H.B. 258 Enrolled

MOTOR VEHICLE BUSINESS REGULATION -
PENALTIES
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: David Clark
This act modifies the Motor Vehicles Code by changing the civil penalty for an
advertising violation from a Level II penalty to a Level III penalty. This act takes effect
July 1, 2003.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
41-3-702, as last amended by Chapter 249, Laws of Utah 2000
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 41-3-702 is amended to read:
41-3-702. Civil penalty for violation.
(1) The following are civil violations under this chapter and are in addition to criminal
violations under this chapter:
(a) Level I:
(i) failure to display business license;
(ii) failure to surrender license of salesperson because of termination, suspension, or
revocation;
(iii) failure to maintain a separation from nonrelated motor vehicle businesses at
licensed locations;
(iv) issuing a temporary permit improperly;
(v) failure to maintain records;
(vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
licensing the motor vehicle;
(vii) special plate violation; and
(viii) failure to maintain a sign at principal place of business.
(b) Level II:

(i) failure to report sale;
[(ii) advertising violation;]
[(iii)] (ii) dismantling without a permit;
[(iv)] (iii) manufacturing without meeting construction or vehicle identification number
standards;
[(v)] (iv) withholding customer license plates; or
[(vi)] (v) selling a motor vehicle on consecutive days of Saturday and Sunday.
(c) Level III:
(i) operating without a principal place of business;
(ii) selling a new motor vehicle without holding the franchise;
(iii) crushing a motor vehicle without proper evidence of ownership;
(iv) selling from an unlicensed location;
(v) altering a temporary permit;
(vi) refusal to furnish copies of records; [and]
(vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles[.]; and
(viii) advertising violation.
(2) (a) The schedule of civil penalties for violations of Subsection (1) is:
(i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
and subsequent offenses;
(ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
third and subsequent offenses; and
(iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for
the third and subsequent offenses.
(b) When determining under this section if an offense is a second or subsequent offense,
only prior offenses committed within the 12 months prior to the commission of the current
offense may be considered.
(3) The following are civil violations in addition to criminal violations under Section
41-1a-1008 :

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(a) knowingly selling a salvage vehicle, as defined in Section 41-1a-1001 , without
disclosing that the salvage vehicle has been repaired or rebuilt;
(b) knowingly making a false statement on a vehicle damage disclosure statement, as
defined in Section 41-1a-1001 ; or
(c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded title,
as defined in Section 41-1a-1001 , when it is not.
(4) The civil penalty for a violation under Subsection (3) is:
(a) not less than $1,000, or treble the actual damages caused by the person, whichever is
greater; and
(b) reasonable attorneys' fees and costs of the action.
(5) A civil action may be maintained by a purchaser or by the administrator.
Section 2. Effective date.
This act takes effect on July 1, 2003.

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