2002 Legislation
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SENATE BILL NO. 1395 – MV dealers, licensure, education

SENATE BILL NO. 1395

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Daily Data Tracking History



S1395aa...................................................by TRANSPORTATION
MOTOR VEHICLE DEALERS - Amends and adds to existing law to provide
continuing education requirements for licensure of vehicle dealers.
                                                                        
02/08    Senate intro - 1st rdg - to printing
02/11    Rpt prt - to Transp
02/15    Rpt out - to 14th Ord
02/20    Rpt out amen - to engros
02/21    Rpt engros - 1st rdg - to 2nd rdg as amen
02/22    2nd rdg - to 3rd rdg as amen
02/27    3rd rdg as amen - PASSED - 22-12-1
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Deide, Dunklin, Frasure, Geddes, Goedde, Ingram, Keough,
      King-Barrutia, Little, Lodge, Marley, Noh, Risch, Sandy, Stegner,
      Stennett, Thorne
      NAYS -- Burtenshaw, Cameron, Darrington, Davis, Hill, Ipsen,
      Richardson, Schroeder, Sims, Sorensen, Wheeler, Williams
      Absent and excused -- Hawkins
    Floor Sponsor - Boatright
    Title apvd - to House
02/28    House intro - 1st rdg - to Transp

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1395
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF VEHICLE  DEALERS;  AMENDING  SECTION  49-1602,  IDAHO
  3        CODE,  TO PROVIDE CONTINUING EDUCATION REQUIREMENTS FOR LICENSURE OF VEHI-
  4        CLE DEALERS; AND AMENDING CHAPTER 16, TITLE 49, IDAHO CODE, BY  THE  ADDI-
  5        TION OF A NEW SECTION 49-1637, IDAHO CODE, TO SET FORTH EDUCATION REQUIRE-
  6        MENTS  FOR  VEHICLE  DEALERS,  TO  PROVIDE  EXEMPTIONS, TO PROVIDE FOR THE
  7        DEVELOPMENT OF CONTINUING EDUCATION PROGRAMS AND EXAMINATIONS, TO  PROVIDE
  8        THAT  CERTAIN  INSTITUTIONS, SCHOOLS AND ASSOCIATIONS MAY PROVIDE APPROVED
  9        CONTINUING EDUCATION PROGRAMS AND TO PROVIDE FOR RULES PROMULGATED BY  THE
 10        DEPARTMENT.
                                                                        
 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 license, he shall provide to the department
 29        a certification from an accredited educational system, private  vocational
 30        school, correspondence school or trade association approved by the depart-
 31        ment  stating that the vehicle dealer has satisfied the four (4) hour con-
 32        tinuing education requirements as specified in section  49-1637(1),  Idaho
 33        Code.
 34        (i)  Before  any  vehicle dealer 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 license and
 13    for  the annual renewal, as provided in sections 49-1607(3) and 49-1634, Idaho
 14    Code, of a dealer 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 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 the
 39    continuing education program has been approved by the department  as  required
 40    in subsection (3) of this section.
 41        (5)  The  department  may  promulgate  rules as necessary to implement the
 42    provisions of this section.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Boatright           
                                                                        
                                                     Seconded by Deide               
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1395
                                                                        
  1                                AMENDMENT TO THE BILL
  2        On page 3 of the printed bill, following line 42, insert:
  3        "SECTION 3.  This act shall be in full force and effect on and after Janu-
  4    ary 1, 2003.".
                                                                        
  5                                 CORRECTION TO TITLE
  6        On page 1, in line 4, delete "AND"; and in line 10, following "DEPARTMENT"
  7    insert: "; AND PROVIDING AN EFFECTIVE DATE".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1395, As Amended
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF VEHICLE  DEALERS;  AMENDING  SECTION  49-1602,  IDAHO
  3        CODE,  TO PROVIDE CONTINUING EDUCATION REQUIREMENTS FOR LICENSURE OF VEHI-
  4        CLE DEALERS; AMENDING CHAPTER 16, TITLE 49, IDAHO CODE, BY THE ADDITION OF
  5        A NEW SECTION 49-1637, IDAHO CODE, TO SET FORTH EDUCATION REQUIREMENTS FOR
  6        VEHICLE DEALERS, TO PROVIDE EXEMPTIONS, TO PROVIDE FOR THE DEVELOPMENT  OF
  7        CONTINUING  EDUCATION  PROGRAMS  AND EXAMINATIONS, TO PROVIDE THAT CERTAIN
  8        INSTITUTIONS, SCHOOLS AND ASSOCIATIONS  MAY  PROVIDE  APPROVED  CONTINUING
  9        EDUCATION PROGRAMS AND TO PROVIDE FOR RULES PROMULGATED BY THE DEPARTMENT;
 10        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 license, he shall provide to the department
 29        a certification from an accredited educational system, private  vocational
 30        school, correspondence school or trade association approved by the depart-
 31        ment  stating that the vehicle dealer has satisfied the four (4) hour con-
 32        tinuing education requirements as specified in section  49-1637(1),  Idaho
 33        Code.
 34        (i)  Before  any  vehicle dealer 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 license and
 13    for  the annual renewal, as provided in sections 49-1607(3) and 49-1634, Idaho
 14    Code, of a dealer 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 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 the
 39    continuing education program has been approved by the department  as  required
 40    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, 2003.

Statement of Purpose / Fiscal Impact


	               STATEMENT OF PURPOSE
                            RS 11868


The purpose of this legislation is to teach individuals applying 
for a first time dealers license the basic fundamentals of 
operating an independent auto dealership, insuring that a quality 
and successful operation will follow. The continuing dealer 
educational requirements will insure that every dealer in the state 
is made aware of the rapidly changing requirements from both the 
state and federal level.


                          FISCAL IMPACT


There is no fiscal impact.



Contact
Name:	Sen. Boatright
Phone:	332-1407



STATEMENT OF PURPOSE/FISCAL NOTE		S 1395