Senate Bill No. 116
Introduced By nelson
A Bill for an Act entitled: "An Act allowing an applicant for a used motor vehicle dealer's license to maintain a permanent
nonresidential building for recordkeeping and sales within 1,000 feet of the lot where motor vehicles are displayed;
amending section 61-4-101, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 61-4-101, MCA, is amended to read:
"61-4-101. Application for dealer's license or wholesaler's license. (1) (a) A verified application for licensure as a dealer or wholesaler must be filed, by mail or otherwise, in the office of the department by each person, firm, corporation, or association that, for commission or profit, engages in:
(i) the business of buying, selling, exchanging, taking for consignment, or acting as a broker of new motor vehicles, recreational vehicles, used motor vehicles, trailers (except trailers having an unloaded weight of less than 500 pounds), semitrailers, mobile homes, or special mobile equipment as defined in 61-1-104; or
(ii) business as a wholesaler as defined in 61-1-319.
(b) A licensed real estate broker or agent lawfully buying, selling, exchanging, taking for consignment, or acting as a broker of mobile homes is exempt from licensure under this section.
(c) The sale of more than three motor vehicles or the offering for sale of more than three motor vehicles, if the motor
vehicles are not titled in the seller's name, in any
1 calendar year is prima facie evidence that a person is engaged in the
business of dealing motor vehicles. Licensed wholesalers do not have the privilege of the use of dealer license plates as
provided in subsection (2)(b) but are authorized to display and use demonstrator plates under the provisions of
(d) Each license application and all of the information contained in it must be verified by the department or an authorized representative of the department on a form to be furnished by the department for that purpose and must contain the information required. Each application must be accompanied by the license fee specified in 61-4-102. A dealer's or wholesaler's license must be renewed and paid for annually, and an application for relicensure must be filed not later than January 1 of each year. If an application for renewal of a license has been received by the department prior to the expiration of the license, the licensee may operate the business and display dealer or demonstrator plates under the expired license between January 1 and February 15 following expiration.
(2) To qualify for licensure and the issuance and use of "D", "UD", "RV", "DTR", or "MCD" plates as provided in this
subsection, the applicant
must shall furnish the following information and qualify under the following provisions:
(a) To qualify as a new motor vehicle dealer and for the use of "D" plates, the applicant
(i) state the name under which the business is to be conducted and the location of the premises (street address, city, county, and state) where records are kept, sales are made, and stock of motor vehicles is displayed;
(ii) state the name and address of all owners or persons having an interest in the business, provided that in the case of a corporation, the names and addresses of the president and secretary are sufficient;
(iii) state the name and make of all motor vehicles handled and the name and address of the manufacturer, importer, or distributor with whom the applicant has a written new motor vehicle franchise or sales agreement;
(iv) execute a certificate to the effect that the applicant has a permanent building for the display and sale of new motor vehicles at the location of the premises where sales are conducted;
(v) execute a certificate to the effect that the applicant has a bona fide service department for the repair, service, and maintenance of motor vehicles; and
(vi) execute a certificate to the effect that the applicant is a bona fide dealer in new motor vehicles and that the dealer is recognized by a manufacturer, importer, or distributor as a dealer in new motor vehicles.
(b) To qualify as a used motor vehicle dealer and for the use of "UD" plates; as a recreational vehicle dealer and for the use of "RV" plates; as a trailer, semitrailer, or special mobile equipment dealer and for the use of "DTR" plates; as a motorcycle or quadricycle dealer and for the use of "MCD" plates; or as a wholesaler and for the use of demonstrator plates, the applicant shall, in addition to the matters set forth in subsections (2)(a)(i) and (2)(a)(ii), provide:
(i) a statement that the:
(A) applicant has an established place of business
that includes a lot or lots CONSISTING OF ONE OR MORE LOTS
LOCATED WITHIN 200 FEET OF EACH OTHER upon which motor vehicles may be displayed and a permanent
nonresidential building on or contiguous within 1,000 feet of to the lot or lots where records are kept and sales are made; or
(B) wholesaler applicant has an established place of business that includes a permanent nonresidential building or office where records are kept in order that those records may be inspected;
(ii) a certificate to the effect that the applicant is a bona fide dealer or wholesaler in used motor vehicles, recreational vehicles, trailers, semitrailers, special mobile equipment, motorcycles, or quadricycles. An applicant for a recreational vehicle dealer license shall also indicate on the same certificate that the person is recognized by a manufacturer, importer, or distributor as a dealer in recreational vehicles.
(c) If two or more vehicle
dealer dealers or wholesaler businesses share a location, all records, office facilities, and
inventory, if applicable, must be physically segregated and clearly identified. Each applicant's established place of business
shall must display a sign that indicates the firm name and that vehicles are offered for sale. The letters of the sign must be
clearly visible and readable to the major avenue of traffic at a minimum distance of 150 feet.
(d) To qualify for a used motor vehicle dealer's or wholesaler's license, a person shall submit an annual application for that license and comply with the provisions of 61-4-102(5) in addition to fulfilling the requirements of subsection (2)(b).
(e) The provisions of subsection (2)(d) do not apply to an applicant who is licensed as a motor vehicle wrecking facility under the provisions of Title 75, chapter 10, part 5.
(3) (a) The applicant for a dealer's or wholesaler's license shall also file with
his the application a bond of $25,000 for a
license as a new motor vehicle dealer, a used motor vehicle dealer, a recreational vehicle dealer, a trailer dealer, or a
wholesaler. However, applicants for a license as a trailer dealer or a trailer wholesaler shall file the $25,000 surety bond
only if special mobile equipment, commercial trailers and semitrailers exceeding 6,000 pounds maximum gross loaded
weight, mobile homes, or house trailers are sold; otherwise, all other trailer dealer, motorcycle dealer, or wholesaler license
applicants shall file a bond in the sum of $10,000. All bonds must be conditioned that the applicant shall conduct the
business in accordance with the requirements of the law. All bonds must run to the state of Montana, must be approved by
the department and filed in its office, and must be renewed annually.
(b) A person who suffers loss or damage due to the unlawful conduct of a dealer or wholesaler licensed under this section shall obtain a judgment from a court of competent jurisdiction prior to collecting on the bond. The judgment must determine a specific loss or damage amount and conclude that the licensee's unlawful operation caused the loss or damage before payment on the bond is required."
NEW SECTION. SECTION 2. EFFECTIVE DATE. [THIS ACT] IS EFFECTIVE ON PASSAGE AND APPROVAL.