Reprinted

April 11, 2003





ENGROSSED

SENATE BILL No. 405

_____


DIGEST OF SB 405 (Updated April 10, 2003 3:38 PM - DI 96)


Citations Affected: IC 9-13; IC 9-17; IC 9-18; IC 9-21; IC 9-22; IC 9-23; IC 9-25; IC 9-29; IC 14-16.

Synopsis: Motor vehicles and off-road vehicles. Revises procedure regarding delivery of certificate of title and certificate of salvage titles. Requires an assembled vehicle to bear an identification number and requires certain information on its certificate of title. Requires permission from the bureau of motor vehicles (BMV) to place a special identification number on a motor vehicle that does not bear its original or unaltered identification number. Repeals language regarding procedure for an application to the BMV for a missing manufacturer's identification number on a motor vehicle. Provides that the BMV may not issue an offsite sale license to certain motor vehicle dealers. Makes it an unfair practice for a person to act as a broker in the advertising, buying, or selling of at least 12 new or used vehicles per year. Requires certain applications for a license to be a dealer or wholesale dealer of motor vehicles to be accompanied by a bond or renewal certificate for a bond. Requires that certain off-road vehicles must be registered with the department of natural resources (department) in order to be operated, and revises registration procedure. Makes it a Class C infraction to operate an off-road vehicle without the identification numbers issued by the department attached to the off-road vehicle, with certain exceptions. Provides an exception for the operation of farm machinery and farm tractors upon a roadway. Makes conforming amendments.

Effective: July 1, 2003.





Clark, Merritt
(HOUSE SPONSORS _ MAHERN, DUNCAN)




    January 21, 2003, read first time and referred to Committee on Commerce and Consumer Affairs.
    February 27, 2003, amended, reported favorably _ Do Pass.
    March 3, 2003, read second time, amended, ordered engrossed.
    March 4, 2003, engrossed. Read third time, passed. Yeas 47, nays 1.

HOUSE ACTION

    March 13, 2003, read first time and referred to Committee on Roads and Transportation.
    April 7, 2003, amended, reported _ Do Pass.
    April 10, 2003, read second time, amended, ordered engrossed.






Reprinted

April 11, 2003

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.


ENGROSSED

SENATE BILL No. 405



    A BILL FOR AN ACT to amend the Indiana Code concerning motor vehicles.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 9-13-2-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5.5. "Assembled vehicle", for purposes of IC 9-17-4, has the meaning set forth in IC 9-17-4-0.3.
    SECTION 2. IC 9-13-2-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. "Broker", means a person who, for a fee, commission, or other valuable consideration, arranges or offers to arrange a transaction involving the sale, for purposes other than resale, of a new motor vehicle and who is not:
        (1) a dealer or an employee of a dealer;
        (2) a distributor or an employee of a distributor; or
        (3) at any point in the transaction, the bona fide owner of the vehicle involved in the transaction. for purposes of IC 9-23-3, has the meaning set forth in IC 9-23-3-0.3.
    SECTION 3. IC 9-13-2-55 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 55. "Farm machinery"

means a grain and bean separator, combine, combine header, baler, corn picker, ensilage cutter, corn sheller, corn shredder, hay raker, manure spreader, portable saw mill, well drilling machinery, spraying equipment and seeding, cultivating, and harvesting machinery.
    SECTION 4. IC 9-13-2-75 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 75. (a) "Identification number", for purposes of IC 9-18-8-15, has the meaning set forth in IC 9-18-8-15(b).
     (b) "Identification number", for purposes of IC 9-17-4, has the meaning set forth in IC 9-17-4-0.5.
    SECTION 5. IC 9-13-2-151.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 151.7. "Rental company" has the meaning set forth in IC 24-4-9-7.
    SECTION 6. IC 9-13-2-177.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 177.5. "Third party", for purposes of IC 9-17-3, has the meaning set forth in IC 9-17-3-0.5.
    SECTION 7. IC 9-13-2-185 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 185. "Transfer dealer" means a person other than a dealer, manufacturer, or wholesale dealer or broker who has the necessity of transferring a minimum of twelve (12) motor vehicles during a license year as part of the transfer dealer's primary business function.
    SECTION 8. IC 9-17-3-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.5. As used in this chapter, "third party" means a person having possession of a certificate of title for a:
        (1) motor vehicle;
        (2) semitrailer; or
        (3) recreational vehicle;
because the person has a lien or an encumbrance indicated on the certificate of title.

    SECTION 9. IC 9-17-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) If a vehicle for which a certificate of title has been issued is sold or has if the ownership of the vehicle is otherwise transferred, the person who holds the certificate of title must do the following:
        (1) Endorse on the certificate of title an assignment of the certificate of title with warranty of title, in a form printed on the certificate of title, with a statement describing all liens or encumbrances on the vehicle.


        (2) Except as provided in subdivisions (3) and (4), deliver the certificate of title to the purchaser or transferee at the time of the sale or delivery to the purchaser or transferee of the vehicle, if the purchaser or transferee has made all agreed upon initial payments for the vehicle, including delivery of a trade-in vehicle without hidden or undisclosed statutory liens.
        (3) In the case of a sale or transfer between vehicle dealers licensed by this state or another state, deliver the certificate of title within twenty-one (21) days after the date of the sale or transfer.
        (4) Deliver the certificate of title to the purchaser or transferee within twenty-one (21) days after the date of sale or transfer to the purchaser or transferee of the vehicle, if all of the following conditions exist:
            (A) The seller or transferor is a vehicle dealer licensed by the state under IC 9-23.
            (B) The vehicle dealer is not able to deliver the certificate of title at the time of sale or transfer.
            (C) The vehicle dealer reasonably believes that it will be able to deliver the certificate of title, without a lien or an encumbrance on the certificate of title, within the twenty-one (21) day period.
            (D) The vehicle dealer provides the purchaser or transferee with an affidavit under section 3.1 of this chapter.
            (E) The purchaser or transferee has made all agreed upon initial payments for the vehicle, including delivery of a trade-in vehicle without hidden or undisclosed statutory liens.
    (b) A licensed dealer may offer for sale a vehicle for which the dealer does not possess a certificate of title, if the dealer can comply with subsection (a)(3) or (a)(4) at the time of the sale.
    (c) For purposes of this subsection, "timely deliver", with respect to a third party, means to deliver with a postmark dated or hand delivered to the purchaser or transferee not more than ten (10) business days after there is no obligation secured by the vehicle. A vehicle dealer who fails to deliver a certificate of title within the time specified under this section is subject to the following civil penalties:
        (1) One hundred dollars ($100) for the first violation.
        (2) Two hundred fifty dollars ($250) for the second violation.
        (3) Five hundred dollars ($500) for all subsequent violations.
Payment shall be made to the bureau and deposited in the state general fund. In addition, if a purchaser or transferee does not receive a valid

certificate of title within the time specified by this section, the purchaser or transferee shall have the right to return the vehicle to the vehicle dealer ten (10) days after giving the vehicle dealer written notice demanding delivery of a valid title certificate of title and the dealer's failure to deliver a valid title certificate of title within that ten (10) day period. Upon return of the vehicle to the dealer in the same or similar condition as delivered to the purchaser or transferee under this section, the vehicle dealer shall pay to the purchaser or transferee the purchase price plus sales taxes, finance expenses, insurance expenses, and any other amount paid to the dealer by the purchaser. If the dealer's inability to timely deliver a valid certificate of title results from the acts or omissions of a third party who has failed to timely deliver a valid certificate of title to the dealer, the dealer is entitled to claim against the third party one hundred dollars ($100). If:
         (1) the dealer's inability to timely deliver a valid certificate of title results from the acts or omissions of a third party who has failed to timely deliver the certificate of title in the third party's possession to the dealer; and
        (2) the failure continues for ten (10) business days after the dealer gives the third party written notice of the failure;
the dealer is entitled to claim against the third party
all damages sustained by the dealer in rescinding the dealer's sale with the purchaser or transferee, including the dealer's reasonable attorney's fees.
    (d) If a vehicle for which a certificate of title has been issued by another state is sold or delivered, the person selling or delivering the vehicle must deliver to the purchaser or receiver of the vehicle a proper certificate of title with an assignment of the certificate of title in a form prescribed by the bureau.
    (e) The original certificate of title and all assignments and subsequent reissues of the certificate of title shall be retained by the bureau and appropriately classified and indexed in the most convenient manner to trace title to the vehicle described in the certificate of title.
     (f) A dealer shall make payment to a third party to satisfy any obligation secured by the vehicle within five (5) days after the date of sale.
    SECTION 10. IC 9-17-3-3.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3.1. The affidavit required by IC 9-17-3-3(a)(4) shall be printed in the following form:
STATE OF
INDIANA    )
    ) ss:


COUNTY OF ____________    )
    I affirm under the penalties for perjury that all of the following are true:
        (1) That I am a dealer licensed under IC 9-23-1.
        (2) That I cannot deliver a valid certificate of title to the retail purchaser of the vehicle described in paragraph (3) at the time of sale of the vehicle to the retail purchaser. The identity of the previous seller or transferor is __________________________. Payoff of lien was made on (date)_______. I expect to deliver a valid and transferable certificate of title on or about (day)_______ not later than (date)_______________ from the (State of)________ to the purchaser.
        (3) That I will undertake reasonable commercial efforts to produce the valid certificate of title. The vehicle identification number is __________________.
        Signed _______________________, Dealer
By_________________________________
Dated _____, ____
CUSTOMER ACKNOWLEDGES RECEIPT OF A COPY OF THIS AFFIDAVIT.
___________________________________
Customer Signature

NOTICE TO THE CUSTOMER
     If you do not receive a valid certificate of title within the time specified by this affidavit, you have the right to return the vehicle to the vehicle dealer ten (10) days after giving the vehicle dealer written notice demanding delivery of a valid certificate of title and after the vehicle dealer's failure to deliver a valid certificate of title within that ten (10) day period. Upon return of the vehicle to the vehicle dealer in the same or similar condition as when it was delivered to you, the vehicle dealer shall pay you the purchase price plus sales taxes, finance expenses, insurance expenses, and any other amount that you paid to the vehicle dealer.
     If a lien is present on the previous owner's certificate of title, it is the responsibility of the third party lienholder to timely deliver the certificate of title in the third party's possession to the dealer not more than ten (10) business days after there is no obligation secured by the vehicle. If the dealer's inability to deliver a valid certificate of title to you within the above-described ten (10) day period results from the acts or omissions of a third party who has failed to timely deliver the certificate of title in the third party's

possession to the dealer, the dealer may be entitled to claim against the third party the damages allowed by law.
    SECTION 11. IC 9-17-4-0.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.3. As used in this chapter, "assembled vehicle" means:
        (1) a motor vehicle, excluding a motorcycle, that has had the:
            (A) frame;
            (B) chassis;
            (C) cab; or
            (D) body;
        replaced; or
        (2) a motorcycle that has had the:
            (A) frame; or
            (B) engine;
        replaced.
The term includes but is not limited to glider kits, fiberglass body kits, and vehicle reproductions or replicas and includes motor vehicles that have visible and original vehicle identification numbers.

    SECTION 12. IC 9-17-4-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.5. As used in this chapter, "identification number" means a distinguishing number assigned by the bureau to a privately assembled motor vehicle, semitrailer, or recreational vehicle.
    SECTION 13. IC 9-17-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. If a motor vehicle, semitrailer, or recreational vehicle has been built, constructed, or assembled by the person who owns the motor vehicle, semitrailer, or recreational vehicle, the person shall: attach to the person's application for a certificate of title an affidavit stating that the motor vehicle, semitrailer, or recreational vehicle was built, constructed, or assembled by the person.
         (1) indicate on a form provided by the bureau the major component parts that have been used to assemble the motor vehicle, semitrailer, or recreational vehicle;
        (2) make application through the bureau for an identification number for the motor vehicle, semitrailer, or recreational vehicle;
        (3) after receipt of the identification number described in subdivision (2), stamp or attach the identification number

received from the bureau in the manner provided in section 2(2) of this chapter; and
        (4) apply for a certificate of title for the motor vehicle, semitrailer, or recreational vehicle from the bureau.

    SECTION 14. IC 9-17-4-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. A certificate of title may not be issued for a privately assembled motor vehicle, semitrailer, or recreational vehicle that does not have a distinctive identification number stamped on the motor vehicle, semitrailer, or recreational vehicle or permanently attached to the motor vehicle, semitrailer, or recreational vehicle until the person who owns the motor vehicle, semitrailer, or recreational vehicle has:
        (1) obtained from the bureau an identification number designated by the bureau; and
        (2) stamped or permanently attached the identification number in a conspicuous place on the frame of the motor vehicle, semitrailer, or recreational vehicle.
    SECTION 15. IC 9-17-4-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. A certificate of title issued under this chapter must contain the following:
        (1) A description and other evidence of identification of the motor vehicle, semitrailer, or recreational vehicle as required by the bureau.
        (2) A statement of any liens or encumbrances that the application shows to be on the certificate of title.
         (3) The appropriate notation prominently recorded on the front of the title as follows:
            (A) For a vehicle assembled using all new vehicle parts, excluding the vehicle frame, "ASSEMBLED VEHICLE".
            (B) For a vehicle assembled using used parts, "REBUILT VEHICLE".
            (C) For a vehicle assembled using a salvage vehicle or parts, "REBUILT SALVAGE".

    SECTION 16. IC 9-17-4-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) Except as provided under subsection (b), a person who violates this chapter commits a Class C infraction.
    (b) A person who knowingly damages, removes, covers, or alters a special engine an identification number commits a Class C felony.
    SECTION 17. IC 9-17-5-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. A person having possession of a certificate of title for a motor vehicle, semitrailer, or

recreational vehicle because the person has a lien or an encumbrance on the motor vehicle, semitrailer, or recreational vehicle must deliver the certificate of title to the person who owns the motor vehicle, semitrailer, or recreational vehicle upon not more than ten (10) business days after receipt of the payment the satisfaction or discharge of the lien or encumbrance indicated upon the certificate of title to the person who:
        (1) is listed on the certificate of title as owner of the motor vehicle, semitrailer, or recreational vehicle; or
        (2) is acting as an agent of the owner and who holds power of attorney for the owner of the motor vehicle, semitrailer, or recreational vehicle.

    SECTION 18. IC 9-17-8-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. A manufacturer, converter manufacturer, or dealer must have:
        (1) a certificate of title;
        (2) an assigned certificate of title; or
        (3) a manufacturer's certificate of origin; or
        (4) an assigned manufacturer's certificate of origin;

for a motor vehicle, semitrailer, or recreational vehicle in the manufacturer's, converter manufacturer's, or dealer's possession.
    SECTION 19. IC 9-17-8-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) Before obtaining a manufacturer's, converter manufacturer's, or dealer's license from the bureau, a person must agree to allow a police officer or an authorized representative of the bureau to inspect:
        (1) certificates of origin, certificates of title, or assignments of certificates of origin and certificates of title, or other proof of ownership as determined by the bureau; and
        (2) motor vehicles, semitrailers, or recreational vehicles that are held for resale by the manufacturer, converter manufacturer, or dealer;
in the manufacturer's, converter manufacturer's, or dealer's place of business during reasonable business hours.
    (b) A certificate of title, and a certificate of origin, and any other proof of ownership described under subsection (a):
        (1) must be readily available for inspection by or delivery to the proper persons; and
        (2) may not be removed from Indiana.
    SECTION 20. IC 9-18-8-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. As used in this chapter, "motor vehicle part" means: the


        (1) engine;
        (1) for a motorcycle:
            (A) a frame; or
            (B) an engine;

        (2) frame;
        (2) for a passenger motor vehicle, a:
            (A) frame;
            (B) chassis; or
            (C) body;

        (3) chassis;
        (3) for a truck or a tractor, a:
            (A) frame;
            (B) chassis;
            (C) cab; or
            (D) body;
or
        (4) for a trailer, semitrailer, or recreational vehicle, a:
            (A) chassis; or
            (B)
body;
of a the motor vehicle.
    SECTION 21. IC 9-18-8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) Upon receipt of an application, together with the fee specified under IC 9-29 for a special identification number, the bureau shall issue to the person who submitted the application written permission to make or stamp a special identification number in a place on the motor vehicle to be designated by the bureau.
     (b) If the original identification number is on the vehicle or visible, the new special identification number must be affixed so as not to cover the original identification number.
    SECTION 22. IC 9-18-8-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) The bureau may not register a motor vehicle without an identification number or issue a license plate certificate of title for the operation of a motor vehicle except as specified under this chapter.
    (b) This section does not prevent a manufacturer or a manufacturer's agent, other than a dealer, from doing the manufacturer's own numbering on motor vehicles of or parts removed or changed and replacing the numbered parts.
    SECTION 23. IC 9-18-8-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. (a) Before issuing a license plate, certificate of title, the bureau shall require the person applying for the license plate certificate of title to sign a statement that

the special identification number assigned to be placed on the motor vehicle has been put on in a workmanlike manner.
    (b) The statement described under subsection (a) shall be certified by:
        (1) a chief of police;
        (2) a sheriff; or
        (3) another convenient peace officer;
that the chief of police, sheriff, or peace officer has inspected the motor vehicle and found the identification number to be attached to the motor vehicle as required by this chapter.
    (c) This section does not prevent a manufacturer or a manufacturer's agent, other than a dealer, from doing the manufacturer's own numbering on motor vehicles of or parts removed or changed and replacing the numbered parts.
    SECTION 24. IC 9-18-8-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 16. (a) A person who operates a motor vehicle on which the engine identification number has been removed, defaced, destroyed, obliterated, or concealed, when application has not been made to the bureau for permission to put on a new number, commits a Class C infraction.
    (b) If a person who violates subsection (a) cannot, to the satisfaction of the court, establish the person's ownership of the motor vehicle, the motor vehicle shall be confiscated by the court and sold. The proceeds from the sale shall be used to pay the fine and costs of prosecution, and the balance, if any, shall be deposited in the motor vehicle highway account fund.
    (c) If the fine and costs are not paid within thirty (30) days after judgment is rendered under this section, the court shall proceed to advertise and sell the motor vehicle in the manner provided by law for the sale of personal property under execution.
    (d) If at any time the motor vehicle remains in the custody of the court or the court's officers under this section the owner appears and establishes the owner's title to the motor vehicle to the satisfaction of the court, the motor vehicle shall be returned to the owner. The owner shall then make application for and may obtain a special engine an identification number and title as provided in IC 9-17-4-5. IC 9-17-4. The owner may then use the motor vehicle upon proper registration.
    SECTION 25. IC 9-21-8-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) Upon all roadways of sufficient width, a vehicle shall be driven upon the right half of the roadway except as follows:
        (1) When overtaking and passing another vehicle proceeding in

the same direction under the rules governing overtaking and passing.
        (2) When the right half of a roadway is closed to traffic under construction or repair.
        (3) Upon a roadway divided into three (3) marked lanes for traffic under the rules applicable to a roadway divided into three (3) marked lanes.
        (4) Upon a roadway designated and signposted for one-way traffic.
    (b) Upon all roadways, a vehicle proceeding at less than the normal speed of traffic at the time and place under the conditions then existing shall be driven:
        (1) in the right-hand lane then available for traffic; or
        (2) as close as practicable to the right-hand curb or edge of the roadway;
except when overtaking and passing another vehicle proceeding in the same direction or when preparing for a left turn at an intersection or into a private road or driveway.
     (c) For purposes of this section, "vehicle" does not include the following:
        (1) Farm machinery.
        (2) Farm tractor.

    SECTION 26. IC 9-22-3-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. (a) This section applies to the following persons:
        (1) An insurance company or other person that has acquired declares a wrecked or damaged motor vehicle, motorcycle, semitrailer, or recreational vehicle that meets at least one (1) of the criteria set forth in section 3 of this chapter and the ownership of which is not evidenced by a certificate of salvage title.
        (2) An insurance company that has made and paid an agreed settlement for the loss of a stolen motor vehicle, motorcycle, semitrailer, or recreational vehicle.
    (b) A person who owns or holds a lien upon a vehicle described in subsection (a) shall assign the certificate of title to the person insurance company described in subsection (a). The insurance company or other person shall apply to the bureau within thirty-one (31) days after receipt of the certificate of title for a certificate of salvage title for each salvage or stolen vehicle subject to this chapter. The insurance company or other person shall surrender the certificate of title to the department and pay the fee prescribed under IC 9-29-7 for a certificate of salvage title.


    (c) A person who was the owner of a motor vehicle, motorcycle, semitrailer, or recreational vehicle at the time that the vehicle became wrecked or damaged may not be considered to have acquired that vehicle within the meaning of this section.
     (c) When a self-insured entity is the owner of a salvage motor vehicle, motorcycle, semitrailer, or recreational vehicle that meets at least one (1) of the criteria set forth in section 3 of this chapter, the self-insured entity shall apply to the bureau within thirty-one (31) days after the date of loss for a certificate of salvage title in the name of the self-insured entity's name.
    (d) Any other person acquiring a wrecked or damaged motor vehicle, motorcycle, semitrailer, or recreational vehicle that meets at least one (1) of the criteria set forth in section 3 of this chapter, which acquisition is not evidenced by a certificate of salvage title, shall apply to the bureau within thirty-one (31) days after receipt of the certificate of title for a certificate of salvage title.

    SECTION 27. IC 9-23-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. The following persons must be licensed under this article to engage in the business of buying or selling motor vehicles:
        (1) An automobile auctioneer.
        (2) A broker.
        (3) (2) A converter manufacturer.
        (4) (3) A dealer.
        (5) (4) A distributor.
        (6) (5) A distributor branch.
        (7) (6) A distributor representative.
        (8) (7) A factory branch.
        (9) (8) A factory representative.
        (10) (9) A manufacturer.
        (11) (10) A transfer dealer.
        (12) (11) A wholesale dealer.
    SECTION 28. IC 9-23-2-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2.5. (a) An application to be licensed as a dealer or a wholesale dealer, other than an application made by a dealer who is a franchisee selling new motor vehicles or a rental company selling used motor vehicles that have been rented by the rental company, must be made in the manner required under section 2 of this chapter and must be accompanied by:
        (1) a properly executed bond; or
        (2) a renewal certificate for a bond.
    (b) The term of a bond must correspond to the period of issuance for the license as set forth in section 8 of this chapter. If a renewal certificate is used, the bond is considered to be extended in force for each succeeding year in the same amount and with the same effect as an original bond.
    (c) The bond must:
        (1) be in the sum of fifteen thousand dollars ($15,000);
        (2) have good and sufficient surety;
        (3) be approved by the bureau; and
        (4) indemnify or reimburse a purchaser, seller, or financier for monetary loss caused by:
            (A) fraud;
            (B) misrepresentation; or
            (C) suspension or revocation of the license for the reasons set forth in section 14(a)(1) through 14(a)(6) of this chapter, whether the action or inaction was on the part of:
                (i) the dealer;
                (ii) the wholesale dealer; or
                (iii) an employee, an agent, or a salesperson of the dealer or wholesale dealer.
    (d) The total liability of the surety may not exceed the sum of the bond.
    (e) The surety shall make indemnification or reimbursement for a monetary loss:
        (1) after judgment based on the monetary loss set forth in subsection (c)(4) has been entered by a court; or
        (2) after the license of the dealer or the wholesale dealer has been suspended or revoked by the bureau under section 14 of this chapter.
    (f) The surety:
        (1) may cancel the bond after giving at least thirty (30) days notice in writing to the bureau and to the dealer or wholesale dealer; and
        (2) is not liable thereafter for monetary loss resulting from a monetary loss as set forth in subsection (c)(4).

    SECTION 29. IC 9-23-2-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. The license issued to a factory representative or distributor representative must state the name of the employer. Within ten (10) days after a change of employer, the holder shall mail the license to the bureau and indicate the name and address of the holder's new employer. The bureau shall endorse the change on the license and return the license to the licensee in care of

the licensee's new employer. A factory representative, distributor representative, or wholesale dealer or broker must have a license when engaged in business and shall display the license upon request. A temporary license for a factory representative or distributor representative or broker may be issued for a period up to one hundred twenty (120) days pending investigation by the bureau of the applicant's qualification for a license.
    SECTION 30. IC 9-23-2-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) Except as provided in subsection subsections (b) and (c), the bureau shall issue an offsite sales license to a dealer licensed under this chapter not later than forty-five (45) days after receipt of the application for the license. License applications under this section shall be made public upon the request of any person. The term of the offsite sales license is not to exceed ten (10) days.
    (b) The bureau may not issue an offsite sales license to a dealer who does not have an established place of business within Indiana.
    (c) The bureau may not issue an offsite sales license to a licensed dealer proposing to conduct the sale outside a radius of twenty (20) miles from its established place of business. This subsection does not apply to:
        (1) new manufactured housing dealers;
        (2) recreational vehicle dealers; or
        (3) a rental company that is a dealer conducting a sale at a company owned affiliate.

     (d) The requirements of section 2(c) of this chapter do not apply to the application or issuance of an offsite sales license under this section.
    SECTION 31. IC 9-23-2-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) A license issued under this chapter may be denied, suspended, or revoked for any of the following:
        (1) Material misrepresentation in the application for the license or other information filed with the commissioner.
        (2) Lack of fitness under the standards set forth in this article or a rule adopted by the commissioner under this article.
        (3) Willful failure to comply with the provisions of this article or a rule adopted by the commissioner under this article.
        (4) Willful violation of a federal or state law relating to the sale, distribution, financing, or insuring of motor vehicles.
        (5) Engaging in an unfair practice as set forth in this article or a rule adopted by the commissioner under this article.
        (6) Violating IC 23-2-2.7.


         (7) Cancellation of a required bond as set forth in section 2.5(f) of this chapter.
    (b) Except as provided in subsection (d), the procedures set forth in IC 4-21.5 govern the denial, suspension, or revocation of a license and a judicial review. However, if the bureau denies, suspends, or revokes a license issued or sought under this article, the affected person may file an action in the circuit court of Marion County, Indiana, or the circuit court of the Indiana county in which the person's principal place of business is located, seeking a judicial determination as to whether the action is proper. An action may not take effect until thirty (30) days after the commissioner's determination has been made and a notice of the determination served upon the affected person. The filing of an action as described in this section within the thirty (30) day period is an automatic stay of the commissioner's determination.
    (c) Revocation or suspension of a license of a manufacturer, a distributor, a factory branch, a distributor branch, a dealer, or an automobile auctioneer may be limited to one (1) or more locations, to one (1) or more defined areas, or only to certain aspects of the business.
    (d) A license may be denied, suspended, or revoked for violating IC 9-19-1. IC 4-21.5-4 governs the denial, suspension, or revocation of a license under this subsection. The bureau may issue a temporary order to enforce this subsection.
    SECTION 32. IC 9-23-3-0.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.3. As used in this chapter, "broker" means a person who, for a fee, a commission, or other valuable consideration, arranges or offers to arrange a transaction involving the sale, for purposes other than resale, of a new or used motor vehicle and who is not:
        (1) a dealer or an employee of a dealer;
        (2) a distributor or an employee of a distributor; or
        (3) at any point in the transaction, the bona fide owner of the vehicle involved in the transaction.

    SECTION 33. IC 9-23-3-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 19. It is an unfair practice for an automobile auctioneer, a wholesale dealer, or a transfer dealer, or a broker, in connection with the auctioneer's or dealer's or broker's business, to use false, deceptive, or misleading advertising or to engage in deceptive acts or practices.
    SECTION 34. IC 9-23-3-25 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 25. It is an unfair practice for a person to:
        (1) act as;
        (2) offer to act as; or
        (3) profess to be;
a broker in the advertising, buying, or selling of at least twelve (12) new or used vehicles per year.

    SECTION 35. IC 9-25-6-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) If the bureau:
        (1) does not receive a certificate of compliance from a person identified under IC 9-25-5-2 within forty (40) days after the date on which the bureau mailed the request for evidence of financial responsibility to the person; or
        (2) receives a certificate that does not indicate that financial responsibility was in effect with respect to the motor vehicle operated by the person on the date of the accident referred to in IC 9-25-5-2;
the bureau shall take action under subsection (c).
    (b) If the bureau:
        (1) does not receive a certificate of compliance from a person presented with a request for evidence of financial responsibility under IC 9-25-9-1 within forty (40) days after the date on which the person was presented with the request; or
        (2) receives a certificate that does not indicate that financial responsibility was in effect with respect to the motor vehicle that the person was operating when the person committed the violation described in the judgment or abstract received by the bureau under IC 9-25-9-1;
the bureau shall take action under subsection (c).
    (c) Under the conditions set forth in subsection (a) or (b), the bureau shall do the following:
        (1) Immediately suspend the person's current driving license or vehicle registration, or both.
        (2) Demand that the person immediately surrender the person's current driving license or vehicle registration, or both, to the bureau.
    (d) Except as provided in subsection (e), if subsection (a) or (b) applies to a person, the bureau shall suspend the current driving license of the person irrespective of the following:
        (1) The sale or other disposition of the motor vehicle by the owner.
        (2) The cancellation or expiration of the registration of the motor vehicle.
        (3) An assertion by the person that the person did not own the

motor vehicle and therefore had no control over whether financial responsibility was in effect with respect to the motor vehicle.
    (e) The bureau shall not suspend the current driving license of a person to which subsection (a) or subsection (b) applies if the person, through a certificate of compliance or another communication with the bureau, establishes to the satisfaction of the bureau that the motor vehicle that the person was operating when the accident referred to in subsection (a) took place or when the violation referred to in subsection (b) was committed was:
        (1) rented from a rental company; (as defined in IC 24-4-9-7); or
        (2) owned by the person's employer and operated by the person in the normal course of the person's employment.
    SECTION 36. IC 9-29-8-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. The fee for a factory representative, distributor representative, wholesale dealer, transfer dealer, or converter manufacturer or broker under IC 9-23-2 is twenty dollars ($20).
    SECTION 37. IC 14-16-1-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) Except as otherwise provided, an off-road A vehicle purchased before January 1, 2004, may not be operated on public property unless registered as set forth in section 9 of this chapter.
    (b) Registration is not required for a vehicle that is exclusively operated in a special event of limited duration that is conducted according to a prearranged schedule under a permit from the governmental unit having jurisdiction.
     (b) A vehicle purchased after December 31, 2003, may not be operated unless registered as set forth in section 9 of this chapter.
    SECTION 38. IC 14-16-1-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) The owner of each vehicle required to be registered under this chapter must do the following:
        (1) File an application for registration with the department on forms provided by the department.
        (2) Sign the application.
        (3) If the vehicle is purchased after December 31, 2003, include a copy of the bill of sale.
        (4) Include a signed affidavit in which the applicant swears or affirms that the information set forth in the application by the applicant is correct.

         (5) Pay a fee of six dollars ($6).
    (b) Upon receipt of an application in approved form, the department

shall enter the application upon the department's records and issue to the applicant a certificate of registration containing the following:
        (1) The number awarded to the vehicle.
        (2) The name and address of the owner.
        (3) Other information that the department considers necessary.
    (c) A certificate of registration must:
        (1) be pocket size;
        (2) accompany the vehicle; and
        (3) be made available for inspection upon demand by a law enforcement officer.
    SECTION 39. IC 14-16-1-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) The owner of a vehicle required to be registered under this chapter shall notify the department within fifteen (15) days if any of the following conditions exist:
        (1) The vehicle is destroyed or abandoned.
        (2) The vehicle is sold or an interest in the vehicle is transferred wholly or in part to another person.
        (3) The owner's address no longer conforms to the address appearing on the certificate of registration.
    (b) The notice must consist of a surrender of the certificate of registration on which the proper information shall be noted on a place to be provided.
    (c) If the surrender of the certificate is required because the vehicle is destroyed or abandoned, the department shall cancel the certificate and enter that fact in the records. The number then may be reassigned.
    (d) If the surrender is required because of a change of address on the part of the owner, the department shall record the new address. Upon payment of a fee of one dollar ($1), a certificate of registration bearing the new information shall be returned to the owner.
    (e) The transferee of a vehicle registered under this chapter shall, within fifteen (15) days after acquiring the vehicle, make application to the department for transfer to the transferee of the certificate of registration issued to the vehicle. The transferee shall provide the transferee's name and address and the number of the vehicle and pay to the department a fee of one dollar ($1). Upon receipt of the application and fee, the department shall transfer the certificate of registration issued for the vehicle to the new owner. Unless the application is made and the fee paid within fifteen (15) days, the vehicle is considered to be without a certificate of registration and a person may not operate the vehicle until a certificate is issued.
    SECTION 40. IC 14-16-1-20.5 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 20.5. An individual may not operate a vehicle without identification numbers attached on the vehicle as required under section 11 of this chapter except when:
        (1) the vehicle is being operated by a nonresident of Indiana as authorized under section 19 of this chapter;
        (2) the vehicle is being operated for purposes of testing or demonstration with temporary placement of numbers as set forth in section 16 of this chapter; or
        (3) the operator of the vehicle has in the operator's possession a bill of sale from a dealer or private individual that includes the following:
            (A) The purchaser's name and address.
            (B) A date of purchase that is not more than thirty-one (31) days preceding the date that the operator is required to show the bill of sale.
            (C) The make, model, and vehicle number of the vehicle provided by the manufacturer as required by section 13 of this chapter.

    SECTION 41. IC 14-16-1-29, AS AMENDED BY P.L.158-2002, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 29. (a) A person who violates section 17, 23(2), or 24 of this chapter commits a Class B misdemeanor.
    (b) A person who violates section 8, 9, 11, 12, 13, 14, 18, 19, 20, 20.5, 21, 23(1), 23(3), 23(4), 23(5), 23(6), 23(7), 23(8), 23(9), 23(10), 23(11), 23(12), 23(13), 23(14), or 27 of this chapter commits a Class C infraction.
    SECTION 42. IC 9-17-4-5 IS REPEALED [EFFECTIVE JULY 1, 2003].