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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
|||| 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.
|||| 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".
|||| 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
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