Citations Affected: IC 9-13; IC 9-23.
Synopsis: Internet sales of motor vehicles. Defines "dealer" for
purposes of the motor vehicle law to include a person who directly sells
12 or more vehicles each year over the Internet for delivery in Indiana.
Requires an Internet dealer to have an established place of business in
Indiana. Requires an Internet dealer to provide the bureau of motor
vehicles with the name, address, and telephone number of the person
who has control of business records located outside Indiana when the
records are created by the sale of a vehicle through the use of the
Internet to an Indiana resident. Requires an Internet dealer to notify the
bureau of any change in this information within 10 days. Requires an
Internet dealer to deliver the motor vehicle to the customer at the place
of business of the dealer in Indiana.
Effective: July 1, 2001.
January 23, 2001, read first time and referred to Committee on Rules and Legislative
Procedure.
February 5, 2001, amended; reassigned to Committee on Commerce and Consumer Affairs.
February 27, 2001, amended, reported favorably _ Do Pass.
March 5, 2001, read second time, ordered engrossed. Engrossed.
March 7, 2001, read third time, passed. Yeas 46, nays 2.
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
SECTION 1. IC 9-13-2-42 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 42. (a) "Dealer" means,
except as otherwise provided in this section, a person who sells to the
general public, for delivery in Indiana including a person who sells
directly by the Internet or other computer network, at least twelve
(12) vehicles each year for delivery in Indiana. A dealer must have an
established place of business that meets the minimum standards
prescribed by the bureau under rules adopted under IC 4-22-2.
(b) The term does not include the following:
(1) A receiver, trustee, or other person appointed by or acting
under the judgment or order of a court.
(2) A public officer while performing official duties.
(3) A person who is a dealer solely because of activities as a
transfer dealer.
(c) "Dealer", for purposes of IC 9-31, means a person that sells to
the general public for delivery in Indiana at least six (6) boats per year.
SECTION 2. IC 9-23-2-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]: Sec. 2. (a) An application for a license
under this chapter must:
(1) be accompanied by the fee required under IC 9-29-8;
(2) be on a form prescribed by the bureau; and
(3) contain the information the bureau considers necessary to
enable the bureau to determine fully the following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business for which the application is submitted.
(b) An application for a license as a dealer must show whether the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The bureau may not issue a license to a
dealer who transacts business in this manner who does not have an
established place of business in Indiana.
(d) This subsection applies to an application for a license as a dealer
in a city having a population of more than one hundred ten thousand
(110,000) but less than one hundred twenty thousand (120,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the bureau may not issue a license until the
applicant files the affidavit.
SECTION 3. IC 9-23-2-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]: Sec. 4. (a) The license issued to a factory
branch, a distributor branch, an automobile auctioneer, a transfer
dealer, or a dealer under this chapter must specify the location of each
place of business and shall be conspicuously displayed at each business
location.
(b) If a business name or location is changed, the holder shall notify
the bureau within ten (10) days and remit the fee required under
IC 9-29-8. The bureau shall endorse that change on the license if the
bureau determines that the change is not subject to other provisions of
this article.
(c) A dealer who uses the Internet or other computer network
to facilitate the sale of motor vehicles as set forth in section 2(c) of
this chapter shall notify the bureau within ten (10) days upon any
change in the name, address, or telephone number of business
records located outside Indiana that have been created in
transactions made in Indiana by the dealer. A report made under
this subsection is not subject to the fee required under IC 9-29-8-5.
(d) This subsection applies to a dealer in a city having a population
of more than one hundred ten thousand (110,000) but less than one
hundred twenty thousand (120,000). A dealer who wants to change a
location must submit to the bureau an application for approval of the
change. The application must be accompanied by an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
bureau may not approve a change of location or endorse a change of
location on the dealer's license until the dealer provides the affidavit.
(d) (e) For the purpose of this section, an offsite license issued under
section 7 of this chapter does not constitute a change of location.
SECTION 4. IC 9-23-2-15 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2001]: Sec. 15. A dealer who sells a motor vehicle through the use
of the Internet or other computer network shall deliver the motor
vehicle to the customer at the place of business of the dealer in
Indiana.