (b) The approved costs of the orientation class shall be paid by the new applicant.
                      (c) The class shall be completed by the new applicant and the applicant's partners, corporate
                  officers, bond indemnitors, and managers.
                      (d) The division shall approve:
                      (i) providers of the orientation class; and
                      (ii) costs of the orientation class.
                      Section 2. Section 41-3-202 is amended to read:
                       41-3-202. Licenses -- Classes and scope.
                      (1) A new motor vehicle dealer's license permits the licensee to:
                      (a) offer for sale, sell, or exchange new motor vehicles if the licensee possesses a franchise
                  from the manufacturer of the motor vehicle offered for sale, sold, or exchanged by the licensee;
                      (b) offer for sale, sell, or exchange used motor vehicles;
                      (c) operate as a body shop; and
                      (d) dismantle motor vehicles.
                      (2) A used motor vehicle dealer's license permits the licensee to:
                      (a) offer for sale, sell, or exchange used motor vehicles;
                      (b) operate as a body shop; and
                      (c) dismantle motor vehicles.
                      (3) A new motorcycle and small trailer dealer's license permits the licensee to:
                      (a) offer for sale, sell, or exchange new motorcycles or small trailers if the licensee possesses

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                  a franchise from the manufacturer of the motorcycle or small trailer offered for sale, sold, or
                  exchanged by the licensee;
                      (b) offer for sale, sell, or exchange used motorcycles or small trailers; and
                      (c) dismantle motorcycles or small trailers.
                      (4) A used motorcycle and small trailer dealer's license permits the licensee to:
                      (a) offer for sale, sell, or exchange used motorcycles and small trailers; and
                      (b) dismantle motorcycles or small trailers.
                      (5) A salesperson's license permits the licensee to act as a motor vehicle salesperson and is
                  valid for employment with only one dealer at a time.
                      (6) (a) A manufacturer's license permits the licensee to construct or assemble motor vehicles
                  subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, at an established place of
                  business and to remanufacture motor vehicles.
                      (b) Under rules [of] made by the [division] administrator, the licensee may issue and install
                  vehicle identification numbers on manufactured motor vehicles.
                      (c) The licensee may franchise and appoint dealers to sell manufactured motor vehicles by
                  notifying the division of the franchise or appointment.
                      (7) A transporter's license permits the licensee to transport or deliver motor vehicles subject
                  to registration under Title 41, Chapter 1a, Motor Vehicle Act from a manufacturing, assembling, or
                  distributing point or from a dealer, to dealers, distributors, or sales agents of a manufacturer or
                  remanufacturer, to or from detail or repair shops, and to financial institutions or places of storage
                  from points of repossession.
                      (8) A dismantler's license permits the licensee to dismantle motor vehicles subject to
                  registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of reselling parts or for
                  salvage, or selling dismantled or salvage vehicles to a crusher or other dismantler.
                      (9) A distributor or factory branch and distributor branch's license permits the licensee to sell
                  and distribute new motor vehicles, parts, and accessories to their franchised dealers.
                      (10) A representative's license, for factory representatives or distributor representatives
                  permits the licensee to contact his authorized dealers for the purpose of making or promoting the sale

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                  of motor vehicles, parts, and accessories.
                      (11) (a) (i) A remanufacturer's license permits the licensee to construct, reconstruct,
                  assemble, or reassemble motor vehicles subject to registration under Title 41, Chapter 1a, Motor
                  Vehicle Act, from used or new motor vehicles or parts.
                      (ii) Evidence of ownership of parts and motor vehicles used in remanufacture shall be
                  available to the division upon demand.
                      (b) Under rules [of] made by the administrator, the licensee may issue and install vehicle
                  identification numbers on remanufactured motor vehicles.
                      (12) A crusher's license permits the licensee to engage in the business of crushing or
                  shredding motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, for
                  the purpose of reducing the useable materials and metals to a more compact size for recycling.
                      (13) A body shop's license permits the licensee to rebuild, restore, repair, or paint primarily
                  the body of motor vehicles damaged by collision or natural disaster, and to dismantle motor vehicles.
                      (14) A special equipment dealer's license permits the licensee to:
                      (a) buy incomplete new motor vehicles with a gross vehicle weight of 12,000 or more pounds
                  from a new motor vehicle dealer and sell the new vehicle with the special equipment installed without
                  a franchise from the manufacturer;
                      (b) offer for sale, sell, or exchange used motor vehicles;
                      (c) operate as a body shop; and
                      (d) dismantle motor vehicles.
                      (15) (a) A salvage vehicle buyer license permits the licensee to bid on or purchase a vehicle
                  with a salvage certificate as defined in Section 41-1a-1001 at any motor vehicle auction.
                      (b) A salvage vehicle buyer license may only be issued to a motor vehicle dealer, dismantler,
                  or body shop who qualifies under rules made by the division and is licensed in any state as a motor
                  vehicle dealer, dismantler, or body shop.
                      (c) The division may not issue more than two salvage vehicle buyer licenses to any one
                  dealer, dismantler, or body shop.
                      (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

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                  administrator shall make rules establishing qualifications of an applicant for a salvage vehicle buyer
                  license. The criteria shall include:
                      (i) business history;
                      (ii) salvage vehicle qualifications;
                      (iii) ability to properly handle and dispose of environmental hazardous materials associated
                  with salvage vehicles; and
                      (iv) record in demonstrating compliance with the provisions of this chapter.
                      Section 3. Section 41-3-601 is amended to read:
                       41-3-601. Fees.
                      (1) To pay for administering and enforcing this chapter, the administrator shall collect fees
                  determined by the commission under Section 63-38-3.2 for each of the following:
                      (a) new motor vehicle dealer's license;
                      (b) used motor vehicle dealer's license;
                      (c) new motorcycle and small trailer dealer;
                      (d) used motorcycle and small trailer dealer;
                      (e) motor vehicle salesperson's license;
                      (f) motor vehicle salesperson's transfer or reissue fee;
                      (g) motor vehicle manufacturer's license;
                      (h) motor vehicle transporter's license;
                      (i) motor vehicle dismantler's license;
                      (j) motor vehicle crusher's license;
                      (k) motor vehicle remanufacturer's license;
                      (l) body shop's license;
                      (m) distributor or factory branch and distributor branch's license;
                      (n) representative's license;
                      (o) dealer plates;
                      (p) dismantler plates;
                      (q) manufacturer plates;

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                      (r) transporter plates;
                      (s) damaged plate replacement;
                      (t) in-transit permits;
                      (u) loaded demonstration permits;
                      (v) additional place of business; and
                      (w) special equipment dealer's license.
                      (2) To pay for training certified vehicle inspectors and enforcement under Sections
                  41-1a-1001 through 41-1a-1008 , the State Tax Commission shall establish and the administrator shall
                  collect inspection fees determined by the commission under Section 63-38-3.2 .
                      (3) (a) At the time of application, the administrator shall collect a fee of $200 for each
                  salvage vehicle buyer license.
                      (b) The administrator may retain a portion of the fee under Subsection (3)(a) to offset the
                  administrator's actual costs of administering and enforcing salvage vehicle buyer licenses.
                      Section 4. Effective date.
                      This act takes effect on July 1, 2000.

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