Title 41 Chapter 3 Section 201

Motor Vehicles
Motor Vehicle Business Regulation Act
Section 201
Licenses required -- Restitution -- Education.

            

41-3-201.   Licenses required -- Restitution -- Education.

            (1) As used in this section, "new applicant" means a person who is applying for a license that the person has not been issued during the previous licensing year.

            (2) A person may not act as any of the following without having procured a license issued by the administrator:

            (a) a dealer;

            (b) salvage vehicle buyer;

            (c) salesperson;

            (d) manufacturer;

            (e) transporter;

            (f) dismantler;

            (g) distributor;

            (h) factory branch and representative;

            (i) distributor branch and representative;

            (j) crusher;

            (k) remanufacturer; or

            (l) body shop.

            (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction unless the person is a licensed salvage vehicle buyer.

            (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction except to a licensed salvage vehicle buyer.

            (c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction:

            (i) to an out-of-state or out-of-country purchaser not licensed under this section, but that is authorized to do business in the domestic or foreign jurisdiction in which the person is domiciled or registered to do business;

            (ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed under this section that:

            (A) has a valid business license in Utah; and

            (B) has a Utah sales tax license; and

            (iii) to a crusher.

            (d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not licensed under this section has the licenses required in Subsection (3)(c)(ii).

            (ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction in any 12 month period to an in-state purchaser that does not have a salvage vehicle buyer license issued in accordance with Subsection 41-3-202(15).

            (iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales tax license and not to each person with the authority to use a sales tax license.

            (iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a purchaser otherwise allowed to purchase a vehicle under Subsection (3)(c)(ii).

            (e) For a vehicle with a salvage certificate purchased under Subsection (3)(c)(ii), an operator of a motor vehicle auction shall:

            (i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler license issued in accordance with Section 41-3-202; or

            (B) beginning on or after the date that the Motor Vehicle Division has implemented the Motor Vehicle Division's GenTax system, make application electronically, in a form and time period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in the name of the purchaser;

            (ii) give to the purchaser a disclosure printed on a separate piece of paper that states:

            "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE

            Vehicle Identification Number (VIN)

            Year:               Make:             Model:

            SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE

            WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE CERTIFICATE OF TITLE.

            _________________________________________________________________

            Signature of Purchaser                                                                                   Date"; and

            (iii) if applicable, provide evidence to the Motor Vehicle Division of:

            (A) payment of sales taxes on taxable sales in accordance with Section 41-1a-510;

            (B) the identification number inspection required under Section 41-1a-511; and

            (C) the odometer disclosure statement required under Section 41-1a-902.

            (f) The Motor Vehicle Division shall include a link to the disclosure statement described in Subsection (3)(e)(ii) on its website.

            (g) The commission may impose an administrative entrance fee established in accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a person not holding a license described in Subsection (3)(e)(i) that enters the physical premises of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an auction.

            (h) A vehicle sold at or through a motor vehicle auction to an out-of-state purchaser with a nonrepairable or salvage certificate may not be certificated in Utah until the vehicle has been certificated out-of-state.

            (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each salvage vehicle.

            (b) A record described under Subsection (4)(a) shall contain:

            (i) the purchaser's name and address; and

            (ii) the year, make, and vehicle identification number for each salvage vehicle sold.

            (c) An operator of a motor vehicle auction shall:

            (i) provide the record described in Subsection (4)(a) electronically in a method approved by the division to the division within two business days of the completion of the motor vehicle auction;

            (ii) retain the record described in this Subsection (4) for five years from the date of sale; and

            (iii) make a record described in this Subsection (4) available for inspection by the division at the location of the motor vehicle auction during normal business hours.

            (5) (a) If applicable, an operator of a motor vehicle auction shall comply with the reporting requirements of the National Motor Vehicle Title Information System overseen by the United States Department of Justice if the person sells a vehicle with a salvage certificate to an in-state purchaser under Subsection (3)(c)(ii).

            (b) The Motor Vehicle Division shall include a link to the National Motor Vehicle Title Information System on its website.

            (6) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person that is an out-of-country buyer shall:

            (i) stamp on the face of the title so as not to obscure the name, date, or mileage statement the words "FOR EXPORT ONLY" in all capital, black letters; and

            (ii) stamp in each unused reassignment space on the back of the title the words "FOR EXPORT ONLY."

            (b) The words "FOR EXPORT ONLY" shall be:

            (i) at least two inches wide; and

            (ii) clearly legible.

            (7) A supplemental license shall be secured by a dealer, manufacturer, remanufacturer, transporter, dismantler, crusher, or body shop for each additional place of business maintained by the licensee.

            (8) (a) A person who has been convicted of any law relating to motor vehicle commerce or motor vehicle fraud may not be issued a license or purchase a vehicle with a salvage or nonrepairable certificate unless full restitution regarding those convictions has been made.

            (b) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (8)(a) if the division has informed the operator of the motor vehicle auction, the dealer, or the consignor in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or salvage certificate under Subsection (8)(a).

            (9) (a) The division may not issue a license to a new applicant for a new or used motor vehicle dealer license, a new or used motorcycle dealer license, or a small trailer dealer license unless the new applicant completes an eight-hour orientation class approved by the division that includes education on motor vehicle laws and rules.

            (b) The approved costs of the orientation class shall be paid by the new applicant.

            (c) The class shall be completed by the new applicant and the applicant's partners, corporate officers, bond indemnitors, and managers.

            (d) (i) The division shall approve:

            (A) providers of the orientation class; and

            (B) costs of the orientation class.

            (ii) A provider of an orientation class shall submit the orientation class curriculum to the division for approval prior to teaching the orientation class.

            (iii) A provider of an orientation class shall include in the orientation materials:

            (A) ethics training;

            (B) motor vehicle title and registration processes;

            (C) provisions of Title 13, Chapter 5, Unfair Practices Act, relating to motor vehicles;

            (D) Department of Insurance requirements relating to motor vehicles;

            (E) Department of Public Safety requirements relating to motor vehicles;

            (F) federal requirements related to motor vehicles as determined by the division; and

            (G) any required disclosure compliance forms as determined by the division.

            (10) A person or purchaser described in Subsection (3)(c)(ii):

            (a) may not purchase more than five salvage vehicles with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 in any 12-month period;

            (b) may not, without first complying with Section 41-1a-705, offer for sale, sell, or exchange more than two vehicles with a salvage certificate as defined in Section 41-1a-1001 in any 12-month period to a person not licensed under this section; and

            (c) may not, without first complying with Section 41-1a-705, offer for sale, sell, or exchange a vehicle with a nonrepairable certificate as defined in Section 41-1a-1001 to a person not licensed under this section.

            (11) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection (10)(a) if the division has informed the operator of the motor vehicle auction, the dealer, or the consignor in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable or salvage certificate under Subsection (10)(a).


Amended by Chapter 463, 2013 General Session