SENATE BILL NO. 1041
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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
|||| 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-
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:
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
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
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
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
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.
Douglas Gaskell, Executive Director,
Idaho State Independent Auto Dealers Assn.
Senator Cecil Ingram, 332-1315
STATEMENT OF PURPOSE/FISCAL NOTE S 1041