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H.B. 324 Enrolled

             1     

MOTOR VEHICLE BUSINESS REGULATION

             2     
ACT AMENDMENTS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Francis D. Gibson

             6     
Senate Sponsor: Kevin T. Van Tassell

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Motor Vehicle Business Regulation Act by amending provisions
             11      relating to certain motor vehicle business licenses.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that a person that has been issued a motor vehicle salesperson's license
             15      and that is employed by a dealer that operates as a wholesale motor vehicle auction
             16      may be employed by more than one dealer that operates as a wholesale motor
             17      vehicle auction at a time; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          41-3-202, as last amended by Laws of Utah 2008, Chapter 382
             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 41-3-202 is amended to read:
             29           41-3-202. Licenses -- Classes and scope.


             30          (1) A new motor vehicle dealer's license permits the licensee to:
             31          (a) offer for sale, sell, or exchange new motor vehicles if the licensee possesses a
             32      franchise from the manufacturer of the motor vehicle offered for sale, sold, or exchanged by
             33      the licensee;
             34          (b) offer for sale, sell, or exchange used motor vehicles;
             35          (c) operate as a body shop; and
             36          (d) dismantle motor vehicles.
             37          (2) A used motor vehicle dealer's license permits the licensee to:
             38          (a) offer for sale, sell, or exchange used motor vehicles;
             39          (b) operate as a body shop; and
             40          (c) dismantle motor vehicles.
             41          (3) A new motorcycle, off-highway vehicle, and small trailer dealer's license permits
             42      the licensee to:
             43          (a) offer for sale, sell, or exchange new motorcycles, off-highway vehicles, or small
             44      trailers if the licensee possesses a franchise from the manufacturer of the motorcycle,
             45      off-highway vehicle, or small trailer offered for sale, sold, or exchanged by the licensee;
             46          (b) offer for sale, sell, or exchange used motorcycles, off-highway vehicles, or small
             47      trailers; and
             48          (c) dismantle motorcycles, off-highway vehicles, or small trailers.
             49          (4) A used motorcycle, off-highway vehicle, and small trailer dealer's license permits
             50      the licensee to:
             51          (a) offer for sale, sell, or exchange used motorcycles, off-highway vehicles, and small
             52      trailers; and
             53          (b) dismantle motorcycles, off-highway vehicles, or small trailers.
             54          (5) [A] (a) Except as provided in Subsection (5)(b), a salesperson's license permits the
             55      licensee to act as a motor vehicle salesperson and is valid for employment with only one dealer
             56      at a time.
             57          (b) A licensee that has been issued a salesperson's license and that is employed by a


             58      dealer that operates as a wholesale motor vehicle auction may be employed by more than one
             59      dealer that operates as a wholesale motor vehicle auction at a time.
             60          (6) (a) A manufacturer's license permits the licensee to construct or assemble motor
             61      vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, at an
             62      established place of business and to remanufacture motor vehicles.
             63          (b) Under rules made by the administrator, the licensee may issue and install vehicle
             64      identification numbers on manufactured motor vehicles.
             65          (c) The licensee may franchise and appoint dealers to sell manufactured motor
             66      vehicles by notifying the division of the franchise or appointment.
             67          (7) A transporter's license permits the licensee to transport or deliver motor vehicles
             68      subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, from a manufacturing,
             69      assembling, or distributing point or from a dealer, to dealers, distributors, or sales agents of a
             70      manufacturer or remanufacturer, to or from detail or repair shops, and to financial institutions
             71      or places of storage from points of repossession.
             72          (8) A dismantler's license permits the licensee to dismantle motor vehicles subject to
             73      registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of reselling parts
             74      or for salvage, or selling dismantled or salvage vehicles to a crusher or other dismantler.
             75          (9) A distributor or factory branch and distributor branch's license permits the licensee
             76      to sell and distribute new motor vehicles, parts, and accessories to their franchised dealers.
             77          (10) A representative's license, for factory representatives or distributor representatives
             78      permits the licensee to contact the licensee's authorized dealers for the purpose of making or
             79      promoting the sale of motor vehicles, parts, and accessories.
             80          (11) (a) (i) A remanufacturer's license permits the licensee to construct, reconstruct,
             81      assemble, or reassemble motor vehicles subject to registration under Title 41, Chapter 1a,
             82      Motor Vehicle Act, from used or new motor vehicles or parts.
             83          (ii) Evidence of ownership of parts and motor vehicles used in remanufacture shall be
             84      available to the division upon demand.
             85          (b) Under rules made by the administrator, the licensee may issue and install vehicle


             86      identification numbers on remanufactured motor vehicles.
             87          (12) A crusher's license permits the licensee to engage in the business of crushing or
             88      shredding motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle
             89      Act, for the purpose of reducing the useable materials and metals to a more compact size for
             90      recycling.
             91          (13) A body shop's license permits the licensee to rebuild, restore, repair, or paint
             92      primarily the body of motor vehicles damaged by collision or natural disaster, and to
             93      dismantle motor vehicles.
             94          (14) A special equipment dealer's license permits the licensee to:
             95          (a) buy incomplete new motor vehicles with a gross vehicle weight of 12,000 or more
             96      pounds from a new motor vehicle dealer and sell the new vehicle with the special equipment
             97      installed without a franchise from the manufacturer;
             98          (b) offer for sale, sell, or exchange used motor vehicles;
             99          (c) operate as a body shop; and
             100          (d) dismantle motor vehicles.
             101          (15) (a) A salvage vehicle buyer license permits the licensee to bid on or purchase a
             102      vehicle with a salvage certificate as defined in Section 41-1a-1001 at any motor vehicle
             103      auction.
             104          (b) A salvage vehicle buyer license may only be issued to a motor vehicle dealer,
             105      dismantler, or body shop who qualifies under rules made by the division and is licensed in any
             106      state as a motor vehicle dealer, dismantler, or body shop.
             107          (c) The division may not issue more than two salvage vehicle buyer licenses to any
             108      one dealer, dismantler, or body shop.
             109          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             110      the administrator shall make rules establishing qualifications of an applicant for a salvage
             111      vehicle buyer license. The criteria shall include:
             112          (i) business history;
             113          (ii) salvage vehicle qualifications;


             114          (iii) ability to properly handle and dispose of environmental hazardous materials
             115      associated with salvage vehicles; and
             116          (iv) record in demonstrating compliance with the provisions of this chapter.


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