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House Bill 1222

House Bill 1222

ARCHIVE (2012)

Latest Information

DIGEST OF HB 1222 (Updated February 29, 2012 3:11 pm - DI 84)

Dealer services division of the secretary of state. Establishes a dealer services division (division) within the office of the secretary (secretary), and provides that the division administers and has jurisdiction over vehicle dealer (dealer) services (services). Establishes procedures: (1) for administration of the division; and (2) for judicial action concerning the division. Provides that a person who violates statutes or rules pertaining to services or an order issued by the secretary pertaining to services is subject to a civil penalty of up to $10,000 for each violation. Establishes the dealer enforcement account to be used to support the division. Provides for criminal penalties for certain violations pertaining to services. Establishes the motor vehicle sales advisory board. Specifies that a transfer dealer is not considered a dealer. Repeals and relocates language concerning dealer services and adds language concerning the requirements for a license for a wholesale dealer. Provides that an auto auctioneer is a person providing a place of business or facilities for the purchase and sale of more than three motor vehicles a year. (Under current law the threshold is one motor vehicle a year.) Provides that the 30 business day period for purposes of determining whether a reasonable number of attempts have been made to correct a nonconformity is extended by any period of time during which repair services are unavailable due to civil unrest, fire, natural disasters, terrorist attacks, or acts of God or war. (Current law extends the time period only when repair services are unavailable due to a strike.) Provides that a dealer who fails to deliver a certificate of title within a certain timeframe is subject to certain civil penalties for violations that occur within a calendar year. Requires a dealer to make payment to a third party to satisfy any obligation secured by the vehicle within 10 days after the date of sale. Makes it a Class D felony for a disposal facility, a scrap metal processor, or an agent of a disposal facility or scrap metal processor to knowingly, intentionally, or recklessly buy a motor vehicle that is less than 15 model years old without a certificate of title for the motor vehicle. Makes it a Class A misdemeanor for a dealer or another person who sells, exchanges, or transfers at least five vehicles each year to sell, exchange, or transfer a rebuilt vehicle without disclosing in writing to the purchaser, customer, or transferee, before consummating the sale, exchange, or transfer, the fact that the vehicle is a rebuilt vehicle if the dealer or other person knows or should reasonably know the vehicle is a rebuilt vehicle. Permits the secretary of state to commence a proceeding to administratively dissolve a corporation if the secretary receives credible evidence that the corporation is engaged in illegal activity or activity not authorized by the corporation's articles of incorporation. Makes conforming amendments and technical corrections. Makes an appropriation.
Current Status:
In Conference Committee
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