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S.B. 137
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SALVAGE VEHICLE BUYERS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: John L. Valentine
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AN ACT RELATING TO MOTOR VEHICLES; REQUIRING SALVAGE VEHICLE BUYERS
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LICENSES; PROVIDING RESTRICTIONS AND QUALIFICATIONS; PROVIDING
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RULEMAKING; ESTABLISHING FEES; AND PROVIDING AN EFFECTIVE DATE.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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41-3-201, as last amended by Chapter 239, Laws of Utah 1999
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41-3-202, as last amended by Chapter 165, Laws of Utah 1998
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41-3-601, as last amended by Chapter 165, Laws of Utah 1998
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
41-3-201
is amended to read:
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41-3-201. Licenses required -- Restitution -- Education.
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(1) As used in this section, "new applicant" means a person who is applying for a license
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that the person has not been issued during the previous licensing year.
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(2) A person may not act as any of the following without having procured a license issued
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by the administrator: a dealer, salvage vehicle buyer, salesperson, manufacturer, transporter,
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dismantler, distributor, factory branch and representative, distributor branch and representative,
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crusher, remanufacturer, and body shop.
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(3) (a) A person may not bid on or purchase a salvage vehicle or a branded title vehicle
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at or through any motor vehicle auction unless the person is a licensed salvage vehicle buyer.
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(b) A person may not offer for sale, sell, or exchange a salvage vehicle or a branded title
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vehicle at or through any motor vehicle auction except to a licensed salvage vehicle buyer.
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[(3)] (4) A supplemental license shall be secured by a dealer, manufacturer,
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remanufacturer, transporter, dismantler, crusher, or body shop for each additional place of business
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maintained by him.
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[(4)] (5) A person who has been convicted of any law relating to motor vehicle commerce
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or motor vehicle fraud may not be issued a license unless full restitution regarding those
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convictions has been made.
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[(5) (a) Beginning July 1, 1999, the]
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(6) (a) The division may not issue a license to a new applicant for a new or used motor
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vehicle dealer license unless the new applicant completes an eight-hour orientation class approved
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by the division that includes education on motor vehicle laws and rules.
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(b) The approved costs of the orientation class shall be paid by the new applicant.
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(c) The class shall be completed by the new applicant and the applicant's partners,
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corporate officers, bond indemnitors, and managers.
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(d) The division shall approve:
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(i) providers of the orientation class; and
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(ii) costs of the orientation class.
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Section 2.
Section
41-3-202
is amended to read:
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41-3-202. Licenses -- Classes and scope.
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(1) A new motor vehicle dealer's license permits the licensee to:
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(a) offer for sale, sell, or exchange new motor vehicles if the licensee possesses a franchise
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from the manufacturer of the motor vehicle offered for sale, sold, or exchanged by the licensee;
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(b) offer for sale, sell, or exchange used motor vehicles;
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(c) operate as a body shop; and
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(d) dismantle motor vehicles.
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(2) A used motor vehicle dealer's license permits the licensee to:
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(a) offer for sale, sell, or exchange used motor vehicles;
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(b) operate as a body shop; and
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(c) dismantle motor vehicles.
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(3) A new motorcycle and small trailer dealer's license permits the licensee to:
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(a) offer for sale, sell, or exchange new motorcycles or small trailers if the licensee
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possesses a franchise from the manufacturer of the motorcycle or small trailer offered for sale,
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sold, or exchanged by the licensee;
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(b) offer for sale, sell, or exchange used motorcycles or small trailers; and
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(c) dismantle motorcycles or small trailers.
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(4) A used motorcycle and small trailer dealer's license permits the licensee to:
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(a) offer for sale, sell, or exchange used motorcycles and small trailers; and
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(b) dismantle motorcycles or small trailers.
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(5) A salesperson's license permits the licensee to act as a motor vehicle salesperson and
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is valid for employment with only one dealer at a time.
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(6) (a) A manufacturer's license permits the licensee to construct or assemble motor
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vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, at an established
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place of business and to remanufacture motor vehicles.
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(b) Under rules [of] made by the [division] administrator, the licensee may issue and install
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vehicle identification numbers on manufactured motor vehicles.
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(c) The licensee may franchise and appoint dealers to sell manufactured motor vehicles
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by notifying the division of the franchise or appointment.
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(7) A transporter's license permits the licensee to transport or deliver motor vehicles
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subject to registration under Title 41, Chapter 1a, Motor Vehicle Act from a manufacturing,
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assembling, or distributing point or from a dealer, to dealers, distributors, or sales agents of a
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manufacturer or remanufacturer, to or from detail or repair shops, and to financial institutions or
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places of storage from points of repossession.
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(8) A dismantler's license permits the licensee to dismantle motor vehicles subject to
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registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of reselling parts or
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for salvage, or selling dismantled or salvage vehicles to a crusher or other dismantler.
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(9) A distributor or factory branch and distributor branch's license permits the licensee to
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sell and distribute new motor vehicles, parts, and accessories to their franchised dealers.
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(10) A representative's license, for factory representatives or distributor representatives
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permits the licensee to contact his authorized dealers for the purpose of making or promoting the
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sale of motor vehicles, parts, and accessories.
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(11) (a) (i) A remanufacturer's license permits the licensee to construct, reconstruct,
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assemble, or reassemble motor vehicles subject to registration under Title 41, Chapter 1a, Motor
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Vehicle Act, from used or new motor vehicles or parts.
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(ii) Evidence of ownership of parts and motor vehicles used in remanufacture shall be
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available to the division upon demand.
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(b) Under rules [of] made by the administrator, the licensee may issue and install vehicle
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identification numbers on remanufactured motor vehicles.
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(12) A crusher's license permits the licensee to engage in the business of crushing or
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shredding motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act,
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for the purpose of reducing the useable materials and metals to a more compact size for recycling.
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(13) A body shop's license permits the licensee to rebuild, restore, repair, or paint primarily
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the body of motor vehicles damaged by collision or natural disaster, and to dismantle motor
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vehicles.
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(14) A special equipment dealer's license permits the licensee to:
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(a) buy incomplete new motor vehicles with a gross vehicle weight of 12,000 or more
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pounds from a new motor vehicle dealer and sell the new vehicle with the special equipment
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installed without a franchise from the manufacturer;
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(b) offer for sale, sell, or exchange used motor vehicles;
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(c) operate as a body shop; and
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(d) dismantle motor vehicles.
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(15) (a) A salvage vehicle buyer license permits the licensee to bid on or purchase a
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salvage vehicle or a branded title vehicle at any motor vehicle auction.
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(b) A salvage vehicle buyer license may only be issued to a licensed motor vehicle dealer,
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dismantler, or body shop who qualifies under rules made by the division.
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(c) The division may not issue more than two salvage vehicle buyer licenses to any one
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dealer, dismantler, or body shop.
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(d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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administrator shall make rules establishing qualifications of an applicant for a salvage vehicle
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buyer license. The criteria shall include:
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(i) business history;
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(ii) salvage vehicle qualifications;
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(iii) ability to properly handle and dispose of environmental hazardous materials associated
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with salvage vehicles; and
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(iv) record in demonstrating compliance with the provisions of this chapter.
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Section 3.
Section
41-3-601
is amended to read:
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41-3-601. Fees.
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(1) To pay for administering and enforcing this chapter, the administrator shall collect fees
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determined by the commission under Section
63-38-3.2
for each of the following:
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(a) new motor vehicle dealer's license;
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(b) used motor vehicle dealer's license;
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(c) new motorcycle and small trailer dealer;
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(d) used motorcycle and small trailer dealer;
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(e) motor vehicle salesperson's license;
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(f) motor vehicle salesperson's transfer or reissue fee;
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(g) motor vehicle manufacturer's license;
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(h) motor vehicle transporter's license;
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(i) motor vehicle dismantler's license;
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(j) motor vehicle crusher's license;
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(k) motor vehicle remanufacturer's license;
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(l) body shop's license;
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(m) distributor or factory branch and distributor branch's license;
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(n) representative's license;
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(o) dealer plates;
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(p) dismantler plates;
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(q) manufacturer plates;
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(r) transporter plates;
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(s) damaged plate replacement;
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(t) in-transit permits;
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(u) loaded demonstration permits;
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(v) additional place of business; and
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(w) special equipment dealer's license.
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(2) To pay for training certified vehicle inspectors and enforcement under Sections
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41-1a-1001
through
41-1a-1008
, the State Tax Commission shall establish and the administrator
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shall collect inspection fees determined by the commission under Section
63-38-3.2
.
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(3) At the time of application, the administrator shall collect a fee of $500 for each salvage
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vehicle buyer license.
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Section 4. Effective date.
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This act takes effect on July 1, 2000.
Legislative Review Note
as of 1-13-00 3:13 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.