S.B. 186

1

MOTOR VEHICLE AMENDMENTS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Dan R. Eastman
5 House Sponsor: Patrick Painter
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Motor Vehicle Business Regulation Act by amending provisions
10 relating to motor vehicle business licenses.
11 Highlighted Provisions:
12 This bill:
13 . provides that a dealer supplemental license for an additional place of business may
14 only be issued if the dealer is licensed and bonded and is in compliance with
15 existing administrative rules promulgated by the administrator of the Motor Vehicle
16 Enforcement Division;
17 . provides that a dealer supplemental license for an additional place of business for a
18 new motor vehicle dealer, may not be issued for an additional place of business that
19 is beyond the geographic specifications of a new motor vehicle dealer's area of
20 responsibility as determined in the dealer's franchise agreement;
21 . requires a new motor vehicle dealer to submit a copy of the portion of the dealer's
22 franchise agreement to the administrator before being issued a supplemental license
23 for an additional place of business; and
24 . provides an exception to the restriction:
25 . if the license is being issued for the sale of used motor vehicles; or
26 . for trade shows or exhibitions.
27 Monies Appropriated in this Bill:

28 None
29 Other Special Clauses:
30 None
31 Utah Code Sections Affected:
32 ENACTS:
33 41-3-201.7, Utah Code Annotated 1953
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 41-3-201.7 is enacted to read:
37 41-3-201.7. Supplemental license for additional place of business restrictions --
38 Exception.
39 (1) Subject to the requirements of Subsection (2), a supplemental license for an
40 additional place of business issued pursuant to Subsection 41-3-201 (4) may only be issued to a
41 dealer if the dealer is:
42 (a) licensed in accordance with Section 41-3-202 ;
43 (b) bonded in accordance with Section 41-3-205 ; and
44 (c) in compliance with existing rules promulgated by the administrator of the division
45 under Section 41-3-105 .
46 (2) (a) Except as provided in Subsections (2)(c) and (3), a supplemental license for an
47 additional place of business issued pursuant to Subsection 41-3-201 (4) for a new motor vehicle
48 dealer may not be issued for an additional place of business that is beyond the geographic
49 specifications outlined as the area of responsibility in the dealer's franchise agreement.
50 (b) A new motor vehicle dealer shall provide the administrator with a copy of the
51 portion of the new motor vehicle dealer's franchise agreement identifying the dealer's area of
52 responsibility before being issued a supplemental license for an additional place of business.
53 (c) The restrictions under Subsection (2) do not apply to a new motor vehicle dealer if
54 the license for an additional place of business is being issued for the sale of used motor
55 vehicles.
56 (3) The provisions of Subsection (2) do not apply if the additional place of business is
57 a trade show or exhibition if:
58 (a) there are five or more dealers participating in the trade show or exhibition; and

59 (b) the trade show or exhibition takes place at a location other than the principal place
60 of business of one of the dealers participating in the trade show or exhibition.




Legislative Review Note
as of 1-25-07 10:28 AM

Office of Legislative Research and General Counsel