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S.B. 199

             1     

MOTOR VEHICLE SELLING AND TITLING

             2     
REQUIREMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Stephen H. Urquhart

             6     
House Sponsor: Don L. Ipson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Motor Vehicle Code by amending provisions relating to selling
             11      and titling a motor vehicle.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides definitions;
             15          .    provides that upon the endorsement and assignment of a certificate of title, the same
             16      certificate of title may not be reendorsed and reassigned to a new owner with
             17      exceptions;
             18          .    provides that a person may not sell, offer for sale, or display for sale or exchange a
             19      motor vehicle unless the person is:
             20              .    licensed under the Motor Vehicle Business Regulation Act;
             21              .    the lienholder or owner of the vehicle;
             22              .    a person who has lawfully repossessed the vehicle;
             23              .    a holder of a statutory lien on the vehicle who is selling the vehicle through a
             24      motor vehicle auction;
             25              .    a person lawfully donating a vehicle to a nonprofit charitable organization;
             26              .    a non-profit charitable organization that receives donated vehicles and sells or
             27      disposes of them;


             28              .    a person lawfully selling the person's immediate family member's vehicle; or
             29              .    a personal representative, trustee, guardian, executor, administrator, sheriff,
             30      government entity, or other person who sells a vehicle under the powers and
             31      duties granted or imposed by law;
             32          .    requires a new owner of a transferred vehicle, vessel, or outboard motor to obtain a
             33      certificate of title with exceptions;
             34          .    establishes penalties and fines for violating the provisions; and
             35          .    makes technical changes.
             36      Money Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          None
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          41-1a-702, as last amended by Laws of Utah 1993, Chapter 221
             43          41-1a-705, as enacted by Laws of Utah 1992, Chapter 1 and last amended by Laws of
             44      Utah 1992, Chapter 218
             45          41-3-702, as last amended by Laws of Utah 2009, Chapter 234
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 41-1a-702 is amended to read:
             49           41-1a-702. Endorsement of assignment and warranty of title -- Co-owners.
             50          (1) (a) To transfer a vehicle, vessel, or outboard motor the owner shall endorse the
             51      certificate of title issued for the vehicle, vessel, or outboard motor in the space for assignment
             52      and warranty of title.
             53          (b) The endorsement and assignment shall include a statement of all liens or
             54      encumbrances on the vehicle, vessel, or outboard motor.
             55          (c) Upon the endorsement and assignment of a certificate of title, the same certificate
             56      of title may not be reendorsed and reassigned to a new owner except as provided in Section
             57      41-1a-705 .
             58          (2) (a) If a title certificate reflects the names of two or more people as co-owners in the


             59      alternative by use of the word "or" or "and/or," each co-owner is considered to have granted the
             60      other co-owners the absolute right to endorse and deliver title and to dispose of the vehicle,
             61      vessel, or outboard motor.
             62          (b) If the title certificate reflects the names of two or more people as co-owners in the
             63      conjunctive by use of the word "and," or the title does not reflect any alternative or conjunctive
             64      word, the endorsement of each co-owner is required to transfer title to the vehicle, vessel, or
             65      outboard motor.
             66          (3) The owner shall deliver the certificate of title containing the odometer disclosure
             67      statement required under Section 41-1a-902 and the certificate of registration to the purchaser
             68      or transferee at the time of, or within 48 hours after delivering the vehicle, vessel, or outboard
             69      motor, as applicable, except as provided for under Sections 41-3-301 , 41-1a-519 , and
             70      41-1a-709 .
             71          Section 2. Section 41-1a-705 is amended to read:
             72           41-1a-705. Persons that may sell, offer for sale, or display for sale a vehicle,
             73      vessel, or outboard motor -- New owner shall title -- Penalties.
             74          (1) As used in this section, "immediate family member" means a person's spouse, child,
             75      spouse of a child living in the person's home, or parent.
             76          (2) (a) A person may not sell, offer for sale, or display for sale or exchange any vehicle,
             77      vessel, or outboard motor unless the person is:
             78          (i) a person licensed under Chapter 3, Motor Vehicle Business Regulation Act;
             79          (ii) a motor vehicle auction;
             80          (iii) the lienholder or owner of the vehicle, vessel, or outboard motor as evidenced by
             81      the person's name being printed by the division on the certificate of title;
             82          (iv) a person who has lawfully repossessed the vehicle, vessel, or outboard motor;
             83          (v) a holder of a statutory lien on the vehicle who is selling the vehicle, vessel, or
             84      outboard motor through a motor vehicle auction;
             85          (vi) a person lawfully donating the vehicle, vessel, or outboard motor to a non-profit
             86      charitable organization;
             87          (vii) a non-profit charitable organization that receives donated vehicles and sells or
             88      disposes of them; or
             89          (viii) a person lawfully selling the person's immediate family member's vehicle, vessel,


             90      or outboard motor.
             91          (b) Subsection (1)(a) does not apply to a personal representative, trustee, guardian,
             92      executor, administrator, sheriff, government entity, or other person who sells a vehicle, vessel,
             93      or outboard motor under the powers and duties granted or imposed by law.
             94          [(1) The] (3) Unless the new owner is a person listed in Subsections (2)(a)(i) through
             95      (viii), the new owner of a transferred vehicle, vessel, or outboard motor [may either] shall
             96      obtain a [new registration and] certificate of title for the vehicle, vessel, or outboard motor
             97      transferred to [him or transfer his title or interest in that vehicle, vessel, or outboard motor to a
             98      third party] the new owner.
             99          [(2) A transferee may title a]
             100          (4) Unless the new owner is a person listed in Subsections (2)(a)(i) through (viii), the
             101      new vehicle, vessel, or outboard motor owner shall title the vehicle, vessel, or outboard motor
             102      by completing an application and presenting to the division a properly endorsed certificate of
             103      title, duplicate certificate of title, or other document of authority along with any additional
             104      documents the division may require to transfer the title.
             105          (5) (a) A person who violates the provisions of Subsection (2) is guilty of a class B
             106      misdemeanor.
             107          (b) A person who violates any of the provisions of this section shall pay all fees and
             108      taxes required under this chapter that resulted from the violation.
             109          (c) Each vehicle sold, offered for sale, or displayed for sale in violation of this section
             110      shall be a separate offense.
             111          (6) Nothing in this section applies to a person purchasing a vehicle from an online
             112      auction if the purchased vehicle is being transported out of the state.
             113          Section 3. Section 41-3-702 is amended to read:
             114           41-3-702. Civil penalty for violation.
             115          (1) The following are civil violations under this chapter and are in addition to criminal
             116      violations under this chapter:
             117          (a) Level I:
             118          (i) failing to display business license;
             119          (ii) failing to surrender license of salesperson because of termination, suspension, or
             120      revocation;


             121          (iii) failing to maintain a separation from nonrelated motor vehicle businesses at
             122      licensed locations;
             123          (iv) issuing a temporary permit improperly;
             124          (v) failing to maintain records;
             125          (vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
             126      licensing the motor vehicle;
             127          (vii) special plate violation; and
             128          (viii) failing to maintain a sign at a principal place of business.
             129          (b) Level II:
             130          (i) failing to report sale;
             131          (ii) dismantling without a permit;
             132          (iii) manufacturing without meeting construction or vehicle identification number
             133      standards;
             134          (iv) withholding customer license plates; or
             135          (v) selling a motor vehicle on consecutive days of Saturday and Sunday.
             136          (c) Level III:
             137          (i) operating without a principal place of business;
             138          (ii) selling a new motor vehicle without holding the franchise;
             139          (iii) crushing a motor vehicle without proper evidence of ownership;
             140          (iv) selling from an unlicensed location;
             141          (v) altering a temporary permit;
             142          (vi) refusal to furnish copies of records;
             143          (vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles;
             144          (viii) advertising violation;
             145          (ix) failing to separately identify the fees required by Title 41, Chapter 1a, Motor
             146      Vehicle Act; [and]
             147          (x) encouraging or conspiring with unlicensed persons to solicit for prospective
             148      purchasers; [and]
             149          (xi) failing to title a vehicle with a salvage certificate that is purchased at or through a
             150      motor vehicle auction within 15 days of the purchase as required under Subsection
             151      41-3-201 (3)(e)[.]; and


             152          (xii) selling, offering for sale, or displaying for sale or exchange a vehicle, vessel, or
             153      outboard motor in violation of Section 41-1a-705 .
             154          (2) (a) The schedule of civil penalties for violations of Subsection (1) is:
             155          (i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
             156      and subsequent offenses;
             157          (ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
             158      third and subsequent offenses; and
             159          (iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for
             160      the third and subsequent offenses.
             161          (b) When determining under this section if an offense is a second or subsequent
             162      offense, only prior offenses committed within the 12 months prior to the commission of the
             163      current offense may be considered.
             164          (3) The following are civil violations in addition to criminal violations under Section
             165      41-1a-1008 :
             166          (a) knowingly selling a salvage vehicle, as defined in Section 41-1a-1001 , without
             167      disclosing that the salvage vehicle has been repaired or rebuilt;
             168          (b) knowingly making a false statement on a vehicle damage disclosure statement, as
             169      defined in Section 41-1a-1001 ; or
             170          (c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded
             171      title, as defined in Section 41-1a-1001 , when it is not.
             172          (4) The civil penalty for a violation under Subsection (3) is:
             173          (a) not less than $1,000, or treble the actual damages caused by the person, whichever
             174      is greater; and
             175          (b) reasonable attorney fees and costs of the action.
             176          (5) A civil action may be maintained by a purchaser or by the administrator.




Legislative Review Note
    as of 2-16-12 3:27 PM


Office of Legislative Research and General Counsel


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