Citations Affected: IC 9-13; IC 9-17; IC 9-18; IC 9-22; IC 9-23;
IC 9-29.
Synopsis: Motor vehicle documentation and sales. Requires a motor
vehicle dealer, under certain circumstances, to furnish a valid
certificate of title to a purchaser or transferee not more than 50 days
after the date of sale or transfer. 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. Requires a third party to deliver notification of satisfaction of
a lien within 30 days of receipt of lien payment. Repeals language
regarding procedure for an application to the BMV for a missing
manufacturer's identification number on a motor vehicle. Requires an
insurance company to apply to the BMV for a certificate of salvage title
for certain salvaged or stolen vehicles. 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 to indemnify or reimburse a purchaser, seller, or financier for
monetary loss caused by certain actions or inactions. Makes
conforming amendments.
Effective: July 1, 2003.
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.
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
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 9-13-2-75 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 4. 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 5. 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 6. 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 7. 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), and (5),
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.
(5) Deliver the certificate of title to the purchaser or
transferee not later than fifty (50) days after the date of sale
or transfer 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 9-23-2.
(B) The vehicle dealer is not able to deliver the certificate
of title at the time of sale or transfer.
(C) The vehicle dealer has a written verification from a
third party that holds the title regarding the inability of the
third party to deliver the title within twenty-one (21) days.
(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), or (a)(5) at the time of the sale.
(c) A third party holding a certificate of title indicating a lien
must deliver to the owner, purchaser, transferee, or additional
lienholder, whichever is appropriate, a lien release on the
certificate of title or a written notification of satisfaction of lien and
written verification of any title withholding policy within thirty
(30) days after receipt of the lien satisfaction payment.
(d) For purposes of this subsection, "timely deliver" means to
deliver not more than thirty (30) days after receipt of payment to
satisfy a lien that is indicated on a certificate of title. 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 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) (e) 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) (f) 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.
SECTION 8. 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:
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 13. 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 14. 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 15. 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 16. 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 17. 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 18. 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 19. 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 20. IC 9-18-26-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. (a) The bureau may
issue an interim license plate to a dealer or manufacturer who is
licensed and has been issued a license plate under section 1 of this
chapter.
(b) The bureau shall prescribe the form of an interim license plate
issued under this section. However, a plate must bear the assigned
registration number and provide sufficient space for the expiration date
as provided in subsection (c).
(c) Whenever a dealer or manufacturer sells a motor vehicle, the
dealer or manufacturer may provide the buyer with an interim license
plate. The dealer shall, in the manner provided by the bureau, affix on
the plate in numerals and letters at least three (3) inches high the date
on which the interim license plate expires.
(d) An interim license plate authorizes a motor vehicle owner to
operate the vehicle for a maximum period of thirty-one (31) days after
the date of delivery of the vehicle to the vehicle's owner or until a
regular license plate is issued, whichever occurs first.
(e) An interim license plate issued under this section may be
renewed one (1) time only for a period of twenty (20) days, if the
vehicle dealer:
(1) is unable to deliver the certificate of title; and
(2) satisfies the conditions set forth in IC 9-17-3-3(a)(5)(C)
and IC 9-17-3-3(a)(5)(D).
(f) A motor vehicle that is required by law to display license plates
on the front and rear of the vehicle is only required to display a single
interim plate.
SECTION 21. 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 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.
SECTION 22. 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.
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 24. 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 25. 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 new manufactured housing dealers or recreational
vehicle dealers.
(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 26. 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 27. 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 28. 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 29. 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 30. 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 31. IC 9-17-4-5 IS REPEALED [EFFECTIVE JULY 1,
2003].