HOUSE BILL NO. 477

INTRODUCED BY G. GOLIE

A BILL FOR AN ACT ENTITLED: "AN ACT CLARIFYING WHO MAY USE A VEHICLE DISPLAYING DEALER LICENSE PLATES; PROHIBITING THE USE OF VEHICLES DISPLAYING DEALER PLATES FOR PURPOSES OTHER THAN SELLING, DEMONSTRATING, OR TRANSPORTING THE VEHICLE; AND AMENDING SECTION 61-4-103, MCA."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 61-4-103, MCA, is amended to read:

"61-4-103. Assignment of dealer plates. (1) Upon the licensing of a dealer as a new motor vehicle dealer, used motor vehicle dealer, recreational vehicle dealer, or trailer, semitrailer, or special mobile equipment dealer, or a dealer of the motorcycle- or quadricycle-type vehicle, the department shall assign to the dealer a distinctive serial license number as a dealer and after payment of fees furnish every qualified dealer in motor vehicles with sets of number plates as required according to need, which need must be justified by the dealer with the initial application for license and each renewal. Assigned number plates must be similar to number plates furnished to owners of motor vehicles but must bear, in addition to the serial number assigned the dealer, the letter "D" if the dealer is authorized to sell new motor vehicles (including trucks and truck trailers); the letters "RV" if the dealer is authorized to sell recreational vehicles; the letters "UD" if the dealer is authorized to sell used motor vehicles (including used trucks and used truck trailers); the letters "DTR" if the dealer is authorized to sell trailers, semitrailers, or special mobile equipment (new or used); and the letters "MCD" if the dealer is authorized to sell vehicles of the motorcycle or quadricycle type (new or used).

(2) With the exception of a dealer authorized to sell new motor vehicles (including trucks and truck trailers) and to use the "D" plate or demonstrator plate, a dealer or wholesaler authorized to transact business under the provisions of this section may not offer for sale or trade any vehicle described in this section except the vehicles that are authorized by the plates assigned to the dealer or wholesaler. If an applicant wishes to sell more than one type of vehicle, the applicant shall make application for each separate authorization. A plate assigned to a dealer or wholesaler may not be used on any vehicle other than the type described in this section. A wholesaler may not sell a motor vehicle to a person who is not a licensed dealer. A dealer authorized to sell new motor vehicles and assigned a "D" plate or demonstrator plate is authorized to sell both new and used motor vehicles (including trucks and truck trailers), and the plates may be displayed on either new or used motor vehicles by a licensed dealer in new vehicles.

(3) The department shall cause to be placed on each set of license plates issued to a dealer a serial number assigned to each dealer and the actual number of license plates issued to each dealer. The number of the dealer must follow the prefix of the county, and the number of plates issued the dealer must follow the prefix of the county and the number of the dealer, the dealer's number to be separated from the county prefix by a dash, and the number of plates issued to a dealer to be separated from the dealer's number by a dash, as follows: dealer number 4 in Lewis and Clark County would be numbered 5-4, and if the dealer were issued three sets of plates, they would be numbered consecutively as follows, 5-4-1, 5-4-2, and 5-4-3. Wholesalers who receive demonstrator plates under this part must be issued license plates that are of a similar sequence to dealer and dealer demonstrator plates and display a "wholesaler" or "wholesale dealer" identifier conspicuously displayed upon the plates.

(4) Dealers properly licensed under this section are authorized to use and display dealer plates on a motor vehicle held for bona fide sale or used in the conduct of the dealer's business in selling or demonstrating motor vehicles and operated by or under the control of the dealer or the dealer's officers or employees. For purposes of this provision, "officers and employees" include only the persons listed on the manufacturer's franchise agreement or the importer's distribution agreement and other persons upon whom the dealer has paid social security taxes as a full-time employee. A dealer's or wholesaler's license plate may not be used or displayed on vehicles normally used for hire, lease, or rental. The use of a vehicle displaying dealer plates for purposes not exclusively connected with the sale or transfer of the vehicle is prohibited under this section. A dealer is accountable for each plate issued and shall certify quarterly to the department the disposition of each dealer plate assigned to the dealer, including the name, address, and occupation of the person primarily using each plate.

(5) When the department has reasonable cause to believe, from an investigation made by it or information furnished to it by the sheriff or any other law enforcement officer, that a dealer or wholesaler has been improperly licensed, has used the dealer's license in a manner other than the one authorized in this section, has provided a material misstatement of fact in an application for a license, is not qualified as a dealer or wholesaler under the requirements of this section, or whose criminal conduct renders the dealer or wholesaler unfit for licensure, the department may revoke the dealer's or wholesaler's license. A person, firm, corporation, or association may not, for commission or profit, engage in the business of buying, selling, exchanging, or acting as a broker of new motor vehicles, trailers, or semitrailers unless duly licensed in compliance with this section (except trailers having an unladen weight of less than 500 pounds)."

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