SENATE BILL NO. 1041

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S1041........................................................by TRANSPORTATION
MOTOR VEHICLE DEALERS - Adds to and amends existing law to require
satisfactory completion of an examination for initial licensure as a motor
vehicle dealer; and to provide continuing education requirements for renewal
of a motor vehicle dealer license.
                                                                        
01/29    Senate intro - 1st rdg - to printing
01/30    Rpt prt - to Transp
02/19    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
02/21    3rd rdg - PASSED - 29-5-1
      AYES -- Andreason, Brandt, Bunderson, Burkett, Burtenshaw, Calabretta,
      Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
      Ingram, Kennedy, Keough, Lodge, Malepeai(Ellis), Marley, McWilliams,
      Noh, Richardson, Schroeder, Sorensen, Stegner, Stennett, Werk, Williams
      NAYS -- Little, McKenzie, Noble, Pearce, Sweet
      Absent and excused -- Bailey
    Floor Sponsor - McWilliams
    Title apvd - to House
02/24    House intro - 1st rdg - to Transp
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 64-5-1
      AYES -- Andersen, Barraclough, Bauer, Bedke, Bell, Bieter, Black, Block,
      Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
      Lake, Langford, Langhorst(Wallace), Martinez, McGeachin, McKague, Meyer,
      Miller, Mitchell, Naccarato, Ridinger, Ring, Ringo, Roberts, Robison,
      Rydalch, Sali, Sayler, Shepherd, Shirley, Skippen, Smith(30), Smith(24),
      Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Barrett, Kulczyk, Moyle, Nielsen, Raybould
      Absent and excused -- Schaefer
    Floor Sponsor - Douglas
    Title apvd - to Senate
03/12    To enrol
03/13    Rpt enrol - Pres signed
03/14    Sp signed
03/17    To Governor
03/20    Governor signed
         Session Law Chapter 98
         Effective: 01/01/04

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1041
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF VEHICLE  DEALERS;  AMENDING  SECTION  49-1602,  IDAHO
  3        CODE,  TO  PROVIDE  EXAMINATION  AND CONTINUING EDUCATION REQUIREMENTS FOR
  4        LICENSURE OF VEHICLE DEALERS; AMENDING CHAPTER 16, TITLE 49,  IDAHO  CODE,
  5        BY  THE ADDITION OF A NEW SECTION 49-1637, IDAHO CODE, TO SET FORTH EDUCA-
  6        TION REQUIREMENTS FOR VEHICLE DEALERS, TO PROVIDE EXEMPTIONS,  TO  PROVIDE
  7        FOR  THE DEVELOPMENT OF CONTINUING EDUCATION PROGRAMS AND EXAMINATIONS, TO
  8        PROVIDE THAT CERTAIN INSTITUTIONS, SCHOOLS AND  ASSOCIATIONS  MAY  PROVIDE
  9        APPROVED  CONTINUING  EDUCATION  PROGRAMS AND TO PROVIDE FOR RULES PROMUL-
 10        GATED BY THE DEPARTMENT; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION 1.  That Section 49-1602, Idaho Code, be, and the same  is  hereby
 13    amended to read as follows:
                                                                        
 14        49-1602.  ADMINISTRATION -- POWERS AND DUTIES. The department shall:
 15        (1)  Issue,  and  for reasonable cause shown, refuse to issue an applicant
 16    any license authorized under the provisions of this  chapter.  The  department
 17    may  refuse  to  issue a license to any applicant, other than a partnership or
 18    corporation, if the applicant fails to comply with the terms and provisions of
 19    this chapter or the rules of the board, or if the applicant has been convicted
 20    of a violation of any of the provisions of this chapter or  chapter  5,  title
 21    49,  or  section 49-1418 or chapter 6, title 48, Idaho Code, or of any federal
 22    odometer law or regulation. Should the applicant be a partnership or a  corpo-
 23    ration, the department may refuse to issue a license to the applicant where it
 24    determines  that  one (1) or more of the partners of a partnership, or one (1)
 25    or more of the stockholders or officers of a corporation, was  previously  the
 26    holder  of  a  license which was revoked or suspended, and the license revoked
 27    never reissued or the suspended license never reinstated, or that one  (1)  or
 28    more  of  the  partners,  stockholders, or officers, though not previously the
 29    holder of a license, has violated any of the provisions of this chapter or  of
 30    an  applicable  rule  or  regulation, or of federal motor vehicle safety stan-
 31    dards.
 32        (2)  For just cause shown, revoke or suspend, on  terms,  conditions,  and
 33    for  a  period  of  time  as  the department shall consider fair and just, any
 34    license or licenses issued pursuant to the  provisions  of  this  chapter.  No
 35    license shall be revoked or suspended unless it shall be shown that the licen-
 36    see has violated a provision of this chapter or of an applicable rule or regu-
 37    lation, or of federal motor vehicle safety standards.
 38        (3)  On  its  own motion, upon the sworn complaint of any person, investi-
 39    gate any suspected or alleged violation by a licensee of any of the provisions
 40    of this chapter or of an applicable rule or regulation.
 41        (4)  Prescribe forms for applications for licenses and qualifications  for
 42    an  applicant for licensure. Every application for a license shall contain, in
 43    addition to other information required by the department, the following:
                                                                        
                                           2
                                                                        
  1        (a)  The name and residence address of the applicant and the  trade  name,
  2        if  any,  under which he intends to conduct his business. If the applicant
  3        is a copartnership, the name and residence address of each member, whether
  4        a limited or general partner, and the name  under  which  the  partnership
  5        business  is  to be conducted. If the applicant is a corporation, the name
  6        of the corporation and the name and address of each of its principal offi-
  7        cers and directors.
  8        (b)  A complete description, including the city with the street number, of
  9        the principal place of business and any other  and  additional  places  of
 10        business  operated and maintained by the applicant in conjunction with the
 11        principal place of business.
 12        (c)  Copies of any letters of franchise for new vehicles that  the  appli-
 13        cant  has been enfranchised to sell or exchange, and the name or names and
 14        addresses of the manufacturer or  distributor  who  has  enfranchised  the
 15        applicant.
 16        (d)  Names  and  addresses  of the persons who shall act as salesmen under
 17        the authority of the license, if issued.
 18        (e)  A copy of the certificate of  assumed  business  name,  if  required,
 19        shall be filed with the secretary of state.
 20        (f)  For a manufacturer's license, the name or names and addresses of each
 21        and every distributor, factory branch, and factory representative.
 22        (g)  For  a  salesman's  license,  certification by the dealer by whom the
 23        salesman will be employed, that he has  examined  the  background  of  the
 24        applicant,  and  to the best of the dealer's knowledge, is qualified to be
 25        licensed under the sponsorship of the licensed dealer.
 26        (h)  Before a dealer who is not exempted  from  the  continuing  education
 27        requirements  as provided in section 49-1637(2), Idaho Code, may apply for
 28        a renewal of a vehicle dealer's license, he shall provide to  the  depart-
 29        ment  a certification from an accredited educational system, private voca-
 30        tional school, correspondence school or trade association approved by  the
 31        department stating that the vehicle dealer has satisfied the four (4) hour
 32        continuing  education  requirements  as  specified  in section 49-1637(1),
 33        Idaho Code.
 34        (i)  Before any vehicle dealer's license is issued by the department to an
 35        applicant who is not licensed with the department as a dealer  within  the
 36        previous twelve (12) calendar months and who is not exempted from the con-
 37        tinuing  education  requirements  as provided in section 49-1637(2), Idaho
 38        Code, the applicant shall provide to the department a  certification  from
 39        an  accredited  educational institution, private vocational school, corre-
 40        spondence school or trade association approved by the  department  stating
 41        that  the applicant has satisfactorily completed the open book examination
 42        requirement specified in section 49-1637(1), Idaho Code.
 43        (5)  Refuse to issue any license under the provisions of this chapter  if,
 44    upon investigation, the department finds that any information contained in the
 45    application is incomplete, incorrect or fictitious.
 46        (6)  Require  that a dealer's principal place of business, and other loca-
 47    tions operated and maintained by him in conjunction with his  principal  place
 48    of  business,  have  erected  or posted signs or devices providing information
 49    relating to the dealer's name, location and address of the principal place  of
 50    business, and the number of the license held by the dealer.
 51        (7)  Provide for regular meetings of the dealer advisory board, to be held
 52    not  less  frequently  than  semiannually. Notices of meetings of the advisory
 53    board shall be mailed to all members not less than five (5) days prior to  the
 54    date on which the meeting is to be held.
 55        (8)  Inspect,  prior  to  licensing,  the  principal place of business and
                                                                        
                                           3
                                                                        
  1    other sites or locations as may be operated and maintained by the applicant.
  2        (9)  Seek and consider the advisory board's recommendations  and  comments
  3    regarding  proposed rules promulgated for the administration of the provisions
  4    of this chapter.
  5        (10) Require the attendance of not less than one (1) or  more  than  three
  6    (3) advisory board members at all hearings held relating to this chapter.
                                                                        
  7        SECTION  2.  That  Chapter  16,  Title 49, Idaho Code, be, and the same is
  8    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  9    ignated as Section 49-1637, Idaho Code, and to read as follows:
                                                                        
 10        49-1637.  EDUCATION  REQUIREMENTS  FOR VEHICLE DEALERS. (1) Except as pro-
 11    vided in subsection (2) of this section, the  following  continuing  education
 12    requirements  shall  apply to a vehicle dealer for an initial dealer's license
 13    and for the annual renewal, as provided in sections  49-1607(3)  and  49-1634,
 14    Idaho Code, of a dealer's license:
 15        (a)  An  applicant  for  an annual renewal of a dealer's license must com-
 16        plete a four (4) hour education program as described in subsection (3)  of
 17        this  section  prior  to submitting a renewal application for a vehicle or
 18        vessel dealer license.
 19        (b)  An applicant requesting an initial vehicle or vessel dealer's license
 20        shall be required to pass a comprehensive open book examination  prior  to
 21        submitting a license application.
 22        (2)  The  education  requirements of subsection (1) of this section do not
 23    apply to an applicant for a full-time or part-time vehicle salesman's license,
 24    manufacturer's license, distributor's license or wholesale  dealer's  license.
 25    The following applicants are also exempt from the provisions of subsection (1)
 26    of this section:
 27        (a)  A  vehicle  dealer  of nationally advertised and recognized new motor
 28        vehicles or vessels; and
 29        (b)  A franchise dealer of new recreational vehicles, new motorcycles, new
 30        all-terrain vehicles, new snowmobiles or new vessels.
 31        (3)  The continuing education programs and written open  book  examination
 32    required  in subsection (1) of this section shall be developed with input from
 33    motor vehicle industry organizations including, but not limited to, the  Idaho
 34    independent  automobile  dealers  association,  and  shall  be approved by the
 35    department.
 36        (4)  The continuing education programs required in subsection (1) of  this
 37    section  may be provided by accredited educational institutions, private voca-
 38    tional schools, correspondence schools or trade  associations,  provided  that
 39    the  continuing  education  program  has  been  approved  by the department as
 40    required in subsection (3) of this section.
 41        (5)  The department may promulgate rules as  necessary  to  implement  the
 42    provisions of this section.
                                                                        
 43        SECTION  3.  This act shall be in full force and effect on and after Janu-
 44    ary 1, 2004.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 12663
     The purpose of this legislation is to insure that any
person, prior to receiving an initial non-franchised vehicle
dealer license, understands and has the necessary knowledge to
operate a non-franchised vehicle dealership.  The completion of
an open book test covering all facets of the used vehicle
industry will be required prior to the issuance of the license. 
Any current non-franchised dealer, prior to renewal of his
vehicle dealer license, will be required on an annual basis, to
complete four (4) hours of continuing education.
                          FISCAL IMPACT

     None.
Contact
          Douglas Gaskell, Executive Director, 
          Idaho State Independent Auto Dealers Assn. 
          376-9517
          Senator Cecil Ingram, 332-1315


STATEMENT OF PURPOSE/FISCAL NOTE                         S 1041