Citations Affected: IC 8-14-1-1; IC 9-13-2; IC 9-17; IC 9-18;
IC 9-22-3-11; IC 9-23; IC 9-29-8-4.
Synopsis: Motor vehicle documentation and sales. Requires certain
information to accompany a certificate of title for a vehicle brought
from a foreign country. Requires a dealer to furnish a valid certificate
of title to a purchaser in not more than 60 days. Requires an assembled
vehicle to bear an identification number and that its certificate of title
contain the words "assembled vehicle". Requires a vehicle that does not
bear its original or unaltered identification number to receive a special
identification number from the bureau of motor vehicles (BMV).
Permits a motor vehicle dealer to issue a second interim plate to the
vehicle's owner. Permits the owner of a certain damaged or wrecked
vehicle who retains the vehicle to apply to the BMV for a certificate of
salvage title. Changes the title of the motor vehicle sales advisory board
to the motor vehicle sales review board (board), adds a ninth member,
and authorizes the board to assist the BMV in the regulation of vehicle
manufacturers, distributors, and dealers, including repealing the
authority for the BMV to institute an injunction compelling regulation
and replacing its authority with that of the board's. Requires a filing fee
for a protest or dispute filed with the board by certain persons engaging
in the business of buying or selling motor vehicles. Authorizes the
board to impose a civil penalty for a violation of a regulation of vehicle
manufacturers, distributors, or dealers. Requires the filing fee and civil
penalties to be deposited in the motor vehicle highway account. Makes
it an unfair practice for a person to act as a broker in the advertising,
buying, or selling of any new or used vehicle. Repeals and relocates
requirements for an application for a special identification number on
a motor vehicle.
Effective: July 1, 2002.
January 7, 2002, read first time and referred to Committee on Commerce and Consumer
Affairs.
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
SECTION 1. IC 8-14-1-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 1. As used in this chapter:
(1) "Motor vehicle highway account" means the account of the
general fund of the state known as the "motor vehicle highway
account", to which is credited collections from motor vehicle
registration fees, licenses, driver's and chauffeur's license fees,
gasoline taxes, auto transfer fees, certificate of title fees, weight
taxes or excise taxes, civil penalties and fees collected under
IC 9-23-1, and all other similar special taxes, duties or excises of
all kinds on motor vehicles, trailers, motor vehicle fuel, or motor
vehicle owners or operators.
(2) The term "department" refers to the Indiana department of
transportation.
(3) The term "highways" includes roadway, rights of way, bridges,
drainage structures, signs, guard rails, protective structures in
connection with highways, drains, culverts, and bridges and the
substructure and superstructure of bridges and approaches thereto
and streets and alleys of cities or towns.
(4) The term "construction" means the planning, supervising,
inspecting, actual building, draining, and all expenses incidental
to the construction of a highway.
(5) The term "reconstruction" means a widening or a rebuilding
of the highway or any portion thereof.
(6) The term "maintenance", when used in reference to cities,
towns and counties as applied to that part of the highway other
than bridges, means the constant making of needed repairs to
preserve a smooth surfaced highway, adequately drained, marked
and guarded by protective structures for public safety, and, as to
bridges, means the constant making of needed repairs to preserve
a smooth surfaced highway thereon and the safety and
preservation of the bridge and its approaches, together with the
substructure and superstructure thereof; and such term also means
and includes the acquisition and use, in any manner, of all needed
equipment, fuel, materials, and supplies essential and incident
thereto.
(7) The term "vehicle registration" means the number of vehicles
subject to registration under IC 9-18 which are registered
thereunder, and, when used with respect to the state, shall mean
the number of vehicles registered in the state and when used in
respect to a county, city, or town shall mean the number of
vehicles registered by owners resident in the county, city, or town.
SECTION 2. IC 9-13-2-5.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: 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 3. IC 9-13-2-14.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 14.5. "Board", for purposes of IC 9-23-1, has the
meaning set forth in IC 9-23-1-0.5.
SECTION 4. IC 9-13-2-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 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. for purposes of IC 9-23-3,
has the meaning set forth in IC 9-23-3-0.5.
SECTION 5. IC 9-13-2-75 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 6. IC 9-13-2-185 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 9-17-2-5.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 5.5. (a) If an application for a certificate of title is for
a motor vehicle brought into Indiana from a foreign country, the
application must be accompanied by:
(1) the ownership document, including, but not limited to, a:
(A) new vehicle information statement (manufacturer's
certificate of origin);
(B) vehicle title; or
(C) registration if no title fully describing the vehicle has
been issued by the foreign county;
(2) a verification indicating that the motor vehicle has been
imported legally into the United States and complies with all
federal safety requirements;
(3) a record of inspection of the motor vehicle signed by a law
enforcement officer (as defined in IC 3-6-6-36) or a United
States Customs Service officer verifying the motor vehicle
identification number;
(4) a federal odometer statement indicating the motor vehicle
mileage; and
(5) a statement indicating if a conversion from kilometers to
miles has been performed.
(b) The bureau shall adopt rules under IC 4-22-2 to carry out
this section.
SECTION 8. IC 9-17-3-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 3. (a) If a vehicle for which a
certificate of title has been issued is sold or has the ownership
transferred, the person who holds the certificate of title must do the
following:
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 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 and the dealer's
failure to deliver a valid title certificate 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) 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.
SECTION 9. IC 9-17-3-3.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3.1. The affidavit
required by IC 9-17-3-3(a)(4) shall be printed in the following form:
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: 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 11. IC 9-17-4-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: 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 12. IC 9-17-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 13. IC 9-17-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 conspicuous designation "ASSEMBLED VEHICLE"
on the front of the title.
SECTION 14. IC 9-17-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 6. (a) Except as
provided under subsection (b), a person who violates this chapter
commits a Class C infraction. Class D felony.
(b) A person who knowingly damages, removes, covers, or alters a
special engine an identification number issued by the bureau under
this chapter commits a Class C felony.
SECTION 15. IC 9-18-8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. As used in this
chapter, "motor vehicle part" means the following:
(1) engine; For a motorcycle:
(A) a frame; or
(B) an engine;
(2) frame; For a passenger motor vehicle, a:
(A) frame;
(B) chassis; or
(C) body;
(3) chassis; 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, 2002]: 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 metal plate or sticker bearing the
special identification number to affix to the motor vehicle 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, 2002]: 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 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, 2002]: 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 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, 2002]: 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, 2002]: 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. However, if a
third party is responsible for a delay in delivery of the
unencumbered assigned title to the dealer for the vehicle's owner,
the dealer may issue a second interim plate to the vehicle's owner
for an additional thirty-one (31) days upon receipt of written
identification from the third party regarding the inability to
deliver the title in a timely manner. The verification must be
attached to and made a part of the dealer's interim plate log. Not
more than two (2) interim license plates may be issued.
(e) 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, 2002]: 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.
(3) A person who was the owner of a motor vehicle,
motorcycle, semitrailer, or recreational vehicle at the time
that the vehicle was damaged or wrecked and who has entered
into an agreed settlement from an insurance company that
was within the criteria described in section 3(a)(1) of this
chapter, and who is retaining the damaged or wrecked 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 described
in subsection (a). The insurance company or other person who has
entered into an agreed settlement as described in subsection (a)(3)
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 9-23-1-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 0.5. As used in this chapter, "board" means the
motor vehicle sales review board.
SECTION 23. IC 9-23-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. The motor vehicle
sales advisory review board is established to advise assist the bureau
in the administration of this article.
SECTION 24. IC 9-23-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. (a) The advisory
board is composed of the commissioner and eight (8) nine (9) persons
who have maintained continuous residency in Indiana for the two
(2) years before appointment, appointed by the governor as follows:
(1) Two (2) of the appointed members must be franchised new
motor vehicle dealers as follows:
(A) One (1) member must have sold less than seven hundred
fifty (750) new motor vehicles in the year before the member's
appointment.
may be convened at the call of the commissioner or the written request
of any three (3) members. The board shall:
(1) adopt rules to hold and conduct hearings concerning all
matters within its authority;
(2) keep a record of all meetings and transactions;
(3) adopt rules to carry out its business; and
(4) adopt a schedule of civil penalties for violations of
IC 9-17-8, IC 9-18-26, IC 9-18-27, IC 9-22-4, and this article.
SECTION 29. IC 9-23-1-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. Five (5) members of
the advisory board constitute a quorum for doing business. The
majority vote of the members of the quorum, present and voting, is
required for the passage of a matter put to a vote of the advisory board.
The chairman shall vote only in the case of a tie of the voting
members and shall not vote in a hearing initiated under section
8(1)(B) of this chapter.
SECTION 30. IC 9-23-1-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. The advisory board
is vested with the following powers:
(1) To consult with and advise the bureau. conduct hearings on:
(A) protests or disputes arising under this article initiated
by any person listed in IC 9-23-2-1; or
(B) a violation of IC 9-17-8, IC 9-18-26, IC 9-18-27,
IC 9-22-4, and this article by an alleged violator or licensee
initiated by the commissioner.
(2) To suggest rules, including the following:
(A) The contents of forms.
(B) Methods and procedures for the investigation and
evaluation of the qualifications of applicants for licenses.
(C) The criteria upon which to issue, deny, suspend, and
revoke licenses.
(D) Procedures for the investigation into and conduct of
hearings on unfair practices. conduct all hearings in
accordance with IC 4-21.5, except that the board may not
use an administrative law judge to conduct the hearings on
protests or disputes brought under subdivision 1(A).
(3) To levy and collect civil penalties.
(4) To issue cease and desist orders.
SECTION 31. IC 9-23-1-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 9. (a) Upon receipt of a protest or dispute filed within
two (2) years of the alleged unauthorized activity, the board shall
set the matter for a hearing under IC 4-21.5 not later than sixty
(60) days after the filing.
(b) Except for a protest or dispute initiated under section
8(1)(B) of this chapter, the person who files a protest or dispute
with the board shall pay a filing fee of five hundred dollars ($500).
The filing fee shall be deposited in the motor vehicle highway fund
as provided by IC 9-23-2-13.
SECTION 32. IC 9-23-1-10 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 10. In addition to IC 4-21.5-4, after a timely protest
or dispute has been filed, if it appears to the board that a person is
engaged or about to engage in acts or practices that constitute a
violation of:
(1) this article; or
(2) any rule prescribed under this article;
the board may apply for an injunction to a court with jurisdiction
without notice to the person. Upon the proper showing, the court
may enter a preliminary injunction or temporary restraining order
without bond to enforce this article.
SECTION 33. IC 9-23-1-11 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 11. (a) If the board determines, after a proceeding
conducted under IC 4-21.5 and the rules of the board, that a person
is violating or has violated this article or any rule or order of the
board issued under this article, the board may impose a civil
penalty not to exceed two thousand dollars ($2,000) for each day of
violation and for each act of violation. A civil penalty recovered
under this section shall be deposited in the motor vehicle highway
account (IC 8-14-1) as provided in IC 9-23-2-13.
(b) In determining the amount of a civil penalty to be levied
under this section, the board shall consider:
(1) the severity of the violation, including but not limited to
the nature, circumstances, extent, and gravity of the
prohibited act, and the harm or potential harm to the safety
of the public;
(2) the economic damage to the public caused by the violation;
(3) the history of any previous violations by the person;
(4) any efforts made to correct the violations by the violator;
(5) factors relevant to establishing the civil penalty in an
amount sufficient to deter future violations; and
(6) other matters that justice requires.
SECTION 34. IC 9-23-1-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 12. (a) If the board finds that a person is violating this
article or any rule or order of the board issued under this article,
the board may serve a notice to require the person to appear and
show cause as to why a cease and desist order should not be issued
concerning the violation. A temporary cease and desist order may
be granted with or without bond or other security if:
(1) the order is necessary to the performance of the duties
delegated to the board or is otherwise necessary for
maintaining the status quo between two (2) or more adverse
parties before the board;
(2) a party before the board is entitled to relief demanded of
the board, and all or part of the relief requires the restraint of
some act prejudicial to the party;
(3) a person:
(A) is performing;
(B) is about to perform; or
(C) is allowing or encouraging the performance of;
an act relating to the subject of a contested case pending
before the board, in violation of the rights of a party before
the board, and the act would tend to render the board's order
in that case to no effect; or
(4) substantial injury to the rights of a person subject to the
board's jurisdiction is threatened irrespective of any remedy
at law.
(b) Proceedings under this section are governed by IC 4-21.5
and the board's rules relating to contested cases to the extent the
rules are not inconsistent with IC 4-21.5. Temporary cease and
desist orders remain in effect until vacated or until ninety (90) days
after the date of issuance. Permanent cease and desist orders may
be issued under IC 4-21.5-3. Appeal of a temporary cease and
desist order shall be made to the board before seeking judicial
review. Appeal by judicial review of a permanent cease and desist
order shall be made under IC 4-21.5-5.
SECTION 35. IC 9-23-1-13 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 13. (a) Actions under this chapter shall be
commenced within two (2) years after the cause of action accrues.
However, if a person liable conceals the cause of action from the
knowledge of the individual entitled to bring the action, the period
before the discovery of the cause of action by the individual entitled
shall be excluded in determining the time limit for the
commencement of the action.
(b) If a cause of action accrues during the pendency of any civil,
criminal, or administrative proceeding against a person brought by
the United States or any of its agencies under the antitrust laws, the
federal Trade Commission Act (15 U.S.C. 41 et seq.), any other
federal act, or laws regarding franchising, the action may be
commenced not later than one (1) year after the final disposition of
the civil, criminal, or administrative proceeding.
SECTION 36. IC 9-23-1-14 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 14. (a) Before the commissioner may file a petition
with the board under section 8(1)(B) of this chapter regarding a
violation of IC 9-17-8, IC 9-18-26, IC 9-18-27, IC 9-22-4, this
article, or any rule governing the sale, distribution, or advertising
of vehicles, the commissioner must have issued a warning to the
alleged violator.
(b) The commissioner shall issue a violation citation for each
subsequent recurrence of a violation for which the commissioner
has issued a warning.
(c) Evidence of the warning and subsequent violation citations
shall be provided with the filing for a hearing with the board under
section 8(1)(B) of this chapter.
SECTION 37. IC 9-23-2-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 38. IC 9-23-2-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 39. IC 9-23-3-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 0.5. 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 40. IC 9-23-3-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 41. IC 9-23-3-25 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 25. It is an unfair practice for a person to act as, offer
to act as, or hold oneself out to be a broker in the advertising,
buying, or selling of any new or used vehicle.
SECTION 42. IC 9-23-6-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 4. (a) A person who
violates this article or a rule or order of the bureau issued under this
article is subject to a civil penalty of not less than fifty dollars ($50)
and not more than one two thousand dollars ($1,000) ($2,000) for each
day of violation and for each act of violation, as determined by the
court. board. All civil penalties recovered under this article shall be
paid to the state.
(b) The commissioner may suspend or revoke the license of any
person licensed under this article who has not complied with an
order of the bureau issued under this article within thirty (30) days
after the issuance of the order.
SECTION 43. IC 9-23-6-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. At the request of the
bureau, the attorney general shall institute and conduct an action in the
name of the state for:
(1) the injunctive relief or to recover the civil penalty provided by
recovery of a penalty assessed under section 4 of this chapter;
(2) the injunctive relief provided by section 6 of this chapter or
by IC 9-23-1-10; or
(3) both.
SECTION 44. IC 9-29-8-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 45. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2002]: IC 9-17-4-5; IC 9-23-6-7.
SECTION 46. [EFFECTIVE JULY 1, 2002] (a) Notwithstanding
IC 9-23-1-2, as amended by this act, the requirement that a ninth
member be added to the motor vehicle sales review board does not
apply to the motor vehicle sales review board until January 1,
2003.
(b) The initial term of the ninth member begins January 1, 2003.
(c) This SECTION expires December 31, 2003.
SECTION 47. [EFFECTIVE JULY 1, 2002] (a) Notwithstanding
IC 9-23-1-2, as amended by this act, the requirement that members
of the motor vehicle sales review board must have maintained
continuous residency in Indiana for the two (2) years before
appointment does not apply to members of the former motor
vehicle sales advisory review board who were appointed under
IC 9-23-1-2(a)(1), IC 9-23-1-2(a)(3), IC 9-23-1-2(a)(4), and
IC 9-23-1-2(a)(5), before amendment by this act.
(b) A member of the former motor vehicle sales advisory board,
who was appointed before July 1, 2002, and who has not
maintained continuous residency in Indiana for the two (2) years
before July 1, 2002, shall serve the term of the appointment.
(c) This SECTION expires December 31, 2003.