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S.B. 193


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House Floor Amendments 3-11-2009 je/sch

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Senate Committee Amendments 2-26-2009 rd/sch
This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 26, 2009 at 2:39 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 11, 2009 at 7:42 PM by jeyring. -->              1
    
SALVAGE VEHICLES AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen H. Urquhart

             5     
House Sponsor: Brad L. Dee

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Motor Vehicle Business Regulation Act by amending provisions
             10      relating to salvage vehicles.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that a person may offer for sale, sell, or exchange a vehicle with a salvage
             14      certificate at or through a motor vehicle auction to:
             15              .    an out-of-state or out-of-country purchaser that is authorized to do business in
             16      the domestic or foreign jurisdiction in which the person is domiciled or
             17      registered to do business; and
             18              .    an in-state purchaser that is registered to do business in Utah and has a Utah
             19      sales and use tax license;
             20          .    provides that S. [ a person ] an operator of a motor vehicle auction .S may only
             20a      offer for sale, sell, or exchange five vehicles with
             21      salvage certificates at or through a motor vehicle auction S. [ annually ] in any 12 month period .S
             21a      to an in-state
             22      purchaser that does not have a salvage vehicle buyer license;
             22a      H. . authorizes the Tax Commission to impose an administrative entrance fee not to
             22b      exceed $10 on certain persons that enter a motor vehicle auction for certain purposes; .H
             23          .    provides that a purchaser of a vehicle with a salvage certificate shall title the vehicle
             24      within 15 days of the purchase if the purchaser does not have a salvage vehicle
             25      buyer license;
             26          .    provides that S. [ a person ] an operator of a motor vehicle auction .S may not offer
             26a      for sale, sell, or exchange additional vehicles
             27      with a salvage certificate to a purchaser if notified that the purchaser has not titled



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             28
     previously purchased vehicles with a salvage certificate;
             29          .    requires an operator of a motor vehicle auction to:
             30              .    keep a record of the sale of each salvage vehicle;
             31              .    retain the record of the sale of each salvage vehicle for five years and make it
             32      available for inspection by the Motor Vehicle Enforcement Division; and
             33              .    stamp "For Export Only" on the vehicle title if the buyer is an out-of-country
             34      buyer;
             35          .    provides that a person who violates the requirement to title a vehicle with a salvage
             36      certificate within 15 days of purchasing the vehicle at a motor vehicle auction is
             37      guilty of a class C misdemeanor;
             38          .    provides that a person who violates the requirement to title a vehicle with a salvage
             39      certificate within 15 days of purchasing the vehicle at a motor vehicle auction is
             40      subject to certain civil penalties; and
             41          .    makes technical changes.
             42      Monies Appropriated in this Bill:
             43          None
             44      Other Special Clauses:
             45          None
             46      Utah Code Sections Affected:
             47      AMENDS:
             48          41-3-201, as last amended by Laws of Utah 2008, Chapter 388
             49          41-3-201.7, as enacted by Laws of Utah 2007, Chapter 70
             50          41-3-701, as last amended by Laws of Utah 2008, Chapter 388
             51          41-3-702, as last amended by Laws of Utah 2007, Chapter 322
             52     

             53      Be it enacted by the Legislature of the state of Utah:
             54          Section 1. Section 41-3-201 is amended to read:
             55           41-3-201. Licenses required -- Restitution -- Education.
             56          (1) As used in this section, "new applicant" means a person who is applying for a
             57      license that the person has not been issued during the previous licensing year.
             58          (2) A person may not act as any of the following without having procured a license



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Senate Committee Amendments 2-26-2009 rd/sch
             59
     issued by the administrator:
             60          (a) a dealer;
             61          (b) salvage vehicle buyer;
             62          (c) salesperson;
             63          (d) manufacturer;
             64          (e) transporter;
             65          (f) dismantler;
             66          (g) distributor;
             67          (h) factory branch and representative;
             68          (i) distributor branch and representative;
             69          (j) crusher;
             70          (k) remanufacturer; or
             71          (l) body shop.
             72          (3) (a) [A] Except as provided in Subsection (3)(c), a person may not bid on or
             73      purchase a vehicle with a salvage certificate as defined in Section 41-1a-1001 at or through a
             74      motor vehicle auction unless the person is a licensed salvage vehicle buyer.
             75          (b) [A] Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
             76      exchange a vehicle with a salvage certificate as defined in Section 41-1a-1001 at or through a
             77      motor vehicle auction except to a licensed salvage vehicle buyer.
             78          (c) A person may offer for sale, sell, or exchange a vehicle with a salvage certificate as
             79      defined in Section 41-1a-1001 at or through a motor vehicle auction:
             80          (i) to an out-of-state or out-of-country purchaser not licensed under this section, but
             81      that is authorized to do business in the domestic or foreign jurisdiction in which the person is
             82      domiciled or registered to do business; and
             83          (ii) subject to the restriction in Subsection (3)(d), to an in-state purchaser not licensed
             84      under this section that:
             85          (A) is registered to do business in Utah; and
             86          (B) has a Utah sales tax license.
             87          (d) S. [ A person ] An operator of a motor vehicle auction .S may only offer for sale,
             87a      sell, or exchange five vehicles with a salvage
             88      certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction S. [ annually ] in
             88a      any 12 month period .S to
             89      an in-state purchaser that does not have a salvage vehicle buyer license issued in accordance



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House Floor Amendments 3-11-2009 je/sch

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Senate Committee Amendments 2-26-2009 rd/sch
             90
     with Subsection 41-3-202 (15).
             91          (e) (i) An in-state purchaser of a vehicle with a salvage certificate as defined in Section
             92      41-1a-1001 that is purchased at or through a motor vehicle auction shall title the vehicle within
             93      15 days of the purchase if the purchaser does not have a salvage vehicle buyer license S. , dealer
             93a      license, body shop license, or dismantler license .S issued in
             94      accordance with Subsection 41-3-202 S. [ (15) ] .S .
             95          (ii) S. [ A person ] An operator of a motor vehicle auction .S may not offer for sale, sell,
             95a      or exchange additional vehicles with a salvage
             96      certificate S. as defined in Section 41-1a-1001 at or through a motor vehicle auction .S to a
             96a      purchaser if notified that the purchaser has not titled previously purchased
             97      vehicles with a salvage certificate as required under Subsection (3)(e)(i).
             97a      H. (f) The commission may impose an administrative entrance fee established in accordance
             97b      with the procedures and requirements of 63J-1-303 not to exceed $10 on a person not holding
             97c      a license described in Subsection (3)(e)(i) that enters the physical premises of a motor vehicle
             97d      auction for the purpose of viewing available salvage vehicles prior to an auction. .H
             98          (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each
             99      salvage vehicle.
             100          (b) A record described under Subsection (4)(a) shall contain:
             101          (i) the purchaser's name and address; and
             102          (ii) the year, make, and vehicle identification number for each salvage vehicle sold.
             103          (c) An operator of a motor vehicle auction shall:
             104          (i) retain the record described in this Subsection (4) for five years from the date of sale;
             105      and
             106          (ii) make a record described in this Subsection (4) available for inspection by the
             107      division at the location of the motor vehicle auction during normal business hours.
             108          (5) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person
             109      that is an out-of-country buyer shall:
             110          (i) stamp on the face of the title so as not to obscure the name, date, or mileage
             111      statement the words "FOR EXPORT ONLY" in all capital, black letters; and
             112          (ii) stamp in each unused reassignment space on the back of the title the words "FOR
             113      EXPORT ONLY."
             114          (b) The words "FOR EXPORT ONLY" shall be:
             115          (i) at least two inches wide; and
             116          (ii) clearly legible.
             117          [(4)] (6) A supplemental license shall be secured by a dealer, manufacturer,
             118      remanufacturer, transporter, dismantler, crusher, or body shop for each additional place of


             119      business maintained by the licensee.
             120          [(5)] (7) A person who has been convicted of any law relating to motor vehicle

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             121
     commerce or motor vehicle fraud may not be issued a license unless full restitution regarding
             122      those convictions has been made.
             123          [(6)] (8) (a) The division may not issue a license to a new applicant for a new or used
             124      motor vehicle dealer license, a new or used motorcycle dealer license, or a small trailer dealer
             125      license unless the new applicant completes an eight-hour orientation class approved by the
             126      division that includes education on motor vehicle laws and rules.
             127          (b) The approved costs of the orientation class shall be paid by the new applicant.
             128          (c) The class shall be completed by the new applicant and the applicant's partners,
             129      corporate officers, bond indemnitors, and managers.
             130          (d) (i) The division shall approve:
             131          (A) providers of the orientation class; and
             132          (B) costs of the orientation class.
             133          (ii) A provider of an orientation class shall submit the orientation class curriculum to
             134      the division for approval prior to teaching the orientation class.
             135          Section 2. Section 41-3-201.7 is amended to read:
             136           41-3-201.7. Supplemental license for additional place of business restrictions --
             137      Exception.
             138          (1) Subject to the requirements of Subsection (2), a supplemental license for an
             139      additional place of business issued pursuant to Subsection 41-3-201 [(4)] (6) may only be issued
             140      to a dealer if the dealer is:
             141          (a) licensed in accordance with Section 41-3-202 ;
             142          (b) bonded in accordance with Section 41-3-205 ; and
             143          (c) in compliance with existing rules promulgated by the administrator of the division
             144      under Section 41-3-105 .
             145          (2) (a) Except as provided in Subsections (2)(c) and (3), a supplemental license for an
             146      additional place of business issued pursuant to Subsection 41-3-201 [(4)] (6) for a new motor
             147      vehicle dealer may not be issued for an additional place of business that is beyond the
             148      geographic specifications outlined as the area of responsibility in the dealer's franchise
             149      agreement.
             150          (b) A new motor vehicle dealer shall provide the administrator with a copy of the
             151      portion of the new motor vehicle dealer's franchise agreement identifying the dealer's area of



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             152
     responsibility before being issued a supplemental license for an additional place of business.
             153          (c) The restrictions under [Subsection] Subsections (2)(a) and (b) do not apply to a new
             154      motor vehicle dealer if the license for an additional place of business is being issued for the
             155      sale of used motor vehicles.
             156          (3) The provisions of Subsection (2) do not apply if the additional place of business is
             157      a trade show or exhibition if:
             158          (a) there are five or more dealers participating in the trade show or exhibition; and
             159          (b) the trade show or exhibition takes place at a location other than the principal place
             160      of business of one of the dealers participating in the trade show or exhibition.
             161          Section 3. Section 41-3-701 is amended to read:
             162           41-3-701. Violations as misdemeanors.
             163          (1) Except as otherwise provided in this chapter, any person who violates this chapter
             164      is guilty of a class B misdemeanor.
             165          (2) (a) [A] (i) Except as provided in Subsection (2)(a)(ii), a person who violates
             166      Section 41-3-201 is guilty of a class A misdemeanor.
             167          (ii) A person who violates the requirement to title a vehicle with a salvage certificate
             168      within 15 days of purchasing the vehicle at a motor vehicle auction under Subsection
             169      41-3-201 (3)(e) is guilty of a class C misdemeanor.
             170          (b) Once a person has met the criteria for the offense of acting as a dealer without a
             171      license, each additional motor vehicle the person sells, displays for sale, offers for sale or
             172      exchange, or leases in that 12-month period without becoming licensed under Section 41-3-202
             173      is a separate violation.
             174          (3) A person who violates Section 41-3-301 is guilty of a class A misdemeanor unless
             175      the selling dealer complies with the requirements of Section 41-3-403 .
             176          (4) A person who violates Section 41-3-207.5 is guilty of a class A misdemeanor.
             177          Section 4. Section 41-3-702 is amended to read:
             178           41-3-702. Civil penalty for violation.
             179          (1) The following are civil violations under this chapter and are in addition to criminal
             180      violations under this chapter:
             181          (a) Level I:
             182          (i) failing to display business license;



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Senate Committee Amendments 2-26-2009 rd/sch
             183
         (ii) failing to surrender license of salesperson because of termination, suspension, or
             184      revocation;
             185          (iii) failing to maintain a separation from nonrelated motor vehicle businesses at
             186      licensed locations;
             187          (iv) issuing a temporary permit improperly;
             188          (v) failing to maintain records;
             189          (vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
             190      licensing the motor vehicle;
             191          (vii) special plate violation; S. [ [ ] and [ ] ] .S
             192          (viii) failing to maintain a sign at S. a .S principal place of business S. [ ; and
             193          (ix) failing to title a vehicle with a salvage certificate that is purchased at or through a
             194      motor vehicle auction within 15 days of the purchase as required under Subsection
             195      41-3-201 (3)(e).
] .S

             196          (b) Level II:
             197          (i) failing to report sale;
             198          (ii) dismantling without a permit;
             199          (iii) manufacturing without meeting construction or vehicle identification number
             200      standards;
             201          (iv) withholding customer license plates; or
             202          (v) selling a motor vehicle on consecutive days of Saturday and Sunday.
             203          (c) Level III:
             204          (i) operating without a principal place of business;
             205          (ii) selling a new motor vehicle without holding the franchise;
             206          (iii) crushing a motor vehicle without proper evidence of ownership;
             207          (iv) selling from an unlicensed location;
             208          (v) altering a temporary permit;
             209          (vi) refusal to furnish copies of records;
             210          (vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles;
             211          (viii) advertising violation;
             212          (ix) failing to separately identify the fees required by Title 41, Chapter 1a, Motor
             213      Vehicle Act; and



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Senate Committee Amendments 2-26-2009 rd/sch
             214
         (x) encouraging or conspiring with unlicensed persons to solicit for prospective
             215      purchasers S. ; and
             215a           (xi) failing to title a vehicle with a salvage certificate that is purchased at or through a
             215b      motor vehicle auction within 15 days of the purchase as required under Subsection
             215c      41-3-201(3)(e) .S .
             216          (2) (a) The schedule of civil penalties for violations of Subsection (1) is:
             217          (i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
             218      and subsequent offenses;
             219          (ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
             220      third and subsequent offenses; and
             221          (iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for
             222      the third and subsequent offenses.
             223          (b) When determining under this section if an offense is a second or subsequent
             224      offense, only prior offenses committed within the 12 months prior to the commission of the
             225      current offense may be considered.
             226          (3) The following are civil violations in addition to criminal violations under Section
             227      41-1a-1008 :
             228          (a) knowingly selling a salvage vehicle, as defined in Section 41-1a-1001 , without
             229      disclosing that the salvage vehicle has been repaired or rebuilt;
             230          (b) knowingly making a false statement on a vehicle damage disclosure statement, as
             231      defined in Section 41-1a-1001 ; or
             232          (c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded
             233      title, as defined in Section 41-1a-1001 , when it is not.
             234          (4) The civil penalty for a violation under Subsection (3) is:
             235          (a) not less than $1,000, or treble the actual damages caused by the person, whichever
             236      is greater; and
             237          (b) reasonable [attorneys'] attorney fees and costs of the action.
             238          (5) A civil action may be maintained by a purchaser or by the administrator.





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