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H.B. 366

This document includes House Committee Amendments incorporated into the bill on Mon, Mar 1, 2010 at 3:03 PM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 3, 2010 at 3:54 PM by jeyring. -->              1     

MOTOR VEHICLE BUSINESS REGULATION ACT

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Bradley M. Daw

             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 motor vehicle dealers.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends definitions;
             15          .    provides that a pawnbroker engaged in selling, exchanging, or pawning motor
             16      vehicles is considered as coming into possession of the motor vehicles incident to
             17      the person's regular business and shall be licensed as a used motor vehicle dealer;
             18          .    provides that a person engaged in a title H. [ lender ] lending .H , check cashing, or
             18a      H. [ similar business ] deferred deposit lending business .H
             19      that comes into possession of motor vehicles incident to the person's H. regular .H business
             19a      H. [ shall
             20      be licensed as a used motor vehicle dealer
] and sells the motor vehicle under contractual rights

             20a      that it may have in the motor vehicle is not considered a dealer .H ;
             21          .    specifies additional requirements that must be included in an application for a motor
             22      vehicle dealer license;
             23          .    specifies requirements for temporary and permanent additional places of business
             24      for used motor vehicle dealers;
             25          .    establishes information that shall be included in orientation materials for a provider
             26      of an orientation class;
             27          .    provides that a person may not, for a fee, commission, or other form of


             28      compensation, arrange, offer to arrange, or broker a transaction involving the sale or lease of
             29      more than two used motor vehicles in any 12 consecutive month period, unless the person is
             30      licensed as a H. new or used .H motor vehicle dealer; and
             31          .    makes technical changes.
             32      Monies Appropriated in this Bill:
             33          None
             34      Other Special Clauses:
             35          None
             36      Utah Code Sections Affected:
             37      AMENDS:
             38          41-3-102, as last amended by Laws of Utah 2008, Chapter 388
             39          41-3-103, as renumbered and amended by Laws of Utah 1992, Chapter 234
             40          41-3-105, as last amended by Laws of Utah 2008, Chapter 382
             41          41-3-201, as last amended by Laws of Utah 2009, Chapter 234
             42          41-3-201.5, as last amended by Laws of Utah 2007, Chapter 105
             43          41-3-201.7, as last amended by Laws of Utah 2009, Chapter 234
             44     
             45      Be it enacted by the Legislature of the state of Utah:
             46          Section 1. Section 41-3-102 is amended to read:
             47           41-3-102. Definitions.
             48          As used in this chapter:
             49          (1) "Administrator" means the motor vehicle enforcement administrator.
             50          (2) "Agent" means a person other than a holder of any dealer's or salesperson's license
             51      issued under this chapter, who for salary, commission, or compensation of any kind, negotiates
             52      in any way for the sale, purchase, order, or exchange of three or more motor vehicles for any
             53      other person in any 12-month period.
             54          (3) "Auction" means a dealer engaged in the business of auctioning motor vehicles,
             55      either owned or consigned, to the general public.
             56          (4) "Board" means the advisory board created in Section 41-3-106 .
             57          (5) "Body shop" means a business engaged in rebuilding, restoring, repairing, or
             58      painting primarily the body of motor vehicles damaged by collision or natural disaster.


             59          (6) "Commission" means the State Tax Commission.
             60          (7) "Crusher" means a person who crushes or shreds motor vehicles subject to
             61      registration under Title 41, Chapter 1a, Motor Vehicle Act, to reduce the useable materials and
             62      metals to a more compact size for recycling.
             63          (8) (a) "Dealer" means a person:
             64          (i) whose business in whole or in part involves selling new, used, or new and used
             65      motor vehicles or off-highway vehicles; and
             66          (ii) who sells, displays for sale, or offers for sale or exchange three or more new or
             67      used motor vehicles or off-highway vehicles in any 12-month period.
             68          (b) "Dealer" includes a representative or consignee of any dealer.
             69          (9) (a) "Dismantler" means a person engaged in the business of dismantling motor
             70      vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, for the resale of
             71      parts or for salvage.
             72          (b) "Dismantler" includes a person who dismantles three or more motor vehicles in any
             73      12-month period.
             74          (10) "Distributor" means a person who has a franchise from a manufacturer of motor
             75      vehicles to distribute motor vehicles within this state and who in whole or in part sells or
             76      distributes new motor vehicles to dealers or who maintains distributor representatives.
             77          (11) "Distributor branch" means a branch office similarly maintained by a distributor
             78      for the same purposes a factory branch is maintained.
             79          (12) "Distributor representative" means a person and each officer and employee of the
             80      person engaged as a representative of a distributor or distributor branch of motor vehicles to
             81      make or promote the sale of the distributor or the distributor branch's motor vehicles, or for
             82      supervising or contacting dealers or prospective dealers of the distributor or the distributor
             83      branch.
             84          (13) "Division" means the Motor Vehicle Enforcement Division created in Section
             85      41-3-104 .
             86          (14) "Factory branch" means a branch office maintained by a person who manufactures
             87      or assembles motor vehicles for sale to distributors, motor vehicle dealers, or who directs or
             88      supervises the factory branch's representatives.
             89          (15) "Factory representative" means a person and each officer and employee of the


             90      person engaged as a representative of a manufacturer of motor vehicles or by a factory branch
             91      to make or promote the sale of the manufacturer's or factory branch's motor vehicles, or for
             92      supervising or contacting the dealers or prospective dealers of the manufacturer or the factory
             93      branch.
             94          (16) "Franchise" means a contract or agreement between a dealer and a manufacturer of
             95      new motor vehicles or its distributor or factory branch by which the dealer is authorized to sell
             96      any specified make or makes of new motor vehicles.
             97          (17) "Manufacturer" means a person engaged in the business of constructing or
             98      assembling new motor vehicles, ownership of which is customarily transferred by a
             99      manufacturer's statement or certificate of origin, or a person who constructs three or more new
             100      motor vehicles in any 12-month period.
             101          (18) "Motorcycle" has the same meaning as defined in Section 41-1a-102 .
             102          (19) (a) "Motor vehicle" means a vehicle that is:
             103          (i) self-propelled;
             104          (ii) a trailer, travel trailer, or semitrailer; or
             105          (iii) an off-highway vehicle or small trailer.
             106          (b) "Motor vehicle" does not include:
             107          (i) mobile homes as defined in Section 41-1a-102 ;
             108          (ii) trailers of 750 pounds or less unladen weight; and
             109          (iii) farm tractors and other machines and tools used in the production, harvesting, and
             110      care of farm products.
             111          (20) "New motor vehicle" means a motor vehicle that has never been titled or
             112      registered and has been driven less than 7,500 miles, unless the motor vehicle is an
             113      off-highway vehicle, small trailer, trailer, travel trailer, or semitrailer, in which case the
             114      mileage limit does not apply.
             115          (21) "Off-highway vehicle" has the same meaning as provided in Section 41-22-2 .
             116          (22) "Pawnbroker" means a person whose business is to lend money on security of
             117      personal property deposited with him.
             118          (23) "Principal place of business" means a site or location in this state:
             119          (a) devoted exclusively to the business for which the dealer, manufacturer,
             120      remanufacturer, transporter, dismantler, crusher, or body shop is licensed, and businesses


             121      incidental to them;
             122          (b) sufficiently bounded by fence, chain, posts, or otherwise marked to definitely
             123      indicate the boundary and to admit a definite description with space adequate to permit the
             124      display of three or more new, or new and used, or used motor vehicles and sufficient parking
             125      for the public; and
             126          (c) that includes a permanent enclosed building or structure large enough to
             127      accommodate the office of the establishment and to provide a safe place to keep the books and
             128      other records of the business, at which the principal portion of the business is conducted and
             129      the books and records kept and maintained.
             130          (24) "Remanufacturer" means a person who reconstructs used motor vehicles subject to
             131      registration under Title 41, Chapter 1a, Motor Vehicle Act, to change the body style and
             132      appearance of the motor vehicle or who constructs or assembles motor vehicles from used or
             133      new and used motor vehicle parts, or who reconstructs, constructs, or assembles three or more
             134      motor vehicles in any 12-month period.
             135          (25) "Salesperson" means an individual who for a salary, commission, or compensation
             136      of any kind, is employed either directly, indirectly, regularly, or occasionally by any new motor
             137      vehicle dealer or used motor vehicle dealer to sell, purchase, or exchange or to negotiate for the
             138      sale, purchase, or exchange of motor vehicles.
             139          (26) "Semitrailer" has the same meaning as defined in Section 41-1a-102 .
             140          (27) "Small trailer" means a trailer that has an unladen weight of more than 750
             141      pounds, but less than 2,000 pounds.
             142          (28) "Special equipment" includes a truck mounted crane, cherry picker, material lift,
             143      post hole digger, and a utility or service body.
             144          (29) "Special equipment dealer" means a new or new and used motor vehicle dealer
             145      engaged in the business of buying new incomplete motor vehicles with a gross vehicle weight
             146      of 12,000 or more pounds and installing special equipment on the incomplete motor vehicle.
             147          (30) "Trailer" has the same meaning as defined in Section 41-1a-102 .
             148          (31) "Transporter" means a person engaged in the business of transporting motor
             149      vehicles as described in Section 41-3-202 .
             150          (32) "Travel trailer" has the same meaning as provided in Section 41-1a-102 .
             151          (33) "Used motor vehicle" means a vehicle that has been titled and registered to a


             152      purchaser other than a dealer or has been driven 7,500 or more miles, unless the vehicle is a
             153      trailer, or semitrailer, in which case the mileage limit does not apply.
             154          (34) "Wholesale motor vehicle auction" means a dealer primarily engaged in the
             155      business of auctioning consigned motor vehicles to dealers or dismantlers who are licensed by
             156      this or any other jurisdiction.
             157          Section 2. Section 41-3-103 is amended to read:
             158           41-3-103. Exceptions to "dealer" definition -- Dealer licensed in other state.
             159          Under this chapter:
             160          (1) (a) An insurance company, bank, finance company, H. company registered as a title
             160a      lender under Title 7, Chapter 24, Title Lender Registration Act, company registered as a check
             160b      casher or deferred deposit lender under Title 7, Chapter 23, Check Cashing and Deferred
             160c      Deposit Lending Registration Act, .H public utility company,
             161      commission impound yard, federal or state governmental agency, or any political subdivision
             162      of any of them or any other person coming into possession of a motor vehicle as an incident to
             163      its regular business, that sells the motor vehicle under contractual rights that it may have in the
             164      motor vehicle is not considered a dealer.
             165          (b) A person who sells or exchanges only those motor vehicles that [he] the person has
             166      owned for over 12 months is not considered a dealer.
             167          (2) (a) A person engaged in leasing motor vehicles is not considered as coming into
             168      possession of the motor vehicles incident to [his] the person's regular business[; and].
             169          (b) [a] A pawnbroker engaged in selling, exchanging, or pawning motor vehicles is
             170      [not] considered as coming into possession of the motor vehicles incident to [his] the person's
             171      regular business and must be licensed as a used motor vehicle dealer.
             172           H. [ (c) A person engaged in a title lender, check cashing, or similar business that comes
             173      into possession of motor vehicles incident to the person's business shall be licensed as a used
             174      motor vehicle dealer.
] .H

             175          (3) A person currently licensed as a dealer or salesperson by another state or country
             176      and not currently under license suspension or revocation by the administrator may only sell
             177      motor vehicles in this state to licensed dealers, dismantlers, or manufacturers, and only at their
             178      places of business.
             179          Section 3. Section 41-3-105 is amended to read:
             180           41-3-105. Administrator's powers and duties -- Administrator and investigators
             181      to be law enforcement officers.
             182          (1) The administrator may make rules to carry out the purposes of this chapter and


             183      Sections 41-1a-1001 through 41-1a-1007 according to the procedures and requirements of Title
             184      63G, Chapter 3, Utah Administrative Rulemaking Act.
             185          (2) (a) The administrator may employ clerks, deputies, and assistants necessary to
             186      discharge the duties under this chapter and may designate the duties of those clerks, deputies,
             187      and assistants.
             188          (b) The administrator, assistant administrator, and all investigators shall be law
             189      enforcement officers certified by peace officer standards and training as required by Section
             190      53-13-103 .
             191          (3) (a) The administrator may investigate any suspected or alleged violation of:
             192          (i) this chapter;
             193          (ii) Title 41, Chapter 1a, Motor Vehicle Act;
             194          (iii) any law concerning motor vehicle fraud; or
             195          (iv) any rule made by the administrator.
             196          (b) The administrator may bring an action in the name of the state against any person to
             197      enjoin a violation found under Subsection (3)(a).
             198          (4) (a) The administrator may prescribe forms to be used for applications for licenses.
             199          (b) The administrator may require information from the applicant concerning the
             200      applicant's fitness to be licensed.
             201          (c) Each application for a license shall contain:
             202          (i) if the applicant is an individual, the name and residence address of the applicant and
             203      the trade name, if any, under which the applicant intends to conduct business;
             204          (ii) if the applicant is a partnership, the name and residence address of each partner,
             205      whether limited or general, and the name under which the partnership business will be
             206      conducted;
             207          (iii) if the applicant is a corporation, the name of the corporation, and the name and
             208      residence address of each of its principal officers and directors;
             209          (iv) a complete description of the principal place of business, including:
             210          (A) the municipality, with the street and number, if any;
             211          (B) if located outside of any municipality, a general description so that the location can
             212      be determined; and
             213          (C) any other places of business operated and maintained by the applicant in


             214      conjunction with the principal place of business; [and]
             215          (v) if the application is for a new motor vehicle dealer's license, the name of each
             216      motor vehicle the applicant has been enfranchised to sell or exchange, the name and address of
             217      the manufacturer or distributor who has enfranchised the applicant, and the names and
             218      addresses of the individuals who will act as salespersons under authority of the license[.];
             219          (vi) at least five years of H. [ personal and ] .H business history;
             220          (vii) the federal tax identification number issued to the dealer; H. and .H
             221          (viii) the sales and use tax license number issued to the dealer under Title 59, Chapter
             222      12, Sales and Use Tax Act H. [ ; and
             223          (ix) verification of at least two years experience in automotive sales or related
             224      automotive industry experience
] .H
.
             225          (5) The administrator may adopt a seal with the words "Motor Vehicle Enforcement
             226      Administrator, State of Utah," to authenticate the acts of the administrator's office.
             227          (6) (a) The administrator may require that the licensee erect or post signs or devices on
             228      the licensee's principal place of business and any other sites, equipment, or locations operated
             229      and maintained by the licensee in conjunction with the licensee's business.
             230          (b) The signs or devices shall state the licensee's name, principal place of business,
             231      type and number of licenses, and any other information that the administrator considers
             232      necessary to identify the licensee.
             233          (c) The administrator may make rules in accordance with Title 63G, Chapter 3, Utah
             234      Administrative Rulemaking Act, determining allowable size and shape of signs or devices,
             235      their lettering and other details, and their location.
             236          (7) (a) The administrator shall provide for quarterly meetings of the advisory board and
             237      may call special meetings.
             238          (b) Notices of all meetings shall be sent to each member not fewer than five days prior
             239      to the meeting.
             240          (8) The administrator, the officers and inspectors of the division designated by the
             241      commission, and peace officers shall:
             242          (a) make arrests upon view and without warrant for any violation committed in their
             243      presence of any of the provisions of this chapter, or Title 41, Chapter 1a, Motor Vehicle Act;
             244          (b) when on duty, upon reasonable belief that a motor vehicle, trailer, or semitrailer is


             245      being operated in violation of any provision of Title 41, Chapter 1a, Motor Vehicle Act, require
             246      the driver of the vehicle to stop, exhibit the person's driver license and the registration card
             247      issued for the vehicle and submit to an inspection of the vehicle, the license plates, and
             248      registration card;
             249          (c) serve all warrants relating to the enforcement of the laws regulating the operation of
             250      motor vehicles, trailers, and semitrailers;
             251          (d) investigate traffic accidents and secure testimony of witnesses or persons involved;
             252      and
             253          (e) investigate reported thefts of motor vehicles, trailers, and semitrailers.
             254          (9) The administrator may contract with a public prosecutor to provide additional
             255      prosecution of this chapter.
             256          Section 4. Section 41-3-201 is amended to read:
             257           41-3-201. Licenses required -- Restitution -- Education.
             258          (1) As used in this section, "new applicant" means a person who is applying for a
             259      license that the person has not been issued during the previous licensing year.
             260          (2) A person may not act as any of the following without having procured a license
             261      issued by the administrator:
             262          (a) a dealer;
             263          (b) salvage vehicle buyer;
             264          (c) salesperson;
             265          (d) manufacturer;
             266          (e) transporter;
             267          (f) dismantler;
             268          (g) distributor;
             269          (h) factory branch and representative;
             270          (i) distributor branch and representative;
             271          (j) crusher;
             272          (k) remanufacturer; or
             273          (l) body shop.
             274          (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a
             275      vehicle with a salvage certificate as defined in Section 41-1a-1001 at or through a motor


             276      vehicle auction unless the person is a licensed salvage vehicle buyer.
             277          (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
             278      exchange a vehicle with a salvage certificate as defined in Section 41-1a-1001 at or through a
             279      motor vehicle auction except to a licensed salvage vehicle buyer.
             280          (c) A person may offer for sale, sell, or exchange a vehicle with a salvage certificate as
             281      defined in Section 41-1a-1001 at or through a motor vehicle auction:
             282          (i) to an out-of-state or out-of-country purchaser not licensed under this section, but
             283      that is authorized to do business in the domestic or foreign jurisdiction in which the person is
             284      domiciled or registered to do business; and
             285          (ii) subject to the restriction in Subsection (3)(d), to an in-state purchaser not licensed
             286      under this section that:
             287          (A) is registered to do business in Utah; and
             288          (B) has a Utah sales tax license.
             289          (d) An operator of a motor vehicle auction may only offer for sale, sell, or exchange
             290      five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor
             291      vehicle auction in any 12 month period to an in-state purchaser that does not have a salvage
             292      vehicle buyer license issued in accordance with Subsection 41-3-202 (15).
             293          (e) (i) An in-state purchaser of a vehicle with a salvage certificate as defined in Section
             294      41-1a-1001 that is purchased at or through a motor vehicle auction shall title the vehicle within
             295      15 days of the purchase if the purchaser does not have a salvage vehicle buyer license, dealer
             296      license, body shop license, or dismantler license issued in accordance with Section 41-3-202 .
             297          (ii) An operator of a motor vehicle auction may not offer for sale, sell, or exchange
             298      additional vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a
             299      motor vehicle auction to a purchaser if notified that the purchaser has not titled previously
             300      purchased vehicles with a salvage certificate as required under Subsection (3)(e)(i).
             301          (f) The commission may impose an administrative entrance fee established in
             302      accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a
             303      person not holding a license described in Subsection (3)(e)(i) that enters the physical premises
             304      of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an
             305      auction.
             306          (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each


             307      salvage vehicle.
             308          (b) A record described under Subsection (4)(a) shall contain:
             309          (i) the purchaser's name and address; and
             310          (ii) the year, make, and vehicle identification number for each salvage vehicle sold.
             311          (c) An operator of a motor vehicle auction shall:
             312          (i) retain the record described in this Subsection (4) for five years from the date of sale;
             313      and
             314          (ii) make a record described in this Subsection (4) available for inspection by the
             315      division at the location of the motor vehicle auction during normal business hours.
             316          (5) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person
             317      that is an out-of-country buyer shall:
             318          (i) stamp on the face of the title so as not to obscure the name, date, or mileage
             319      statement the words "FOR EXPORT ONLY" in all capital, black letters; and
             320          (ii) stamp in each unused reassignment space on the back of the title the words "FOR
             321      EXPORT ONLY."
             322          (b) The words "FOR EXPORT ONLY" shall be:
             323          (i) at least two inches wide; and
             324          (ii) clearly legible.
             325          (6) A supplemental license shall be secured by a dealer, manufacturer, remanufacturer,
             326      transporter, dismantler, crusher, or body shop for each additional place of business maintained
             327      by the licensee.
             328          (7) A person who has been convicted of any law relating to motor vehicle commerce or
             329      motor vehicle fraud may not be issued a license unless full restitution regarding those
             330      convictions has been made.
             331          (8) (a) The division may not issue a license to a new applicant for a new or used motor
             332      vehicle dealer license, a new or used motorcycle dealer license, or a small trailer dealer license
             333      unless the new applicant completes an eight-hour orientation class approved by the division
             334      that includes education on motor vehicle laws and rules.
             335          (b) The approved costs of the orientation class shall be paid by the new applicant.
             336          (c) The class shall be completed by the new applicant and the applicant's partners,
             337      corporate officers, bond indemnitors, and managers.


             338          (d) (i) The division shall approve:
             339          (A) providers of the orientation class; and
             340          (B) costs of the orientation class.
             341          (ii) A provider of an orientation class shall submit the orientation class curriculum to
             342      the division for approval prior to teaching the orientation class.
             343          (iii) A provider of an orientation class shall include in the orientation materials:
             344          (A) ethics training;
             345          (B) motor vehicle title and registration processes;
             346          (C) provisions of Title 13, Chapter 5, Unfair Practices Act, relating to motor vehicles;
             347          (D) Department of Insurance requirements relating to motor vehicles;
             348          (E) Department of Public Safety requirements relating to motor vehicles;
             349          (F) federal requirements related to motor vehicles as determined by the division; and
             350          (G) any required disclosure compliance forms as determined by the division.
             351          Section 5. Section 41-3-201.5 is amended to read:
             352           41-3-201.5. Brokering of a new motor vehicle without a license prohibited.
             353          (1) (a) A person may not, for a fee, commission, or other form of compensation,
             354      arrange, offer to arrange, or broker a transaction involving the sale or lease of more than two H. :
             355          (i) .H new or used motor vehicles in any 12 consecutive month period, unless the person
             355a      is licensed
             356      under Subsection 41-3-202 (1) H. ; or
             356a          (ii) used motor vehicles in any 12 consecutive month period, unless the person is
             356b      licensed under Subsection 41-3-202(2) .H .
             357          (b) Each transaction a person arranges, offers to arrange, or brokers involving the sale
             358      or lease of a motor vehicle for a fee, commission, or other form of compensation is a separate
             359      violation under this section if:
             360          (i) the person has for a fee, commission, or other form of compensation, arranged,
             361      offered to arrange, or brokered the sale or lease of more than two new or used motor vehicles
             362      within the previous 12 consecutive month period; and
             363          (ii) the person is not licensed under Subsection 41-3-202 (1).
             364          (2) A person who violates this section is guilty of a class B misdemeanor.
             365          Section 6. Section 41-3-201.7 is amended to read:
             366           41-3-201.7. Supplemental license for additional place of business restrictions --
             367      Exception.
             368          (1) (a) Subject to the requirements of Subsection (2), a supplemental license for an


             369      additional place of business issued pursuant to Subsection 41-3-201 (6) may only be issued to a
             370      dealer if the dealer is:
             371          [(a)] (i) licensed in accordance with Section 41-3-202 ;
             372          [(b)] (ii) bonded in accordance with Section 41-3-205 ; and
             373          [(c)] (iii) in compliance with existing rules promulgated by the administrator of the
             374      division under Section 41-3-105 .
             375          (b) A supplemental license for a permanent additional place of business may only be
             376      issued to a used motor vehicle dealer if:
             377           H. [ (i) the dealer is independently licensed for the permanent additional place of business
             378      in accordance with Section 41-3-202 ;
             379          (ii)
] (i) .H
the dealer independently satisfies the bond requirements under Section 41-3-205
             380      for the permanent additional place of business;
             381           H. [ (iii) ] (ii) .H the dealer is in compliance with existing rules promulgated by the
             381a      administrator of
             382      the division under Section 41-3-105 ; and
             383      H. [ (iv) ] (iii) .H the permanent additional place of business meets all the requirements for a
             384      principal place of business.
             385          (2) (a) Except as provided in Subsections (2)(c) and (3), a supplemental license for an
             386      additional place of business issued pursuant to Subsection 41-3-201 (6) for a new motor vehicle
             387      dealer may not be issued for an additional place of business that is beyond the geographic
             388      specifications outlined as the area of responsibility in the dealer's franchise agreement.
             389          (b) A new motor vehicle dealer shall provide the administrator with a copy of the
             390      portion of the new motor vehicle dealer's franchise agreement identifying the dealer's area of
             391      responsibility before being issued a supplemental license for an additional place of business.
             392          (c) The restrictions under Subsections (2)(a) and (b) do not apply to a new motor
             393      vehicle dealer if the license for an additional place of business is being issued for the sale of
             394      used motor vehicles.
             395          (3) The provisions of Subsection (2) do not apply if the additional place of business is
             396      a trade show or exhibition if:
             397          (a) there are five or more dealers participating in the trade show or exhibition; and
             398          (b) the trade show or exhibition takes place at a location other than the principal place
             399      of business of one of the dealers participating in the trade show or exhibition.


             400          (4) A supplemental license for a temporary additional place of business issued to a
             401      used motor vehicle dealer may not be for longer than 10 consecutive days.




Legislative Review Note
    as of 2-19-10 12:52 PM


Office of Legislative Research and General Counsel


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