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 9-13-2-75 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 9-13-2-151.7 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 5. 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 6. 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 7. 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 8. 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 9. 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.
numbering on motor vehicles of or parts removed or changed and
replacing the numbered parts.
SECTION 23. 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 a 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 24. 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 25. 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 26. 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 27. 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 site
within twenty (20) miles of any of its company owned
affiliates.
(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 28. 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 29. 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 30. 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 31. 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 32. 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 33. IC 9-17-4-5 IS REPEALED [EFFECTIVE JULY 1,
2003].